Document:

Exclusivity and Intellectual Property Agreement

 Exhibit 10.34 
 Confidential Treatment Requested by Tesla Motors, Inc. 
 Exclusivity and Intellectual Property Agreement 
 Between 
 TESLA MOTORS, INC. 
 And 
 DAIMLER NORTH AMERICA CORPORATION 
 May 11, 2009 
  

	[***]	Information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted
portions. 

 Confidential Treatment Requested by Tesla Motors, Inc. 
  

 EXCLUSIVITY AND INTELLECTUAL PROPERTY AGREEMENT 
 This Exclusivity and Intellectual Property Agreement (this “Agreement”) is made as of the 11th day of May, 2009 (the “Effective
Date”), by and between Tesla Motors, Inc., a Delaware corporation (the “Company”), on the one hand, and Daimler North America Corporation, a Delaware corporation (“Daimler”), on the other hand (each a
“Party” and together the “Parties”). 
 WHEREAS, on February 24, 2009 Company and Daimler
AG executed a Series E Term Sheet (the “Term Sheet”) which, set forth, among other things, the outline of certain terms respecting exclusivity and rights to intellectual property; 
 WHEREAS, on even date herewith Company and Blackstar Investco LLC (“Blackstar”) are entering into the Series E Preferred
Stock Purchase Agreement (the “Series E Agreement”) and certain other agreements contemplated by the Term Sheet; 
 WHEREAS, Daimler or any of its Affiliates (as such term is defined in the Series E Agreement) and Company intend to enter into a series of definitive agreements regarding a series of strategic projects outlined in the Term Sheet
(collectively, the “Strategic Agreements”); 
 WHEREAS, the Parties are entering into this Agreement in
conjunction with Company and Blackstar entering into the Series E Agreement and certain other agreement and would not have entered into any agreement without entering into all agreements; and 
 WHEREAS, accordingly, in connection with the Series E Agreement, the Parties wish to further outline, in this Agreement, their respective
rights and obligations respecting exclusivity and the disposition of certain intellectual property to be used in connection with the Strategic Cooperation Areas (as such term is defined herein) pursuant to the Strategic Agreements. 
 NOW THEREFORE, the Parties hereby agree as follows: 
 1. Strategic Agreements. 
  

	 	(a)	On May 1, 2009 Daimler and Company entered into a Strategic Agreement titled “SMART 451 ED Predevelopment Contract” with respect to battery supply
for a “Smart EV Project” (“Strategic Cooperation Area 1”). 

  

	 	(b)	Daimler, or any of its Affiliates, on the one hand, and Company, on the other hand, will negotiate in good faith and use reasonable commercial efforts to enter into the
Strategic Agreements respecting the following areas of strategic cooperation (each a “Strategic Cooperation Area”) within six (6) months after the Effective Date, which are more fully described in the Strategic Cooperation Area
term sheets exchanged by the parties in connection with the Series E Agreement: 

  

	 	(i)	Strategic Cooperation Area 2: Technology collaboration in areas including cell combination and specification, battery management systems, battery cooling and
electrical powertrain and/or such other technology areas as may be mutually agreed upon by the Parties in the course of negotiating and entering into the Strategic Agreement for Strategic Cooperation Area 2; 

  

	[***]	Information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted
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	 	(ii)	Strategic Cooperation Area 3: Automotive support by Daimler or by a third-party coordinated by Daimler (including [***], vehicle engineering, [***], [***] and/or
such other automotive support services as may be mutually agreed upon by the Parties in the course of negotiating and entering into the Strategic Agreement for Strategic Cooperation Area 3) to Company to [***]; 

  

	 	(iii)	Strategic Cooperation Area 4: Joint engineering and development of an electric vehicle that will be (x) equipped with [***], (y) badged and branded in
a manner to be mutually agreed upon by the Parties and (z) based upon a [***]. The Parties intend to [***]. For the avoidance of doubt, the Parties shall commence collaboration on the joint engineering and development of such vehicle upon the
execution of the applicable Strategic Agreement for Strategic Cooperation Area 4; and 

  

	 	(iv)	Strategic Cooperation Area 5: Company will be given access to certain mutually agreed upon components from Daimler or its suppliers that are used on Daimler
vehicles for use by Company solely in Company designed products. 

  

	 	(c)	The Parties acknowledge and agree that (i) the specific areas of collaboration for each Strategic Cooperation Area may be subject to change in order to satisfy the
Parties’ strategic objectives and that any such modifications may be made by mutual written agreement of the Parties, (ii) Daimler, or any of its Affiliates, on the one hand, and Company, on the other hand, may, but have no obligation to,
(y) mutually agree to collaborate and cooperate with one another on one or more strategic projects from time to time in addition to the Strategic Cooperation Areas contemplated under this Agreement (each an “Additional Strategic
Cooperation Area”) and (z) enter into one or more written agreements relating to such Additional Strategic Cooperation Areas (each an “Additional Strategic Agreement”), (iii) notwithstanding the expiration or
termination of any Strategic Agreement or Additional Strategic Agreement for any reason, the other Strategic Agreements and/or Additional Strategic Agreements in effect as of the effective date of such expiration or termination (as applicable) shall
remain in full force and effect, and (iv) all rights granted to Daimler herein and in each Strategic Agreement and/or Additional Strategic Agreement shall also be deemed to include Daimler and its Affiliates. 

  

	[***]	Information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted
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 2. Exclusivity. 
  

	 	(a)	Commencing on the Effective Date and continuing thereafter for a period of six (6) months from such date (the “Exclusivity Period”), neither the
Company nor any of its Affiliates shall, without the prior written consent of Daimler (which may not be unreasonably withheld or delayed by Daimler) participate in any negotiations with any Person (as such term is defined in the Series E Agreement)
with respect to or in connection with any kind of arrangement or transaction, or otherwise participate in, support, implement, provide for (directly or indirectly in any manner) or enter into any kind of arrangement or transaction, which
contemplates or includes the development of any vehicles or powertrains that compete or would reasonably be expected to compete, directly or indirectly, with Daimler, its Affiliates and/or any of Daimler’s or its Affiliates’ respective
businesses, products and/or services (each, a “Competitive Arrangement”); provided, however, that so long as the results of any arrangement or transaction with such Person are, without limitation, sold and/or marketed solely using
the Company owned and controlled brand “Tesla”, the following transactions and those transactions described in Section 2(c) (each, a “Permitted Arrangement”) shall not be Competitive Arrangements:

  

	 	(i)	In the automotive vehicle segments outside of [***] or in any other automotive vehicle class under a commercial agreement between Daimler or its Affiliates, on the one
hand, and Company or its subsidiaries, on the other hand, in which the parties to such agreement are materially compliant; 

  

	 	(ii)	In any automotive vehicle segment in a geography in which Daimler or its Affiliates does not sell or distribute the [***] or in any other automotive vehicle class under
a commercial agreement between Daimler or its Affiliates, on the one hand, and Company or its subsidiaries, on the other hand, in which the parties to such agreement are materially compliant; and 

  

	 	(iii)	In any automotive vehicle segment in any geography [***] after the first commercial sale of a vehicle (including the [***]) developed under a commercial agreement
between Daimler or its Affiliates, on the one hand, and Company or its subsidiaries, on the other hand. 

  

	 	(b)	 Upon entering a Strategic Agreement for Strategic Cooperation Area 4 and subject to good faith negotiations of the terms of such Strategic Agreement,
such Strategic Agreement will provide that, for so long as Daimler and Tesla jointly commit to, and are likely to achieve, a minimum average product cycle combined volume of [***] vehicles annually over a five (5) year period starting with model
year [***] for the [***], where the volume commitment is contingent on meeting agreed upon criteria (e.g., delivery, production, performance, etc.), under terms to be set forth in such agreement, Company may not enter into a Competitive
Arrangement with a Daimler Strategic Competitor to supply vehicles in the [***] for sale under a non-Tesla brand until the

  

	[***]	Information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted
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earlier of (y) five (5) years following the Effective Date hereof or (z) three (3) years following the consummation of a Qualified IPO (as such term is defined in Series E Agreement)
(the “Restricted Period”). Subject to the foregoing, such Strategic Agreement will also provide that: 

  

	 	(i)	if Company receives an offer to enter a Competitive Arrangement from a Daimler Strategic Competitor to develop a vehicle outside the [***], Daimler may exercise the
right to enter the agreement on substantially similar terms, as set forth in Section 3. In the event Daimler that does not exercise its right, Company may enter the Competitive Arrangement with the Daimler Strategic Competitor to supply a
non-Tesla branded vehicle, but only so long as the vehicle start of production is at least [***] after the start of production of the [***] (or the end of the Restricted Period which ever is earlier); and 

  

	 	(ii)	Company shall not enter into a Competitive Arrangement with a Daimler Strategic Competitor to supply an Integrated EV Powertrain System until [***].

  

	 	(c)	For the avoidance of doubt, nothing set forth in this Agreement, including this Section 2 or Section 3 below, shall restrict the Company or any of its
Affiliates from, independently or with any third party developing any technology for use in a Tesla branded product or service or related to or necessary for the development of the Tesla Roadster or Model S, or engaging in a transaction with an
entity that is not a Strategic Daimler Competitor (as such term is defined below), or entering into any transactions, agreements or arrangements with any third party for the provision of any incidental products and/or services (e.g., parts
supply agreement, engineering consulting services agreement, etc.) to or on behalf of the Company in connection therewith, or continuing any existing supply agreements. Further, except with respect to those restrictions expressly set forth herein
regarding the sale by Company of Integrated EV Powertrain Systems (as such term is defined below), nothing set forth in this Agreement or in any Strategic Agreement will restrict Company from developing and acting as supplier of components for
vehicle powertrains which vehicle powertrains have been designed by the third party customer and other vehicle components to third parties or providing related powertrain application engineering. 

  

	 	(d)	An “Integrated EV Powertrain System” means a vehicle powertrain that includes at least a battery, power electronics module and motor, where such
components have been engineered by Company to operate as an integrated vehicle powertrain and which powertrain is provided by Company to a third party along with integration engineering to integrate such powertrain into a vehicle. A
“Strategic Daimler Competitor” means an automotive OEM that is engaged in the manufacture and sale of complete or substantially complete automobiles. 

