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                                        EXHIBIT 10.2
			
	CUSTOM TRUCK ONE SOURCE, INC.
AMENDED AND RESTATED 2019 OMNIBUS INCENTIVE PLAN

PERFORMANCE STOCK UNIT GRANT NOTICE
Capitalized terms not specifically defined in this Performance Stock Unit Grant Notice (the “Grant Notice”) have the meanings given to them in the Amended and Restated 2019 Omnibus Incentive Plan (as amended from time to time, the “Plan”) of Custom Truck One Source, Inc. (f/k/a Nesco Holdings, Inc., the “Company”).
The Company has granted to the participant listed below (“Participant”) the Restricted Stock Units described in this Grant Notice (the “PSUs”), subject to the terms and conditions of the Plan and the Performance Stock Unit Agreement attached as Exhibit A (the “Agreement”), both of which are incorporated into this Grant Notice by reference.  
						
	Participant:	
	Grant Date:	
	Number of PSUs:	Tranche 1 PSUs:
Tranche 2 PSUs:

	Performance Years:	Fiscal years ending December 31, 2021, 2022, 2023 and 2024
	Vesting Schedule:	Subject to the terms of the Agreement, the PSUs will vest as follows:
(1) 25% of the Tranche 1 PSUs (the “Eligible Tranche 1 PSUs”) will vest on the last day of each fiscal year 2021 through 2024 (each, a “Performance Year” and collectively, the “Performance Period”) if the volume-weighted average trading price per Share on the New York Stock Exchange (the “VWAP”) equals or exceeds [REDACTED] for 30 consecutive trading days during the applicable Performance Year (the “Tranche 1 Performance Target”); provided that (a) up to 10 consecutive trading days from the fiscal year immediately preceding or immediately following the applicable Performance Year (the “Overlap Days”) may be used for purposes of measuring attainment of the Tranche 1 Performance Target, (b) the Overlap Days cannot be used to measure attainment of the Tranche 1 Performance Target for more than one Performance Year, (c) the Overlap Days will be applied to the first Performance Year that its use would result in attainment of the Tranche 1 Performance Target and (d) if the Tranche 1 Performance Target for a Performance Year is attained after the final day of the Performance Year (as a result of the use of the Overlap Days from the fiscal year following the Performance Year), the Eligible Tranche 1 PSUs for such Performance Year will vest on the final day of the applicable 30 consecutive trading day period; and provided further that if during a Performance Year, Platinum Equity, LLC or any affiliate thereof consummates a sale of Shares to an unaffiliated third party at a time when the price per Share on the New York Stock Exchange equals or exceeds [REDACTED], the Tranche 1 Performance Target for such Performance Year will be deemed attained as of the date of such sale.
(2) the Tranche 2 PSUs will vest pursuant to the vesting schedule set forth in this Grant Notice or the alternate vesting schedule set forth in Appendix A (“Appendix A”) to the Agreement (each, a “Tranche 2 Vesting Schedule”) based on whichever Tranche 2 Vesting Schedule results in a higher number of Tranche 2 PSUs for the Performance Year becoming vested or eligible to vest (and in the event such numbers are equal, the vesting schedule in this Grant Notice will apply); provided that in no event shall more than an aggregate of (i) 25% of the Tranche 2 PSUs have vested as of the end of the 2021 Performance Year; (ii) 50% of the Tranche 2 PSUs have vested as of the end of the 2022 Performance Year; (iii) 75% of the Tranche 2 PSUs have vested as of the end of the 2023 Performance Year; and (iv) 100% of the Tranche 2 PSUs vest pursuant to this Grant Notice, Appendix A or the Agreement (each a “Tranche 2 Threshold”). In the event the Tranche 2 Vesting Schedules result in a number of Tranche 2 PSUs becoming eligible to vest in excess of a Tranche 2 Threshold, the number of Tranche 2 PSUs that actually vest at the end of the applicable year shall be reduced to the applicable Tranche 2 Threshold (such reduced Tranche 2 PSUs, the “Excess PSUs”) and such Excess PSUs shall be eligible to vest in a subsequent Performance Year in accordance with the terms of this Grant Notice, Appendix A or the Agreement. 
Tranche 2 Vesting Schedule pursuant to this Grant Notice:
25% of the Tranche 2 PSUs (the “Eligible Tranche 2 PSUs”) will vest on the last day of each Performance Year if the VWAP equals or exceeds [REDACTED] for 60 consecutive trading days during the applicable Performance Year (the “Tranche 2 Performance Target” and together with the Tranche 1 Performance Target, the “Performance Targets”); provided that (a) the Overlap Days may be used for purposes of measuring attainment of the Tranche 2 Performance Target, (b) the Overlap Days cannot be used to measure attainment of the Tranche 2 Performance Target for more than one Performance Year, (c) the Overlap Days will be applied to the first Performance Year that its use would result in attainment of the Tranche 2 Performance Target and (d) if the Tranche 2 Performance Target for a Performance Year is attained after the final day of the Performance Year (as a result of the use of the Overlap Days from the fiscal year following the Performance Year), the Eligible Tranche 2 PSUs for such Performance Year will vest on the final day of the applicable 60 consecutive trading day period.
Notwithstanding the foregoing, in the event that any portions of the Tranche 1 PSUs or Tranche 2 PSUs that were eligible to vest in a Performance Year do not vest due to the failure to achieve the Tranche 1 Performance Target or the Tranche 2 Performance Target, as applicable, for such Performance Year (such PSUs, the “Unearned PSUs”), then the Unearned PSUs shall remain eligible to vest as Tranche 1 PSUs or Tranche 2 PSUs, as applicable, and the Eligible Tranche 1 PSUs and the Eligible Tranche 2 PSUs shall be calculated based on the number of remaining Performance Years in the Performance Period.  
By way of examples:
(1) If the Eligible Tranche 1 PSUs for the Performance Year ending December 31, 2021 do not vest due to the failure to attain the Tranche 1 Performance Target during such Performance Year, then such Unearned PSUs remain Tranche 1 PSUs, and one-third (1/3) of the Tranche 1 PSUs will be “Eligible Tranche 1 PSUs” for each of the remaining Performance Years.
(2)  If (i) the Eligible Tranche 2 PSUs for the Performance Year ending December 31, 2021 do not vest due to the failure to attain the Tranche 2 Performance Target during such Performance Year, (ii) the EBITDA Goal for the Performance Year ending December 31, 2021 is achieved at the target level resulting in 25% of the Tranche 2 PSUs becoming eligible to vest December 31, 2022 under Appendix A and (iii) the Tranche 2 Performance Target is achieved for the Performance Year ending December 31, 2022 resulting in 33% of the Tranche 2 PSUs becoming eligible to vest December 31, 2022, the number of Tranche 2 PSUs that actually vest on December 31, 2022 shall be 50% of the Tranche 2 PSUs (due to application of the Tranche 2 Threshold) and the Excess PSUs shall remain eligible to vest in a subsequent Performance Year in accordance with the terms of the Grant Notice, Appendix A or the Agreement.
    (a) Assuming the same facts as Example 2 and further that (i) the EBITDA Goal for the Performance Year ending December 31, 2022 is attained at the threshold level resulting in 6.25% of the Tranche 2 PSUs becoming eligible to vest December 31, 2023 under Appendix A and (ii) the Tranche 2 Performance Target is not achieved for the Performance Year ending December 31, 2023, the number of Tranche 2 PSUs that actually vest on December 31, 2023 shall be 0% of the Tranche 2 PSUs (because vesting under the Grant Notice for 2022 results in a higher number of Tranche 2 PSUs vesting or becoming eligible to vest for such Performance Year).
    (b) Assuming the same facts as Example 2(a) except that the Tranche 2 Performance Target is achieved for the Performance Year ending December 31, 2023, the number of Tranche 2 PSUs that actually vest on December 31, 2023 shall be 25% of the Tranche 2 PSUs (due to application of the Tranche 2 Threshold) and the Excess PSUs shall remain eligible to vest in a subsequent Performance Year in accordance with the terms of the Grant Notice, Appendix A or the Agreement.
    (c) Assuming the same facts as Example 2(a) and further that (i) the EBITDA Goal for the Performance Year ending December 31, 2023 is attained at below threshold level resulting in none of the Tranche 2 PSUs becoming eligible to vest December 31, 2024 under Appendix A, (ii) the EBITDA Goal for the Performance Year ending December 31, 2024 is attained at the target level resulting in 25% of the Tranche 2 PSUs becoming eligible to vest December 31, 2025 under Appendix A and (iii) the Tranche 2 Performance Target is not achieved for the Performance Year ending December 31, 2024, (A) none of the Tranche 2 PSUs will vest on December 31, 2024, (B) 25% of the Tranche 2 PSUs (representing all of the unvested Tranche 2 PSUs that are no longer eligible to vest under the terms of the Grant Notice, Appendix A or the Agreement) will be forfeited for no consideration on December 31, 2024 and (C) 25% of the Tranche 2 PSUs will vest on December 31, 2025.
    (d) Assuming the same facts as Example 2(a) and further that (i) the EBITDA Goal for the Performance Years ending December 31, 2023 and 2024 is attained at below threshold level resulting in none of the Tranche 2 PSUs becoming eligible to vest December 31, 2024 or 2025 under Appendix A and (ii) the Tranche 2 Performance Target is not achieved for the Performance Year ending December 31, 2024, (A) none of the Tranche 2 PSUs will vest on December 31, 2024 and (B) 50% of the Tranche 2 PSUs (representing all of the unvested Tranche 2 PSUs) will be forfeited for no consideration on December 31, 2024.
(3) If the Eligible Tranche 1 PSUs for the Performance Year ending December 31, 2021 vest and the Eligible Tranche 1 PSUs for the Performance Year ending December 31, 2022 do not vest due to the failure to attain the Tranche 1 Performance Target during such Performance Year, then such Unearned PSUs for the Performance Year ending December 31, 2022 will remain Tranche 1 PSUs and one-half (1/2) of the Unearned PSUs that are Tranche 1 PSUs will be “Eligible Tranche 1 PSUs” for each of the remaining Performance Years.
(4) If none of the Eligible Tranche 1 PSUs vest for the Performance Years ending December 31, 2021, 2022 or 2023 due to the failure to attain the Tranche 1 Performance Target for such Performance Years, but the Tranche 1 Performance Target is achieved during the Performance Year ending December 31, 2024, 100% of the Eligible Tranche 1 PSUs will vest for the Performance Year ending December 31, 2024.
(5) If (i) none of the Eligible Tranche 2 PSUs vest for the Performance Years ending December 31, 2021, 2022 or 2023 due to the failure to attain the Tranche 2 Performance Target for such Performance Years, (ii) the EBITDA Goal for the Performance Years ending December 31, 2021, 2022 and 2023 is achieved at the target level resulting in 25% of the Tranche 2 PSUs becoming eligible to vest on each of December 31, 2022, 2023 and 2024 and (iii) the Tranche 2 Performance Target is achieved for the Performance Year ending December 31, 2024 resulting in 100% of the Tranche 2 PSUs becoming eligible to vest December 31, 2024, the number of Tranche 2 PSUs that actually vest on December 31, 2024 shall be 50% of the Tranche 2 PSUs (due to application of the Tranche 2 Threshold and with 25% having previously vested on each of December 31, 2022 and 2023) and no Excess PSUs shall remain eligible to vest because an aggregate of 100% of the Tranche 2 PSUs have vested.
For the avoidance of doubt, but except to the extent any Tranche 2 PSUs become eligible to vest pursuant to the Tranche 2 Vesting Schedule set forth on Appendix A, (x) if a Performance Target is not achieved in the final Performance Year of the Performance Period, any unvested PSUs as of December 31, 2024 will be forfeited for no consideration and (y) if none of the Performance Targets are achieved during the Performance Period, then all of the PSUs will be forfeited for no consideration.

