Document:

EX-10.62

 Exhibit 10.62 
  

 
  

PRINCIPAL STOCKHOLDERS AGREEMENT 

BY AND AMONG 

AXALTA COATING SYSTEMS LTD. 

AND 

THE CARLYLE STOCKHOLDERS 

[ 
l ], 2014 
  

 
  

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	SECTION I.	 	         DEFINITIONS
	  	 	1	  
	1.1	 	 Drafting Conventions; No Construction Against Drafter
	  	 	1	  
	1.2	 	 Defined Terms
	  	 	2	  
			
	SECTION II.	 	 REPRESENTATIONS AND WARRANTIES
	  	 	4	  
	2.1	 	 Representations and Warranties of the Initial Carlyle Stockholder
	  	 	4	  
	2.2	 	 Representations and Warranties of the Other Stockholders
	  	 	4	  
	2.3	 	 Representations and Warranties of the Company
	  	 	4	  
			
	SECTION III.	 	         BOARD MATTERS
	  	 	4	  
	3.1	 	 Board of Directors
	  	 	4	  
	3.2	 	 Committees of the Board of Directors
	  	 	6	  
	3.3	 	 Additional Management Provisions
	  	 	7	  
	3.4	 	 Company
	  	 	7	  
			
	SECTION IV.	 	         REGISTRATION RIGHTS
	  	 	7	  
	4.1	 	 Demand and Piggyback Rights
	  	 	7	  
	4.2	 	 Notices, Cutbacks and Other Matters
	  	 	9	  
	4.3	 	 Facilitating Registrations and Offerings
	  	 	11	  
	4.4	 	 Indemnification
	  	 	14	  
	4.5	 	 Rule 144
	  	 	16	  
			
	SECTION V.	 	         MISCELLANEOUS PROVISIONS
	  	 	17	  
	5.1	 	 Information and Access Rights
	  	 	17	  
	5.2	 	 Confidentiality
	  	 	19	  
	5.3	 	 Reliance
	  	 	19	  
	5.4	 	 Access to Agreement; Amendment and Waiver; Actions of the Board
	  	 	19	  
	5.5	 	 Notices
	  	 	20	  
	5.6	 	 Counterparts
	  	 	21	  
	5.7	 	 Remedies; Severability
	  	 	21	  
	5.8	 	 Entire Agreement
	  	 	21	  
	5.9	 	 Termination
	  	 	21	  
	5.10	 	 Governing Law
	  	 	21	  
	5.11	 	 Successors and Assigns; Beneficiaries
	  	 	21	  
	5.12	 	 Consent to Jurisdiction; Specific Performance; WAIVER OF JURY TRIAL
	  	 	21	  
	5.13	 	 Further Assurances; Company Logo
	  	 	22	  
	5.14	 	 Regulatory Matters
	  	 	22	  
	5.15	 	 Inconsistent Agreements
	  	 	22	  

 EXHIBIT 
 Exhibit
A: Form of Joinder Agreement 

  
 i 

 PRINCIPAL STOCKHOLDERS AGREEMENT 

This Principal Stockholders Agreement (this “Agreement”) is made as of [ l ], 2014 by and among Axalta Coating Systems Ltd. (formerly known as Flash Bermuda Co. Ltd. and Axalta Coating Systems Bermuda
Co., Ltd.), a Bermuda exempted limited liability company (the “Company”), Carlyle Partners V SA1 Cayman, L.P., a Cayman Islands exempted limited partnership (“CPV SA1”), Carlyle Partners V SA2 Cayman, L.P., a Cayman
Islands exempted limited partnership (“CPV SA2”), Carlyle Partners V SA3 Cayman, L.P., a Cayman Islands exempted limited partnership (“CPV SA3”), Carlyle Partners V-A Cayman, L.P., a Cayman Islands exempted limited
partnership (“CPV-A”), CP V Coinvestment A Cayman, L.P., a Cayman Islands exempted limited partnership (“CPV Coinvest A”), CP V Coinvestment B Cayman, L.P., a Cayman Islands exempted limited partnership
(“CPV Coinvest B”), CEP III Participations, S.à r.l. SICAR, a Luxembourg private limited liability company (“CEP III”), Carlyle Coatings Partners, L.P., a Cayman Islands exempted limited partnership
(“CCP”, and together with CPV SA1, CPV SA2, CPV SA3, CPV-A, CPV Coinvest A, CPV Coinvest B and CEP III, the “Initial Carlyle Stockholders”), and any other stockholder who from time to time becomes party to this
Agreement by execution of a joinder agreement substantially in the form of Exhibit A (a “Joinder Agreement”). 

RECITALS 
 A. The Company
is proposing to consummate an initial public offering of its share capital (the “Initial Public Offering”). 
 B. The
Initial Carlyle Stockholders and the Company desire to enter into this Agreement effective upon the effective date of the registration statement relating to the Initial Public Offering (the “Effective Date”). 

C. The Board of Directors of the Company (the “Board of Directors”) has approved this Agreement. 

D. The parties hereto desire to agree upon the respective rights and obligations after the Effective Date with respect to the securities of the
Company now or hereafter issued and outstanding and held by the parties to this Agreement and certain matters with respect to their investment in the Company. 

AGREEMENT 
 Now therefore,
in consideration of the foregoing, and the mutual agreements and covenants contained herein, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 

SECTION I. DEFINITIONS 
 1.1 Drafting
Conventions; No Construction Against Drafter. 
 (a) The headings in this Agreement are provided for convenience and do not affect its
meaning. The words “include,” “includes” and “including” are to be read as if they were followed by the phrase “without limitation.” Unless specified otherwise, any reference to an agreement means that
agreement as amended or supplemented, subject to any restrictions on amendment contained in such agreement. Unless specified otherwise, any reference to a statute or regulation means that statute or regulation as amended or supplemented from time to
time and any corresponding provisions of successor statutes or regulations. If any date specified in this Agreement as a date for taking action falls on a day that is not a business day, then that action may be taken on the next business day. Unless
specified otherwise, the words “party” and “parties” refer only to a party named in this Agreement or one who joins this Agreement as a party pursuant to the terms hereof. 

  
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 (b) The language used in this Agreement shall be deemed to be the language chosen by the parties
to express their mutual intent. If an ambiguity or question of intent or interpretation arises, this Agreement is to be construed as if drafted jointly by the parties and there is to be no presumption or burden of proof or rule of strict
construction favoring or disfavoring any party because of the authorship of any provision of this Agreement. 
 1.2 Defined Terms.
The following capitalized terms, as used in this Agreement, shall have the meanings set forth below. 
 “Affiliate” shall
mean with respect to any specified Person, any other Person which, directly or indirectly, controls, is controlled by or is under common control with the specified Person, including any partner, officer, director or member of the specified Person
and, if the specified Person is a private equity fund, any investment fund now or hereafter managed by, or which is controlled by or is under common control with, one or more general partners of the specified Person. For the purposes of this
definition, “control” (including, with its correlative meanings, the terms “controlled by” and “under common control with”), as used with respect to any Person, shall mean the possession, directly or indirectly, of the
power to direct, or cause the direction of the management and policies of such Person, whether through the ownership of securities, by contract or otherwise. 

“Bye-laws” shall mean the Company’s amended and restated bye-laws in effect as of the Effective Date, as amended from
time to time. 
 “Carlyle Stockholders” means (i) the Initial Carlyle Stockholders and (ii) any Permitted
Transferee or Affiliate of any Initial Carlyle Stockholder (x) which is issued Common Stock or becomes the beneficial owner of any Common Stock or is Transferred any Common Stock by any other Person and (y) which becomes a party hereto by
executing a Joinder Agreement. 
 “Carlyle Majority Interest” shall mean, at any given time, the Carlyle Stockholders
holding a majority of the outstanding Shares held at that specified time by all Carlyle Stockholders. 
 “Charter” shall
mean the Company’s memorandum of association in effect as of the Effective Date, as amended from time to time. 
 “Common
Stock” shall mean the common shares, par value $1.00 per share, of the Company. 
 “Company” shall have the
meaning set forth in the preamble and shall include any successor thereto. 
 “Director” shall mean a member of the Board
of Directors. 
 “Exchange Act” shall mean the Securities Exchange Act of 1934 and the rules and regulations thereunder.

 “GAAP” means generally accepted accounting principles, as in effect in the United States of America from time to time.

  
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 “Initial Capital Interest” means the aggregate sums which remain invested by a
Stockholder in shares and yield free convertible preferred equity certificates of the Company immediately following the IPO. 

“IPO” means the underwritten registered public offering of the Company’s Common Stock pursuant to which the Common Stock
is being listed on the New York Stock Exchange. 
 “Necessary Action” shall mean, with respect to a specified result, all
actions necessary or desirable to cause such result, including (i) attending meetings in person or by proxy for purposes of obtaining a quorum, (ii) voting or providing a written consent or proxy with respect to Shares, (iii) causing
the adoption of resolutions and amendments to the organizational documents of the Company, (iv) executing agreements and instruments and (v) making, or causing to be made, with governmental, administrative or regulatory authorities, all
filings, registrations or similar actions that are required to achieve such result. 
 “Permitted Transferee” shall mean,
with respect to any Carlyle Stockholder, (i) any Affiliate of such Carlyle Stockholder, (ii) any director, officer or employee of any Affiliate of such Carlyle Stockholder, (iii) any direct or indirect member or general or limited
partner of such Carlyle Stockholder that is the transferee of Shares pursuant to a pro rata distribution of Shares by such Carlyle Stockholder to its partners or members, as applicable (or any subsequent transfer of such Shares by the transferee to
another Permitted Transferee) or (iv) any other Transferee designated as a Permitted Transferee by the Carlyle Majority Interest. 

“Person” shall mean an individual, corporation, partnership, limited liability company, joint venture, association, trust,
unincorporated organization, government (or agency or political subdivision thereof) or any other entity or group (as defined in Section 13(d) of the Exchange Act). 

“Public Offering” shall mean a public offering and sale of Common Stock for cash pursuant to an effective registration
statement under the Securities Act. 
 “SEC” shall mean the Securities and Exchange Commission. 

“Securities Act” shall mean the Securities Act of 1933 and the rules and regulations thereunder. 

“Shares” shall mean, at any time, (i) Common Stock and (ii) any other equity securities now or hereafter issued by
the Company, together with any options thereon and any other shares of stock or other equity securities issued or issuable with respect thereto (whether by way of a stock dividend, stock split or in exchange for or in replacement or upon conversion
of such shares or otherwise in connection with a combination of shares, recapitalization, merger, consolidation or other corporate reorganization). 

“Stockholders” means the Carlyle Stockholders and any other stockholders who from time to time become party to this Agreement
by execution of a Joinder Agreement. 
 “Transfer” means any direct or indirect transfer, donation, sale, assignment,
pledge, hypothecation, grant of a security interest in or other disposal or attempted disposal of all or any portion of a security, any interest or rights in a security, or any rights under this Agreement. 

“Transferee” means the recipient of a Transfer. 

“WKSI” means a well-known seasoned issuer, as defined in the SEC’s Rule 405. 

  
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 SECTION II. REPRESENTATIONS AND WARRANTIES 

2.1 Representations and Warranties of the Initial Carlyle Stockholders. Each of the Initial Carlyle Stockholders hereby represents,
warrants and covenants to the Company as follows: (a) such Initial Carlyle Stockholder has full limited partnership power and authority to enter into this Agreement and perform its obligations hereunder; (b) this Agreement constitutes the
valid and binding obligation of such Initial Carlyle Stockholder enforceable against it in accordance with its terms; and (c) the execution, delivery and performance by such Initial Carlyle Stockholder of this Agreement: (i) does not and
will not violate any laws, rules or regulations of the United States or any state or other jurisdiction applicable to such Initial Carlyle Stockholder, or require such Initial Carlyle Stockholder to obtain any approval, consent or waiver of, or to
make any filing with, any Person that has not been obtained or made; and (ii) does not constitute a breach of or default under any material agreement to which such Initial Carlyle Stockholder is a party. 