 3. Right of First Refusal. Without limiting, and except for those transactions set forth in, Section 2(c) above, commencing (a) with respect to Competitive Arrangements, on the
termination

  

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of the Exclusivity Period, and (b) with respect to Permitted Arrangements, on the Effective Date hereof, and continuing until the expiration of Restricted Period, in the event that the
Company or any of its Affiliates receives a bona fide offer (including in the form of a term sheet containing customary reasonable details) from any Strategic Daimler Competitor, with respect to a Competitive Arrangement or Permitted Arrangement, as
applicable, with such Strategic Daimler Competitor (a “Third Party Offer”), then the Company or such Affiliate, as applicable, shall provide Daimler with written notice of such Third Party Offer, specifying in reasonable detail the
material terms and conditions of the same. Daimler shall have (45) forty-five days following Daimler’s receipt of such notice, to notify the Company or such Affiliate in writing (the “Daimler Notice”) if Daimler wishes to
exercise the right to offer an agreement to the Company on substantially similar terms. Following such Daimler Notice, Daimler, on the one hand, and the Company or its Affiliate, on the other hand, shall use commercially reasonable efforts to
actively execute within sixty (60) days of such Daimler Notice on any such Competitive Arrangement or Permitted Arrangement for which Daimler has exercised its right of first refusal. If Daimler has not provided the Daimler Notice within forty-five
(45) days, or the Company or any of its Affiliates and Daimler has not entered into such transaction within (60) sixty days of such notice, as provided above, the Company or any of its Affiliates shall be free to enter into the transaction with the
applicable third party on the terms reflected in such Third Party Offer. 
 4. Other Restrictions. Commencing on the Effective Date
hereof and continuing until the expiration of the Restricted Period, neither the Company nor any of its Affiliates shall, without Daimler’s prior written approval (which may not be unreasonably withheld or delayed by Daimler): (a) use
LiTec batteries and/or cells or sell LiTec batteries and/or cells for use in any non-Daimler or non-Tesla branded vehicle or (b) subject to the consent provisions set forth in Section 3.2 of the Investors’ Rights Agreement, authorize
or issue, or obligate itself to issue, to any Strategic Daimler Competitor other than Blackstar any other security, including any other security convertible into or exercisable for any security, having a preference over, or being on a parity with,
the Series E Preferred Stock with respect to voting, dividends, conversion, redemption or upon liquidation. 
 5. Termination of
Exclusivity. Daimler acknowledge and agree that in the event Company terminates any Strategic Agreement and/or Additional Strategic Agreement as a result of a material breach thereof by Daimler (or its Affiliate that is party to such Strategic
Agreement or Additional Strategic Agreement) that remains uncured following due notice and an opportunity to cure, pursuant to the mutually agreed upon terms and conditions contained in such Strategic Agreement or Additional Strategic Agreement,
then upon the effective date of such termination, Company shall have no further obligation to comply with the exclusivity or right of first refusal provisions set forth in Sections 2 and 3 respectively above, solely with respect to the
strategic project(s) specifically contemplated under and subject to the terms of the Strategic Agreement and/or Additional Strategic Agreement that is terminated by Company. 
 6. Equitable Remedies. The Parties acknowledge and agree that, in the event a Party breaches any of its obligations under Section 2, Section 3 or Section 4 of
this Agreement (a) the other Party may suffer substantial, immediate and irreparable harm, (b) the other Party shall not have an adequate remedy at law for money damages in the event of any such failure and (c) that in the event of
any such failure, the other Party may be entitled to (i) specific performance, injunctive and other

  

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equitable relief to compel the breaching Party to comply with its obligations in accordance with the terms and conditions of Section 2, Section 3 and Section 4
of this Agreement and (ii) any other remedy to which the other Party may be entitled at law or in equity (without the necessity of posting of a bond). 
 7. Intellectual Property. The Parties will allocate rights and licenses with respect to patents, copyrights, trade secrets, trademarks, and other forms of intellectual property rights or
proprietary rights arising under any Laws (as such term is defined in the Series E Agreement) (“Intellectual Property”) in the Strategic Agreements and Additional Strategic Agreements, as may be negotiated in good faith based upon
the following principles: 
  

	 	(a)	The SMART 451 ED Predevelopment Contract, which governs Strategic Cooperation Area 1, sets forth the terms with respect to Intellectual Property relevant to such
Agreement. 

  

	 	(b)	With respect to Strategic Cooperation Areas 2 and 4, except as otherwise provided in any applicable Strategic Agreement or Additional Strategic Agreement, the following
principles shall apply: 

  

	 	(i)	All Intellectual Property generated jointly in the course of the applicable the Strategic Agreements and Additional Strategic Agreements shall, except as may be set
forth in such agreements, be jointly owned, without the duty to account, by Daimler and the Company, subject to such mutual restrictions on a Party’s exercise of its joint ownership interest as may be agreed by the Parties in each applicable
Strategic Agreement and Additional Strategic Agreement; such that (a) in the case of Company, there will be restrictions on the right of Company to license such joint Intellectual Property to third parties consistent with the restrictions on
Company entering into certain agreements with Strategic Daimler Competitors as may be set forth in this Agreement and the relevant Strategic Agreement, and (b) in the case of Daimler, shall limit Daimler’s right to license third parties in
a manner that would be competitive with Company. 

  

	 	(ii)	 All Intellectual Property generated independently by Daimler or the Company in the course of providing development services under the applicable
Strategic Agreements and Additional Strategic Agreements shall be solely owned by Daimler or Company, respectively. The Party owning such Intellectual Property shall license same to the other Party on a royalty-free, non-exclusive basis for use
solely in connection with the development activities and services contemplated by the applicable Strategic Agreement and Additional Strategic Agreement. To the extent that such Intellectual Property relates to the products or services developed
under such applicable Strategic Agreement and Additional Strategic Agreement, the Party owning such Intellectual Property shall license same to the other Party on a non-exclusive and royalty bearing basis on terms and rates no less favorable than
those contained in any arrangement or agreement with a

  

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similarly situated third party for the license of such Intellectual Property. In the event that such Intellectual Property has not previously been the subject or such an arrangement or agreement,
the Parties shall negotiate in good faith and at arm’s length to agree upon a reasonable terms and royalty rates for such Intellectual Property. 

  

	 	(iii)	All Intellectual Property generated independently by Daimler or the Company outside of the scope of the development services under the applicable Strategic Agreements
and Additional Strategic Agreements shall be solely owned by Daimler or Company, respectively. To the extent that such Intellectual Property relates to the products or services developed under such applicable Strategic Agreement and Additional
Strategic Agreement, the Party owning such Intellectual Property shall license same to the other Party on a non-exclusive and royalty bearing basis on terms and rates no less favorable than those contained in any arrangement or agreement with a
similarly situated third party for the license of such Intellectual Property. In the event that such Intellectual Property has not previously been the subject or such an arrangement or agreement, the Parties shall negotiate in good faith and at
arm’s length to agree upon a reasonable terms and royalty rates for such Intellectual Property. 

  

	 	(c)	Except for any license or grant of rights that may be contained in any applicable Strategic Agreement or Additional Strategic Agreement or as otherwise provided herein,
nothing contained herein shall be construed to restrict, impair, encumber, alter, deprive or adversely affect a Party’s Intellectual Property or such Party’s rights or interests therein. 

  

	 	(d)	During the Restricted Period, in the event that the Company desires to offer to any Strategic Daimler Competitor a license to any existing or future material
Intellectual Property of the Company generated outside the scope of any Strategic Cooperation Area, then Company will offer Daimler a right to obtain a license to such Intellectual Property as follows: 

  

	 	(i)	Company will provide Daimler with notice of such intention to license a third party that is a Strategic Daimler Competitor; 

  

	 	(ii)	Daimler shall have fifteen (15) business days to notify Company if it wishes to license the same Intellectual Property and whether it wants an exclusive or sole
license. If Company does not receive such notice from Daimler it shall be free to license such Intellectual Property to such Daimler Strategic Competitor; 

  

	 	(iii)	If Daimler notifies Company that it wants a non-exclusive license, Company may grant a non-exclusive license to such Strategic Daimler Competitor and will license the
same such Intellectual Property to Daimler on a non-exclusive basis on such terms and such royalty rates as may be mutually agreed by the Parties; and 

  

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	 	(iv)	If Daimler notifies Company that it wants a sole license in the automotive field, then the Parties shall negotiate in a good faith the terms, including the royalty and
other economic terms, of such license. If the Parties are unable to reach agreement on such license within twenty-five (25) business days of Company receiving such notice from Daimler, Company shall be free to license such Intellectual Property to
such Daimler Strategic Competitor, and Daimler may elect to take a non-exclusive license on such terms and such royalty rates as may be mutually agreed by the Parties. 

  

	 	(e)	Except as otherwise provided in any applicable agreement between the Parties, upon expiration of the Restricted Period, (i) any exclusive or sole rights granted to
Daimler during the Restricted Period shall revert to non-exclusive rights; and (ii) the right of Daimler to obtain a license as set forth in this Section 7 shall expire. 

  

	 	(f)	Any license granted by one Party to the other as described above shall be of sufficient scope to permit the licensed Party to exercise its rights through its
Affiliates, subcontractors, suppliers and distributors. 

  

	 	(g)	Nothing set forth herein shall restrict Company from granting, or apply to Company’s granting of, any licenses to any person outside the automotive field, or
subject to Section 7(d)(iv) above, to an entity that is not a Strategic Daimler Competitor. 

 8. Technical Committee.
The Parties shall agree on an appropriate organizational set-up (for example implementation of a Technical Committee) to operationally manage the Strategic Cooperation Areas within each Strategic Agreement. 
 9. Miscellaneous. 
  

	 	(a)	Transfer; Successors and Assigns. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and
assigns of the Parties. Nothing in this Agreement, express or implied, is intended to confer upon any Party other than the Parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason
of this Agreement, except as expressly provided in this Agreement. 

  

	 	(b)	 Governing Law. This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the Parties hereto shall be
governed, construed and interpreted in accordance with the laws of Delaware, without giving effect to principles of conflicts of law. It is understood and agreed that each Party’s respective obligations, including with respect to compliance
with any restrictions hereunder on

  

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such Party’s conduct, are subject to compliance with all applicable Laws (as such term is defined in the Series E Agreement) including those Laws with respect to competition, monopolies and
trade practices, and that it shall not be a breach of this Agreement by a Party if such Party is restricted from otherwise complying with the terms hereof by applicable Law. 

  

	 	(c)	Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting
this Agreement. 

  

	 	(d)	Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, the Parties agree to renegotiate such provision in
good faith. In the event that the Parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (a) such provision shall be excluded from this Agreement, (b) the balance of the Agreement shall be
interpreted as if such provision were so excluded, and (c) the balance of the Agreement shall be enforceable in accordance with its terms. 

  

	 	(e)	Assignability and Change of Control. This Agreement and each Party’s rights hereunder may not be assigned directly or indirectly including in
connection with a change of control (including by means of an asset sale, stock sale, merger, or otherwise) of a Party except with the prior written consent of the other Party. Either Party shall, however, have the right upon notice to the
other Party to terminate this Agreement in the event that either such Party or the other Party undergoes, or executes and agreement to undergo, a change of control. Any Strategic Cooperation Agreement entered into prior to such change of control
shall not be affected by the termination of this Agreement unless otherwise set forth therein. 

  

	 	(f)	Term and Termination. The term of this Agreement shall commence on the Effective Date and shall, unless earlier terminated in accordance with Section 9(e)
above, terminate on the last day of the Restricted Period. No terms of this Agreement or obligations or rights of either Party shall survive such termination. 

  

	 	(g)	Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute
one instrument. 

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 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement by persons duly
authorized as of the date and year first above written. 
  

			
	TESLA MOTORS, INC.
		
	By:	 	 /s/ Elon Musk

		 	Elon Musk,
		 	Chief Executive Officer
	
	Address:
		
		 	 1050 Bing Street
 San Carlos,
CA 94070

  

 SIGNATURE PAGE TO EXCLUSIVITY AND INTELLECTUAL PROPERTY AGREEMENT 
  

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portions. 