By Participant’s signature below, Participant agrees to be bound by the terms of this Grant Notice, the Plan and the Agreement.  Participant has reviewed the Plan, this Grant Notice and the Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Grant Notice and fully understands all provisions of the Plan, this Grant Notice and the Agreement.  Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under the Plan, this Grant Notice or the Agreement.  Participant and the Company agree that this Grant Notice and the Agreement amend, restate and supersede any prior grant notice or performance stock unit agreement between Participant and the Company governing the PSUs described herein.
												
	CUSTOM TRUCK ONE SOURCE, INC.	PARTICIPANT
	By:		
	Name:		[Participant Name]
	Title:			

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                                        EXHIBIT A
PERFORMANCE STOCK UNIT AGREEMENT
Capitalized terms not specifically defined in this Agreement have the meanings specified in the Grant Notice or Appendix A, if not defined in the Grant Notice or Appendix A, in the Plan.
Article I.
GENERAL
1.1Award of PSUs and Dividend Equivalents.  
(a)The Company has granted the PSUs to Participant effective as of the grant date set forth in the Grant Notice (the “Grant Date”).  Each PSU represents the right to receive one Share or, at the option of the Company, an amount of cash, in either case, upon the achievement of certain performance goals as set forth in the Grant Notice, Appendix A and this Agreement.  Participant will have no right to the distribution of any Shares or payment of any cash until the time (if ever) the PSUs have vested.
(b)The Company hereby grants to Participant, with respect to each PSU, a Dividend Equivalent for ordinary cash dividends paid to substantially all holders of outstanding Shares with a record date after the Grant Date and prior to the date the applicable PSU is settled, forfeited or otherwise expires.  Each Dividend Equivalent entitles Participant to receive the equivalent value of any such ordinary cash dividends paid on a single Share.  The Company will establish a separate Dividend Equivalent bookkeeping account (a “Dividend Equivalent Account”) for each Dividend Equivalent and credit the Dividend Equivalent Account (without interest) on the applicable dividend payment date with the amount of any such cash paid.
1.2Incorporation of Terms of Plan.  The PSUs are subject to the terms and conditions set forth in this Agreement and the Plan, which is incorporated herein by reference.  In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan will control, except as otherwise expressly provided in Section 2.1(b)(ii).
1.3Unsecured Promise.  The PSUs and Dividend Equivalents will at all times prior to settlement represent an unsecured Company obligation payable only from the Company’s general assets.
Article II.
VESTING; FORFEITURE AND SETTLEMENT
1.4Vesting; Change in Control.  
(a)Subject to Section 2.2 hereof and subject to any potential reductions due to mitigation of any excise taxes under Section 4999 of the Code as may be set forth in any employment or other agreement Participant and the Company are parties to, the PSUs will vest according to the vesting schedule in the Grant Notice or Appendix A, as applicable, except that any fraction of a PSU that would otherwise be vested will be accumulated and will vest only when a whole PSU has accumulated.
(b)Notwithstanding the foregoing or the application of the Tranche 2 Threshold, if a Change in Control occurs after the Grant Date and during the Performance Period and the consideration payable per Share in such Change in Control (the “CIC Price”) equals or exceeds a Performance Target, and provided that Participant has not incurred a Termination of Service prior to such Change in Control, then:
(i)if the consideration payable for Shares in the Change in Control is at least 80% cash, (A) all unvested Tranche 1 PSUs will become vested immediately prior to such Change in Control if the CIC Price equals or exceeds the Tranche 1 Performance Target and (B) all unvested 