2.2 Representations and Warranties of the Other Stockholders. Each of the Stockholders (other than the Carlyle Stockholders) hereby
represents, warrants and covenants to the Company and the Carlyle Stockholders as follows: (a) such Person has full legal capacity to enter into this Agreement and perform its obligations hereunder; (b) this Agreement constitutes the valid
and binding obligation of such Person enforceable against such Person in accordance with its terms; and (c) the execution, delivery and performance by such Person of this Agreement does not and will not: (i) violate any laws, rules or
regulations of the United States or any state or other jurisdiction applicable to such Person, or require such Person to obtain any approval, consent or waiver of, or to make any filing with, any Person that has not been obtained or made; or
(ii) constitute a breach of or default under any material agreement to which such Person is a party. 
 2.3 Representations and
Warranties of the Company. The Company hereby represents, warrants and covenants to the Stockholders as follows: (a) the Company has full corporate power and authority to enter into this Agreement and perform its obligations hereunder;
(b) this Agreement constitutes the valid and binding obligation of the Company enforceable against it in accordance with its terms; and (c) the execution, delivery and performance by the Company of this Agreement: (i) does not and
will not violate any laws, rules or regulations of the United States or any state or other jurisdiction applicable to the Company, or require the Company to obtain any approval, consent or waiver of, or to make any filing with, any Person that has
not been obtained or made; and (ii) does not and will not result in a breach of, constitute a default under, accelerate any obligation under or give rise to a right of termination of any indenture or loan or credit agreement or any other
material agreement, contract, instrument, mortgage, lien, lease, permit, authorization, order, writ, judgment, injunction, decree, determination or arbitration award to which the Company is a party or by which the property of the Company is bound or
affected, or result in the creation or imposition of any mortgage, pledge, lien, security interest or other charge or encumbrance on any of the assets or properties of the Company. 

SECTION III. BOARD MATTERS 
 3.1 Board
of Directors. From and after the first business day after the Effective Date: 
 (a) Rights to Designate. Each Stockholder hereby
agrees to vote, or cause to be voted, all of its Shares, at any annual or special meeting, by written consent, or otherwise, and will take all Necessary Actions within such Stockholder’s control, and the Company will take all Necessary Actions
within its control, to cause the authorized number of directors on the Board of Directors to be established and remain at eleven (11), or such other number approved pursuant to the terms of this Agreement, and to elect or appoint or cause to be
elected or appointed to the Board of Directors and cause to be continued in office: 

  
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 (i) ten (10) designees of the Carlyle Stockholders constituting a Carlyle
Majority Interest (the “Investor Designees”); provided, that (A) the number of Investor Designees to be designated by the Carlyle Majority Interest (on behalf of the Carlyle Stockholders) shall be reduced to six
(6) Directors at such time as the Carlyle Stockholders in the aggregate hold less than thirty-five percent (35%) of the then outstanding shares of Common Stock, (B) the number of Investor Designees to be designated by the Carlyle
Majority Interest (on behalf of the Carlyle Stockholders) shall be reduced to four (4) Directors at such time as the Carlyle Stockholders in the aggregate hold less than twenty-five percent (25%) of the then outstanding shares of Common
Stock, (C) the number of Investor Designees to be designated by the Carlyle Majority Interest (on behalf of the Carlyle Stockholders) shall be reduced to two (2) Directors at such time as the Carlyle Stockholders in the aggregate hold less
than fifteen-percent (15%) of the then outstanding shares of Common Stock, and (D) the Carlyle Stockholders shall have no right to designate any members of the Board of Directors pursuant to this Section 3.1(a)(i) at such time as the
Carlyle Stockholders in the aggregate hold less than five percent (5%) of the then-outstanding shares of Common Stock; 

(ii) the senior ranking executive officer of the Company and its subsidiaries, who initially, and for so long as he is the
Company’s Chief Executive Officer, shall be Charles W. Shaver; and 
 (iii) each additional designee shall be filled as
provided in the Charter and Bye-laws. 
 The Company shall take all Necessary Actions within its control to cause the individuals designated in accordance
with Section 3.1(a) to be nominated for election to the Board of Directors, shall solicit proxies in favor thereof, and at each meeting of the stockholders of the Company at which directors of the Company are to be elected, shall recommend that
the stockholders of the Company elect to the Board of Directors each such individual nominated for election at such meeting. 
 (b)
Initial Investor Designees. The initial Investor Designees pursuant to the provisions of Section 3.1(a)(i) shall be Gregory S. Ledford, Allan M. Holt, Gregor P. Böhm, Martin W. Sumner, Wesley T. Bieligk, Orlando A. Bustos, Robert M.
McLaughlin and Andreas C. Kramvis. Any remaining undesignated Investor Designees shall be designated by the Carlyle Majority Interest at such time as they shall determine. 

(c) Removal and Replacement. 

(i) Any Person or group of Persons entitled to designate a Director may remove such designee by sending a written notice to the
Company’s Secretary stating the name of the designee to be removed from the Board of Directors (the “Removal Notice”) and, upon receipt of such notice by the Company’s Secretary, such designee shall be removed from the
Board of Directors (and such a designee shall only be removed in such manner), and each Stockholder hereby agrees to vote, at any annual or special meeting, by written consent, or otherwise, all Shares and will take all Necessary Actions within such
Stockholder’s control to effect such removal. 
 (ii) If at any time any Director ceases to serve on the Board of
Directors (whether due to death, disability, resignation, removal or otherwise), the Person or Persons that designated or nominated such Director pursuant to Section 3.1(a) shall designate or nominate a successor to fill the vacancy created
thereby on the terms and subject to the conditions of Section 3.1(a). Each Stockholder hereby agrees to vote, or cause to be voted, all of its Shares, and will 

  
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take all Necessary Actions within such Stockholder’s control, and the Company will take all Necessary Actions within its control, to cause the designated successor to be elected to fill such
vacancy. In the event that the Carlyle Stockholders do not, pursuant to Section 3.1(a), have the right to designate an individual to fill such vacancy, then such vacancy shall be filled as provided in the Charter and the Bye-laws. 

(iii) In the event that the Carlyle Stockholders cease to have the right to designate an individual to serve as a Director
pursuant to Section 3.1(a), (i) that number of Directors for which the Carlyle Stockholders cease to have the right to designate to serve as a Director shall resign within six (6) months or, if earlier, such time as such
Director’s successor is appointed or elected (provided that the Carlyle Majority Interest shall have the authority to select which such particular Director or Directors will resign) or, in the event any such individual does not resign by such
time as is required by the foregoing, each Stockholder shall thereafter take all Necessary Actions within its control to cause the removal of such individual, including voting all Shares in favor of such removal, and (ii) the vacancy created by
such resignation or removal shall be filled as provided in the Charter and the Bye-laws. 
 (d) Expenses. Each Director shall be
entitled to reimbursement from the Company for his or her reasonable out-of-pocket expenses (including travel) incurred in attending any meeting of the Board of
Directors or any committee thereof or governing body of any subsidiary of the Company or any committee thereof. 
 (e) Indemnification;
Insurance. The Company shall not alter, in any manner adverse to the Investor Designees, any rights to indemnification and exculpation from liabilities currently afforded to members of the Board of Directors pursuant to the Charter, the Bye-laws
or any indemnification agreement, in each case, as in effect as of the date hereof. If the Company or any of its respective successors or assigns (i) shall consolidate with or merge into any other corporation or entity and shall not be the
continuing or surviving corporation or entity of such consolidation or merger or (ii) shall transfer all or substantially all of its properties and assets to any individual, corporation or other entity, then, and in each such case, proper
provisions shall be made so that the successors and assigns of the Company shall covenant to afford to each of the Investor Designees such rights to indemnification and exculpation from liabilities. The Company shall continue to maintain in effect
directors’ and officers’ liability insurance and fiduciary liability insurance with benefits, terms, conditions, retentions and levels of coverage that are at least as favorable, in the aggregate, to the insureds as provided in the
Company’s existing policies as of the date hereof. 
 3.2 Committees of the Board of Directors. From and after the Effective
Date, the Company shall, and each Stockholder shall use its reasonable best efforts to, cause the Board of Directors to maintain the following committees: (a) an Audit Committee, (b) a Compensation Committee, (c) any other committee
needed to comply with applicable laws and regulations and (d) any other committee as the Board of Directors shall determine in its discretion. Each committee shall include such number of Investor Designees such that the pro rata representation
of the Investor Designees on such committee as a proportion of the full membership of such committee is not less than the pro rata representation of all of the Investor Designees as a proportion of the full Board of Directors; provided that
the right of any such Investor Designee to serve on a committee shall be subject to the Company’s obligation to comply with any applicable independence requirements of a national securities exchange upon which the Company’s Common Stock is
listed to which it is then subject and compliance with the requirements of Section 162(m) of the Internal Revenue Code to have a compensation committee comprised solely of two or more outside directors. 

  
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 3.3 Additional Management Provisions. 

(a) Each Stockholder and the Company agrees and acknowledges that, subject to applicable law, the Investor Designees designated by the Carlyle
Majority Interest may share confidential, non-public information about the Company and its subsidiaries with the Carlyle Stockholders. 
 (b)
The Stockholders and the Company hereby agree, notwithstanding anything to the contrary in any other agreement or at law or in equity, that, to the maximum extent permitted by law, when the Carlyle Stockholders take any action under this Agreement
to give or withhold its consent, the Carlyle Stockholders shall have no duty (fiduciary or other) to consider the interests of the Company or the other Stockholders and may act exclusively in its own interest; provided, however, that
the foregoing shall in no way affect the obligations of the parties hereto to comply with the provisions of this Agreement. 
 (c) Each of
the parties covenants and agrees to take all Necessary Actions within its control to ensure that the Charter and Bye-laws do not, at any time, conflict with the provisions of this Agreement. 

(d) For so long as the Company qualifies as a “controlled company” under the applicable listing standards then in effect, the Company
will elect to be a “controlled company” for purposes of such applicable listing standards, and will disclose in its annual meeting proxy statement that it is a “controlled company” and the basis for that determination. the
Company and the Stockholders acknowledge and agree that, as of the date of this Agreement, the Company is a “controlled company.” The Carlyle Stockholders acknowledge that a sufficient number of their designees will be required to qualify
as “independent directors” to ensure that the Board complies with such applicable listing standards in the time periods required by the applicable listing standards then in effect, and shall discuss and use commercially reasonable efforts
to agree upon appropriate changes to their designees consistent with the foregoing. 
 3.4 Company. The Company will not give effect
to any action by any Stockholder which is in contravention of this Section III. 
 SECTION IV. REGISTRATION RIGHTS 

4.1 Demand and Piggyback Rights. 

(a) Right to Demand a Non-Shelf Registered Offering. Upon the demand of at any time and from time to time after the expiration or waiver
of the underwriter lock-up period applicable to the Company’s IPO, the Company will facilitate in the manner described in this Agreement a non-shelf registered offering of the Shares requested by the demanding Carlyle Stockholders to be
included in such offering. A demand by Carlyle Stockholders for a non-shelf registered offering that will result in the imposition of a lockup on the Company and the Stockholders may not be made unless the Shares requested to be sold by the
demanding Carlyle Stockholders in such offering have an aggregate market value (based on the most recent closing price of the Common Stock at the time of the demand) of at least $50 million or such lesser amount if all Shares held by the demanding
Carlyle Stockholders are requested to be sold. Subject to Section 4.2(e) below, any demanded non-shelf registered offering may, at the Company’s option, include Shares to be sold by the Company for its own account and will also include
Shares to be sold by other holders of Shares with similar rights that exercise their related piggyback rights on a timely basis. 