 Confidential Treatment Requested by Tesla Motors, Inc. 
  

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement by persons duly
authorized as of the date and year first above written. 
  

			
	DAIMLER NORTH AMERICA CORPORATION
		
	By:	 	 /s/ Paulo Silvestri

		
	Name:	 	 Paulo Silvestri

		
	Title:	 	 President and CEO

		
	By:	 	 /s/ Karl W. Kaufmann

		
	Name:	 	 Karl W. Kaufmann

		
	Title:	 	 Asst. Treasurer

			
		
	Address:	 	BLACKSTAR INVESTCO LLC
		 	c/o DAIMLER NORTH AMERICA CORPORATION
		 	One Mercedes Drive
		 	Montvale, NJ 07645
		 	Fax No. (201) 573-2595
		 	Attention: Dr. Thomas Laubert
	
	With a copy to:
		
		 	DAIMLER AG
		 	Epplestr. 225
		 	70546 Stuttgart
		 	Fax No. +49 (711) 17-91577
		 	Attention: Alexander Nediger
	
	With a copy to:
		
		 	Hughes Hubbard & Reed LLP
		 	One Battery Park Plaza
		 	New York, NY 10004
		 	Fax No. (212) 422-4726
		 	Attention: Kenneth A. Lefkowitz

  

 SIGNATURE PAGE TO EXCLUSIVITY AND INTELLECTUAL PROPERTY AGREEMENT 
  

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portions.Form of Note Agreement

 Exhibit 4.2 
  
  
 Form of 
 Primerica, Inc. 
 $300,000,000 
 5.5% Notes due March —, 2015 
  
  
 Note Agreement

  
  
 Dated March —, 2010 
  
  

 Table of Contents 
  

					
	 Section
	  	 Heading
	  	Page
	Section 1.	  	Authorization of Notes	  	1
			
	Section 2.	  	Issuance of Notes	  	1
			
	Section 3.	  	Closing Items	  	2
			
	Section 4.	  	Representations and Warranties of the Company	  	2
			
	Section 5.	  	Representations of the Purchaser	  	4
			
	Section 6.	  	Information as to Company	  	4
			
	Section 7.	  	Payment and Redemption of the Notes	  	7
			
	Section 8.	  	Affirmative Covenants	  	9
			
	Section 9.	  	Negative Covenants	  	10
			
	Section 10.	  	Events of Default	  	11
			
	Section 11.	  	Remedies on Default, Etc	  	12
			
	Section 12.	  	Registration; Exchange; Substitution of Notes	  	13
			
	Section 13.	  	Payments on Notes	  	14
			
	Section 14.	  	Survival of Representations and Warranties; Entire Agreement	  	15
			
	Section 15.	  	Amendment and Waiver	  	15
			
	Section 16.	  	Notices	  	16
			
	Section 17.	  	Substitution of Purchaser; Assignment and Transfer	  	17
			
	Section 18.	  	Miscellaneous	  	17
			
	Section 19.	  	Confidential Information	  	20

  

 ii 

					
	Schedule A	  	—	  	Defined Terms
			
	Exhibit 1	  	—	  	Form of 5.5% Note due March —, 2015

  

 iii 

 5.5% Notes due March —, 2015 
 March —, 2010 
 Citigroup Insurance Holding Corporation 
 399 Park
Avenue 
 New York, New York 10022 
 Ladies and Gentlemen: 
 Primerica, Inc., a Delaware corporation (the “Company”), and each Subsidiary
of the Company listed on the signature pages from time to time hereto with respect to Section 18.11 (the “Subsidiary Guarantors”), agrees with Citigroup Insurance Holding Corporation, a Georgia corporation (the
“Purchaser”), as follows: 
 Section 1. Authorization of Notes. 
 The Company has authorized the issuance of $300,000,000 aggregate principal amount of its 5.5% Notes due March —, 2015 (the “Notes”, such term to include any such notes issued in substitution therefor pursuant to Section 12). The Notes shall be substantially in the form set out in Exhibit 1.
Certain capitalized and other terms used in this Agreement are defined in Schedule A; and references to a “Schedule” or an “Exhibit” are, unless otherwise specified, to a Schedule or an Exhibit attached to this Agreement.

 Section 2. Issuance of Notes. 
 Subject to the terms and conditions of the Exchange and Transfer Agreement, dated as of March [    ], 2010, by and between the Company and the Purchaser (the “Exchange
Agreement”), the Company will issue the Notes to the Purchaser pursuant to Section 1(b) of the Exchange Agreement. 

 Section 3. Closing Items. 
 Prior to or as of the date of original issuance of the Notes (the “Issuance Date”), the following closing conditions shall
be satisfied: 
 Section 3.1 Secretary’s Certificate. The Company shall have delivered to the Purchaser a
certificate of its Secretary or Assistant Secretary, dated as of the Issuance Date, certifying as to the board resolutions and other corporate proceedings relating to the authorization, execution and delivery of the Notes and this Agreement.

 Section 3.2 Opinions of Counsel. The Purchaser shall have received opinions in form and substance reasonably
satisfactory to the Purchaser, dated as of the Issuance Date, from Skadden, Arps, Slate, Meagher & Flom LLP, covering such matters as reasonably requested by the Purchaser. 
 Section 4. Representations and Warranties of the Company. 
 On the date
of this Agreement, the Company represents and warrants to the Purchaser that, after giving effect to the Transactions (as defined in the Company’s registration statement on Form S-1 (No. 333-162918) filed with the SEC (the “Registration
Statement”)): 
 Section 4.1 Organization; Power and Authority. The Company is a corporation duly
organized, validly existing and in good standing under the laws of its jurisdiction of incorporation, and is duly qualified as a foreign corporation and is in good standing in each jurisdiction in which such qualification is required by law, other
than those jurisdictions as to which the failure to be so qualified or in good standing could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The Company has the corporate power and authority to own
or hold under lease the properties it purports to own or hold under lease, to transact the business it transacts and proposes to transact, to execute and deliver this Agreement and the Notes and to perform the provisions hereof and thereof.

 Section 4.2 Authorization, Etc. This Agreement and the Notes have been duly authorized by all necessary corporate
action on the part of the Company and this Agreement constitutes, and upon execution and delivery thereof each Note will constitute, a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms,
except as such enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (ii) general principles of equity
(regardless of whether such enforceability is considered in a proceeding in equity or at law). 
 Section 4.3
Organization and Ownership of Shares of Subsidiaries. (a) Exhibit 21.1 to the Registration Statement contains a complete and correct list of the Company’s Significant Subsidiaries, showing, as to each such Subsidiary, the correct name
thereof. The Company owns, directly or indirectly, 100% of the shares of each class of capital stock or similar equity interests outstanding of each such Subsidiary. 
  

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 (b) All of the outstanding shares of capital stock or similar equity interests of each
Subsidiary shown in Exhibit 21.1 to the Registration Statement as being owned by the Company and its Subsidiaries have been validly issued, are fully paid and nonassessable and are owned by the Company or another Subsidiary free and clear of any
Lien (except as otherwise would not reasonably be expected to have a Material Adverse Effect). 
 (c) Each Subsidiary identified
in Exhibit 21.1 to the Registration Statement is a corporation or other legal entity duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, and is duly qualified as a foreign corporation or other
legal entity and is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect. Each such Subsidiary has the corporate or other power and authority to own or hold under lease the properties it purports to own or hold under lease and to transact the business it transacts
and proposes to transact. 
 Section 4.4 Compliance with Laws, Other Instruments, Etc. The execution, delivery and
performance by the Company of this Agreement and the Notes will not (i) contravene, result in any breach of, or constitute a default under, any corporate charter or by-laws of the Company or any Subsidiary, (ii) contravene, result in any
breach of, or constitute a default under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, or any other agreement or instrument to which the Company or any Subsidiary is bound or by which the Company or any
Subsidiary or any of their respective properties may be bound or affected, except for any contravention, breach or default as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, (iii) conflict
with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree, or ruling of any court, arbitrator or Governmental Authority applicable to the Company or any Subsidiary or (iv) violate any provision of
any statute or other rule or regulation of any Governmental Authority applicable to the Company or any Subsidiary. 
 Section 4.5 Governmental Authorizations, Etc. No consent, approval or authorization of, or registration, filing or declaration with, any Governmental Authority is required in connection with the execution, delivery or
performance by the Company of this Agreement or the Notes. 
 Section 4.6 Litigation; Observance of Agreements, Statutes
and Orders. Neither the Company nor any Subsidiary is in default under any term of any agreement or instrument to which it is a party or by which it is bound, or any order, judgment, decree or ruling of any court, arbitrator or Governmental
Authority or is in violation of any applicable law, ordinance, rule or regulation (including Environmental Laws or the USA Patriot Act) of any Governmental Authority, which default or violation, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect. 
 Section 4.7 Private Offering by the Company. Neither the Company nor
anyone acting on its behalf (excluding, however, the Purchaser and its Affiliates other than the Company and its Subsidiaries) has offered the Notes or any similar securities for sale to, or solicited any

  

 3 

 
offer to buy any of the same from, or otherwise approached or negotiated in respect thereof with, any person other than the Purchaser. Neither the Company nor anyone acting on its behalf has
taken, or will take, any action that would subject the issuance or sale of the Notes to the registration requirements of Section 5 of the Securities Act or to the registration requirements of any securities or blue sky laws of any applicable
jurisdiction. 
 Section 5. Representations of the Purchaser. 
 Section 5.1 Acquisition for Investment. The Purchaser represents that it is acquiring the Notes for its own account and not with
a view to the distribution thereof, provided that the disposition of the Purchaser of its property shall at all times be within such Purchaser’s control. The Purchaser understands that the Notes have not been registered under the
Securities Act and may be resold only if registered pursuant to the provisions of the Securities Act or if an exemption from registration is available, except under circumstances where neither such registration nor such an exemption is required by
law, and that the Company is not required to register the Notes. 
 Section 6. Information as to Company. 
 Section 6.1 Financial and Business Information. So long as any of the Notes are outstanding, the Company shall deliver to each
holder of Notes that is not an Affiliate of the Company (“Non-Affiliate Holder”) and is an Institutional Investor: 
 (a) Quarterly Statements — within 60 days (or such shorter period as is 15 days greater than the period applicable to the filing of the Company’s Quarterly Report on Form 10-Q (the “Form 10-Q”) with the
SEC, to the extent the Company is required to file a Form 10-Q) after the end of each quarterly fiscal period in each fiscal year of the Company, regardless of whether the Company is subject to the filing requirements thereof (other than
(i) the quarterly period ended March 31, 2010 for which the 60-day period above shall be extended until the date the Form 10-Q for such period is actually filed and (ii) the last quarterly fiscal period of each such fiscal year, for
which no quarterly statement shall be required), duplicate copies of, 
 (i) a consolidated balance sheet of the
Company and its Subsidiaries as at the end of such quarter, and 
 (ii) consolidated statements of income,
changes in shareholders’ equity and cash flows of the Company and its Subsidiaries, for such quarter and (in the case of the second and third quarters) for the portion of the fiscal year ending with such quarter, 
 setting forth in each case in comparative form the figures for the corresponding periods in the previous fiscal year, all in reasonable detail, prepared in
accordance with GAAP applicable to quarterly financial statements generally, and certified by a Senior Financial Officer as fairly