Tranche 2 PSUs will become vested immediately prior to such Change in Control if the CIC Price equals or exceeds the Tranche 2 Performance Target; and
(ii)if the consideration payable for Shares in the Change in Control is not at least 80% cash, the CIC Price shall be the public market closing price per Share on the day that is three (3) days before the date of the Change in Control (or the last preceding trading day, if such day is not a trading day), and (A) all unvested Tranche 1 PSUs will remain outstanding, convert to time-based vesting and vest at the end of each Performance Year according to and subject to the terms of the vesting schedule in the Grant Notice without regard to any Performance Targets if the CIC Price equals or exceeds the Tranche 1 Performance Target (the “Converted Tranche 1 PSUs”) and (B) all unvested Tranche 2 PSUs will remain outstanding, convert to time-based vesting and vest at the end of each Performance Year according to and subject to the terms of the vesting schedule in the Grant Notice without regard to any Performance Targets or EBITDA Goals if the CIC Price equals or exceeds the Tranche 2 Performance Target (the “Converted Tranche 2 PSUs” and, together with the Converted Tranche 1 PSUs, the “Converted PSUs”); provided that, notwithstanding Section 8.2 of the Plan, if any unvested Converted PSUs are not continued, converted, assumed or replaced by the Company or any successor or survivor entity or a parent or subsidiary thereof in such Change in Control, and Participant has not had a Termination of Service, then immediately prior to the Change in Control such unvested Converted PSUs shall become fully vested.
For the purposes of this Section 2.1(b), (i) the Converted PSUs will not be considered continued, converted, assumed or replaced unless, following the Change in Control, the Converted PSUs or awards into which they were converted have substantially the same economic value immediately following such continuation, conversion, assumption or replacement as the Converted PSUs had immediately prior to such continuation, conversion, assumption or replacement and (ii) for the avoidance of doubt, the Administrator will have the authority to determine whether the consideration payable for Shares in a Change in Control is at least 80% cash.
For the avoidance of doubt, (i) if the CIC Price is less than the Tranche 1 Performance Target, all unvested PSUs will be forfeited for no consideration upon the Change in Control, (ii) if the CIC Price is less than the Tranche 2 Performance Target but greater than or equal to the Tranche 1 Performance Target, all unvested Tranche 2 PSUs will be forfeited for no consideration upon the Change in Control (with the Tranche 1 PSUs being treated as set forth in Section 2.1(b)(i) or 2.1(b)(ii), as applicable), (iii) except as otherwise expressly provided in Section 2.1(b)(ii), the PSUs will in all events remain subject to Article VIII of the Plan and (iv) the Tranche 2 Threshold shall not apply to reduce the number of Tranche 2 PSUs eligible to vest under this Section 2.1(b), except that in no event shall more than 100% of the Tranche 2 PSUs vest pursuant to this Agreement.  
1.1Forfeiture; Termination of Service.  
(a)In the event of Participant’s Termination of Service for any reason, all unvested PSUs will immediately and automatically be cancelled and forfeited, except as otherwise (i) determined by the Administrator, (ii) provided in Section 2.2(b) or Section 2.2(c) or (iii) provided in a binding written agreement between Participant and the Company.  Dividend Equivalents (including any Dividend Equivalent Account balance) will vest or be forfeited, as applicable, upon the vesting or forfeiture of the corresponding PSU.  
(b)In the event Participant incurs a Termination of Service as a result of a termination by the Company or its Subsidiary without Cause [or by Participant for Good Reason], subject to Participant’s execution of a release of claims in a form reasonably acceptable to the Company and such release of claims becoming effective and irrevocable within 60 days following Participant’s Termination of Service, Participant will, immediately prior to such Termination of Service, vest in any Eligible Tranche 1 PSUs and Eligible Tranche 2 PSUs for the Performance Year in which the Termination of Service occurs so long as the applicable Performance Target has been achieved for such Performance Year; provided that, if the number of Tranche 2 PSUs that are eligible to vest at the end of the Performance Year in which the Termination of Service occurs based on achievement of the EBITDA Goals for the prior Performance Year exceeds the number of PSUs that would vest based on the 
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achievement of the Performance Target for the Performance Year in which the Termination of Service occurs, Participant will vest in such greater number of PSUs. 
(c)In the event Participant incurs a Termination of Service as a result of a termination by the Company or its Subsidiary without Cause [or by Participant for Good Reason, in each case,] upon or within one (1) year following a Change in Control in which the consideration payable for Shares in such Change in Control is not all cash, all then unvested Converted PSUs (or other awards into which they were converted or with which they were replaced) will become vested immediately prior to such Termination of Service.
(d)[For purposes herein, “Good Reason” shall mean the occurrence, without Participant’s written consent of any of the following circumstances:  (i) [a significant, material diminution of Participant’s position, duties, responsibilities or status with the Company; (ii)] a material reduction by the Company in Participant’s annual base salary[, other than in connection with broad based salary reductions affecting substantially all similarly situated Company employees]; (iii) a relocation of Participant’s primary work location by more than fifty (50) miles from the work location in effect immediately prior to such relocation, except for reasonable required travel on the Company’s business; or (iv) any breach by the Company of any material provision of this Agreement.  Notwithstanding the foregoing, Participant’s termination of employment shall not be a termination of employment for Good Reason unless (x) such termination occurs within six (6) months of the initial existence of the condition giving rise to such termination, (y) Participant gives written notice to the Company of the condition giving rise to such termination within ninety (90) days of its initial existence, and (z) the Company does not cure the condition giving rise to such termination within the thirty (30) day period beginning on the date it receives notice from Participant of such condition.  The foregoing definition shall not apply to the extent the term “Good Reason” is defined in any employment agreement between the Company and Participant (in which case such other Good Reason definition will instead apply).]
1.1Settlement.
(e)PSUs and Dividend Equivalents (including any Dividend Equivalent Account balance) will be paid in Shares or cash at the Company’s option as soon as administratively practicable after the vesting of the applicable PSU, but in no event more than sixty (60) days after the PSU’s vesting date or, if earlier, by March 15 of the year following the year of such vesting date.  Notwithstanding the foregoing, the Company may delay any payment under this Agreement that the Company reasonably determines would violate Applicable Law until the earliest date the Company reasonably determines the making of the payment will not cause such a violation (in accordance with Treasury Regulation Section 1.409A-2(b)(7)(ii)), provided the Company reasonably believes the delay will not result in the imposition of excise taxes under Section 409A.
(f)If a PSU is paid in cash, the amount of cash paid with respect to the PSU will equal the Fair Market Value of a Share on the latest practicable date preceding the payment date, as determined by the Company.  If a Dividend Equivalent is paid in Shares, the number of Shares paid with respect to the Dividend Equivalent will equal the quotient, rounded down to the nearest whole Share, of the Dividend Equivalent Account balance divided by the Fair Market Value of a Share on the latest practicable date preceding the payment date, as determined by the Company.
1.2Rights as Stockholder.  The holder of the PSUs shall not be, nor have any of the rights or privileges of, a stockholder of the Company, including, without limitation, voting rights and rights to dividends, in respect of the PSUs and any Shares underlying the PSUs and deliverable hereunder unless and until such Shares shall have been issued by the Company and held of record by such holder (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company).  No adjustment shall be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Article VIII of the Plan.
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Article III.
TAXATION AND TAX WITHHOLDING
1.1Representation.  Participant represents to the Company that Participant has reviewed with Participant’s own tax advisors the tax consequences of this Award and the transactions contemplated by the Grant Notice and this Agreement.  Participant is relying solely on such advisors and not on any statements or representations of the Company or any of its agents.
1.2Tax Withholding.  
(a)The Company has the right and option, but not the obligation, to treat Participant’s failure to provide timely payment in accordance with the Plan of any withholding tax arising in connection with the PSUs or Dividend Equivalents as Participant’s election to satisfy all or any portion of the withholding tax by requesting the Company retain Shares otherwise issuable under the Award.
(b)Participant acknowledges that Participant is ultimately liable and responsible for all taxes owed in connection with the PSUs and the Dividend Equivalents, regardless of any action the Company or any Subsidiary takes with respect to any tax withholding obligations that arise in connection with the PSUs or Dividend Equivalents.  Neither the Company nor any Subsidiary makes any representation or undertaking regarding the treatment of any tax withholding in connection with the awarding, vesting or payment of the PSUs or the Dividend Equivalents or the subsequent sale of Shares.  The Company and the Subsidiaries do not commit and are under no obligation to structure the PSUs or Dividend Equivalents to reduce or eliminate Participant’s tax liability.
Article IV.
OTHER PROVISIONS
1.1Administration.  The Administrator shall have the power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret, amend or revoke any such rules.  All actions taken and all interpretations and determinations made by the Administrator in good faith shall be final and binding upon Participant, the Company and all other interested persons.  No member of the Administrator or the Board shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan, this Agreement or the PSUs.  
1.2PSUs Not Transferable.  The PSUs shall be subject to the restrictions on transferability set forth in Section 9.1 of the Plan.
1.3Adjustments.  Participant acknowledges that the PSUs, the Shares subject to the PSUs and the Dividend Equivalents are subject to adjustment, modification and termination in certain events as provided in this Agreement and the Plan. In addition, in the event that, after the Grant Date, the Administrator determines that any acquisition or disposition of any business unit by the Company, any dividend or other distribution (whether in the form of cash, common stock, other securities, or other property), recapitalization, reclassification, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of Common Stock or other securities of the Company, issuance of rights to purchase Common Stock or other securities of the Company, any unusual or nonrecurring transactions or events affecting the Company or the financial statements of the Company, or changes in Applicable Laws, or changes in generally accepted accounting principles applicable to, or the accounting policies used by, the Company occur, such that an adjustment is determined by the Administrator to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available with respect to the PSUs, then the Administrator may in good faith and in such manner as it may deem equitable, adjust the Performance Targets and/or EBITDA Goals to reflect the projected effect of such transaction(s) or event(s). 
1.4Notices.  Any notice to be given under the terms of this Agreement to the Company must be in writing and addressed to the Company in care of the Company’s Secretary at the Company’s principal office or the Secretary’s then-current email address or facsimile number.  Any notice to be given under the terms of this Agreement to Participant must be in writing and addressed to Participant at 
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Participant’s last known mailing address, email address or facsimile number in the Company’s personnel files.  By a notice given pursuant to this Section, either party may designate a different address for notices to be given to that party.  Any notice will be deemed duly given when actually received, when sent by email, when sent by certified mail (return receipt requested) and deposited with postage prepaid in a post office or branch post office regularly maintained by the United States Postal Service, when delivered by a nationally recognized express shipping company or upon receipt of a facsimile transmission confirmation.
1.5Titles.  Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.
1.6Governing Law.  The laws of the State of Delaware 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.
1.7Conformity to Securities Laws.  Participant acknowledges that the Plan, the Grant Notice and this Agreement are intended to conform to the extent necessary with all Applicable Laws and, to the extent Applicable Laws permit, will be deemed amended as necessary to conform to Applicable Laws.
1.8Successors and Assigns.  The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement will inure to the benefit of the successors and assigns of the Company.  Subject to the restrictions on transfer set forth in the Plan, this Agreement will be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties hereto.
1.9Limitations Applicable to Section 16 Persons.  Notwithstanding any other provision of the Plan or this Agreement, if Participant is subject to Section 16 of the Exchange Act, the Plan, the Grant Notice, this Agreement, the PSUs and the Dividend Equivalents will be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3) that are requirements for the application of such exemptive rule.  To the extent Applicable Laws permit, this Agreement will be deemed amended as necessary to conform to such applicable exemptive rule.
1.10Entire Agreement.  Except as expressly provided herein, the Plan, the Grant Notice and this Agreement (including any exhibit hereto) constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and Participant with respect to the subject matter hereof.
1.11Agreement Severable.  In the event that any provision of the Grant Notice or this Agreement is held illegal or invalid, the provision will be severable from, and the illegality or invalidity of the provision will not be construed to have any effect on, the remaining provisions of the Grant Notice or this Agreement.
1.12Section 409A. The PSUs are not intended to constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code (together with any Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the date hereof, “Section 409A”).  However, notwithstanding any other provision of the Plan, the Grant Notice or this Agreement, if at any time the Administrator determines that the PSUs (or any portion thereof) may be subject to Section 409A, the Administrator shall have the right in its sole discretion (without any obligation to do so or to indemnify Participant or any other person for failure to do so) to adopt such amendments to the Plan, the Grant Notice or this Agreement, or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, as the Administrator determines are necessary or appropriate either for the PSUs to be exempt from the application of Section 409A or to comply with the requirements of Section 409A.
1.13Limitation on Participant’s Rights.  Participation in the Plan confers no rights or interests other than as herein provided.  This Agreement creates only a contractual obligation on the part of the Company as to amounts payable and may not be construed as creating a trust.  Neither the Plan nor any 
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underlying program, in and of itself, has any assets.  Participant will have only the rights of a general unsecured creditor of the Company with respect to amounts credited and benefits payable, if any, with respect to the PSUs and Dividend Equivalents, and rights no greater than the right to receive cash or the Shares as a general unsecured creditor with respect to the PSUs and Dividend Equivalents, as and when settled pursuant to the terms of this Agreement.
1.14Not a Contract of Employment.  Nothing in the Plan, the Grant Notice or this Agreement confers upon Participant any right to continue in the employ or service of the Company or any Subsidiary or interferes with or restricts in any way the rights of the Company and its Subsidiaries, which rights are hereby expressly reserved, to discharge or terminate the services of Participant at any time for any reason whatsoever, with or without Cause, except to the extent expressly provided otherwise in a written agreement between the Company or a Subsidiary and Participant.
1.15Counterparts.  The Grant Notice may be executed in one or more counterparts, including by way of any electronic signature, subject to Applicable Law, each of which will be deemed an original and all of which together will constitute one instrument.
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Appendix A
Alternate Tranche 2 Vesting Schedule
In the event the Administrator determines that the Company achieved an EBITDA Goal (as defined below) for a Performance Year, 25% of the Tranche 2 PSUs (each such 25% tranche of Tranche 2 PSUs, the “EBITDA Eligible PSUs”) will be eligible to vest on the last day of the year that immediately follows the Performance Year (the “Immediately Following Year”) for which such EBITDA Goal was achieved as follows:  (i) if the Company achieves the EBITDA Goal at the target level, 100% of the EBITDA Eligible PSUs for such Performance Year will vest on the last day of the Immediately Following Year, subject to Section 2.2(a) of the Agreement; (ii) if the Company achieves the EBITDA Goal at the threshold level, 25% of the EBITDA Eligible PSUs for such Performance Year will vest on the last day of the Immediately Following Year, subject to Section 2.2(a) of the Agreement; and (iii) if the Company achieves the EBITDA Goal that is between the target and threshold level, the number of EBITDA Eligible PSUs for such Performance Year that will vest on the last day of the Immediately Following Year (subject to Section 2.2(a) of the Agreement) will be determined based on straight-line interpolation between such performance levels. In no event will any EBITDA Eligible PSUs vest under this Appendix A for a Performance Year if EBITDA performance is below the threshold level for such Performance Year.
“EBITDA Goal” means (i) for the 2021 Performance Year, [REDACTED] at the target performance level (which shall be deemed achieved), (ii) for the 2022 Performance Year, [REDACTED] at the target performance level, which shall be subject to adjustment to reflect acquisitions and other non-recurring events in accordance with Section 4.3 of the Agreement (the “2022 EBITDA Target”), and 95% of the 2022 EBITDA Target at the threshold performance level, and (iii) for the 2023 and 2024 Performance Years, those EBITDA goals established by the Board in its discretion not later than 90 days into the applicable Performance Year based on the annual operating plan budget for such Performance Year, which goals (including the target and threshold levels, which threshold level will be 95% of the applicable target level) shall be communicated to the Participant as soon as practicable thereafter and shall be subject to adjustment to reflect acquisitions and other non-recurring events in accordance with Section 4.3 of the Agreement.
Any portion of the EBITDA Eligible PSUs for a Performance Year that do not become eligible to vest on the last day of the Immediately Following Year under this Appendix A due to the failure to achieve the EBITDA Goal at the target level for such Performance Year shall no longer be eligible to vest based on the achievement of an EBITDA Goal.  
For purposes of this Appendix, “EBITDA” means the Company’s earnings before interest, taxes, depreciation and amortization, as determined by the Committee in a manner consistent with the methodologies used for developing the Company’s annual operating plan budget and subject to adjustment in accordance with Section 4.3 of the Agreement.
Notwithstanding anything in this Appendix A to the contrary, vesting of the Tranche 2 PSUs pursuant to the Tranche 2 Vesting Schedule in this Appendix A shall in all events be subject to the terms of the Agreement and reduction to comply with the applicable Tranche 2 Threshold.