  
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 (b) Right to Piggyback on a Non-Shelf Registered Offering. In connection with any
registered offering of Common Stock covered by a non-shelf registration statement (whether pursuant to the exercise of demand rights or at the initiative of the Company), the Carlyle Stockholders may exercise piggyback rights to have included in
such offering Shares held by them. The Company will facilitate in the manner described in this Agreement any such non-shelf registered offering. 

(c) Right to Demand and be Included in a Shelf Registration. Upon the demand of Carlyle Stockholders, made at any time and from time to
time when the Company is eligible to utilize Form S-3 or a successor form to sell Shares in a secondary offering on a delayed or continuous basis in accordance with Rule 415, the Company will facilitate in the manner described in this Agreement a
shelf registration of Shares held by them. Any shelf registration filed by the Company covering Shares (whether pursuant to a Carlyle Stockholder demand or at the initiative of the Company) will cover Shares held by each of the Carlyle Stockholders
(regardless of whether they demanded the filing of such shelf or not) up to an equivalent percentage of their original respective holdings as may be agreed upon by the demanding Carlyle Stockholders. If at the time of such request the Company is a
WKSI, such shelf registration would, at the request of such Carlyle Stockholders, cover an unspecified number of Shares to be sold by the Company and the Carlyle Stockholders. 

(d) Demand and Piggyback Rights for Shelf Takedowns. Upon the demand of one or more Carlyle Stockholders made at any time and from time
to time, the Company will facilitate in the manner described in this Agreement a “takedown” of Shares off of an effective shelf registration statement. In connection with any underwritten shelf takedown (whether pursuant to the exercise of
such demand rights or at the initiative of the Company), the Carlyle Stockholders may exercise piggyback rights to have included in such takedown Shares held by them that are registered on such shelf. Notwithstanding the foregoing, Carlyle
Stockholders may not demand a shelf takedown for an offering that will result in the imposition of a lockup on the Company and the Stockholders unless the Shares requested to be sold by the demanding Carlyle Stockholders in such takedown have an
aggregate market value (based on the most recent closing price of the Common Stock at the time of the demand) of at least $50 million or such lesser amount if all Shares held by the demanding Carlyle Stockholders are requested to be sold. 

(e) Right to Reload a Shelf. Upon the written request of a Carlyle Stockholder, the Company will file and seek the effectiveness of a
post-effective amendment to an existing shelf in order to register up to the number of Shares previously taken down off of such shelf and not yet “reloaded” onto such shelf. 

(f) Limitations on Demand and Piggyback Rights. 

(i) Any demand for the filing of a registration statement or for a registered offering or takedown will be subject to the
constraints of any applicable lockup arrangements, and such demand must be deferred until such lockup arrangements no longer apply. If a demand has been made for a non-shelf registered offering or for an underwritten takedown, no further demands may
be made so long as the related offering is still being pursued. Notwithstanding anything in this Agreement to the contrary, the Carlyle Stockholders will not have piggyback or other registration rights with respect to registered primary offerings by
the Company (i) covered by a Form S-8 registration statement or a successor form applicable to employee benefit-related offers and sales, (ii) where the Shares are not being sold for cash or (iii) where the offering is a bona fide
offering of securities other than Shares, even if such securities are convertible into or exchangeable or exercisable for Shares. 

  
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 (ii) The Company may postpone the filing of a demanded registration statement or
suspend the effectiveness of any shelf registration statement for a reasonable “blackout period” not in excess of 90 days if the Board of Directors of the Company determines that such registration or offering could materially interfere
with a bona fide business or financing transaction of the Company or is reasonably likely to require premature disclosure of information, the premature disclosure of which could materially and adversely affect the Company; provided that the Company
shall not postpone the filing of a demanded registration statement or suspend the effectiveness of any shelf registration statement pursuant to this Section 4.1(f)(ii) more than once in any 360 day period. The blackout period will end upon the
earlier to occur of, (i) in the case of a bona fide business or financing transaction, a date not later than 90 days from the date such deferral commenced, and (ii) in the case of disclosure of other non-public information, the earlier to
occur of (x) the filing by the Company of its next succeeding Form 10-K or Form 10-Q, or (y) the date upon which such information is otherwise disclosed. 

4.2 Notices, Cutbacks and Other Matters. 

(a) Notifications Regarding Registration Statements. In order for one or more Carlyle Stockholders to exercise their right to demand
that a registration statement be filed, they must so notify the Company in writing indicating the number of Shares sought to be registered and the proposed plan of distribution. The Company will keep the Carlyle Stockholders contemporaneously
apprised of all pertinent aspects of its pursuit of any registration, whether pursuant to a Carlyle Stockholder demand or otherwise, with respect to which a piggyback opportunity is available. Pending any required public disclosure and subject to
applicable legal requirements, the parties will maintain the confidentiality of these discussions. 
 (b) Notifications Regarding
Registration Piggyback Rights. Any Carlyle Stockholder wishing to exercise its piggyback rights with respect to a non-shelf registration statement must notify the Company and the other Carlyle Stockholders of the number of Shares it seeks to
have included in such registration statement. Such notice must be given as soon as practicable, but in no event later than 5:00 pm, New York City time, on the second trading day prior to (i) if applicable, the date on which the preliminary
prospectus intended to be used in connection with pre-effective marketing efforts for the relevant offering is expected to be finalized, and (ii) in any case, the date on which the pricing of the relevant offering is expected to occur. No such
notice is required in connection with a shelf registration statement, as Shares held by all Carlyle Stockholders will be included up to the applicable percentage. 

(c) Notifications Regarding Demanded Underwritten Takedowns. 

(i) The Company will keep the Carlyle Stockholders contemporaneously apprised of all pertinent aspects of any underwritten
shelf takedown in order that they may have a reasonable opportunity to exercise their related piggyback rights. Without limiting the Company’s obligation as described in the preceding sentence, having a reasonable opportunity requires that the
Carlyle Stockholders be notified by the Company of an anticipated underwritten takedown (whether pursuant to a demand made by other Carlyle Stockholders or made at the Company’s own initiative) no later than 5:00 pm, New York City time, on
(i) if applicable, the second trading day prior to the date on which the preliminary prospectus or prospectus supplement intended to be used in connection with pre-pricing marketing efforts for such takedown is finalized, and (ii) in all
cases, the second trading day prior to the date on which the pricing of the relevant takedown occurs. 

  
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 (ii) Any Carlyle Stockholder wishing to exercise its piggyback rights with
respect to an underwritten shelf takedown must notify the Company and the other Carlyle Stockholders of the number of Shares it seeks to have included in such takedown. Such notice must be given as soon as practicable, but in no event later than
5:00 pm, New York City time, on (i) if applicable, the trading day prior to the date on which the preliminary prospectus or prospectus supplement intended to be used in connection with marketing efforts for the relevant offering is expected to
be finalized, and (ii) in all cases, the trading day prior to the date on which the pricing of the relevant takedown occurs. 

(iii) Pending any required public disclosure and subject to applicable legal requirements, the parties will maintain
appropriate confidentiality of their discussions regarding a prospective underwritten takedown. 
 (d) Plan of Distribution, Underwriters
and Counsel. If a majority of the Shares proposed to be sold in an underwritten offering through a non-shelf registration statement or through a shelf takedown are being sold by the Company for its own account, the Company will be entitled to
determine the plan of distribution and select the managing underwriters for such offering. Otherwise, the Carlyle Stockholders holding a majority of the Shares requested to be included in such offering will be entitled to determine the plan of
distribution and select the managing underwriters, and such majority will also be entitled to select counsel for the selling Stockholders (which may be the same as counsel for the Company). In the case of a shelf registration statement, the plan of
distribution will provide as much flexibility as is reasonably possible, including with respect to resales by transferee Stockholders. 
 (e)
Cutbacks. If the managing underwriters advise the Company and the selling Stockholders that, in their opinion, the number of Shares requested to be included in an underwritten offering exceeds the amount that can be sold in such offering
without adversely affecting the distribution of the Shares being offered, such offering will include only the number of Shares that the underwriters advise can be sold in such offering. 

(i) In the case of a registered offering upon the demand of one or more Carlyle Stockholders, the selling Stockholders
(including those Carlyle Stockholders exercising piggyback rights pursuant to Section 4.1(b)) collectively will have first priority and will be subject to cutback pro rata based on the Initial Capital Interest of each such selling Stockholder
(up to the number of Shares initially requested by them to be included in such offering). To the extent of any remaining capacity, all other stockholders having similar registration rights will have second priority and will be subject to cutback pro
rata based on the number of Shares initially requested by them to be included in such offering. To the extent of any remaining capacity, the Company will have third priority. Except as contemplated by the immediately preceding three sentences, other
selling stockholders (other than transferees to whom a Carlyle Stockholder has assigned its rights under this Agreement) will be included in an underwritten offering only with the consent of Carlyle Stockholders holding a majority of the Shares
being sold in such offering. 
 (ii) In the case of a registered offering upon the initiative of the Company, the Company
will have first priority. To the extent of any remaining capacity, the selling Carlyle Stockholders as a group, on the one hand, and all other stockholders having similar registration rights as a group, on the other hand, will be subject to cutback
pro rata based on the number of Shares initially requested by such group to be included in such offering. The selling Carlyle Stockholders will be subject to cutback pro rata, based on the Initial Capital Interest of each such selling Carlyle
Stockholder (up to the number of Shares initially requested by them to be included in such offering). Except as contemplated by the immediately preceding sentence, other stockholders (other than transferees to whom a Carlyle Stockholder has assigned
its rights under this Agreement) will be included in an underwritten offering only with the consent of a Carlyle Majority Interest. 

  
 10 

 (f) Withdrawals. Even if Shares held by a Carlyle Stockholder have been part of a
registered underwritten offering, such Carlyle Stockholder may, no later than the time at which the public offering price and underwriters’ discount are determined with the managing underwriter, decline to sell all or any portion of the Shares
being offered for its account. 
 (g) Lockups. In connection with any underwritten offering of Shares, the Company and each Carlyle
Stockholder will agree (in the case of Carlyle Stockholders, with respect to Shares respectively held by them) to be bound by the underwriting agreement’s lockup restrictions (which must apply, and continue to apply, in like manner to all of
them) that are agreed to (a) by the Company, if a majority of the Shares being sold in such offering are being sold for its account, or (b) by Carlyle Stockholders holding a majority of Shares being sold by all Carlyle Stockholders, if a
majority of the Shares being sold in such offering are being sold by Carlyle Stockholders, as applicable. 
 (h) Expenses. All
expenses incurred in connection with any registration statement or registered offering covering Shares held by Carlyle Stockholders, including, without limitation, all registration and filing fees, printing expenses, fees and disbursements of
counsel (including the fees and disbursements of outside counsel for Carlyle Stockholders) and of the independent certified public accountants, and the expense of qualifying such Shares under state blue sky laws, will be borne by the Company.
However, underwriters’, brokers’ and dealers’ discounts and commissions applicable to Shares sold for the account of a Carlyle Stockholder will be borne by such Carlyle Stockholder. 