  

 4 

 
presenting, in all material respects, the financial position of the companies being reported on and their results of operations and cash flows, subject to changes resulting from year-end
adjustments, provided that delivery within the time period specified above of copies of the Company’s Form 10-Q prepared in compliance with the requirements therefor and filed with the SEC shall be deemed to satisfy the requirements of
this Section 6.1(a), provided, further, that the Company shall be deemed to have made such delivery of such Form 10-Q if it shall have timely made such Form 10-Q available on “EDGAR” or on the Company’s home page on
the worldwide web (at the date of this Agreement located at: http//www.primerica.com) (such availability being referred to as “Electronic Delivery”); 
 (b) Annual Statements — within 105 days (or such shorter period as is 15 days greater than the period applicable to the filing of the Company’s Annual Report on Form 10-K (the
“Form 10-K”) with the SEC, to the extent the Company is required to file a Form 10-K) after the end of each fiscal year of the Company, regardless of whether the Company is subject to the filing requirements thereof, duplicate
copies of 
 (i) a consolidated balance sheet of the Company and its Subsidiaries as at the end of such year, and

 (ii) consolidated statements of income, changes in shareholders’ equity and cash flows of the Company and
its Subsidiaries for such year, 
 setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable
detail, prepared in accordance with GAAP, and accompanied by an opinion thereon of independent public accountants of recognized national standing, which opinion shall state that such financial statements present fairly, in all material respects, the
financial position of the companies being reported upon and their results of operations and cash flows and have been prepared in conformity with GAAP, and that the examination of such accountants in connection with such financial statements has been
made in accordance with generally accepted auditing standards, and that such audit provides a reasonable basis for such opinion in the circumstances, provided that the delivery within the time period specified above of the Company’s Form
10-K for such fiscal year prepared in accordance with the requirements therefor and filed with the SEC shall be deemed to satisfy the requirements of this Section 6.1(b), provided, further, that the Company shall be deemed to have
made such delivery of such Form 10-K if it shall have timely made Electronic Delivery thereof; 
 (c) SEC and Other
Reports — promptly upon their becoming available (with Electronic Delivery satisfying this requirement), one copy of (i) each financial statement, report, notice or proxy statement sent by the Company or any Subsidiary to its principal
lending banks as a whole (excluding information sent to such banks in the ordinary course of administration of a bank facility, such as information relating to pricing and borrowing availability) or to its public securities holders generally, and
(ii) each regular or periodic report, each registration statement (without exhibits), and each prospectus and all amendments thereto filed by the Company or any Subsidiary with the SEC and of all press releases and other statements made
available generally by the Company or any Subsidiary to the public concerning developments that are Material; 
  

 5 

 (d) Notice of Default or Event of Default — promptly, and in any event within
five Business Days after a Responsible Officer becoming aware of the existence of any Default or Event of Default or that any holder of Notes has given any notice or taken any action in good faith with respect to a claimed default hereunder or that
any Person has given any notice or taken any action in good faith with respect to a claimed Default of the type referred to in Section 10(d), a written notice specifying the nature and period of existence thereof and what action the Company is
taking or proposes to take with respect thereto; 
 (e) Notices from Governmental Authority — promptly, and in any
event within 30 days of receipt thereof, copies of any notice to the Company or any Subsidiary from any Federal or state Governmental Authority relating to any order, ruling, statute or other law or regulation that could reasonably be expected to
have a Material Adverse Effect; and 
 (f) Requested Information — with reasonable promptness, such other data and
information relating to the ability of the Company to perform its obligations hereunder and under the Notes as from time to time may be reasonably requested by any such holder of Notes (in a manner so as to not interfere with the normal business
operations of the Company or any of its Subsidiaries). 
 Section 6.2 Officer’s Certificate. Each set of
financial statements delivered to a holder of Notes pursuant to Section 6.1(a) or Section 6.1(b) shall be accompanied by a certificate of a Senior Financial Officer setting forth (which, in the case of Electronic Delivery of any such
financial statements, shall be by separate delivery of such certificate to each holder of Notes that is a Non-Affiliate Holder and an Institutional Investor promptly following such Electronic Delivery) a statement that such Senior Financial Officer
has reviewed the relevant terms hereof and has made, or caused to be made, under his or her supervision, a review of the transactions and conditions of the Company and its Subsidiaries from the beginning of the quarterly or annual period covered by
the statements then being furnished to the date of the certificate and that such review shall not have disclosed the existence during such period of any condition or event that constitutes a Default or an Event of Default or, if any such condition
or event existed or exists, specifying the nature and period of existence thereof and what action the Company shall have taken or proposes to take with respect thereto. 
 Section 6.3 Visitation. The Company shall permit the representatives of each holder of Notes that is a Non-Affiliate Holder and an Institutional Investor, if a Default or Event of Default then
exists, at the expense of the Company and upon reasonable prior notice to the Company, to visit and inspect any of the offices or properties of the Company or any Subsidiary, to examine all their respective books of account, records, reports and
other papers, to make copies and extracts therefrom, and to discuss their respective affairs, finances and accounts with their respective officers and independent public accountants (and by this provision the Company authorizes said accountants to
discuss the affairs, finances and accounts of the Company and its Subsidiaries), all at such times and as often as may be reasonably requested (in a manner so as to not interfere with the normal business operations of the Company or any of its
Subsidiaries). 
  

 6 

 Section 6.4 Limitation on Provision of Information to Competitors.
Notwithstanding anything in this Agreement to the contrary, the Company shall not be required to provide to any Competitor information that the Company deems in its sole discretion to be competitively sensitive information. For the avoidance of
doubt, to the extent any Competitor has any information or visitation rights pursuant to this Section 6, such rights shall be limited by the foregoing sentence. 
 Section 7. Payment and Redemption of the Notes. 
 Section 7.1
Maturity. As provided therein, the entire unpaid principal balance of the Notes shall be due and payable on the stated maturity date thereof. 
 Section 7.2 Optional Redemption. The Company may, at its option, upon notice as provided below, redeem at any time all, or from time to time any part of, the Notes, at 100% of the principal
amount so redeemed. The Company will give each holder of Notes written notice of each optional redemption under this Section 7.2 not less than 30 days and not more than 60 days prior to the date fixed for such redemption; provided, that
such notice may state that it is conditioned upon the occurrence of one or more events specified therein, in which case such notice shall be deemed to be automatically revoked by the Company if such condition is not satisfied. Each such notice shall
specify the date fixed for redemption (which shall be a Business Day), the aggregate principal amount of the Notes to be redeemed on such date, the principal amount of each Note held by such holder to be redeemed (determined in accordance with
Section 7.3), and the interest to be paid on the redemption date with respect to such principal amount being redeemed. 
 Section 7.3 Allocation of Partial Redemptions. In the case of each partial redemption of the Notes, the principal amount of the Notes to be redeemed shall be allocated among all of the Notes at the time outstanding in
proportion, as nearly as practicable, to the respective unpaid principal amounts thereof not theretofore called for redemption. 
 Section 7.4 Maturity; Surrender, Etc. In the case of each redemption of Notes pursuant to this Section 7, the principal amount of each Note to be redeemed shall mature and become due and payable on the date fixed for such
redemption (which shall be a Business Day), together with interest on such principal amount accrued to and excluding such date. From and after such date, unless the Company shall fail to pay such principal amount when so due and payable, as
aforesaid, interest on such principal amount shall cease to accrue. Any Note paid or redeemed in full shall be surrendered to the Company and cancelled and shall not be reissued, and no Note shall be issued in lieu of any redeemed principal amount
of any Note. Any Note redeemed in part shall be surrendered to the Company if the Company so requests, and the Company shall issue a new Note in principal amount equal to and in exchange for the unredeemed portion of the principal of the Note so
surrendered. 
 Section 7.5 Change of Control. (a) In the event that a Change of Control (as defined below)
shall occur, each holder of Notes, if such holder makes a timely election in accordance

  

 7 

 
with the instructions determined by the Company pursuant to Section 7.5(c) hereof, shall have the right to require the Company to purchase such holder’s Notes at a price in cash equal
to 101% of the outstanding principal amount plus accrued and unpaid interest to and excluding the date of purchase, in accordance with Section 7.5(c) hereof. 
 (b) As used herein, “Change of Control” means the occurrence of any of the following events: 
 (i) a majority of the members of the Company’s board of directors (other than vacant seats) are, at any time, neither (A) nominated by, or whose election was approved by, the board of directors
of the Company nor (B) appointed by directors so nominated or elected; or 
 (ii) the consummation of any
transaction resulting in any person or entity (other than Citigroup Inc., Warburg Pincus LLC or any of their respective Affiliates) becoming the beneficial owner, directly or indirectly, of more than 50% of the voting power of the Company’s
issued and outstanding voting securities. 
 (c) Within 30 days following any Change of Control, the Company shall mail by
first-class mail a notice (the “Change of Control Notice”) to each holder of the Notes, stating: 
 (i) that a Change of Control has occurred and that such holder of the Notes has the right to require the Company to purchase such holder’s Notes at a price in cash equal to 101% of the outstanding principal amount thereof plus accrued
and unpaid interest to and excluding the date of purchase; 
 (ii) a description of such Change of Control;

 (iii) the purchase date (which shall be no earlier than 30 days nor later than 60 days from the date the
Change of Control Notice is mailed); and 
 (iv) the instructions determined by the Company, consistent with this
Section 7.5(c), that such holder must follow to exercise its rights pursuant to this Section 7.5(c). 
 (d) Holders of
the Notes electing to have their Notes purchased by the Company pursuant to this Section 7.5 must surrender such Notes to the Company in accordance with the instructions determined by the Company pursuant to Section 7.5(c) hereof in order
to receive the purchase price. 
  