A-7Document

			
	Exhibit 10.1
 

SEPARATION AGREEMENT
This Separation Agreement (this “Agreement”) is entered into as of August 7, 2022 by and between Kewsong Lee (“Employee”) and The Carlyle Group Employee Co., L.L.C., a Delaware limited liability company (“Employer”), on behalf of itself, its members, partners, directors, officers and any subsidiaries and affiliates controlled by, controlling, or under common control with Employer, including any entity doing business under The Carlyle Group name, and any of each of their respective assigns (collectively, “Carlyle”) in order to further the mutually desired terms and conditions set forth herein.  
WHEREAS, Employee is an employee of Employer pursuant to an employment agreement dated October 23, 2017, as amended effective as of January 1, 2020 (the “Employment Agreement”); and
WHEREAS, Employee, Employer and Carlyle have mutually agreed that Employee will separate from employment with Employer to pursue new opportunities on the terms and conditions of separation as set forth below;
WHEREAS, in connection with the cessation of Employee’s employment with Employer, the parties desire to agree on the terms and conditions of separation as set forth below. 
NOW, THEREFORE, in consideration of the covenants, releases, representations, mutual promises, and terms and conditions contained herein, the receipt and sufficiency of which each of the undersigned hereby acknowledges, Employee and Carlyle agree as follows:
1.    Separation. 
a.    Employee’s employment with Employer is terminating effective as of August 7, 2022 (the “Separation Date”).  Employee hereby resigns from the Board of Directors of the Carlyle Group, Inc. and as an officer, director, board member, agent or any similar position with Carlyle, any affiliate of Carlyle or any portfolio company or investment in which Carlyle or an affiliate of Carlyle has acquired a direct or indirect interest, in each case, effective as of the Separation Date.  Employee acknowledges and agrees that such resignations are permanent and shall not be impacted by any revocation of this Agreement.  Concurrently with the signing of this Agreement, Employee is providing to Carlyle the Confirmation of Resignation and Power of Attorney attached hereto as Attachment A in order to facilitate any further action that is required in order to remove Employee from all applicable positions described in this Section 1(a).  Each of Employee and Carlyle hereby waive any applicable notice provisions.  
b.    Subsequent to the Separation Date, Employee shall have no authority to, and hereby agrees not to, legally, contractually or otherwise attempt to bind Carlyle or its affiliates or any investment funds or investments managed by or affiliated with Carlyle or to incur any liabilities on their behalf.  Subsequent to the Separation Date, Employee will not represent Employee to any person or entity as having authority to act on behalf of Carlyle.
c.    Employee hereby agrees that Employee will provide consulting services to Carlyle as a Senior Advisor during the period commencing on the Separation Date and continuing through December 31, 2022 or such earlier date as of which the consulting services are terminated pursuant to this Section 1(c) (the “Transition Period”).  For purposes of this Section 1(c), Employee shall be referred to as “Senior Advisor.”  Such services shall comprise assisting in the transition of duties as reasonably requested by any executive officer of Carlyle or any member of the Office of the CEO of Carlyle (the “Services”).  To the extent Carlyle requests that Senior Advisor travel on Carlyle business during the Transition Period, such travel shall be subject to Senior Advisor and Carlyle reasonably agreeing in advance to the manner of, and reimbursement for, such travel costs.  During the Transition Period (and in any event until 
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September 15, 2022), Senior Advisor will be entitled to receive continued administrative support and assistance from the individual who serves as Senior Advisor’s executive assistant as of the Separation Date (the “Executive Assistant”), for so long as the Executive Assistant remains employed by Carlyle during such period (and shall be permitted to solicit and/or hire the Executive Assistant).  Senior Advisor will not disclose to third parties, and will use reasonable best efforts to protect, the confidentiality of any non-public business, financial and investment information related to Carlyle and its portfolio companies received in connection with the Services, subject to the exceptions set forth in Section 7(b) of Attachment B.  Senior Advisor agrees to comply with all rules, laws, and regulations that are related to the Services (including, but not limited to, securities laws prohibiting purchases or sales of securities while aware of material, non-public information regarding such securities) and to comply with the Carlyle’s investment supervision and pre-clearance protocols, as may be required by Carlyle.  The Services will automatically terminate on December 31, 2022, provided that either Senior Advisor or the Carlyle may terminate the Services for any reason by providing 15 days’ notice to the other party in writing or by email and Carlyle may terminate the Services immediately for Cause (as defined in the Employment Agreement) without providing any notice to Senior Advisor.
2.    Payments and Other Consideration.  
a.    Employee is entitled to receive Employee’s base salary through the Separation Date payable through Employer’s regularly scheduled bi-weekly payroll dates. 
b.    Contingent on Employee signing and not revoking this Agreement, Employee shall receive the following cash severance payments, less applicable withholdings and taxes, which Employee agrees are in full satisfaction of any and all payments owed to Employee under Section 6(a) of the Employment Agreement: 
i.    an aggregate amount equal to $1,405,000, which corresponds to the aggregate amount, subject to rounding, of the following monthly payments (prorated for partial months) for the remainder of the Term (as defined in the Employment Agreement):  (A) Employee’s base salary divided by 12, plus (B) Employee’s Average Annual Bonus (as defined in the Employment Agreement) for calendar years 2020 and 2021, divided by 12, plus (C) Employee’s (and his covered dependents’) monthly COBRA (as defined below) premium, payable in five equal monthly installments commencing with the first regularly scheduled payroll date that is at least 45 days after the Separation Date; and  
ii.    a lump sum cash amount, payable within 30 days following February 1, 2023, equal to a pro rata portion, subject to rounding, of the Annual Bonus (as defined in the Employment Agreement) for 2022 based on the actual per share dividends paid by the Company on its common stock with respect to calendar year 2022, which is expected to equal $1,950,000.  
c.    Except as provided in this Agreement, Employee shall not be entitled to receive from Carlyle any further base salary, bonuses or other payments or amounts.  Carlyle shall reimburse Employee for any unreimbursed documented business expenses incurred prior to the Separation Date in accordance with the Carlyle expense reimbursement policy. Employee specifically acknowledges and agrees that the payments and benefits described herein are adequate consideration for the execution and performance of this Agreement by Employee.  All amounts due and payable under this Agreement are gross payments, and such gross amounts will be reduced by amounts required or authorized to be withheld by law, including all applicable federal, state and local withholding taxes and deductions.  Employee hereby authorizes Carlyle to withhold funds for taxes due under the Federal Insurance Contributions Act (“FICA”) from Employee’s final bi-weekly payroll amount or severance payment in connection with the restricted stock units (“RSUs”) of The Carlyle Group Inc. (the “Company”) that will vest under 
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the terms of this Agreement and the Award Agreements (as further described in Section 5 hereto). Employee agrees that with regard to federal, state and local income taxes that accrue on each upcoming vesting date of RSUs and performance-based restricted stock units (“PSUs”) of the Company that will vest under the terms of this Agreement and the Award Agreements, Employee automatically will participate in the sell-to-cover or other tax payment process offered to then current Carlyle employees.  Employee acknowledges and agrees that any future vesting of RSUs and PSUs may be subject to federal, state and local income tax withholding and that the RSU and PSU income and the applicable taxes withheld will be reported on a Form W-2 for the year in which any such vesting occurs.
d.    Employee will continue to be eligible for health insurance and other applicable employee benefits through the Separation Date. As of the Separation Date, Employee shall not be eligible to participate or continue to participate in any employee benefit plans or compensation arrangements of Carlyle or otherwise be entitled to any perquisite or fringe benefit, except: (i) that Employee will be entitled to elect insurance coverage following the Separation Date to the extent permitted under the Consolidated Omnibus Budget Reconciliation Act of 1986, as amended (“COBRA”); (ii) Employee will retain Employee’s interest in the Carlyle 401(k) plan that has become vested as of the Separation Date; and (iii) as otherwise specifically set forth in this Agreement.  
e.    Employee will cooperate with Carlyle at Carlyle’s expense to return Carlyle’s laptop computer and any other Carlyle equipment or property in Employee’s possession to Employer as soon as practicable following the Separation Date, or at such later date determined by Carlyle in order to facilitate Employee’s performance of services as a Senior Advisor.  For the avoidance of doubt, Employee will be permitted to retain his personal computer, telephone (including mobile phone) and phone number, which Carlyle acknowledges are his own.  Except as otherwise determined by Carlyle, in order to facilitate Employee’s performance of services as a Senior Advisor, Employee will cease to have access to Carlyle’s computer network, voicemail, email, file network, VPN access, and instant messaging as of the Separation Date and will relinquish Employee’s office security pass on the Separation Date, provided that Employee shall be entitled to retain access to Carlyle’s email and voicemail through the later of the end of the Transition Period and September 15, 2022.  For at least 60 days following the end of such email/voicemail access, Carlyle shall permit Employee to set up a customary email/voicemail message to direct correspondence to his personal account or phone.
f.    Notwithstanding anything herein to the contrary, following the Separation Date, Employee (i) shall be entitled to retain all business cards and names and contact information retained in Employee’s rolodex or Outlook and (ii) shall be entitled to remove from Carlyle’s premises (and, Carlyle shall reasonably assist Employee in gathering and removing) any personal documents (including, without limitation, any documents relating to Employee’s financial interests in Carlyle, including any funds, investment vehicles and accounts whose investments are or were managed by Carlyle, tax information, agreements or other contracts to which Employee is a party or a beneficiary, and information relating to employee benefit plans and entitlements) that is on Carlyle property (including electronically); provided that all documents covered by clause (ii) shall remain subject to all covenants and agreements for the benefit of Carlyle regarding confidentiality applicable thereto and under which Employee has any obligation.  
g.    Carlyle will reimburse Employee for, or pay directly, (i) Employee’s reasonable and documented legal fees and costs incurred in connection with the review, drafting and negotiation of this Agreement and other compensation arrangements and any ancillary documentation up to a maximum amount of $125,000, (ii) Employee’s reasonable and documented public relations, media and communication services fees and costs incurred in connection with Employee’s separation from employment up to a maximum amount of $75,000, and (iii) Employee’s reasonable and documented costs incurred through the Separation Date in 
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the Part 135 Certification of Employee’s personal aircraft and crew.  Reimbursements under this Section 2(g) are subject to Employee providing documentation that is reasonably satisfactory to Carlyle.  
3.    Carried Interest; Incentive Fees.     
a.    In Employee’s capacity as a member of certain Carlyle-controlled partnerships (including in Employee’s individual capacity and via The Kewsong Lee 2011 GST Trust) (the “ILP Entities”) that receive carried interest from those Carlyle investment funds listed on the carried interest summary provided by the Company to Employee on the date hereof (the “Carried Interest Summary”), Employee has been allocated sharing ratios representing Employee’s participation percentage in the carried interest derived from certain investments acquired by Carlyle investment funds through the Separation Date as are identified under the column heading “Investment” on the Carried Interest Summary (the “Acquired Investments”).  For the avoidance of doubt, the information contained in the Carried Interest Summary is current as of June 30, 2022.  
b.    Employee will continue to participate in the carried interest proceeds derived from the Acquired Investments in Employee’s capacity as a member of the relevant ILP Entities to the extent that Employee’s participation interest in such Acquired Investments has vested as of the Separation Date, as set forth under the column heading “Vested Percentage” in the Carried Interest Summary (the “Vested Participation”) and such percentage of future participation is listed under the column heading “Vested Effective” in the Carried Interest Summary.  As identified under the column heading “Additional Vesting” on the Carried Interest Summary, the vesting of all of Employee’s unvested participation interest in the Acquired Investments as of the Separation Date will be accelerated and become part of the Vested Participation effective as of the Effective Date (such accelerated vesting identified under the column heading “Additional Vesting” on the Carried Interest Summary, collectively, the “Additional Vested Participation”).  Employee will have a 0% sharing ratio in Employee’s capacity as a member of the ILP Entities for all investments acquired by the Carlyle funds after the Separation Date.  
c.    Employee’s Vested Participation and Additional Vested Participation  will continue to be subject to any relevant partnership agreements of the ILP Entities and the Carlyle funds and Carlyle policies and procedures regarding carried interest, including any required clawbacks, holdbacks, escrows, reserves, true-up obligations and similar obligations that may be required under such partnership agreements and Investment Sharing Ratio Letters, and to the cross-collateral effects of each of the Carlyle funds’ structure (such that losses (or gains) derived by any one of the Carlyle funds from other transactions entered into by such Carlyle fund may reduce the carried interest proceeds available for distribution with respect to the Vested Participation or Additional Vested Participation).  The terms and conditions of all such partnership agreements are unchanged by this Agreement and remain in full force and effect.  
d.    As of the Separation Date, Employee’s eligibility to share in and receive any payment in respect of any of the incentive fees earned by Carlyle (or any affiliate) in respect of TCG BDC, Inc. and TCG BDC II, Inc. shall terminate.  
4.    Coinvestments.  All fully funded personal coinvestments made by Employee (including in Employee’s individual capacity and via The Kewsong Lee 2011 GST Trust) prior to the Separation Date are 100% vested and will remain unaffected by the matters contemplated by this Agreement.  A summary of coinvestment interests in all such investments made prior to the Separation Date as of the most recent available date has been provided to Employee by the Company on the date hereof.  As of the Separation Date, Employee’s outstanding unfunded coinvestment commitments shall be reduced to zero and Employee shall not be eligible to continue to fund any unfunded coinvestment commitments.  For the avoidance of doubt, to the 
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extent that one or more investments in one or more investment funds or vehicles has been funded on Employee’s behalf on or prior to the Separation Date under the line of credit or credit facility for the applicable investment fund or investment vehicle, following the Separation Date, Employee hereby acknowledges that Employee continues to be obligated to fund the capital call(s) made with respect to such investment(s) and Employee remains a party to, and is bound by, the terms and conditions of the applicable Carlyle coinvestment partnership agreement and related documentation governing such coinvestment participation and any agreements Employee has entered into with Carlyle with respect to such coinvestment participation.  As of the Separation Date, Employee will not be eligible to invest in any future Carlyle coinvestment opportunities.  Notwithstanding Employee’s Separation, with respect to Employee’s vested coinvestment interests, Employee remains a party to, and is bound by, the terms and conditions of the Carlyle coinvestment partnership agreements and related documentation governing such coinvestment participation, including any agreements Employee has entered into with Carlyle with respect to such coinvestment participation.  