4.3 Facilitating Registrations and Offerings. 

(a) General. If the Company becomes obligated under this Agreement to facilitate a registration and offering of Shares on behalf of
Carlyle Stockholders, the Company will do so with the same degree of care and dispatch as would reasonably be expected in the case of a registration and offering by the Company of Shares for its own account. Without limiting this general obligation,
the Company will fulfill its specific obligations as described in this Section 4.3. 
 (b) Registration Statements. In connection
with each registration statement that is demanded by Carlyle Stockholders or as to which piggyback rights otherwise apply, the Company will: 

(i) prepare and file with the SEC a registration statement covering the applicable Shares, (ii) file amendments thereto as
warranted, (iii) seek the effectiveness thereof, and (iv) file with the SEC prospectuses and prospectus supplements as may be required, all in consultation with the Carlyle Stockholders and as reasonably necessary in order to permit the
offer and sale of the such Shares in accordance with the applicable plan of distribution; 
 (ii) (1) within a reasonable time prior to the
filing of any registration statement, any prospectus, any amendment to a registration statement, amendment or supplement to a prospectus or any free writing prospectus, provide copies of such documents to the selling Carlyle Stockholders and to the
underwriter or underwriters of an underwritten offering, if applicable, and to their respective counsel; fairly consider such reasonable changes in any such documents prior to or after the filing thereof as the counsel to the Carlyle Stockholders or
the underwriter or the underwriters may request; and make such of the representatives of the Company as shall be reasonably requested by the selling Carlyle Stockholders or any underwriter available for discussion of such documents; 

  
 11 

 (2) within a reasonable time prior to the filing of any document which is to be incorporated by
reference into a registration statement or a prospectus, provide copies of such document to counsel for the Carlyle Stockholders and underwriters; fairly consider such reasonable changes in such document prior to or after the filing thereof as
counsel for such Carlyle Stockholders or such underwriter shall request; and make such of the representatives of the Company as shall be reasonably requested by such counsel available for discussion of such document; 

(iii) cause each registration statement and the related prospectus and any amendment or supplement thereto, as of the effective
date of such registration statement, amendment or supplement and during the distribution of the registered Shares (x) to comply in all material respects with the requirements of the Securities Act and the rules and regulations of the SEC and
(y) not to contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading; 

(iv) notify each Carlyle Stockholder promptly, and, if requested by such Carlyle Stockholder, confirm such advice in writing,
(i) when a registration statement has become effective and when any post-effective amendments and supplements thereto become effective if such registration statement or post-effective amendment is not automatically effective upon filing
pursuant to Rule 462, (ii) of the issuance by the SEC or any state securities authority of any stop order, injunction or other order or requirement suspending the effectiveness of a registration statement or the initiation of any proceedings
for that purpose, (iii) if, between the effective date of a registration statement and the closing of any sale of securities covered thereby pursuant to any agreement to which the Company is a party, the representations and warranties of the
Company contained in such agreement cease to be true and correct in all material respects or if the Company receives any notification with respect to the suspension of the qualification of the Shares for sale in any jurisdiction or the initiation of
any proceeding for such purpose, and (iv) of the happening of any event during the period a registration statement is effective as a result of which such registration statement or the related prospectus contains any untrue statement of a
material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading; 

(v) furnish counsel for each underwriter, if any, and for the Carlyle Stockholders copies of any correspondence with the SEC or
any state securities authority relating to the registration statement or prospectus; 
 (vi) otherwise comply with all
applicable rules and regulations of the SEC, including making available to its security holders an earnings statement covering at least 12 months which shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder
(or any similar provision then in force); 
 (vii) use all reasonable efforts to obtain the withdrawal of any order
suspending the effectiveness of a registration statement at the earliest possible time; 
 (c) Non-Shelf Registered Offerings and Shelf
Takedowns. In connection with any non-shelf registered offering or shelf takedown that is demanded by Carlyle Stockholders or as to which piggyback rights otherwise apply, the Company will: 

  
 12 

 (i) cooperate with the selling Carlyle Stockholders Shares and the sole
underwriter or managing underwriter of an underwritten offering Shares, if any, to facilitate the timely preparation and delivery of certificates representing the Shares to be sold and not bearing any restrictive legends; and enable such Shares to
be in such denominations (consistent with the provisions of the governing documents thereof) and registered in such names as the selling Carlyle Stockholders or the sole underwriter or managing underwriter of an underwritten offering of Shares, if
any, may reasonably request at least five days prior to any sale of such Shares; 
 (ii) furnish to each Carlyle Stockholder
and to each underwriter, if any, participating in the relevant offering, without charge, as many copies of the applicable prospectus, including each preliminary prospectus, and any amendment or supplement thereto and such other documents as such
Carlyle Stockholder or underwriter may reasonably request in order to facilitate the public sale or other disposition of the Shares; the Company hereby consents to the use of the prospectus, including each preliminary prospectus, by each such
Carlyle Stockholder and underwriter in connection with the offering and sale of the Shares covered by the prospectus or the preliminary prospectus; 

(iii) (i) use all reasonable efforts to register or qualify the Shares being offered and sold, no later than the time the
applicable registration statement becomes effective, under all applicable state securities or “blue sky” laws of such jurisdictions as each underwriter, if any, or any Carlyle Stockholder holding Shares covered by a registration statement,
shall reasonably request; (ii) use all reasonable efforts to keep each such registration or qualification effective during the period such registration statement is required to be kept effective; and (iii) do any and all other acts and
things which may be reasonably necessary or advisable to enable each such underwriter, if any, and Carlyle Stockholder to consummate the disposition in each such jurisdiction of such Shares owned by such Carlyle Stockholder; provided,
however, that the Company shall not be obligated to qualify as a foreign corporation or as a dealer in securities in any jurisdiction in which it is not so qualified or to consent to be subject to general service of process (other than
service of process in connection with such registration or qualification or any sale of Shares in connection therewith) in any such jurisdiction; 

(iv) cause all Shares being sold to be qualified for inclusion in or listed on The New York Stock Exchange or any other U.S.
securities exchange on which Shares issued by the Company are then so qualified or listed if so requested by the Carlyle Stockholders, or if so requested by the underwriter or underwriters of an underwritten offering of Shares, if any; 

(v) cooperate and assist in any filings required to be made with Financial Industry Regulatory Authority and in the performance
of any due diligence investigation by any underwriter in an underwritten offering; 
 (vi) use all reasonable efforts to
facilitate the distribution and sale of any Shares to be offered pursuant to this Agreement, including without limitation by making road show presentations, holding meetings with and making calls to potential investors and taking such other actions
as shall be requested by the Carlyle Stockholders or the lead managing underwriter of an underwritten offering; and 
 (vii)
enter into customary agreements (including, in the case of an underwritten offering, underwriting agreements in customary form, and including provisions with respect to indemnification and contribution in customary form and consistent with the
provisions relating to indemnification and contribution contained herein) and take all other customary and appropriate actions in order to expedite or facilitate the disposition of such Shares and in connection therewith: 

  
 13 

 (1) make such representations and warranties to the selling Stockholders and the underwriters,
if any, in form, substance and scope as are customarily made by issuers to underwriters in similar underwritten offerings; 
 (2) obtain
opinions of counsel to the Company and updates thereof (which counsel and opinions (in form, scope and substance) shall be reasonably satisfactory to the lead managing underwriter, if any) addressed to each selling Stockholder and the underwriters,
if any, covering the matters customarily covered in opinions requested in sales of securities or underwritten offerings and such other matters as may be reasonably requested by such Stockholders and underwriters; 

(3) obtain “cold comfort” letters and updates thereof from the Company’s independent certified public accountants addressed to
the selling Stockholders, if permissible, and the underwriters, if any, which letters shall be customary in form and shall cover matters of the type customarily covered in “cold comfort” letters to underwriters in connection with primary
underwritten offerings; 
 (4) to the extent requested and customary for the relevant transaction, enter into a securities sales agreement
with the Carlyle Stockholders providing for, among other things, the appointment of such representative as agent for the selling Carlyle Stockholders for the purpose of soliciting purchases of Shares, which agreement shall be customary in form,
substance and scope and shall contain customary representations, warranties and covenants 
 The above shall be done at such times as
customarily occur in similar registered offerings or shelf takedowns. 
 (d) Due Diligence. In connection with each registration and
offering of Shares to be sold by Carlyle Stockholders, the Company will, in accordance with customary practice, make available for inspection by representatives of the Carlyle Stockholders and underwriters and any counsel or accountant retained by
such Carlyle Stockholder or underwriters all relevant financial and other records, pertinent corporate documents and properties of the Company and cause appropriate officers, managers and employees of the Company to supply all information reasonably
requested by any such representative, underwriter, counsel or accountant in connection with their due diligence exercise. 
 (e)
Information from Stockholders. Each Carlyle Stockholder that holds Shares covered by any registration statement will furnish to the Company such information regarding itself as is required to be included in the registration statement, the
ownership of Shares by such Carlyle Stockholder and the proposed distribution by such Carlyle Stockholder of such Shares as the Company may from time to time reasonably request in writing. 

4.4 Indemnification. 
 (a)
Indemnification by the Company. In the event of any registration under the Securities Act by any registration statement pursuant to rights granted in this Agreement of Shares held by Carlyle Stockholders, the Company will hold harmless
Carlyle Stockholders and each underwriter of such securities and each other person, if any, who controls any Carlyle Stockholder or such underwriter 

  
 14 

 
within the meaning of the Securities Act, against any losses, claims, damages, or liabilities (including legal fees and costs of court), joint or several, to which Carlyle Stockholders or such
underwriter or controlling person may become subject under the Securities Act or otherwise, insofar as such losses, claims, damages, or liabilities (or any actions in respect thereof) arise out of or are based upon any untrue statement or alleged
untrue statement of any material fact (i) contained, on its effective date, in any registration statement under which such securities were registered under the Securities Act or any amendment or supplement to any of the foregoing, or which
arise out of or are based upon the omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading or (ii) contained in any preliminary prospectus, if used prior to
the effective date of such registration statement, or in the final prospectus (as amended or supplemented if the Company shall have filed with the SEC any amendment or supplement to the final prospectus), or which arise out of or are based upon the
omission or alleged omission (if so used) to state a material fact required to be stated in such prospectus or necessary to make the statements in such prospectus not misleading; and will reimburse Carlyle Stockholders and each such underwriter and
each such controlling person for any legal or any other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, or liability; provided, however, that the Company shall not be liable to any
Carlyle Stockholder or its underwriters or controlling persons in any such case to the extent that any such loss, claim, damage, or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged
omission made in such registration statement or such amendment or supplement, in reliance upon and in conformity with information furnished to the Company through a written instrument duly executed by Carlyle Stockholders or such underwriter
specifically for use in the preparation thereof. 
 (b) Indemnification by Carlyle Stockholders. Each Carlyle Stockholder will
indemnify and hold harmless (in the same manner and to the same extent as set forth in Section 4.4(a)) the Company, each director of the Company, each officer of the Company who shall sign the registration statement, and any person who controls
the Company within the meaning of the Securities Act, (i) with respect to any statement or omission from such registration statement, or any amendment or supplement to it, if such statement or omission was made in reliance upon and in
conformity with information furnished to the Company through a written instrument duly executed by such Carlyle Stockholder specifically regarding such Carlyle Stockholder for use in the preparation of such registration statement or amendment or
supplement, and (ii) with respect to compliance by such Carlyle Stockholder with applicable laws in effecting the sale or other disposition of the securities covered by such registration statement. 