 8 

 Section 8. Affirmative Covenants. The Company covenants that so long as any of the Notes are
outstanding: 
 Section 8.1 Payment of Taxes and Assessments. The Company will, and will cause each of its
Significant Subsidiaries to, pay and discharge all taxes, assessments, governmental charges, or levies imposed on it or any of its properties, assets, income or franchises, to the extent the same have become due and payable and before they have
become delinquent, provided that neither the Company nor any Significant Subsidiary need pay any such tax, assessment, charge, levy or claim if (i) the amount, applicability or validity thereof is contested by the Company or such
Significant Subsidiary on a timely basis in good faith and in appropriate proceedings, and the Company or a Significant Subsidiary has established adequate reserves therefor in accordance with GAAP on the books of the Company or such Significant
Subsidiary or (ii) the nonpayment of all such taxes, assessments, charges, levies and claims in the aggregate could not reasonably be expected to have a Material Adverse Effect. 
 Section 8.2 Corporate Existence, Etc. Subject to Section 9.1, the Company will at all times preserve and keep in full force
and effect its corporate existence, rights and franchises unless, in the good faith judgment of the Company, the termination of or failure to preserve and keep in full force and effect such right or franchise could not, individually or in the
aggregate, reasonably expected to have a Material Adverse Effect. 
 Section 8.3 Offices. The Company shall maintain
an office or agency where the Notes may be surrendered for registration, exchange or presentation for payment and where notices to the Company may be served. 
 Section 8.4 Refinancing of Indebtedness. 
 (a) From the (x) first
anniversary of the Issuance Date until the second anniversary of the Issuance Date (the “Initial Period”) on at least two occasions mutually agreeable to the Company and the Citi Affiliate (as defined below) and (y) second
anniversary of the Issuance Date to the fourth anniversary of the Issuance Date (the “Second Period”), on at least one additional occasion mutually agreeable to the Company and the Citi Affiliate: the Company shall use its
commercially reasonable efforts to arrange and consummate an offering of investment grade debt securities, trust preferred securities, surplus notes, hybrids or convertible debt of the Company or a subsidiary of the Company generating net cash
proceeds (after deducting fees and expenses incurred in connection with such offering) equal to or greater than the aggregate amount owing at such time under the Notes (the “Refinancing Indebtedness”) to be used to refinance the
Notes; provided, that, in no event shall the Company be required to undertake, arrange or consummate an offering of such securities if the terms (including economics) and conditions thereof are not, in the good faith judgment of the Company
after consultation with the Citi Affiliate, the same as or better for the Company than those of the Notes (other than (A) the optional redemption provisions (including make-whole provisions) which shall be no worse for the Company than
then-prevailing market terms for similar securities of issuers of similar credit quality and (B)(i) the tenor of the Refinancing Indebtedness, which shall be equal to or longer than five years from the date of the original issuance of the
Refinancing Indebtedness and (ii) any change in interest rate that is (x) directly related to any increase in tenor of the Refinancing Indebtedness as compared to the tenor of the Notes and (y) reasonably acceptable to the Company).

  

 9 

 (b) The Company shall offer to use a broker dealer Affiliate of Citigroup Inc. (as
designated by Citigroup Inc., the “Citi Affiliate”) to market the Refinancing Indebtedness offered up to the later of (A) the end of the Initial Period and (B) one year after the Company receives an investment grade rating
from Moody’s Investors Service, Inc. and Standard & Poor’s, as a sole bookrunning underwriter or placement agent. 
 (c) Subject to the expiration of the provisions in Section 8.4(b), the Company shall offer to use the Citi Affiliate to market the Refinancing Indebtedness offered during the Second Period as a bookrunning underwriter or placement
agent (but not necessarily sole bookrunning underwriter or placement agent). 
 (d) The fee payable to the Citi Affiliate in
connection with marketing the Refinancing Indebtedness pursuant to Sections 8.4(b) and (c) will be the lesser of 1% of the gross proceeds from the sale of the Refinancing Indebtedness and the rate then prevailing in the market charged by
underwriters with similar roles in the offerings of similar securities of issuers of similar credit quality. 
 Section 9. Negative
Covenants. 
 The Company covenants that so long as any of the Notes are outstanding, without the consent of the holder or
holders of more than 50% in aggregate principal amount of the Notes at the time outstanding: 
 Section 9.1 Merger,
Consolidation, Etc. The Company will not consolidate or merge with or into any other Person or convey, transfer or lease all or substantially all of its assets in a single transaction or series of related transactions to any Person unless:

 (a) the successor formed by such consolidation or the survivor of such merger or the Person that acquires by conveyance,
transfer or lease all or substantially all of the assets of the Company, as the case may be, shall be a corporation organized under the laws of the United States or any State thereof (including the District of Columbia), and, if the Company is not
such corporation, such corporation shall have expressly assumed in writing the due and punctual performance and observance of each covenant and condition of this Agreement and the Notes; and 
 (b) immediately after giving effect to such transaction, no Default or Event of Default shall have occurred and be continuing. 

 

 10 

 Such conveyance, transfer or lease of all or substantially all of the assets of the Company shall have the
effect of releasing the Company or any successor corporation that shall theretofore have become such in the manner prescribed in this Section 9.1 from all of its liabilities under this Agreement and the Notes. 
 Section 9.2 Liens. The Company shall not incur Liens on the capital stock of Significant Subsidiaries securing Indebtedness for
borrowed money unless the Company’s obligations under the Notes are secured equally and ratably therewith; provided, however, that the Company may incur Liens on the capital stock of Significant Subsidiaries securing Indebtedness for
borrowed money with an aggregate principal amount at any time outstanding up to 10% of Net Tangible Book Value. The limitations set forth in this Section 9.2 shall not apply to Liens (i) existing on any capital stock prior to the
acquisition thereof or existing on any capital stock of any Person that becomes a Subsidiary after the date hereof prior to the time such Person becomes a Subsidiary, provided, that such Liens were not created in contemplation of such
acquisition or such Person becoming a Subsidiary, or (ii) incurred in connection with any financing transaction effected pursuant to or for the purposes of complying with any minimum regulatory or statutory capital and reserve requirements
applicable to the Company or its Subsidiaries (including, without limitation, any reserve funding securitization or reserve financing). 
 Section 9.3 Significant Subsidiaries. The Company shall not sell, transfer or otherwise dispose of the capital stock of any Significant Subsidiary other than (i) to the Company or any of
its Wholly-Owned Subsidiaries, (ii) for at least fair value (as determined by the Company’s board of directors, acting in good faith) or (iii) to comply with an order of a court or regulatory authority of competent jurisdiction, other
than an order issued at the Company’s request or at the request of any of the Company’s Subsidiaries. 
 Section 10. Events of
Default. 
 An “Event of Default” shall exist if any of the following conditions or events shall occur and
be continuing: 
 (a) the Company defaults in the payment of any principal or premium on any Note when the same becomes due and
payable, whether at maturity or at a date fixed for redemption or by declaration or otherwise; or 
 (b) the Company defaults in
the payment of any interest on any Note for more than 30 days after the same becomes due and payable; or 
 (c) the Company
defaults in the performance of or compliance with any covenant or agreement contained herein (other than those referred to in Sections 10(a) and (b)) and such default is not remedied within 60 days after the Company receiving written notice of such
default from the holder or holders of at least 25% in aggregate principal amount of the Notes at the time outstanding (any such written notice to be identified as a “notice of default” and to refer specifically to this Section 10(c));
or 
  

 11 

 (d) the Company or any Significant Subsidiary is in default in the payment of principal on
any Indebtedness on or after the date of final maturity thereof (whether at the stated maturity or redemption date or as a result of the acceleration thereof), in each case, subject to the expiration of applicable cure periods, if any, and the total
principal amount of such unpaid Indebtedness is at least $25,000,000; provided, such default shall be an Event of Default only if such default is continuing 30 days following the Company’s receipt of written notice of such default from
the holder or holders of at least 25% in aggregate principal amount of Notes at the time outstanding (any such written notice to be identified as a “notice of default” and to refer specifically to this Section 10(d)); or 

(e) the Company or any Significant Subsidiary (i) admits in writing its inability to pay its debts as they become due,
(ii) files, or consents by answer or otherwise to the filing against it of, a petition for relief or reorganization or arrangement or any other petition in bankruptcy, for liquidation or to take advantage of any insolvency, bankruptcy,
receivership, liquidation, conservatorship, dissolution, rehabilitation or reorganization or other similar proceeding or law of any jurisdiction, (iii) makes a general assignment for the benefit of its creditors, (iv) consents to the
appointment of a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property or (v) is adjudicated as insolvent or to be liquidated; or 
 (f) a court or Governmental Authority of competent jurisdiction enters an order appointing, without consent by the Company or any of its
Significant Subsidiaries, a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, or constituting an order for relief or approving a petition for relief or
reorganization or any other petition in bankruptcy or for liquidation or to take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution, winding-up or liquidation of the Company or any of its Significant
Subsidiaries, or any such petition shall be filed against the Company or any of its Significant Subsidiaries, and, in each case, such order or petition shall not be dismissed within 60 days. 
 Section 11. Remedies on Default, Etc. 
 Section 11.1 Acceleration. (a) If an Event of Default with respect to the Company described in Section 10(e) or (f) (other than an Event of Default described in clause
(i) of Section 10(e)) has occurred, all the Notes then outstanding shall automatically become immediately due and payable. 
 (b) If any other Event of Default has occurred and is continuing, the holder or holders of more than 25% in aggregate principal amount of the Notes at the time outstanding may at any time, at its or their option, by written notice to the
Company, declare all the Notes then outstanding to be immediately due and payable. 
  

 12 

 (c) Upon any Notes becoming due and payable under this Section 11.1, whether
automatically or by declaration, such Notes will forthwith mature and the entire unpaid principal amount of such Notes, plus all accrued and unpaid interest thereon, shall all be immediately due and payable, in each and every case without
presentment, demand, protest or further notice, all of which are hereby waived. 
 Section 11.2 Other Remedies.
Notwithstanding any other provision of this Agreement, the holder of any Note shall have the right to receive payment of principal of and interest on the Notes held by such holder, on or after the respective due dates expressed or provided for in
the Notes, or to bring suit for the enforcement of any such payment on or after such respective dates, and such right shall not be impaired or affected without the consent of such holder. 
 Section 11.3 No Waivers or Election of Remedies, Expenses, Etc. No course of dealing and no delay on the part of any holder of
any Note in exercising any right, power or remedy shall operate as a waiver thereof or otherwise prejudice such holder’s rights, powers or remedies. No right, power or remedy conferred by this Agreement or by any Note upon any holder thereof
shall be exclusive of any other right, power or remedy referred to herein or therein or now or hereafter available at law, in equity, by statute or otherwise. The Company will pay to the holder of each Note on demand such further amount as shall be
sufficient to cover all reasonable costs and expenses of such holder incurred following the occurrence of a Default or an Event of Default in any enforcement or collection under this Section 11, including reasonable attorneys’ fees,
expenses and disbursements. 
 Section 12. Registration; Exchange; Substitution of Notes. 
 Section 12.1 Registration of Notes. The Company shall keep at its principal executive office a register for the registration and
registration of transfers of Notes. The name and address of each holder of one or more Notes, each transfer thereof and the name and address of each transferee of one or more Notes shall be registered in such register. Prior to due presentment for
registration of transfer, the Person in whose name any Note shall be registered shall be deemed and treated as the owner and holder thereof for all purposes hereof, and the Company shall not be affected by any notice or knowledge to the contrary.
The Company shall give to any holder of a Note, promptly upon request therefor, a complete and correct copy of the names and addresses of all registered holders of the Notes. 
 Section 12.2 Transfer and Exchange of Notes. Upon surrender of any Note to the Company at the address and to the attention of
the designated officer (all as specified in Section 16(iii)), for registration of transfer or exchange (and in the case of a surrender for registration of transfer accompanied by a written instrument of transfer duly executed by the registered
holder of such Note or such holder’s attorney duly authorized in writing and accompanied by the relevant name, address, tax identification number and other information reasonably satisfactory to the Company that no registration under the
Securities Act is required in connection with such transfer (which may include a legal opinion of counsel reasonably satisfactory to the Company) for notices of each transferee of such Note or part thereof), within ten Business Days thereafter, the
Company shall execute and deliver, at the Company’s expense (except as provided below), one or more new Notes (as requested by the holder thereof) in exchange therefor, in an aggregate