5.    Restricted and Performance Stock Units.  Employee has previously been granted RSUs and PSUs under The Carlyle Group Inc. Amended and Restated 2012 Equity Incentive Plan, as amended from time to time (the “Equity Plan”) and pursuant to the award agreements listed below in this Section 5 (collectively, the “Award Agreements”). For the avoidance of doubt, all references in this Agreement to RSUs and PSUs include deferred restricted common unit awards of The Carlyle Group L.P. that automatically converted into RSUs in connection with Carlyle’s conversion to a corporation effective as of January 1, 2020.  All RSUs and PSUs held by Employee pursuant to the Award Agreements will be treated as set forth below in this Section 5, provided that Employee remains in compliance with this Agreement, the applicable Award Agreements and the Equity Plan, and Employee agrees that such treatment is in full satisfaction of any rights Employee may have with respect to the RSUs and PSUs, whether under the Employment Agreement, the Award Agreements, the Equity Plan, or otherwise. 
a.    February 2018 RSU Award.  Reference is made to the Global Deferred Restricted Common Unit Agreement dated as of February 1, 2018 between the Company and Employee, pursuant to which there were 250,000 RSUs outstanding as of immediately prior to the Separation Date.  In accordance with the terms of such Award Agreement, Employee shall remain entitled to receive settlement, subject to applicable tax withholding, of such 250,000 RSUs within 30 days following February 1, 2023.
b.    February 2018 PSU Award.  Reference is made to the Global Deferred Restricted Common Unit Agreement (Performance-Vesting) dated as of February 6, 2018 between the Company and Employee, pursuant to which there were 250,000 target PSUs outstanding as of immediately prior to the Separation Date.  Employee shall remain entitled to receive settlement, subject to applicable tax withholding, of such 250,000 target PSUs (which target shall be adjusted by the Performance Multiplier (as defined in such Award Agreement)) within 30 days following February 1, 2023. 
c.    February 2019 PSU Award.  Reference is made to the Global Deferred Restricted Common Unit Agreement For Co-Chief Executive Officers (Outperformance-Vesting) dated as of February 13, 2019 between the Company and Employee, pursuant to which there were 500,000 target PSUs outstanding as of immediately prior to the Separation Date.  Employee shall remain entitled to receive settlement, subject to applicable tax withholding, of such 500,000 target PSUs (which target shall be adjusted by the Performance Multiplier (as defined in such Award Agreement)) within 30 days following February 1, 2023. 
d.    February 2020 PSU Award.  Reference is made to the Global Deferred Restricted Common Unit Agreement For Co-Chief Executive Officers dated as of February 12, 2020 between the Company and Employee, pursuant to which there were 100,000 target PSUs outstanding as of immediately prior to the Separation Date.  Employee shall remain entitled to 
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receive settlement, subject to applicable tax withholding, of such 100,000 target PSUs (which shall be adjusted by the Performance Multiplier (as defined in such Award Agreement)) within 30 days following February 1, 2023. 
e.    February 2021 PSU Award.  Reference is made to the Global Deferred Restricted Stock Unit Agreement (Strategic Equity Performance-Vesting) dated as of February 2, 2021 between Carlyle and Employee (the “February 2021 PSU Agreement”), pursuant to which there were 742,432 target PSUs outstanding as of immediately prior to the Separation Date.  In accordance with the terms of such Award Agreement, such 742,432 target PSUs are forfeited in their entirety as of the Separation Date and Employee has no further rights or entitlements with respect to such PSUs.
f.    February 2022 PSU Award. Reference is made to the Global Restricted Stock Unit Agreement dated as of February 10, 2022 between the Company and Employee, pursuant to which there were 605,528 target PSUs outstanding as of immediately prior to the Separation Date.  In accordance with the terms of such Award Agreement, such 605,528 target PSUs are forfeited in their entirety as of the Separation Date and Employee has no further rights or entitlements with respect to such PSUs.
g.    May 2022 RSU Award.  Reference is made to the Global Deferred Restricted Common Unit Agreement dated as of May 1, 2022 between Carlyle and Employee, pursuant to which there were 9,695 RSUs outstanding as of immediately prior to the Separation Date.  In accordance with the terms of such Award Agreement, such 9,695 RSUs vest in their entirety as of November 1, 2022, subject to Employee’s continued service as Senior Advisor through such date (or if Carlyle terminates the Services without Cause). 
h.    Notwithstanding anything contained in the Equity Plan or the Award Agreements, no portion of any RSUs or PSUs vested in accordance with the terms of this Section 5 or otherwise held by Employee shall be subject to any limitations on transfer, other than any trading blackout period generally applicable to former employees of Carlyle.  For the avoidance of doubt, Employee remains subject to the Company’s policy against insider trading, to the extent applicable to Employee. 
6.    Restrictive Covenants.  
a.    Employee reaffirms, and agrees to comply with, all restrictive covenants set forth in the Employment Agreement and the related enforcement provisions, including each of the covenants and enforcement provisions contained Section 7 (Records and Confidential Data), Section 8 (Cooperation), Section 9 (Non-Disparagement), Section 10 (Non-Solicitation), and Section 12 (Enforcement of Restrictive Covenants), which, in each case, is set forth at length in Attachment B to this Agreement.  Employee agrees that such restrictive covenants and enforcement provisions are, and shall remain, in full force and effect and that such restrictive covenants and enforcement provisions, as set forth in Attachment B to this Agreement, are hereby incorporated into, and form a part of, this Agreement, provided, that, Carlyle shall provide Employee with written notice of any alleged breach of any such covenants and not less than 30 days to cure, if curable (as determined by Carlyle in its reasonable discretion). Carlyle agrees to comply with Section 9 (Non-Disparagement) of the Employment Agreement.
b.    Employee expressly acknowledges and agrees that, he continues to be bound by, and agrees to continue to comply with, any other restrictive covenants and related enforcement provisions applicable to Employee under any agreement between Employee and Carlyle (excluding the covenants contained in the February 2021 PSU Agreement, which shall not apply after the Separation Date), provided, that, Carlyle shall provide Employee with written notice of any alleged breach of any such covenants and not less than 30 days to cure, if curable 
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(as determined by Carlyle in its reasonable discretion); and provided, further that any non-solicitation or non-hire covenant will not apply to the Executive Assistant.  
c.    The applicable post-employment restricted period for any restrictive covenants by which Employee is bound shall commence on the Separation Date. 
7.    Indemnification.  The Indemnification Agreement dated as of January 1, 2020 by and among the Company and Employee shall remain in full force and effect in accordance with its terms.  
8.    Unlawful Acts.  Employee agrees and represents that Employee is not aware of any act or omission by or on behalf of Employee or any other Carlyle employee that could constitute an unlawful act, fraud, gross negligence or willful misconduct on the part of Employer or Carlyle during the time of Employee’s employment.  Carlyle agrees and represents that it is not aware of any act or omission by or on behalf of Employee or any other Carlyle employee that could constitute an unlawful act, fraud, gross negligence or willful misconduct on the part of Employee during the time of Employee’s employment.  Carlyle, on behalf of itself and the Releasees and their successors and assigns, represents and warrants that as of the date of this Agreement, there are no known claims, demands, causes of actions, fees and liabilities of any kind whatsoever, which it or they had or now have against Employee as of the date of this Agreement, by reason of any actual or alleged act, omission, transaction, practice, conduct, statement, occurrence, or any other matter related to Employee’s employment with Carlyle or otherwise. 
9.    Release and Waiver.  
a.    Except as to the obligations of Carlyle arising under this Agreement (including, without limitation, the indemnification obligations provided above), Employee, for Employee and Employee’s heirs, beneficiaries, personal representatives and agents, releases and forever discharges Carlyle together with all of each of their present or former officers, directors, partners, members, managers, shareholders, employees, agents, representatives, attorneys, plan administrators and servants, and each of their affiliates, predecessors, successors and assigns, and family members of the aforementioned, each in their official capacities, (collectively, the “Releasees”) from any and all claims, charges, complaints, causes of action, promises, liens, obligations, damages and liabilities of every kind whatsoever, known or unknown, suspected or unsuspected, which against them Employee or Employee’s executors, administrators, successors or assigns ever had, now have or may hereafter claim to have against them arising out of or in any way related to events, acts, omissions or conduct occurring at any time prior to and including the date on which Employee executes this Agreement (the “Release”).  
b.    This Release includes, but is not limited to, any rights or claims relating in any way to Employee’s employment relationship with Carlyle or any of the Releasees, or the termination of Employee’s employment, any rights or claims arising under any federal, state or local law, including without limitation, claims arising under Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, Section 1981 of the Civil Rights Act of 1866, the Genetic Information Nondiscrimination Act of 2008, the Occupational Safety and Health Act of 1970, the Americans with Disabilities Act of 1990, the Age Discrimination in Employment Act of 1967, the Employee Retirement Income Security Act of 1974, the Equal Pay Act, the Immigration and Reform Control Act, the Uniform Services Employment and Re-Employment Act, the Rehabilitation Act of 1973, Executive Order 11246 and the Sarbanes-Oxley Act of 2002, each as amended, or any other federal, state or local law, regulation, ordinance or common law, or under any policy, agreement, understanding or promise, written or oral, formal or informal, between Carlyle or any of the Releasees and Employee; provided that, the Release shall not release Carlyle from its obligations under this Agreement; and provided further that this Release does not waive, release or otherwise discharge any claim or cause of action that cannot legally be 
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waived, including, but not limited to, any claim for earned but unpaid wages, workers’ compensation benefits, unemployment benefits, and vested 401(k) benefits.  By signing this Agreement, Employee represents that Employee has not commenced or joined in any claim, charge, action or proceeding whatsoever against Carlyle or any of the Releasees arising out of or relating to any of the matters released in this Section 9.  While this Agreement does not prevent Employee from filing a charge with the U.S. Equal Employment Opportunity Commission (the “EEOC”) or any government agency, Employee agrees that Employee will not be entitled to or accept any personal recovery in any action or proceeding that may be commenced by Employee or on Employee’s behalf arising out of the matters released herein, including but not limited to any charge filed with the EEOC or any other government agency which prohibits the waiver of the right to file a charge.  This provision also does not prevent Employee from enforcing this Agreement, or challenging it under the Age Discrimination in Employment Act of 1967, including the Older Workers’ Benefit Protection Act of 1990. 
c.    For the purpose of implementing a full and complete release, Employee expressly acknowledges that: (i) the Release is intended to include, without limitation, claims that Employee did not know or suspect to exist at the time of execution, regardless of whether the knowledge of such claims, or the facts upon which they might be based, would materially have affected the Release; and (ii) the consideration given under this Agreement was also for the release of the aforementioned claims and contemplates the extinguishment of any such unknown claims.
d.    Employee represents that Employee has not transferred or assigned, or purported to transfer or assign, to any person or entity, any claim described in this Agreement.  Employee further agrees to indemnify and hold harmless each and all of the Releasees against any and all claims based upon, arising out of, or in any way connected with any such actual or purported transfer or assignment. Employee agrees that Employee has not and will not cause any lawsuit to be filed or maintained against the Releasees asserting any of the claims released herein.
e.    Employee hereby acknowledges that Employee is not presently affected by any disability that would prevent Employee from knowingly and voluntarily granting this Release, and further acknowledges that the promises made herein are not made under duress, coercion or undue influence.  
f.    Employee freely and voluntarily accepts the consideration cited herein as sufficient payment for the full, final and complete release stated herein, and agrees that no other promises or representations have been made to Employee by Carlyle or any other person purporting to act on behalf of Carlyle, except as expressly stated herein.
g.    Employee also hereby waives Employee’s rights under the following statutes to the fullest extent permissible under applicable state and local laws including, but not limited to, New York State Human Rights Law (N.Y. Exec. Law § 296, et seq.); New York City Human Rights Law (NYC Code § 8-101);  New York Equal Pay Law (N.Y. Lab. Law § 194); New York Equal Rights Law (N.Y. Civ. Rights § 40e); New York Off-Duty Conduct Lawful Activities Discrimination Law (N.Y. Lab. Law § 201-d); New York Minimum Wage Act (N.Y. Lab. Law §§ 650 to 665); New York Wage and Hour Law (N.Y. Lab. Law § 190 et seq.); New York Whistleblower Statute (N.Y. Lab Law § 740); New York State Paid Family Leave Benefits Law (12 NYCRR § 380). This waiver and release, however, does not apply to any rights which cannot be waived as a matter of law.
h.    Notwithstanding the foregoing, Employee is not waiving any rights he may have to (a) the Acquired Investments, the Vested Participation or any similar vested participation, Company equity awards (including RSUs and PSUs) or Employee’s vested accrued employee benefits under Carlyle’s health, welfare or 401(k) plans as of the date hereof or the 
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personal investments that you hold in Carlyle-managed investment funds, (b) benefits or rights to seek benefits under applicable workers’ compensation statutes or unemployment insurance or indemnification statutes, (c) be indemnified by any Releasee pursuant to existing contractual arrangements or under such Releasee’s organizational documents or receive coverage under any applicable directors’ and officers’ insurance policy that otherwise affords coverage to Employee, (d) pursue claims which by law cannot be waived by signing this Agreement, or (e) enforce this Agreement.
10.    Return of Confidential Information and Property.  Employee represents and agrees that, subject to Section 2(f): (a) Employee shall return to Carlyle, by the Separation Date, all Confidential Information, including without limitation, mailing lists, reports, files, memoranda, correspondence, notices, records and software, data, computer access codes or disks and instructional manuals, and other physical or personal property which Employee received and/or prepared or helped prepare in connection with Employee’s employment and (b) Employee will not retain copies, duplicates, reproductions or excerpts of any Confidential Information.  
11.    Survivability.  The validity of this Agreement shall be as of the Effective Date, and all representations, warranties, covenants and other promises set forth in this Agreement shall be true and correct on the Effective Date and the Separation Date and shall survive the execution of this Agreement by the parties. 
12.    Incorporation of Certain Provisions by Reference.  The following provisions of the Employment are incorporated herein by reference and shall apply to this Agreement as if set forth at length herein, mutatis mutandis:  Section 13 (Offset), Section 14 (Withholding), Section 18 (Arbitration), Section 19 (Recoupment Policy), and Section 20 (Code Section 409A).
13.    Entire Agreement.  This Agreement constitutes the entire understanding and agreement between the parties hereto, and it may only be modified or amended in writing signed by all parties hereto.  For the avoidance of doubt, all written agreements between Employee and any Carlyle-related entity shall remain in full force and effect and Employee shall continue to be bound by the terms and conditions thereof, except as explicitly indicated otherwise in this Agreement.  Except for provisions of the Employment Agreement that are expressly incorporated herein by reference, as of the Separation Date, the Employment Agreement shall be void and of no further force or effect.  For the purpose of clarity, any and all notice provisions contained in the Employment Agreement or any Carlyle-affiliated partnership agreement or other agreement applicable to Employee are hereby waived and of no further force or effect.  
14.    Governing Law.  The validity of this Agreement and any of the terms or provisions as well as the rights and duties of the parties hereunder shall be governed by the laws of the State of New York, without reference to any conflict of law or choice of law principles in the State of New York that might apply the law of another jurisdiction. 
15.    Counterparts. This Agreement may be executed in multiple original counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same document. Signature pages in “.pdf” form or other electronic signatures (including signatures via DocuSign) shall be deemed original signatures of this Agreement.
16.    Employee agrees that:  
•Employee is entering into this Agreement knowingly and voluntarily, and Employee has not been coerced, intimidated or threatened into signing this Agreement;
9