(c) Indemnification Procedures. Promptly after receipt by an indemnified party of notice of the commencement of any action involving a
claim referred to in Section 4.4(a) and Section 4.4(b), the indemnified party will, if a resulting claim is to be made or may be made against and indemnifying party, give written notice to the indemnifying party of the commencement of the
action. The failure of any indemnified party to give notice shall not relieve the indemnifying party of its obligations in this Section 4.4, except to the extent that the indemnifying party is actually prejudiced by the failure to give notice.
If any such action is brought against an indemnified party, the indemnifying party will be entitled to participate in and to assume the defense of the action with counsel reasonably satisfactory to the indemnified party, and after notice from the
indemnifying party to such indemnified party of its election to assume defense of the action, the indemnifying party will not be liable to such indemnified party for any legal or other expenses incurred by the latter in connection with the
action’s defense. An indemnified party shall have the right to employ separate counsel in any action or proceeding and participate in the defense thereof, but the fees and expenses of such counsel shall be at such indemnified party’s
expense unless (a) the employment of such counsel has been specifically authorized in writing by the indemnifying party, which authorization shall not be unreasonably withheld, (ii) the indemnifying party has not assumed the defense and
employed counsel reasonably satisfactory to the indemnified party within 30 days after notice of any such action or proceeding, or (iii) the named parties to any such action or proceeding (including any impleaded parties) include the
indemnified party and the 

  
 15 

 
indemnifying party and the indemnified party shall have been advised by such counsel that there may be one or more legal defenses available to the indemnified party that are different from or
additional to those available to the indemnifying party (in which case the indemnifying party shall not have the right to assume the defense of such action or proceeding on behalf of the indemnified party), it being understood, however, that the
indemnifying party shall not, in connection with any one such action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees
and expenses of more than one separate firm of attorneys (in addition to all local counsel which is necessary, in the good faith opinion of both counsel for the indemnifying party and counsel for the indemnified party in order to adequately
represent the indemnified parties) for the indemnified party and that all such fees and expenses shall be reimbursed as they are incurred upon written request and presentation of invoices. Whether or not a defense is assumed by the indemnifying
party, the indemnifying party will not be subject to any liability for any settlement made without its consent. No indemnifying party will consent to entry of any judgment or enter into any settlement which (i) does not include as an
unconditional term the giving by the claimant or plaintiff, to the indemnified party, of a release from all liability in respect of such claim or litigation or (ii) involves the imposition of equitable remedies or the imposition of any
non-financial obligations on the indemnified party. 
 (d) Contribution. If the indemnification required by this Section 4.4 from
the indemnifying party is unavailable to or insufficient to hold harmless an indemnified party in respect of any indemnifiable losses, claims, damages, liabilities, or expenses, then the indemnifying party shall contribute to the amount paid or
payable by the indemnified party as a result of such losses, claims, damages, liabilities, or expenses in such proportion as is appropriate to reflect (i) the relative benefit of the indemnifying and indemnified parties and (ii) if the
allocation in clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect the relative benefit referred to in clause (i) and also the relative fault of the indemnified and indemnifying parties, in
connection with the actions which resulted in such losses, claims, damages, liabilities, or expenses, as well as any other relevant equitable considerations. The relative fault of the indemnifying party and the indemnified party shall be determined
by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact, has been made by, or relates to information supplied by, such indemnifying party or parties, and the
parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the losses, claims, damage, liabilities, and expenses referred to above shall be
deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with any investigation or proceeding. The Company and Carlyle Stockholders agree that it would not be just and equitable if contribution pursuant
to this Section 4.4(d) were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in the prior provisions of this Section 4.4(d). Notwithstanding the
provisions of this Section 4.4(d), no indemnifying party shall be required to contribute any amount in excess of the amount by which the total price at which the securities were offered to the public by the indemnifying party exceeds the amount
of any damages which the indemnifying party has otherwise been required to pay by reason of an untrue statement or omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be
entitled to contribution from any person who was not guilty of such a fraudulent misrepresentation. 
 4.5 Rule 144. If the Company is
subject to the requirements of Section 13, 14 or 15(d) of the Exchange Act, the Company covenants that it will file any reports required to be filed by it under the Securities Act and the Exchange Act (or, if the Company is subject to the
requirements of Section 13, 14 or 15(d) of the Exchange Act but is not required to file such reports, it will, upon the request of any 

  
 16 

 
Carlyle Stockholder, make publicly available such information) and it will take such further action as any Carlyle Stockholder may reasonably request, so as to enable such Carlyle Stockholder to
sell Shares without registration under the Securities Act within the limitation of the exemptions provided by (a) Rule 144 under the Securities Act, as such Rule may be amended from time to time, or (b) any similar rule or regulation
hereafter adopted by the SEC. Upon the request of any Carlyle Stockholder, the Company will deliver to such Carlyle Stockholder a written statement as to whether it has complied with such requirements. 

SECTION V. MISCELLANEOUS PROVISIONS 
 5.1
Information and Access Rights. 
 (a) Available Financial Information. Upon written request, the Company will deliver, or will
cause to be delivered, to each Carlyle Stockholder (until such time as such Carlyle Stockholder shall cease to own any Shares): 

(i) as soon as available after the end of each month and in any event within 30 days thereafter, a consolidated balance sheet
of the Company and its subsidiaries as of the end of such month and consolidated statements of operations, income, cash flows, retained earnings and stockholders’ equity of the Company and its subsidiaries, for each month and for the current
fiscal year of the Company to date, prepared in accordance with GAAP (subject to normal year-end audit adjustments and the absence of notes thereto), together with a comparison of such statements to the corresponding periods of the prior fiscal year
and to the Company’s business plan then in effect and approved by the Board of Directors; 
 (ii) an annual budget, a
business plan and financial forecasts for the Company for the fiscal year of the Company (the “Annual Budget”), no later than three (3) business days after the approval thereof by the Board of Directors (but no later than
March 31 of such fiscal year), in such manner and form as approved by the Board of Directors, which shall include at least a projection of income and a projected cash flow statement for each fiscal quarter in such fiscal year and a projected
balance sheet as of the end of each fiscal quarter in such fiscal year, in each case prepared in reasonable detail, with appropriate presentation and discussion of the principal assumptions upon which such budgets and projections are based, which
shall be accompanied by the statement of the chief executive officer or chief financial officer or equivalent officer of the Company to the effect that such budget and projections are based on reasonable and good faith estimates and assumptions made
by the management of the Company for the respective periods covered thereby; it being recognized by such holders that such budgets and projections as to future events are not to be viewed as facts and that actual results during the period or periods
covered by them may differ from the projected results. Any material changes in such Annual Budget shall be delivered to the Carlyle Stockholders as promptly as practicable after such changes have been approved by the Board of Directors; 

(iii) as soon as available after the end of each fiscal year of the Company, and in any event within 90 days thereafter,
(A) the annual financial statements required to be filed by the Company pursuant to the Exchange Act or (B) a consolidated balance sheet of the Company and its subsidiaries as of the end of such fiscal year, and consolidated statements of
income, retained earnings and cash flows of the Company and its subsidiaries for such year, prepared in accordance with GAAP and setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail and
accompanied by the opinion of independent public accountants of recognized national standing selected by the Company, and a Company-prepared comparison to the Company’s Annual Budget for such year as approved by the Board of Directors (the
“Annual Financial Statements”); and 

  
 17 

 (iv) as soon as available after the end of the first, second and third quarterly
accounting periods in each fiscal year of the Company, and in any event within 45 days thereafter, (A) the quarterly financial statements required to be filed by the Company pursuant to the Exchange Act or (B) a consolidated balance sheet
of the Company and its subsidiaries as of the end of each such quarterly period, and consolidated statements of income, retained earnings and cash flows of the Company and its subsidiaries for such period and for the current fiscal year to date,
prepared in accordance with GAAP (subject to normal year-end audit adjustments and the absence of notes thereto) and setting forth in comparative form the figures for the corresponding periods of the previous fiscal year and to the Company’s
Annual Budget then in effect as approved by the Board of Directors, all of the information to be provided pursuant to this Section 4.1(a)(iv) in reasonable detail and certified by the principal financial or accounting officer of the Company.

 In addition to the foregoing, the Company covenants and agrees to provide periodic updates to each Carlyle Stockholder during the course
of the preparation of the Annual Budget and to keep the Carlyle Stockholders reasonably informed as to its progress, status and the budgeted items set forth therein. Notwithstanding anything to the contrary in Section 5.1(a), the Company’s
obligations thereunder shall be deemed satisfied to the extent that such information is provided by (A) providing the financial statements of any wholly-owned subsidiary of the Company to the extent such financial statements reflect the
entirety of the operations of the business or (B) in the case of Section 5.1(a)(iii) and Section 5.1(a)(iv), filing such financial statements of the Company or any wholly-owned subsidiary of the Company whose financial statements
satisfy the requirements of clause (A), as applicable, with the Securities and Exchange Commission on EDGAR or in such other manner as makes them publicly available. The Company’s obligation to furnish the materials described in
Section 5.1(a)(i), Section 5.1(a)(iii) and Section 5.1(a)(iv), shall be satisfied so long as it transmits such materials to the requesting Carlyle Stockholders within the time periods specified therein, notwithstanding that such
materials may actually be received after the expiration of such periods. 
 (b) Tax Information. Promptly upon request by any Carlyle
Stockholder, the Company will, at the Company’s expense, prepare and deliver to such Carlyle Stockholder any information and certified statement that such Carlyle Stockholder determines to be necessary for such Carlyle Stockholder (or its
direct or indirect owners) to comply with obligations for tax reporting or tax withholding with respect to an investment (direct or indirect) in the Company or any of its subsidiaries. For the avoidance of doubt, such a request by any Carlyle
Stockholder may require the Company, (i) for purposes of Section 301 of the United States Internal Revenue Code of 1986, as amended (the “Code”), to prepare financial statements pursuant to the principles of “earnings
and profits” within the meaning of United States federal income tax law and to determine the amount of any “dividend” within the meaning of Section 316 of the Code, (ii) for purposes of Section 951 of the Code, to
determine whether the Company or any of its subsidiaries is a “controlled foreign corporation” within the meaning of Section 957 of the Code, to prepare financial statements pursuant to the principles of “earnings and
profits” within the meaning of United States federal income tax law, and to determine the amount of any “subpart F income” within the meaning of Section 952 of the Code, and (iii) for purposes of Section 1291 of the
Code and the election under Section 1295 of the Code, to determine whether the Company or any of its subsidiaries is a “passive foreign investment company” within the meaning of Section 1297 of the Code. 