  

 13 

 
principal amount equal to the unpaid principal amount of the surrendered Note. Each such new Note shall be payable to such Person as such holder may request and shall be substantially in the form
of Exhibit 1. Each such new Note shall be dated and bear interest from the date to which interest shall have been paid on the surrendered Note or dated the date of the surrendered Note if no interest shall have been paid thereon. The Company may
require payment of a sum sufficient to cover any stamp tax or governmental charge imposed in respect of any such transfer of Notes. Notes shall not be transferred in denominations of less than $1,000,000, provided that if necessary to enable the
registration of transfer by a holder of its entire holding of Notes, one Note may be in a denomination of less than $1,000,000. 
 Section 12.3 Replacement of Notes. Upon receipt by the Company at the address and to the attention of the designated officer (all as specified in Section 16(iii)) of evidence reasonably satisfactory to it of the ownership
of and the loss, theft, destruction or mutilation of any Note (which evidence shall be, in the case of an Institutional Investor, notice from such Institutional Investor of such ownership and such loss, theft, destruction or mutilation), and

 (a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it, or 
 (b) in the case of mutilation, upon surrender and cancellation thereof, 
 within ten Business Days thereafter, the Company at its own expense shall execute and deliver, in lieu thereof, a new Note, dated and bearing interest from the date to which interest shall have been paid
on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen, destroyed or mutilated Note if no interest shall have been paid thereon. 
 Section 13. Payments on Notes. 
 Section 13.1 Place of
Payment. Subject to Section 13.2, payments of principal and interest becoming due and payable on the Notes shall be made in Duluth, Georgia at the principal office of the Company in such jurisdiction. The Company may at any time, by notice
to each holder of a Note, change the place of payment of the Notes so long as such place of payment shall be either the principal office of the Company in such jurisdiction or the principal office of a bank or trust company in the United States.

 Section 13.2 Home Office Payment. So long as the Purchaser or its nominee shall be the holder of any Note, and
notwithstanding anything contained in Section 13.1 or in such Note to the contrary, the Company will pay all sums becoming due on such Note for principal and interest by the method and at the address specified below the Purchaser’s name at
the beginning of this Agreement, or by such other reasonable method or at such other address as such Purchaser shall have from time to time specified to the Company in writing for such purpose, without the presentation or surrender of such Note or
the making of any notation thereon, except that upon written request of the Company made prior to, concurrently with or reasonably promptly after payment or redemption in full of any Note, such Purchaser shall surrender such

  

 14 

 
Note for cancellation, reasonably promptly after any such request, to the Company at its principal executive office or at the place of payment most recently designated by the Company pursuant to
Section 13.1. Prior to any sale or other disposition of any Note held by the Purchaser or its nominee, such Purchaser will, at its election, either endorse thereon the amount of principal paid thereon and the last date to which interest has
been paid thereon or surrender such Note to the Company in exchange for a new Note or Notes pursuant to Section 12.2. The Company will afford the benefits of this Section 13.2 to any Institutional Investor that is the direct or indirect
transferee of any Note purchased by the Purchaser under this Agreement and that has made the same agreement relating to such Note as the Purchaser has made in this Section 13.2. 
 Section 14. Survival of Representations and Warranties; Entire Agreement. 
 All representations and warranties contained herein are made as of the date of this Agreement (unless specifically addressing matters only as of a particular date, then as of that date) and shall survive the execution and delivery of this
Agreement and the Notes, the purchase or transfer by the Purchaser of any Note or portion thereof or interest therein and the payment of any Note, and may be relied upon by any subsequent holder of a Note, regardless of any investigation made at any
time by or on behalf of the Purchaser or any other holder of a Note. All statements contained in any certificate or other instrument delivered by or on behalf of the Company pursuant to this Agreement (but excluding statements contained in any
certificate delivered pursuant to Section 6 to the extent such statements relate to the condition (including financial position) or transactions of the Company or any Subsidiary on or prior to April 15, 2010) shall be deemed
representations and warranties of the Company under this Agreement. Subject to the preceding sentence, this Agreement and the Notes embody the entire agreement and understanding between the Purchaser and the Company and supersede all prior
agreements and understandings relating to the subject matter hereof. 
 Section 15. Amendment and Waiver. 
 Section 15.1 Requirements. This Agreement and the Notes may be amended, and the observance of any term hereof or of the Notes may
be waived (either retroactively or prospectively), with (and only with) the written consent of the Company and the holder or holders of more than 50% in aggregate principal amount of the Notes at the time outstanding, except that (a) for so
long as the Purchaser is a holder of a Note, no amendment or waiver of any of the provisions of Sections 15.1(a) and 17 hereof, or any defined term as it is used therein, will be effective as to the Purchaser unless consented to by the Purchaser in
writing, and (b) no amendment or waiver may, without the written consent of the holder of each Note at the time outstanding affected thereby, (i) subject to the provisions of Section 11 relating to acceleration, change the amount or
time of any payment of principal of, or reduce the rate or change the time of payment or method of computation of interest on, the Notes, (ii) change the percentage of the principal amount of the Notes the holders of which are required to
consent to any such amendment or waiver, or (iii) amend any of Sections 10(a), 10(b) or 11. Notwithstanding the foregoing, this Agreement may be amended by the Company, without the consent of any holder of any Note, to add any Subsidiary of the
Company as a Subsidiary Guarantor under Section 18.11. 
  

 15 

 Section 15.2 Delivery. The Company will deliver executed or true and correct
copies of each amendment, waiver or consent effected pursuant to the provisions of this Section 15 to each holder of outstanding Notes reasonably promptly following the date on which it is executed and delivered by, or receives the consent or
approval of, the requisite holders of Notes. 
 Section 15.3 Binding Effect, etc. Any amendment or waiver consented
to as provided in this Section 15 applies equally to all holders of Notes and is binding upon them and upon each future holder of any Note and upon the Company without regard to whether such Note has been marked to indicate such amendment or
waiver. No such amendment or waiver will extend to or affect any obligation, covenant, agreement, Default or Event of Default not expressly amended or waived or impair any right consequent thereon. No course of dealing between the Company and the
holder of any Note nor any delay in exercising any rights hereunder or under any Note shall operate as a waiver of any rights of any holder of such Note. 
 Section 15.4 Notes Held by Company, etc. Solely for the purpose of determining whether the holders of the requisite percentage of the aggregate principal amount of Notes then outstanding
approved or consented to any amendment, waiver or consent to be given under this Agreement or the Notes, or have directed the taking of any action provided herein or in the Notes to be taken upon the direction of the holders of a specified
percentage of the aggregate principal amount of Notes then outstanding, Notes directly or indirectly owned by the Company or any of its Affiliates under the Control of the Company shall be deemed not to be outstanding. 
 Section 16. Notices. 
 Any notice, request, instruction or other document to be given hereunder by any party to the other will be in writing and will be deemed to have been duly given (a) on the date of delivery if delivered personally or by facsimile, with
confirmation of receipt, (b) on the first business day following the date of dispatch if delivered by a recognized next-day courier service or (c) on the third business day following the date of mailing if delivered by registered or
certified mail, return receipt requested, postage prepaid: 
 (i) if to the Purchaser or its nominee, to the
Purchaser or nominee at the address specified below the Purchaser’s name at the beginning of this Agreement, or at such other address as the Purchaser or nominee shall have specified to the Company in writing, 
 (ii) if to any other holder of any Note, to such holder at such address as such other holder shall have specified to the
Company in writing, or 
 (iii) if to the Company, to the Company at 3120 Breckinridge Blvd., Duluth, Georgia
30099, to the attention of the General Counsel, or at such other address as the Company shall have specified to the holder of each Note in writing. 
  

 16 

 Section 17. Substitution of Purchaser; Assignment and Transfer. 
 (a) Substitution of Purchaser. The Purchaser shall have the right to substitute any one of its Affiliates as the purchaser of the
Notes that it has agreed to acquire hereunder, by written notice to the Company, which notice shall be signed by both the Purchaser and such Affiliate, shall contain such Affiliate’s agreement to be bound by this Agreement and shall contain a
confirmation by such Affiliate of the accuracy with respect to it of the representations set forth in Section 5. Upon receipt of such notice, any reference to the Purchaser in this Agreement (other than in this Section 17), shall be
deemed to refer to such Affiliate in lieu of such original Purchaser. In the event that such Affiliate is so substituted as a Purchaser hereunder and such Affiliate thereafter transfers to such original Purchaser all of the Notes then held by such
Affiliate, upon receipt by the Company of notice of such transfer, any reference to such Affiliate as a “Purchaser” in this Agreement (other than in this Section 17), shall no longer be deemed to refer to such Affiliate, but shall
refer to such original Purchaser, and such original Purchaser shall again have all the rights of an original holder of the Notes under this Agreement. 
 (b) Assignment and Transfer. The holders of the Notes may, upon written notice to the Company, assign, participate, grant security interests in, or otherwise transfer any portion of the Notes, and
may assign any of its rights or delegate any of its duties hereunder. Upon such notice, the Company shall transfer or exchange any Note pursuant to the procedures and subject to the conditions set forth in Section 12.2. 
 Section 18. Miscellaneous. 
 Section 18.1 Successors and Assigns. All covenants and other agreements contained in this Agreement by or on behalf of any of the parties hereto bind and inure to the benefit of their respective successors and assigns (including
any subsequent holder of a Note) whether so expressed or not. 
 Section 18.2 Payments Due on Non-Business Days.
Anything in this Agreement or the Notes to the contrary notwithstanding (but without limiting the requirement in Section 7.4 that the notice of any optional redemption specify a Business Day as the date fixed for such redemption), any payment
of principal of or interest on any Note that is due on a date other than a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next
succeeding Business Day. 
 Section 18.3 Accounting Terms. All accounting terms used herein which are not expressly
defined in this Agreement have the meanings respectively given to them in accordance with GAAP. Except as otherwise specifically provided herein, (i) all computations made pursuant to this Agreement shall be made in accordance with GAAP, and
(ii) all financial statements shall be prepared in accordance with GAAP. 
 Section 18.4 Severability. Any
provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such

  

 17 

 
prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by law)
not invalidate or render unenforceable such provision in any other jurisdiction. 
 Section 18.5 Construction, etc.
Each covenant contained herein shall be construed (absent express provision to the contrary) as being independent of each other covenant contained herein, so that compliance with any one covenant shall not (absent such an express contrary provision)
be deemed to excuse compliance with any other covenant. 
 For the avoidance of doubt, all Schedules and Exhibits attached to
this Agreement shall be deemed to be a part hereof. 
 Section 18.6 Counterparts. This Agreement may be executed in
any number of counterparts, each of which shall be an original but all of which together shall constitute one instrument. Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by all, of the
parties hereto. 
 Section 18.7 Governing Law. This Agreement shall be construed and enforced in accordance with,
and the rights of the parties shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State. 
 Section 18.8 Jurisdiction and Process; Waiver of Jury Trial. (a) The Company irrevocably submits to the non-exclusive
jurisdiction of any New York State or federal court sitting in the Borough of Manhattan, The City of New York, over any suit, action or proceeding arising out of or relating to this Agreement or the Notes. To the fullest extent permitted by
applicable law, the Company irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject to the jurisdiction of any such court, any objection that it may now or hereafter have to the
laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. 
 (b) The Company consents to process being served by or on behalf of any holder of Notes in any suit, action or proceeding of the nature
referred to in Section 18.8(a) by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, return receipt requested, to it at its address specified in Section 16 or at such other
address of which such holder shall then have been notified pursuant to said Section. The Company agrees that such service upon receipt (i) shall be deemed in every respect effective service of process upon it in any such suit, action or
proceeding and (ii) shall, to the fullest extent permitted by applicable law, be taken and held to be valid personal service upon and personal delivery to it. 
 (c) Nothing in this Section 18.8 shall affect the right of any holder of a Note to serve process in any manner permitted by law, or limit any right that the holders of any of the Notes may have to
bring proceedings against the Company in the courts of any appropriate jurisdiction or to enforce in any lawful manner a judgment obtained in one jurisdiction in any other jurisdiction. 
  