•Employee has been advised by Employer in writing of Employee’s right to consult an attorney and that Employee should consult an attorney about this Agreement;
•Employee has twenty-one (21) days to consider this Agreement, with such time period to begin upon Employee’s receipt of this Agreement.  The parties agree that any changes made to this Agreement during the twenty-one (21) days in which Employee may consider this Agreement, whether material or not, will not restart the running of the twenty-one (21) day period;
•Except for the final pay set forth in Section 2.a., absent execution of this Agreement, Employee is not otherwise entitled to the payments and consideration described in Sections 2, 3, and 5.a and 5.b hereof; 
•Employee has been advised that any tax information or written tax advice contained herein is not intended to be used, and cannot be used, by any taxpayer for the purpose of avoiding tax penalties that may be imposed on the taxpayer.  (The foregoing sentence has been affixed pursuant to U.S. Treasury Regulations governing tax practice); 
•Employee has seven (7) days following Employee’s execution of this Agreement to revoke this Agreement (the “Revocation Period”).  This Agreement is neither effective nor enforceable until the eighth (8th) day following Employee’s execution of this Agreement as long as Employee has not revoked this Agreement (such eighth (8th) day, the “Effective Date”).  Employee can revoke this Agreement during the Revocation Period by sending an e-mail to Jeffrey Ferguson, Jeffrey.Ferguson@carlyle.com and by also sending a confirming notice by certified mail to Jeffrey Ferguson. In the event that Employee revokes this Agreement, this Agreement shall be null and void, and Employee shall not be entitled to any of the consideration set forth in this Agreement for which a release of claims is required; and
•Employee has read this Agreement carefully and fully understands it.
17.    Notices.  For purposes of this Agreement, notices, demands and all other communications provided for hereunder to be given to Carlyle shall be in writing and shall be deemed to have been given when delivered by email to Jeffrey Ferguson and confirmed via telephone to Jeffrey Ferguson.  Notices to Employee shall be deemed to have been given when sent to Employee’s last known address in Carlyle’s Human Resources files or at such other address as Employee shall have furnished to Carlyle in writing.   
18.    Benefit.  Employer shall receive the benefit of all provisions of this Agreement on its own behalf and as trustee on behalf of all other relevant Carlyle entities and the portfolio companies.
19.    Defend Trade Secrets Act Disclosure.  By Employee’s signature to this Agreement, Employee acknowledges that Employee has received and reviewed The Carlyle Group’s Whistleblower Policy, which, among other things, provides written notice to Employee of certain immunity provided by the Defend Trade Secrets Act, 18 U.S.C. § 1833(b).
[Signature Page Follows.]