  
 18 

 (c) Other Information. The Company covenants and agrees to deliver to each Carlyle
Stockholder, upon written request, until such time as such Carlyle Stockholder shall cease to own any Shares, with reasonable promptness, such other information and data (including such information and reports made available to any lender of the
Company or any of its subsidiaries under any credit agreement or otherwise) with respect to the Company and each of its subsidiaries as from time to time may be reasonably requested by any such Carlyle Stockholder. Each such Carlyle Stockholder,
until such time as such Carlyle Stockholder shall cease to own any Shares, shall have access to such other information concerning the Company’s business or financial condition and the Company’s management as may be reasonably requested,
including such information as may be necessary to comply with regulatory, tax or other governmental filings. 
 (d) Access. The
Company shall, and shall cause its subsidiaries, officers, directors, employees, auditors and other agents to (a) afford the Carlyle Stockholders and their officers, employees, auditors and other agents, during normal business hours and upon
reasonable notice, at all reasonable times to the Company’s and its subsidiaries’ officers, employees, auditors, legal counsel, properties, offices, plants and other facilities and to all books and records, and (b) afford the Carlyle
Stockholders and their officers, employees, auditors and other agents the opportunity to discuss the affairs, finances and accounts of the Company and its subsidiaries with their respective officers from time to time as each such Carlyle Stockholder
may reasonably request, in each case, until such time as such Carlyle Stockholder shall cease to own any Shares. 
 5.2
Confidentiality. Each Stockholder agrees that it will keep confidential and will not disclose, divulge or use for any purpose, other than to monitor its investment in the Company and its subsidiaries, any confidential information obtained from
the Company pursuant to Section 5.1, unless such confidential information (a) is known or becomes known to the public in general (other than as a result of a breach of any confidentiality obligation by such Stockholder or its affiliates),
(b) is or has been independently developed or conceived by such Stockholder without use of the Company’s confidential information or (c) is or has been made known or disclosed to such Stockholder by a third party (other than an
Affiliate of such Stockholder) without a breach of any confidentiality obligations such third party may have to the Company that is known to such Stockholder; provided, that, a Stockholder may disclose confidential information
(i) to its attorneys, accountants, consultants and other professional advisors to the extent necessary to obtain their services in connection with monitoring its investment in the Company, (ii) to any prospective purchaser of any Shares
from such Stockholder as long as such prospective purchaser agrees to be bound by the provisions of this Section 5.2 as if a Stockholder, (iii) to any Affiliate, partner, member, limited partners, prospective partners or related investment
fund of such Stockholder and their respective directors, employees, consultants and representatives, in each case in the ordinary course of business (provided that the recipients of such confidential information are subject to a customary
confidentiality and non-disclosure obligation), (iv) as may be reasonably determined by such Stockholder to be necessary in connection with such Stockholder’s enforcement of its rights in connection with this Agreement or its investment in
the Company and its subsidiaries, or (v) as may otherwise be required by law or legal, judicial or regulatory process. 
 5.3
Reliance. Each covenant and agreement made by a party in this Agreement or in any certificate, instrument or other document delivered pursuant to this Agreement is material, shall be deemed to have been relied upon by the other parties and
shall remain operative and in full force and effect after the Effective Date regardless of any investigation. This Agreement shall not be construed so as to confer any right or benefit upon any Person other than the parties hereto and their
respective successors and permitted assigns. 
 5.4 Access to Agreement; Amendment and Waiver; Actions of the Board. For so long as
this Agreement shall be in effect, this Agreement shall be made available for inspection by any Stockholder at the principal executive offices of the Company. Any party may waive in writing any provision hereof intended for its benefit, provided,
that, in the case of any waiver by the Company, such waiver is 

  
 19 

 
consented to in writing by the Carlyle Majority Interest. No failure or delay on the part of any party in exercising any right, power or remedy hereunder shall operate as a waiver thereof. The
remedies provided for herein are cumulative and are not exclusive of any remedies that may be available to any party at law or in equity or otherwise. This Agreement may be amended only with the prior written consent of the Carlyle Majority Interest
and the Company. Any consent given as provided in the preceding sentence shall be binding on all parties. Further, with the prior written consent of the Carlyle Majority Interest and the Company, at any time hereafter Permitted Transferees may be
made parties hereto, with any such additional parties shall be treated as “Stockholders” for all purposes hereunder, by executing a counterpart signature page in the form attached as Exhibit A hereto, which signature page shall be attached
to this Agreement and become a part hereof without any further action of any other party hereto. 
 5.5 Notices. All notices,
requests, demands and other communications provided for hereunder shall be in writing and mailed (by first class registered or certified mail, postage prepaid), sent by express overnight courier service, or delivered to the applicable party at the
respective address indicated below: 
 If to the Company: 

Axalta Coating Systems Ltd. 
 Two
Commerce Square 
 2001 Market Street, Suite 3600 

Philadelphia, PA 19103 
 Attn:
General Counsel 
 With a copy (which shall not constitute notice): 

Latham & Watkins LLP 

555 Eleventh Street, N.W. 

Washington, D.C. 20004 

Attention: David S. Dantzic 

Facsimile: (202) 637-2201 

If to the Carlyle Stockholders: 

c/o The Carlyle Group 
 1001
Pennsylvania Avenue, N.W. 
 Washington, DC 20004 

Attention: Martin W. Sumner 

Facsimile: (202) 347-1818 

With a copy (which shall not constitute notice): 

Latham & Watkins LLP 

555 Eleventh Street, N.W. 

Washington, D.C. 20004 

Attention: David S. Dantzic 

Facsimile: (202) 637-2201 

If to any other Stockholder: 

  
 20 

 At such Person’s address for notice as set forth in the books and records of the Company,
or, as to each of the foregoing, at such other address as shall be designated by a party in a written notice to other parties complying as to delivery with the terms of this Section 5.5. All such notices, requests, demands and other
communications shall, when mailed, telegraphed or sent, respectively, be effective (i) two days after being deposited in the mail or (ii) one day after being deposited with the express overnight courier service, respectively, addressed as
aforesaid. 
 5.6 Counterparts. This Agreement may be executed in two or more counterparts, and delivered via facsimile, .pdf or other
electronic transmission, each of which shall be deemed an original, but all of which together shall constitute one and the same agreement. 

5.7 Remedies; Severability. It is specifically understood and agreed that any breach of the provisions of this Agreement by any party
will result in irreparable injury to the other parties, that the remedy at law alone will be an inadequate remedy for such breach, and that, in addition to any other legal or equitable remedies which they may have, such other parties may enforce
their respective rights by actions for specific performance or injunctive relief (to the extent permitted at law or in equity). If any one or more of the provisions of this Agreement, or the application thereof in any circumstances, is held invalid,
illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained herein are not to be in any way impaired thereby, it being
intended that all of the rights and privileges of the parties be enforceable to the fullest extent permitted by law. 
 5.8 Entire
Agreement. This Agreement constitutes the entire agreement of the Parties with respect to the subject matter hereof. 
 5.9
Termination. This Agreement shall terminate on the earlier of (i) the election of the Carlyle Majority Interest or (ii) such date as the Carlyle Stockholders, in the aggregate, cease to hold any Shares. 

5.10 Governing Law. This Agreement is to be construed and enforced in accordance with the laws of the State of Delaware, without giving
effect to its principles or rules of conflict of laws to the extent such principles or rules are not mandatorily applicable by statute and would require or permit the application of the laws of another jurisdiction. 

5.11 Successors and Assigns; Beneficiaries. This Agreement shall be binding upon and inure to the benefit of the parties and the
respective successors and assigns of the parties as contemplated herein. Any successor to the Company by way of merger or otherwise must specifically agree to be bound by the terms hereof as a condition of such succession. 

5.12 Consent to Jurisdiction; Specific Performance; WAIVER OF JURY TRIAL. 

(a) Each of the parties hereto irrevocably and unconditionally consents to the sole and exclusive jurisdiction of the state and federal courts
located in Wilmington, Delaware to resolve all disputes, claims or controversies arising out of or relating to this Agreement or any other agreement executed and delivered pursuant to or in connection with this Agreement or the negotiation, breach,
validity, termination or performance hereof and thereof or the transactions contemplated hereby and thereby and agrees that it will not bring any such action in any court other than the federal or state courts located in Wilmington, Delaware. Each
party further irrevocably waives any objection to proceeding in such courts based upon lack of personal jurisdiction or to the laying of venue in such courts and further irrevocably and unconditionally waives and agrees not to make a claim that such
courts are an inconvenient forum. Each of the parties hereto hereby consents to service of process by registered mail 

  
 21 

 
at the address to which notices are to be given as provided in Section 5.5. Each of the parties hereto agrees that its or his submission to jurisdiction and its or his consent to service of
process by mail is made for the express benefit of the other parties hereto. The choice of forum set forth in this Section shall not be deemed to preclude the enforcement of any judgment of a Delaware federal or state court, or the taking of any
action under this Agreement to enforce such a judgment, in any other appropriate jurisdiction. 
 (b) The parties agree that irreparable
damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to an injunction or
injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement, this being in addition to any other remedy to which such party is entitled at law or in equity. 

(c) EACH PARTY TO THIS AGREEMENT WAIVES TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY ANY OF THEM AGAINST THE OTHER
ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS AGREEMENT, OR ANY OTHER AGREEMENTS EXECUTED AND DELIVERED PURSUANT TO OR IN CONNECTION HEREWITH OR THE NEGOTIATION, BREACH, VALIDITY, TERMINATION OR PERFORMANCE HEREOF AND THEREOF OR THE TRANSACTIONS
CONTEMPLATED HEREBY AND THEREBY. FURTHER, (I) NO PARTY TO THIS AGREEMENT SHALL SEEK A JURY TRIAL IN ANY SUCH ACTION AND (II) NO PARTY WILL SEEK TO CONSOLIDATE ANY SUCH ACTION IN WHICH A JURY TRIAL HAS BEEN WAIVED WITH ANY OTHER ACTION IN WHICH
A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. EACH PARTY TO THIS AGREEMENT CERTIFIES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT OR INSTRUMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS SET FORTH ABOVE IN THIS SECTION
4.12. NO PARTY HAS IN ANY WAY AGREED WITH OR REPRESENTED TO ANY OTHER PARTY THAT THE PROVISIONS OF THIS SECTION WILL NOT BE FULLY ENFORCED IN ALL INSTANCES. 

5.13 Further Assurances; Company Logo. At any time or from time to time after the Effective Date, the parties hereto agree to cooperate
with each other, and at the request of any other party, to execute and deliver any further instruments or documents and to take all such further action as any other party may reasonably request in order to evidence or effectuate the provisions of
this Agreement and to otherwise carry out the intent of the parties hereunder. The Company hereby grants the Carlyle Stockholders and their respective Affiliates permission to use the Company’s and its subsidiaries’ name and logo in
marketing materials. 
 5.14 Regulatory Matters. The Company shall and shall cause its subsidiaries to keep the Carlyle Stockholders
informed, on a current basis, of any events, discussions, notices or changes with respect to any criminal or regulatory investigation or action involving the Company or any of its subsidiaries, so that the Carlyle Stockholders and their respective
Affiliates will have the opportunity to take appropriate steps to avoid or mitigate any regulatory consequences to them that might arise from such investigation or action. 

5.15 Inconsistent Agreements. Neither the Company nor any Stockholder shall enter into any agreement or side letter with, or grant any
proxy to, any Stockholder, the Company or any other Person (whether or not such proxy, agreements or side letters are with other Stockholders, holders of Common Shares that are not parties to this Agreement or otherwise) that conflicts with the
provisions of this Agreement or which would obligate such Person to breach any provision of this Agreement. 
 [SIGNATURE PAGE FOLLOWS]

  
 22 

 IN WITNESS WHEREOF, the parties are signing this Principal Stockholders Agreement as of the date
first set forth above. 
  

			
	 COMPANY:

	
	     AXALTA COATING SYSTEMS
LTD.

		
	     By:
	 	  

		 	Name:
		 	Title:

 [Signature page to Principal Stockholders Agreement] 

 
							
	INITIAL CARLYLE STOCKHOLDERS:
		
		 	CARLYLE PARTNERS V SA1 CAYMAN, L.P.
			
		 		 	 By: TC Group V Cayman, L.P.

Its: General Partner

			
		 		 	 By: CP V General Partner, L.L.C.

Its: General Partner

				
		 		 	By:	 	  

		 		 	Name:	 	
		 		 	Title:	 	
		
		 	CARLYLE PARTNERS V SA2 CAYMAN, L.P.
			
		 		 	 By: TC Group V Cayman, L.P.

Its: General Partner

			
		 		 	 By: CP V General Partner, L.L.C.

Its: General Partner

				
		 		 	By:	 	  

		 		 	Name:	 	
		 		 	Title:	 	
		
		 	CARLYLE PARTNERS V SA3 CAYMAN, L.P.
			
		 		 	 By: TC Group V Cayman, L.P.

Its: General Partner

			
		 		 	 By: CP V General Partner, L.L.C.

Its: General Partner

				
		 		 	By:	 	  

		 		 	Name:	 	
		 		 	Title:	 	

  
 [Signature page to
Principal Stockholders Agreement] 

 
					
	CARLYLE PARTNERS V-A CAYMAN, L.P.
		