 18 

 (d) The parties hereto hereby waive trial by jury in any action brought on or with respect
to this Agreement, the Notes or any other document executed in connection herewith or therewith. 
 Section 18.9
Immunity. A director, officer, employee, incorporator or stockholder of the Company or any Subsidiary Guarantor (other than the Company or another Subsidiary Guarantor) shall not have any liability for any obligations of the Company or any
Subsidiary Guarantor under the Notes or the Subsidiary Guaranty or for any claim based on, in respect of or by reason of such obligations or their creation. By accepting a Note, each holder of the Notes waives and releases all such liability. The
waiver and release are part of the consideration for the issue of the Notes. 
 Section 18.10 Interpretation. All
headings used herein are used for convenience only and shall not be used to construe or interpret this Agreement or the Notes. Whenever the words “include,” “includes” or “including” are used herein, they shall be
deemed to be followed by the words “without limitation.” When a reference herein is made to a “party” or “parties,” such reference shall be to a party or parties to this Agreement unless otherwise indicated. Unless the
context requires otherwise, the terms “hereof,” “herein,” “hereby,” “hereto” and derivative or similar words in this Agreement refer to this entire Agreement. Unless the context requires otherwise, words in
this Agreement using the singular or plural number also include the plural or singular number, respectively, and the use of any gender herein shall be deemed to include the other genders. When a reference is made to a Section, such reference shall
be to a Section of this Agreement, unless otherwise indicated. References to “dollars” or “$” are to U.S. dollars. References to days, months or years shall mean calendar days, months or years unless specified otherwise.

 Section 18.11 Guaranty. Each of the Subsidiary Guarantors hereby absolutely, unconditionally and irrevocably
guarantees, each as a primary obligor and not merely as surety, the full and punctual payment and performance of all obligations of the Company under the Notes and this Agreement, whether such obligations are absolute or contingent, now existing or
subsequently arising, now due or hereafter falling due, monetary or otherwise, as if it were a direct obligor of the Notes. Each of the Subsidiary Guarantors agrees that this is a guarantee of payment and performance when due and not of collection.
The Purchaser and each holder of Notes acknowledges and agrees that the obligations of the Subsidiary Guarantors will be limited to the maximum amount that will, after giving effect to such maximum amount and all other contingent and fixed
liabilities of the Subsidiary Guarantor that are relevant under such laws, and after giving effect to any collections from, rights to receive contribution from, or payments made by or on behalf of any other Subsidiary Guarantor in respect of the
obligations of such other Subsidiary Guarantor under this Section 18.11, result in the obligations of the Subsidiary Guarantor under its guarantee not constituting a fraudulent transfer or conveyance. In the event of any sale or other
disposition of all or substantially all of the assets of any Subsidiary Guarantor, by way of merger, consolidation or otherwise, or a sale or other disposition of the

  

 19 

 
capital stock of any Subsidiary Guarantor following which such Person is no longer a Subsidiary of the Company, in each case to a Person that is not a Subsidiary of the Company, then such
Subsidiary Guarantor will be automatically released and relieved of any obligations under this Section 18.11, without any further act by any Person. Notwithstanding the foregoing, the Purchaser and each holder of Notes hereby agrees to execute
any agreement or instrument (at the expense of the Company) that the Company reasonably requests in order to evidence such release. 
 Section 19. Confidential Information. For the purposes of this Section 19, “Confidential Information” means information delivered to any Non-Affiliate Holder by or on behalf of the Company or any Subsidiary of the
Company in connection with the transactions contemplated by or otherwise pursuant to this Agreement that is proprietary in nature and that was clearly marked or labeled or otherwise adequately identified when received by the Non-Affiliate Holder as
being confidential information of the Company or such Subsidiary, provided that such term does not include information that (a) was publicly known or otherwise known to the Non-Affiliate Holder prior to the time of the delivery of such
information to such Non-Affiliate Holder by or on behalf of the Company or any Subsidiary thereof (other than through disclosure by (x) the Company or any Subsidiary or (y) a Person who was under a duty of confidentiality to the Company),
(b) subsequently becomes publicly known through no act or omission by the Non-Affiliate Holder or any person acting on the holder’s behalf, (c) otherwise becomes known to the Non-Affiliate Holder other than through disclosure by
(x) the Company or any Subsidiary or (y) a Person who was under a duty of confidentiality to the Company or (d) constitutes financial statements delivered to the Non-Affiliate Holder under Section 6.1 that are otherwise publicly
available. Each Non-Affiliate Holder will maintain the confidentiality of such Confidential Information in accordance with procedures adopted by such holder in good faith to protect confidential information of third parties delivered to such holder,
provided that each Non-Affiliate Holder may deliver or disclose Confidential Information to (i) its directors, officers, employees, agents, attorneys, trustees and Affiliates (to the extent such disclosure reasonably relates to the
administration of the investment represented by its Notes and such Persons are informed of and agree to be bound by the provisions of this Section 19), (ii) its financial advisors and other professional advisors who agree to hold
confidential the Confidential Information substantially in accordance with the terms of this Section 19, (iii) any other Non-Affiliate Holder that is an Institutional Investor, (iv) any Institutional Investor to which it sells or
offers to sell such Note or any part thereof or any participation therein (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of this Section 19), (v) pursuant to the
order of any court or administrative agency or in any pending legal or administrative proceeding, or otherwise as required by applicable law, regulation, the rules of an applicable securities exchange or compulsory legal process or upon the request
or demand of any regulatory authority having jurisdiction over such Non-Affiliate Holder (in which case each such holder agrees, and agrees to direct its Affiliates and their respective directors, officers, employees, agents, attorneys, trustees,
financial advisors and other professional advisors, to the extent permitted by law, to inform the Company as promptly as practicable thereof so that it may seek a protective order or other appropriate remedy, in each case at the Company’s own
expense, and/or waive compliance with the terms of this Section 19, it being understood that if such protective order or other remedy is not obtained, or the Company does not waive compliance

  

 20 

 
with the provisions hereof, each such holder agrees to furnish only that portion of such information which it is legally required or requested to furnish and to use reasonable efforts to obtain
assurances that confidential treatment will be accorded to such information) or (z) if an Event of Default has occurred and is continuing, to the extent the Non-Affiliate Holder may reasonably determine such delivery and disclosure to be
necessary or appropriate in the enforcement or for the protection of the rights and remedies under the holder’s Notes and this Agreement. Each Non-Affiliate Holder, by its acceptance of a Note, will be deemed to have agreed to be bound by and
to be entitled to the benefits of this Section 19 as though it were a party to this Agreement. On reasonable request by the Company in connection with the delivery to any Non-Affiliate Holder of information required to be delivered to such
holder under this Agreement or requested by such holder (other than a holder that is a party to this Agreement or its nominee), such holder will enter into an agreement with the Company embodying the provisions of this Section 19. 

*    *    *    *    * 
  

 21 

 If you are in agreement with the foregoing, please sign the form of agreement on a
counterpart of this Agreement and return it to the Company, whereupon this Agreement shall become a binding agreement between you, the Company and, solely with respect to Section 18.11, the Subsidiary Guarantors. 
  

					
	 Very truly yours,
  
 PRIMERICA, INC.

		
	By	 	  

		 	Name:	 	
		 	Title:	 	

 [SIGNATURE PAGE TO NOTE
AGREEMENT] 

					
	 Solely for purposes of Section 18.11:
 PRIMERICA FINANCIAL SERVICES AGENCY OF NEW YORK, INC.,
 as Subsidiary
Guarantor

		
	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	 Solely for purposes of Section 18.11: 
 PRIMERICA SHAREHOLDER SERVICES, INC.,
 as Subsidiary Guarantor

		
	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	 Solely for purposes of Section 18.11: 
 PRIMERICA FINANCIAL SERVICES INC.,
 as Subsidiary Guarantor

		
	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	 Solely for purposes of Section 18.11: 
 PRIMERICA CLIENT SERVICES, INC.,
 as Subsidiary Guarantor

		
	By:	 	  

		 	Name:	 	
		 	Title:	 	

 [SIGNATURE PAGE TO NOTE
AGREEMENT] 

					
	Solely for purposes of Section 18.11:
	 PRIMERICA INSURANCE MARKETING SERVICES OF PUERTO RICO INC.,
 as Subsidiary Guarantor

		
	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	Solely for purposes of Section 18.11:
	 PRIMERICA SERVICES INC.,
 as Subsidiary Guarantor

		
	By:	 	  

		 	Name:	 	
		 	Title:	 	

 [SIGNATURE PAGE TO NOTE
AGREEMENT] 

 This Agreement is hereby 
 accepted and agreed to as 
 of the date thereof. 
 CITIGROUP INSURANCE HOLDING CORPORATION 
  

			
	By	 	  

		 	Name:
		 	Title:

 [SIGNATURE
PAGE TO NOTE AGREEMENT] 

 Schedule A 
 Defined Terms 
 As used herein, the following terms
have the respective meanings set forth below or set forth in the Section hereof following such term: 
 “Affiliate” means, at any time, and with respect to any Person, any other Person that at such time directly or indirectly through one or more intermediaries Controls, or is Controlled by, or is under common Control with,
such first Person, and, with respect to the Company, shall include any Person beneficially owning or holding, directly or indirectly, 10% or more of any class of voting or equity interests of the Company or any Subsidiary or any corporation of which
the Company and its Subsidiaries beneficially own or hold, in the aggregate, directly or indirectly, 10% or more of any class of voting or equity interests. As used in this definition and in Section 15.4, “Control” means the
possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. Unless the context otherwise clearly
requires, any reference to an “Affiliate” is a reference to an Affiliate of the Company. 
 “Agreement” means this Note Agreement, dated as of [    ], 2010, by and between the Purchaser, the Company and the Subsidiary Guarantors, as it may from time to time be amended or supplemented.