10

			
	

IN WITNESS WHEREOF, Employee, Employer, and Carlyle have executed this Agreement as of the date first set forth above.  

EMPLOYER:    The Carlyle Group Employee Co., L.L.C.,
on behalf of itself and Carlyle

						
	By:	/s/ Jeffrey Ferguson
	Name:	Jeffrey W. Ferguson
	Title:	General Counsel

The Carlyle Group Inc.

						
	By:	/s/ Jeffrey Ferguson
	Name:	Jeffrey W. Ferguson
	Title:	General Counsel

    

CG Subsidiary Holdings L.L.C.

                            
						
	By:	/s/ Jeffrey Ferguson
	Name:	Jeffrey W. Ferguson
	Title:	Managing Director

Carlyle Holdings III L.P.

						
	By:	/s/ Jeffrey Ferguson
	Name:	Jeffrey W. Ferguson
	Title:	Managing Director

[Signature Page to Separation Agreement]

			
	

EMPLOYEE:            

                        			
	/s/ Kewsong Lee
	Kewsong Lee

[Signature Page to Separation Agreement]

			
	

ATTACHMENT A
See attached.

A-1

			
	

CONFIRMATION OF RESIGNATION AND POWER OF ATTORNEY
Kewsong Lee (the “Undersigned Individual”) hereby confirms that effective as of August 7, 2022 (the “Effective Date”) the Undersigned Individual has resigned and agreed not to hold any position as an employee, officer, director, board member or observer, committee member, agent or any other similar position with: (i) The Carlyle Group Employee Co., L.L.C.; (ii) any subsidiary or affiliate controlled by, controlling, or under common ownership with The Carlyle Group Employee Co., L.L.C., including any entity doing business under The Carlyle Group name (collectively, “Carlyle”); or (iii) any portfolio company or investment in which Carlyle or an affiliate of Carlyle has acquired a direct or indirect interest as of the date below (the entities identified in (i), (ii), and (iii), collectively, the “Carlyle Entities”).
The Undersigned Individual hereby appoints Jeffrey W. Ferguson as the undersigned’s attorney-in-fact with full power and authority, on the Undersigned Individual’s behalf, to execute and deliver any document or instrument that may be necessary and appropriate for effecting the Undersigned Individual’s removal as an officer, director, advisor, board member or observer, committee member, agent of any similar position of any of the Carlyle Entities as of the Effective Date.
Employee agrees to cooperate with Carlyle to take such further actions and deliver such additional documents, consents or instruments as may be reasonably necessary or appropriate to give effect to the intent of this Confirmation of Resignation and Power of Attorney to facilitate Employee’s resignation from all roles with Carlyle or associated with Carlyle as described herein.
[Signature Page Follows.]

IN WITNESS WHEREOF, the Undersigned Individual has executed this Confirmation of Resignation and Power of Attorney as of the date first indicated above.