		 	 By: TC Group V Cayman, L.P.

Its: General Partner

		
		 	 By: CP V General Partner, L.L.C.

Its: General Partner

			
		 	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	CP V COINVESTMENT A CAYMAN, L.P.
		
		 	 By: TC Group V Cayman, L.P.

Its: General Partner

		
		 	 By: CP V General Partner, L.L.C.

Its: General Partner

			
		 	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	CP V COINVESTMENT B CAYMAN, L.P.
		
		 	 By: TC Group V Cayman, L.P.

Its: General Partner

		
		 	 By: CP V General Partner, L.L.C.

Its: General Partner

			
		 	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	CARLYLE COATINGS PARTNERS, L.P.
		
		 	 By: TC Group V Cayman, L.P.

Its: General Partner

		
		 	 By: CP V General Partner, L.L.C.

Its: General Partner

			
		 	By:	 	  

		 	Name:	 	
		 	Title:	 	

  
 [Signature page to
Principal Stockholders Agreement] 

 
			
	CEP III PARTICIPATIONS S.À R.L. SICAR
		
	By:	 	  

		 	Name:
		 	Title:

  
 [Signature page to
Principal Stockholders Agreement] 

 EXHIBIT A 

Joinder Agreement 
 By execution of this
signature page, [                    ] hereby agrees to become a Party to, and to be bound by the obligations of, and receive the benefits of, that
certain Principal Stockholders Agreement, dated as of [ l ], 2014, by and among Axalta Coating Systems Ltd., a
Bermuda exempted limited liability company, Carlyle Partners V SA1 Cayman, L.P., a Cayman Islands exempted limited partnership, Carlyle Partners V SA2 Cayman, L.P., a Cayman Islands exempted limited partnership, Carlyle Partners V SA3 Cayman, L.P.,
a Cayman Islands exempted limited partnership, Carlyle Partners V-A Cayman, L.P., a Cayman Islands exempted limited partnership, CP V Coinvestment A Cayman, L.P., a Cayman Islands exempted limited partnership, CP V Coinvestment B Cayman, L.P., a
Cayman Islands exempted limited partnership, CEP III Participations, S.à r.l. SICAR, a Luxembourg private limited liability company, Carlyle Coatings Partners, L.P., a Cayman Islands exempted limited partnership, and certain other Parties
named therein, as amended from time to time thereafter. 
  

			
	[NAME]
		
	 By:
	 	 
	 Name:
	 	
	 Title:
	 	
	
	 Notice Address:

	
	 
	
	 

  

			
	Accepted:
	
	 AXALTA COATING SYSTEMS LTD.

		
	 By:
	 	 
	 Name:
	 	
	 Title:ex10-1.htm

EXHIBIT 10.1

 

FIRST AMENDMENT TO AND ASSIGNMENT OF LETTER OF INTENT

This First Amendment to and Assignment of Letter of Intent (this “Agreement”) dated October 27, 2014 to be effective April 15, 2014 (the “Effective Date”) is by and between, Karl L. White (“White”), as authorized agent for the owners of Motors Acceptance Corporation, MotorMax Financial Services Corporation and MotorMax Auto Group, Inc. (collectively “MotorMax”), The Mint Leasing, Inc. (“Mint Leasing”), and Investment Capital Fund Group, LLC, a wholly-owned subsidiary of Sunset Brands, Inc. (“ICFG”), each referred to as a “Party” and collectively as the “Parties” to the Agreement.

W I T N E S S E T H:

WHEREAS, on or around March 10, 2014, MotorMax and ICFG entered into a letter of intent (a copy of which is attached hereto as Exhibit A), pursuant to which ICFG was provided the right to acquire up to 100% of the stock of MotorMax (the “Letter of Intent” and the “Acquisition”);

WHEREAS, the Letter of Intent required, among other things, that ICF would provide proof of funds in the form of a commitment to fund by April 15, 2014 (the “Proof of Funds Date”) and that the Acquisition would close by July 8, 2014 (120 days after the acceptance date of the Letter of Intent)(the “Required Closing Date”), each as described in greater detail in the paragraph entitled ‘Timing’ of the Letter of Intent;

WHEREAS, the Letter of Intent provided exclusivity rights to ICFG pursuant to the paragraph entitled ‘Exclusivity’ of the Letter of Intent, until July 8, 2014 (120 days after the acceptance date of the Letter of Intent) as described in greater detail in the Letter of Intent (the “Exclusivity Date”);

WHEREAS, ICFG desires to assign any and all of its rights and obligations under the Letter of Intent to Mint Leasing and White desires to consent to such assignment of rights of obligations of ICF pursuant to the terms of this Agreement; and

WHEREAS, the Parties also desire to amend and extend the Proof of Funds Date, Required Closing Date and Exclusivity Date, and certain other terms and provisions of the Letter of Intent pursuant to the terms of this Agreement.

           NOW, THEREFORE, in consideration of the premises and the mutual covenants, agreements, and considerations herein contained, and ten dollars ($10) and other good and valuable consideration, which ICF acknowledges receipt of, the Parties hereto agree as follows:

1.           Assignment.

	
  

	
(a)

	
Effective as of the Effective Date of this Agreement, ICF hereby assigns all of its rights and obligations under and pursuant to the Letter of Intent to Mint Leasing, and Mint Leasing hereby accepts such assignment (the “Assignment”).  Insofar as rights and obligations under the Letter of Intent from the Effective Date are concerned, all references to ICF therein shall be deemed to be replaced with references to Mint Leasing.

 

First Amendment to and Assignment of Letter of Intent 

Page 1 of 8

  

	
  

	
(b)

	
Effective as of the Effective Date, ICFG shall have no further rights or obligations of any kind whatsoever under the Letter of Intent, and the Letter of Intent, including the terms, conditions, covenants, agreements, and exhibits contained therein, as amended hereby, shall be binding only on MotorMax and Mint Leasing.

	
  

	
(c)

	
Pursuant to the terms and conditions set forth herein, White hereby grants his consent to the Assignment and the terms and conditions of this Agreement and represents and warrants that he shall not raise any claims against ICFG in connection with the breach, default or non-performance of the Letter of Intent by Mint Leasing after the Effective Date.

	
  

	
(d)

	
Mint Leasing agrees and covenants to comply with all of the terms and conditions of the Letter of Intent and to be bound by all of such terms.  Furthermore, Mint Leasing agrees that upon the Assignment, all such terms and conditions of the Letter of Intent attributable to ICFG shall be automatically confirmed and ratified in all respects by Mint Leasing.

2.           Amendments to Letter of Intent.

	
  

	
(a)

	
Effective as of the Effective Date:

	
  

	
(i)

	
The Proof of Funds Date, as described in the Letter of Intent, and such date as used throughout such Letter of Intent, shall be automatically revised and amended to read “[December 15, 2014]”;

	
  

	
(ii)

	
The Required Closing Date, as described in the Letter of Intent, and such date as used throughout such Letter of Intent, shall be automatically revised and amended to read “January 15, 2015”;

	
  

	
(iii)

	
The Exclusivity Date, as described in the Letter of Intent, and such date as used throughout such Letter of Intent, shall be automatically revised and amended to read “January 15, 2015”;

	
  

	
(iv)

	
The paragraph entitled “Transaction Summary” of the Letter of Intent shall be deleted, and shall be automatically revised and amended to read:

“Transaction Summary

 

  First Amendment to and Assignment of Letter of Intent

Page 2 of 8

  

Mint will acquire 100% of the total outstanding stock of MotorMax for $30,000,000.00, payable $25,000,000.00 in cash, and $5 million in stock at closing, collectively the “Purchase Price”. 

The cash proceeds of the transaction will be used to repay and secure the release from all employee/shareholder obligations, dividends payable, other interest-bearing obligations of the Company to the Shareholders, with the balance of the cash proceeds paid to the Selling Shareholders. (The Wells Fargo Warehouse Credit Facility and the CBT Wholesale Inventory Credit Facility are exempt and acceptable and will be assumed by Mint.) (1)

The cash portion of the Purchase Price would be adjusted on a dollar-for-dollar basis by an amount equal to the difference between the Company’s net assets as of the closing date and the net assets as listed on the 12/31/2013 Audited Financial Statements as provided by the Company to be determined upon further due diligence. The net asset adjustment will be jointly estimated as of the closing date based on the Company’s internally generated financials. The net assets as of the closing will be confirmed post-closing by an audit of the closing balance sheet by ICF’s outside auditor. (2)

The precise allocations and structure of the transaction would be reviewed by our respective tax advisors and adjusted by agreement in order to optimize tax treatment for all parties involved in the transaction.”

 

	
  

	
(v)

	
The paragraph entitled 'Structure and Financing' of the Letter of Intent shall be deleted

 

The paragraph entitled ‘Management’ of the Letter of Intent shall be deleted, and shall be automatically revised and amended to read:

 

“Management

Our objective is to build the business in partnership with the existing management team led by Karl, Karen, Shannon and Heather and hire additional members to the team as appropriate.  Post-closing, Karen will serve as Chief Executive Officer of MotorMax and earn a base salary of $120,000.00 with a bonus to be agreed upon. Shannon would serve as Chief Compliance Officer and Heather would serve as Chief Administrative Officer of Motormax and would each receive a base salary of $110,000.00 per year with bonuses to be agreed upon. Post-closing Mint Leasing would recruit a Chief Financial Officer to help grow the company.  Certain C-Level Executives will receive a one year contract, and potentially other key employees, to insure their commitment to the transfer of ownership.

 

First Amendment to and Assignment of Letter of Intent

Page 3 of 8

  

Terms of employment with Karl White to be agreed upon. Mint Leasing will provide a standard package of benefits to all salaried employees.  

Management will receive restricted stock subject to vesting terms. All shareholders will be subject to pro rata dilution upon any future equity investment, issuance of management options, warrants issued to a mezzanine lender or any other equity offerings, as agreed upon by Mint Leasing’s Board of Directors.”

	
  

	
(vi)

	
The paragraph entitled ‘Board of Directors’ of the Letter of Intent shall be deleted, and shall be automatically revised and amended to read:

“Board of Directors

The Board of Directors of Mint Leasing shall consist of those persons as are mutually acceptable to Mint Leasing and MotorMax as described in the definitive purchase agreements.”; and

	
  

	
(vii)

	
The paragraph entitled ‘Public Disclosure’ of the Letter Intent shall be deleted, and shall be automatically revised and amended to read:

“Public Disclosure

Mint Leasing shall be able to disclose this agreement, the terms and conditions hereof and related information regarding the proposed transaction set forth herein in its filings with the Securities and Exchange Commission.  MotorMax shall not make any public disclosure of this agreement or the terms and conditions hereof without the prior written approval of Mint Leasing, unless Mint Leasing has previously disclosed such terms and conditions.”

	
  

	
(viii)

	
The paragraph entitled ‘Purchase Agreement’ of the Letter Intent shall be deleted, and shall be automatically revised and amended to read:

“Purchase Agreement

The parties will negotiate in good faith a definitive Stock Purchase Agreement. The Stock Purchase Agreement will contain customary representations, warranties and covenants, including, without limitation, representations, warranties and indemnities concerning the capitalization of the Company, the condition and title of assets, the accuracy of financial statements, the absence of undisclosed liabilities, the absence of any material adverse change, tax, ERISA, labor and employment and environmental matters and compliance with laws. Mint Leasing’s counsel will prepare the first draft of the purchase agreement.”

 

First Amendment to and Assignment of Letter of Intent

Page 4 of 8

  

	
3.

	 	
Representations, Covenants and Warranties.