 “Business Day” means any day other than a Saturday, a Sunday or a day on which commercial banks in New York,
New York are required or authorized to be closed. 
 “Capital Lease” means, at any time, a lease with respect
to which the lessee is required concurrently to recognize the acquisition of an asset and the incurrence of a liability in accordance with GAAP. 
 “Change of Control” is defined in Section 7.5. 
 “Change of Control Notice” is defined in Section 7.5(c). 
 “Competitor” means
any Person that directly (or indirectly through any Affiliate of such Person) manufactures or distributes life insurance products. 

 “Default” means an event or condition the occurrence or existence of which
would, with the lapse of time or the giving of notice or both, become an Event of Default. 
 “Electronic
Delivery” is defined in Section 6.1(a). 
 “Environmental Laws” means any and all Federal, state,
local, and foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or
the release of any materials into the environment, including those related to Hazardous Materials. 
 “Event of
Default” is defined in Section 10. 
 “Exchange Agreement” is defined in Section 2.

 “Form 10-K” is defined in Section 6.1(b). 
 “Form 10-Q” is defined in Section 6.1(a). 
 “GAAP” means generally accepted accounting principles as in effect from time to time in the United States of America.

 “Governmental Authority” means 
 (a) the government of 
 (i) the United States of America or any State or other political subdivision thereof, or 
 (ii) any other jurisdiction
in which the Company or any Subsidiary conducts all or any part of its business, or which asserts jurisdiction over any properties of the Company or any Subsidiary, or 
 (b) any entity exercising executive, legislative, judicial, regulatory or administrative functions of, or pertaining to, any such government. 
  

 2 

 “Guaranty” means, with respect to any Person, any obligation (except the
endorsement in the ordinary course of business of negotiable instruments for deposit or collection) of such Person guaranteeing or in effect guaranteeing any indebtedness, dividend or other obligation of any other Person in any manner, whether
directly or indirectly, including obligations incurred through an agreement, contingent or otherwise, by such Person: 
 (a) to
purchase such indebtedness or obligation or any property constituting security therefor; 
 (b) to advance or supply funds
(i) for the purchase or payment of such indebtedness or obligation, or (ii) to maintain any working capital or other balance sheet condition or any income statement condition of any other Person or otherwise to advance or make available
funds for the purchase or payment of such indebtedness or obligation; 
 (c) to lease properties or to purchase properties or
services primarily for the purpose of assuring the owner of such indebtedness or obligation of the ability of any other Person to make payment of the indebtedness or obligation; or 
 (d) otherwise to assure the owner of such indebtedness or obligation against loss in respect thereof. 
 In any computation of the indebtedness or other liabilities of the obligor under any Guaranty, the indebtedness or other obligations that
are the subject of such Guaranty shall be assumed to be direct obligations of such obligor. 
 “Hazardous
Material” means any and all pollutants, toxic or hazardous wastes or other substances that might pose a hazard to health and safety, the removal of which may be required or the generation, manufacture, refining, production, processing,
treatment, storage, handling, transportation, transfer, use, disposal, release, discharge, spillage, seepage or filtration of which is or shall be restricted, prohibited or penalized by any applicable law including asbestos, urea formaldehyde foam
insulation, polychlorinated biphenyls, petroleum, petroleum products, lead based paint, radon gas or similar restricted, prohibited or penalized substances. 
 “holder” means, with respect to any Note the Person in whose name such Note is registered in the register maintained by the Company pursuant to Section 12.1. 
 “Indebtedness” with respect to any Person means, at any time, without duplication, 
 (a) its liabilities for borrowed money; 
  

 3 

 (b) its liabilities for the deferred purchase price of property acquired by such Person
(excluding accounts payable arising in the ordinary course of business but including all liabilities created or arising under any conditional sale or other title retention agreement with respect to any such property); 
 (c) all liabilities appearing on its balance sheet in accordance with GAAP in respect of Capital Leases; 
 (d) all liabilities for borrowed money secured by any Lien with respect to any property owned by such Person (whether or not it has assumed
or otherwise become liable for such liabilities); 
 (e) all its liabilities in respect of letters of credit or instruments
serving a similar function issued or accepted for its account by banks and other financial institutions (whether or not representing obligations for borrowed money); and 
 (f) any Guaranty of such Person with respect to liabilities of a type described in any of clauses (a) through (e) hereof. 
 “Initial Period” is defined in Section 8.4(a). 
 “Institutional Investor” means (a) the Purchaser, (b) any holder of a Note holding (together with one or more of
its Affiliates) more than 20% of the aggregate principal amount of the Notes then outstanding or (c) any bank, trust company, savings and loan association or other financial institution, any pension plan, any investment company, any insurance
company, any broker or dealer, or any other similar financial institution or entity, regardless of legal form. 
 “Issuance Date” is defined in Section 3. 
 “Lien” means, with respect to any
Person, any mortgage, lien, pledge, charge, security interest or other encumbrance, or any interest or title of any vendor, lessor, lender or other secured party to or of such Person under any conditional sale or other title retention agreement or
Capital Lease, upon or with respect to any property or asset of such Person (including in the case of stock, stockholder agreements, voting trust agreements and all similar arrangements). 
 “Material” means material in relation to the business, operations, affairs, financial condition, assets or properties of
the Company and its Subsidiaries taken as a whole. 
  

 4 

 “Material Adverse Effect” means a material adverse effect on (a) the
business, operations, affairs, financial condition, assets or properties of the Company and its Subsidiaries taken as a whole, or (b) the ability of the Company to perform its obligations under this Agreement and the Notes, or (c) the
validity or enforceability of this Agreement and the Notes. 
 “Net Tangible Book Value” means, at any date,
all amounts that would, on a consolidated basis and in conformity with GAAP, represent total assets (excluding deferred policy acquisition costs), less intangible assets, reduced by our total liabilities. 
 “Non-Affiliate Holders” is defined in Section 6.1. 
 “Notes” is defined in Section 1. 
 “Person” means an individual, partnership, corporation, limited liability company, association, trust, unincorporated organization, business entity or Governmental Authority. 

“property” or “properties” means, unless otherwise specifically limited, real or personal property of
any kind, tangible or intangible, choate or inchoate. 
 “Purchaser” is defined in the first paragraph of this
Agreement. 
 “Refinancing Indebtedness” is defined in Section 8.4(a). 
 “Registration Statement” is defined in Section 4. 
 “Responsible Officer” means any Senior Financial Officer and any other officer of the Company with responsibility for the
administration of the relevant portion of this Agreement. 
 “SEC” shall mean the Securities and Exchange
Commission of the United States, or any successor thereto. 
 “Second Period” is defined as
Section 8.4(a). 
 “Securities” or “Security” shall have the meaning specified in
Section 2(1) of the Securities Act. 
  

 5 

 “Securities Act” means the Securities Act of 1933, as amended from time to
time, and the rules and regulations promulgated thereunder from time to time in effect. 
 “Senior Financial
Officer” means the chief financial officer, principal accounting officer, treasurer or comptroller of the Company or persons serving in comparable positions. 
 “Significant Subsidiary” shall have the meaning given such term pursuant to Regulation S-X of the Securities Act. 
 “Subsidiary” means, as to any Person, any other Person in which such first Person or one or more of its Subsidiaries or
such first Person and one or more of its Subsidiaries owns sufficient equity or voting interests to enable it or them (as a group) ordinarily, in the absence of contingencies, to elect a majority of the directors (or Persons performing similar
functions) of such second Person, and any partnership or joint venture if more than a 50% interest in the profits or capital thereof is owned by such first Person or one or more of its Subsidiaries or such first Person and one or more of its
Subsidiaries (unless such partnership or joint venture can and does ordinarily take major business actions without the prior approval of such Person or one or more of its Subsidiaries). Unless the context otherwise clearly requires, any reference to
a “Subsidiary” is a reference to a Subsidiary of the Company. 
 “Subsidiary Guarantor” is defined in
the introductory paragraph of this Agreement. 
 “USA Patriot Act” means United States Public Law 107-56,
Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in
effect. 
 “Wholly-Owned Subsidiary” means, at any time, any Subsidiary one hundred percent of all of the
equity interests (except directors’ qualifying shares) and voting interests of which are owned by any one or more of the Company and the Company’s other Wholly-Owned Subsidiaries at such time. 
  

 6 

 Exhibit 1 
 Form of Note 
 THIS NOTE HAS BEEN ACQUIRED WITHOUT A VIEW TO
DISTRIBUTION AND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (AS AMENDED, THE “ACT”), OR UNDER STATE SECURITIES LAWS. NO TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION OF THIS NOTE MAY BE MADE UNLESS
(A) REGISTERED OR EXEMPT FROM REGISTRATION UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS AND (B) THE CONDITIONS CONTAINED IN THE NOTE AGREEMENT REFERRED TO BELOW ARE SATISFIED. 
 Primerica, Inc. 
 5.5% Note Due March
[    ], 2015 
  

			
	No. [            ]	  	[Date]
	$[                ]	  	

 For Value Received, the undersigned, Primerica, Inc. (herein called the
“Company”), a corporation organized and existing under the laws of the State of Delaware, hereby promises to pay to
[                    ], or registered assigns, the principal sum of
[                                ] Dollars (or so much thereof as shall not have been
prepaid or redeemed) on March [    ], 2015 (the “Maturity Date”), with interest (computed on the basis of a 360-day year of twelve 30-day months) on the unpaid balance hereof at the rate of 5.5% per annum
from the date hereof, payable semiannually, on the 15th day of January and July in each year, commencing with the 15th day of January or July next succeeding the date hereof, until the principal hereof shall have become due and payable,
and on the Maturity Date. 
 Payments of principal of and interest on this Note are to be made in lawful money of the United
States of America at 3120 Breckinridge Blvd., Duluth Georgia 30099 or at such other place as the Company shall have designated by written notice to the holder of this Note as provided in the Note Agreement referred to below or as provided for in
Section 13.2 in the Note Agreement referred to below. 
 This Note is one of a series of Notes (herein called the
“Notes”) issued pursuant to the Note Agreement, dated as of March [ ], 2010 (as from time to time amended, the “Note Agreement”), between the Company and the Purchaser named therein and entitled to the benefits
thereof. Each holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 19 of the Note Agreement and (ii)

 
made the representation set forth in Section 5.1 of the Note Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such
terms in the Note Agreement. The Company’s obligations under the Notes are, jointly and severally, unconditionally guaranteed by the Subsidiary Guarantors, pursuant to Section 18.11 of the Note Agreement. 
 This Note is a registered Note and, as provided in the Note Agreement, upon surrender of this Note for registration of transfer accompanied
by a written instrument of transfer duly executed, by the registered holder hereof or such holder’s attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee.
Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected
by any notice to the contrary. 
 This Note is subject to optional redemption, in whole or from time to time in part, at the
times and on the terms specified in the Note Agreement, but not otherwise. 
 If an Event of Default occurs and is continuing,
the principal of this Note may be declared or otherwise become due and payable in the manner, at the price and with the effect provided in the Note Agreement. 
 This Note shall be construed and enforced in accordance with, and the rights of the Company and the holder of this Note shall be governed by, the law of the State of New York excluding choice-of-law
principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State. 
  

			
	Primerica, Inc.
		
	By:	 	  

		 	Name:
		 	Title:

  

 2

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