Signed as a Deed

			
	/s/ Kewsong Lee
	Kewsong Lee

[Signature Page to Confirmation of Resignation and Power of Attorney]

			
	

ATTACHMENT B
Restrictive Covenants
All capitalized terms used and not otherwise defined in this Attachment B shall have the meaning given to such terms in the Employment Agreement.  
7.    Records and Confidential Data.
a.    All memoranda, notices, files, records and other documents made or compiled by Employee during the Term in the ordinary course of business (other than business cards and names and contact information retained in Employee’s rolodex or Outlook), or made available to Employee concerning the business of Carlyle (including, without limitation, any “best practices” materials made available to Employee), shall be Employer’s property and shall be delivered to Employer promptly following its request therefore or automatically promptly following the end of the Term. Notwithstanding anything herein to the contrary, Employee shall be entitled to retain, both during and following the Term, (i) all business cards and names and contact information retained in Employee’s rolodex or Outlook and (ii) shall be entitled to remove from Carlyle’s premises (and, upon a termination of employment for any reason, Employer shall reasonably assist Employee in gathering and removing) any personal documents (including, without limitation, any documents relating to his financial interests in Carlyle, including any funds, investment vehicles and accounts whose investments are or were managed by Carlyle, tax information, agreements or other contracts to which Employee is a party or a beneficiary, and information relating to employee benefit plans and entitlements) that is on Carlyle property (including electronically); provided that all documents covered by clause (ii) shall remain subject to all covenants and agreements for the benefit of Carlyle regarding confidentiality applicable thereto and under which Employee has any obligation.
b.    Employee acknowledges that, in and as a result of Employee’s employment hereunder, Employee will be making use of and/or acquiring confidential or proprietary information, knowledge and data developed by Carlyle that is of a special and unique nature and value to Carlyle, including, but not limited to, the nature and material terms of business opportunities and proposals available to Carlyle and financial records of Carlyle, Carlyle investment funds and investors in such funds (collectively, “Confidential Information”). Employee shall not at any time disclose to any Person (other than Carlyle) or use for any purpose other than in accordance with Employee’s employment with Carlyle, any Confidential Information (regardless of whether such information qualifies as a “trade secret” under applicable law) that has been obtained by or disclosed to Employee as a result of Employee’s employment by Employer unless: (i) authorized in writing by Employer; (ii) such information, knowledge or data is or becomes available to the public generally without breach of this Section 7; (iii) disclosure is required to be made pursuant to an order of any court or government agency, subpoena or legal process; (iv) disclosure is made to officers, directors or affiliates of Employer or Carlyle (and the officers and directors of such affiliates) or to auditors, counsel, or other professional advisors to Carlyle; or (v) disclosure is required by a court, mediator or arbitrator in connection with any litigation or dispute between Employer and Employee. Employee shall immediately supply Employer with a copy of any legal process delivered to Employee requesting Confidential Information, and prior to disclosure of Confidential Information in connection therewith or any other required disclosure, Employee shall notify Employer and shall permit Employer to seek an order protecting the confidentiality of such information, unless Employee has been advised by counsel that such notification would violate applicable law or an applicable court order. Employee agrees that Employee’s obligations under this Section 7 may be enforced by specific performance and that breaches or prospective breaches of this Section 7 may be enjoined.
B-1

c.    Employee will not publicly disclose any private placement fundraising information about a Carlyle fund vehicle that has not had a final closing of capital commitments if such disclosure would violate the federal “private placement” rules that permit fund offerings to be unregistered.
d.    Notwithstanding any other provision of this Agreement: (i) no provision of this Agreement prohibits or restricts Employee from reporting possible violations of law or other whistleblower information to a government regulator or governmental agency or other authorized individuals; (ii) Carlyle’s consent is not required for such disclosure to a government regulator or governmental agency; and (iii) notice to Carlyle is not required in the case of such whistleblower disclosure to a government regulator or governmental agency. Notwithstanding the foregoing, under no circumstance is Employee authorized to disclose any information covered by Carlyle’s attorney-client privileged or attorney work product without Carlyle’s prior written consent. The obligations under this Section 7 shall survive the termination or expiration of this Agreement and any termination of Employee’s employment.
8.    Cooperation.
a.    Following the termination of Employee’s employment with Employer for any reason, Employee shall provide reasonable cooperation to Employer and its affiliates in connection with (i) the orderly transfer of information known by Employee regarding his duties and (ii) any formal or informal dispute resolution effort, action, proceeding, investigation or litigation involving Carlyle or its affiliates relating to any matter that occurred during or prior to the Term in which Employee was involved or of which he has substantive knowledge; provided that Employee shall be reimbursed for any reasonable out-of-pocket costs incurred in connection with such cooperation (including any reasonable legal, accounting or other professional fees incurred by Employee subject to pre-approval by Employer not to be unreasonably withheld or delayed), and any such cooperation shall be at such times and in such locations as are reasonably acceptable to Employee taking into account his other professional and personal obligations. If Employee receives a subpoena or other request for information, Employee agrees to provide Employer with prompt notice of the subpoena or request so that Carlyle may take appropriate action to avoid or contest disclosure, unless Employee has been advised by counsel that providing such notice would violate applicable law or an applicable court order.
b.    Following the termination of Employee’s employment with Employer for any reason, Employer shall, and shall cause its affiliates to, provide reasonable cooperation to Employee in all matters relating to his interests and rights in, and obligation in respect of, Carlyle and any funds, investment vehicles and accounts whose investments are or were managed by Carlyle, including, by providing copies of all documents governing any such interests, rights and obligations and providing reasonable access to such Carlyle personnel as is reasonable requested by Employee to understand such interests, rights and obligations.
9.    Non-Disparagement. Employer and Employee covenant and agree that, both during Employee’s employment with Employer and for a period of five years after the Separation Date, (i) Employee shall not disparage Carlyle, the Founders and Carlyle’s employees, directors or businesses or members of Carlyle’s Executive and Management Committees and (ii) Carlyle shall not authorize, and the Founders and Carlyle’s directors and members of Carlyle’s Executive and Management Committees shall not make, disparaging remarks about Employee. The previous sentence shall not apply, however, in the case of any statement that is made (x) in testimony pursuant to a court order, subpoena or legal process or (y) to a court, mediator, government agency or arbitrator in connection with any litigation or dispute between Employer and Employee.
10.    Non-Solicitation. Employee agrees that, both during Employee’s employment with Employer and for a period of 12 months after the Separation Date, Employee will not, directly or indirectly, without the prior written consent of the Board: (i) participate in any capacity, 
B-2

including as an investor or an advisor, in any transaction that Carlyle was actively considering investing in or offering to invest in prior to the Separation Date; (ii) solicit, contact or identify investors in any investment partnership, fund, vehicle or managed account controlled or advised by Carlyle (to the extent Employee knows that such Person is an investor, directly or indirectly, in such partnership, fund, vehicle or managed account) on behalf of any Person; or (iii) recruit, solicit, induce or seek to induce any current employee of Carlyle (other than the Executive Assistant) to become employed by Employee or any other Person; provided, however, Employee’s obligations pursuant to clause (ii) following the Separation Date shall not be in effect beyond December 31, 2022; provided, further, Employee’s obligations pursuant to this Section 10 following the Separation Date shall not be in effect beyond a Change of Control.
11.    Non-Competition. Employee agrees that, both during Employee’s employment with Employer and for the period from the Separation Date through December 31, 2022 or, if earlier, a Change of Control, Employee will not, directly or indirectly, without the prior written consent of the Board, engage in any business or activity that competes with the Carlyle Business. For this purpose, Employee shall be deemed “engaged” in a proscribed activity in the event Employee engages in the activity directly or indirectly, whether through or by an entity in which Employee is a director (or the equivalent), executive officer, employee, or equity holder, or otherwise. Employee shall not be deemed to be “engaged” in the proscribed activity if (x) the entity engaged in the activity is a publicly traded entity and Employee’s only relationship with such entity is an equity stake of five percent (5%) or less or (y) Employee indirectly holds an equity interest in an entity, with such interest being a stake of five percent (5%) or less of the interests in such entity, that is engaged in a proscribed activity through a fund or similar investment vehicle in which Employee is a limited partner (or functional equivalent) with no direction or control over the investments of such fund or other investment vehicle. Notwithstanding anything to the contrary herein, Employee may engage in (i) personal investment activities that do not compete with the Carlyle Business and for which Employee receives no compensation in any form and (ii) charitable, community, literary and artistic activities.
12.    Enforcement of Restrictive Covenants.
a.    Employee agrees that Sections 10 and 11 may limit Employee’s ability to earn a livelihood in a business similar to the business conducted by Employer, but Employee nevertheless hereby agrees and hereby acknowledges the consideration provided to Employee in this Agreement is adequate to support the restrictions contained herein. Employee further agrees that the restrictions set forth in Sections 10 and 11 are reasonable and necessary to protect Carlyle’s trade secrets and other legitimate business needs. In the event that any court or tribunal of competent jurisdiction shall determine Sections 10 and 11 to be unenforceable or invalid for any reason, Employee and Carlyle agree that Sections 10 and 11, as applicable, shall be interpreted to extend only over the maximum period of time for which it may be enforceable, and/or the maximum geographical area as to which it may be enforceable, and/or to the maximum extent in any and all respects as to which it may be enforceable, all as determined by such court or tribunal.
b.    Employee agrees and acknowledges that Sections 9, 10 and 11 are a material inducement to Carlyle to enter into the Employment Agreement and, as such, it is agreed by the parties that any violation of Sections 9, 10 and 11 by Employee will constitute a material breach of the Employment Agreement and shall entitle Employer to cease making any payment pursuant to Section 6.a of the Employment Agreement (as incorporated into Section 2 of this Agreement).  Employee and Employer agree that the remedy at law for any breach of Sections 9, 10 and 11 may be inadequate, and that Carlyle or Employee, as applicable, shall, in addition to whatever other remedies it may have at law or in equity, be entitled (without posting bond or other security) to injunctive or other equitable relief, as deemed appropriate by any court or tribunal of competent jurisdiction, to prevent a breach of Employee’s or Carlyle’s obligations as set forth in 
B-3

Sections 9, 10 and 11. The obligations under Sections 9, 10 and 11 shall survive the expiration or termination of the Employment Agreement or this Agreement.

B-4

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