	
  

	
(a)

	
The Parties have all requisite power and authority, corporate or otherwise, to execute and deliver this Agreement and to consummate the transactions contemplated hereby and thereby. The Parties have duly and validly executed and delivered this Agreement and will, on or prior to the consummation of the transactions contemplated herein, execute, such other documents as may be required hereunder and, assuming the due authorization, execution and delivery of this Agreement by the Parties hereto and thereto, this Agreement constitutes, the legal, valid and binding obligation of the parties enforceable against each Party in accordance with its terms, except as such enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and general equitable principles.

	
  

	
(b)

	
The execution and delivery by the Parties of this Agreement and the consummation of the transactions contemplated hereby and thereby do not and shall not, by the lapse of time, the giving of notice or otherwise: (a) constitute a violation of any law; or (b) constitute a breach or violation of any provision contained in the Articles of Incorporation or Bylaws, or such other document(s) regarding organization and/or management of the Parties, if applicable; or (c) constitute a breach of any provision contained in, or a default under, any governmental approval, any writ, injunction, order, judgment or decree of any governmental authority or any contract to which either Party is bound or affected.

	
  

	
(c)

	
Any individual executing this Agreement on behalf of an entity has authority to act on behalf of such entity and has been duly and properly authorized to sign this Agreement on behalf of such entity.

	
  

	
(d)

	
White is duly authorized and has been duly appointed as the authorized agent for each owner of Motors Acceptance Corporation, MotorMax Financial Services Corporation and MotorMax Auto Group, Inc. (each an “Owner”) and therefore has the authority to enter into this Agreement and bind each Owner hereunder and under the Letter of Intent as assigned, modified and amended hereby.

4.           Further Assurances.  The Parties agree that, from time to time, each of them will take such other action and to execute, acknowledge and deliver such contracts, deeds, or other documents as may be reasonably requested and necessary or appropriate to carry out the purposes and intent of this Agreement and the transactions contemplated herein.

 

  First Amendment to and Assignment of Letter of Intent

Page 5 of 8

  

5.           Consideration.  Each of the Parties agrees and confirms by signing below that they have received valid consideration in connection with this Agreement and the transactions contemplated herein.

 

6.           Effect of Agreement. Upon the effectiveness of this Agreement, each reference in the Letter of Intent to “letter of intent”, “Agreement,” “hereunder,” “hereof,” “herein” or words of like import shall mean and be a reference to such Letter of Intent as assigned, modified and amended hereby.

 

7.           Reconfirmation of Letter of Intent. The Parties hereby reaffirm all terms, conditions, covenants, representations and warranties made in the Letter of Intent, to the extent the same are not modified or amended hereby (provided that for the sake of clarity, they also affirm all terms, conditions, covenants, representations and warranties modified or amended hereby).

8.           Benefit and Burden.  This Agreement shall inure to the benefit of, and shall be binding upon, the Parties hereto and their successors and permitted assigns.

9.           Entire Agreement.  This Agreement sets forth all of the promises, agreements, conditions, understandings, warranties and representations among the Parties with respect to the transactions contemplated hereby and thereby, and supersedes all prior agreements, arrangements and understandings between the Parties, whether written, oral or otherwise.

10.        Severability of Invalid Provision.  Every provision of this Agreement is intended to be severable.  If, in any jurisdiction, any term or provision hereof is determined to be invalid or unenforceable, (a) the remaining terms and provisions hereof shall be unimpaired, (b) any such invalidity or unenforceability in any jurisdiction shall not invalidate or render unenforceable such term or provision in any other jurisdiction, and (c) the invalid or unenforceable term or provision shall, for purposes of such jurisdiction, be deemed replaced by a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision.  In the event a court of competent jurisdiction determines that any provision of this Agreement is invalid or against public policy and cannot be so reduced or modified so as to be made enforceable, the remaining provisions of this Agreement shall not be affected thereby, and shall remain in full force and effect.

11.        Construction.  When used in this Agreement, unless a contrary intention appears: (i) a term has the meaning assigned to it; (ii) “or” is not exclusive; (iii) “including” means including without limitation; (iv) words in the singular include the plural and words in the plural include the singular, and words importing the masculine gender include the feminine and neuter genders; (v) any agreement, instrument or statute defined or referred to herein or in any instrument or certificate delivered in connection herewith means such agreement, instrument or statute as from time to time amended, modified or supplemented and includes (in the case of agreements or instruments) references to all attachments thereto and instruments incorporated therein; (vi) the words “hereof”, “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision hereof; (vii) references contained herein to Article, Section, Schedule and Exhibit, as applicable, are references to Articles, Sections, Schedules and Exhibits in this Agreement unless otherwise specified; (viii) references to “writing” include printing, typing, lithography and other means of reproducing words in a visible form, including, but not limited to email; (ix) reference to a particular statute, regulation or Law means such statute, regulation or Law as amended or otherwise modified from time to time; and (x) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein).

 

First Amendment to and Assignment of Letter of Intent

Page 6 of 8

  

12.        Fully Informed; Arm’s Length Transaction. Each Party herein expressly represents and warrants to all other Parties hereto that (a) before executing this Agreement, said Party has fully informed itself of the terms, contents, conditions and effects of this Agreement; (b) said Party has relied solely and completely upon its own judgment in executing this Agreement; (c) said Party has had the opportunity to seek and has obtained the advice of its own legal, tax and business advisors before executing this Agreement; (d) said Party has acted voluntarily and of its own free will in executing this Agreement; and (e) this Agreement is the result of arm’s length negotiations conducted by and among the Parties and their respective counsel.

13.        Effect of Facsimile and Photocopied Signatures. This Agreement and any signed agreement or instrument entered into in connection with this Agreement, and any amendments hereto or thereto, may be executed in one or more counterparts, all of which shall constitute one and the same instrument. Any such counterpart, to the extent delivered by means of a facsimile machine or by .pdf, .tif, .gif, .peg or similar attachment to electronic mail (any such delivery, an “Electronic Delivery”) shall be treated in all manner and respects as an original executed counterpart and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. At the request of any Party, each other Party shall re execute the original form of this Agreement and deliver such form to all other Parties. No Party shall raise the use of Electronic Delivery to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use of Electronic Delivery as a defense to the formation of a contract, and each such Party forever waives any such defense, except to the extent such defense relates to lack of authenticity.

[Remainder of page left intentionally blank. Signature page follows.]

 

First Amendment to and Assignment of Letter of Intent

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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first written above to be effective as of the Effective Date.

	
(“White”)

	  	  
	
Individually, and as authorized agent for each Owner

	  	  
	  	  	  	  
	  	  	  	  
	  	/s/ Karl L. White	  	  
	  	
Karl L. White

	  	  
	  	  	  	  
	  	  	  	  
	
(“Mint Leasing”)

	  	  
	  	  	  	  
	  	
The Mint Leasing, Inc.

	  	  
	  	  	  	  
	  	  	  	  
	  	 /s/ Jerry Parish	  	  
	  	
Jerry Parish

	  	  
	  	
Chief Executive Officer

	  	  
	  	  	  	  
	  	  	  	  

	
(“ICFG”)

	  	  
	  	  	  	  	  
	  	
Investment Capital Fund Group, LLC

	  
	  	  	  	  	  
	  	  	  	  	  
	  	
By:

	  /s/ Gene Smith	  
	  	  	  	  	  
	  	
Its:

	  Manager	  
	  	  	  	  	  
	  	
Printed Name:

	  Gene Smith	  

 

First Amendment to and Assignment of Letter of Intent

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EXHIBIT A

Personal and Confidential

 

Karl White

Chairman

Motors Acceptance Corporation

1225 Third Avenue

Columbus, GA. 91901

Dear Karl:

This letter outlines a proposal whereby Investment Capital Fund Group, LLC, a wholly owned entity of Sunset Brands, Inc. (“ICF”) would acquire 100% of the stock of Motors Acceptance Corporation., MotorMax Financial Services Corporation and MotorMax Auto Group, Inc. (collectively, “MotorMax” or the “Company”) from Karl White,  Zianonia G. McLaughlin and Wendy D. White, (“Selling Shareholders”).  When in final form and executed by all parties, this letter will serve as a letter of intent to work together to complete the transaction proposed.

Transaction Summary

ICF would acquire 100% of the total outstanding stock of MotorMax for $30,000,000.00, payable $30,000,000.00 in cash at closing, collectively the “Purchase Price”. 

The cash proceeds of the transaction would be used to repay and secure the release from all employee/shareholder obligations, dividends payable, other interest-bearing obligations of the Company to the Shareholders, with the balance of the cash proceeds paid to the Selling Shareholders. (The Wells Fargo Warehouse Credit Facility and the CBT Wholesale Inventory Credit Facility are exempt and acceptable and will be assumed by ICF.) (1)

The cash portion of the Purchase Price would be adjusted on a dollar-for-dollar basis by an amount equal to the difference between the Company’s net assets as of the closing date and the net assets as listed on the 12/31/2012 Audited Financial Statements as provided by the Company to be determined upon further due diligence. The net asset adjustment will be jointly estimated as of the closing date based on the Company’s internally generated financials. The net assets as of the closing will be confirmed post-closing by an audit of the closing balance sheet by ICF’s outside auditor. (2)

The precise allocations and structure of the transaction would be reviewed by our respective tax advisors and

adjusted by agreement in order to optimize tax treatment for all parties involved in the transaction.

Structure and Financing

ICF anticipates financing this transaction with third-party senior bank debt and senior subordinated

debt.  The exact capital structure will be determined prior to closing. Sunset Brands, Inc. will arrange the third-party financing and shall charge a structuring fee payable by MotorMax at closing.  ICF agrees to inject $12,000,000.00 in additional cash equity over the first 12 months post-closing as projected by management prepared budgets that are approved by the ICF Board of Directors.

 

  

A - 1

  

Management

Our objective is to build the business in partnership with the existing management team led by Karl, Karen, Shannon and Heather and hire additional members to the team as appropriate.  Post-closing, Karen will serve as Chief Executive Officer of MotorMax and earn a base salary of $120,000.00 with a bonus potential outlined in Schedule D. Shannon would serve as Chief Compliance Officer and Heather would serve as Chief Administrative Officer of Motormax and would each receive a base salary of $110,000.00 per year with bonus potential outlined in Schedule D. Post-closing ICF would recruit a Chief Financial Officer to help grow the company.  Certain C-Level Executives will receive a one year contract, and potentially other key employees, to insure their commitment to the transfer of ownership (see Schedule D).

Karl White would serve on the ICF Board of Directors for a period of 12 months with his primary responsibility be representing and reporting on Motormax and would continue to earn a base salary of $250,000 for that time period All other management (see schedule D for list of management) and employees of the Company would be provided with compensation consistent with the information presented to ICF, subject to review during due diligence. All officer salaries, bonus plans and annual budgets would be reviewed and approved on an annual basis by the board of ICF. The Company would provide a standard package of benefits to all salaried employees.  

A block of stock would be made available for discounted purchase to certain members of management. Management’s equity shall be subject to a shareholders’ agreement providing tag-along rights, drag-along rights, re-purchase rights and other rights common to these agreements. All shareholders will be subject to pro rata dilution upon any future equity investment, issuance of management options, warrants issued to a mezzanine lender or any other equity offerings, as agreed upon by ICF’s Board of Directors.

Board of Directors

Post-closing, ICF’s Board of Directors will initially consist of Karl White, Karen Glisson, Gene Smith, Bert Watson Sr. and Cindy Delaparte and two outside directors (to be determined) with significant relevant experience, to be mutually recruited and appointed by Sunset Brands, Inc. The Board of Directors will meet monthly in Columbus, Jacksonville or other designated locations.

Non-Competition Agreement

As part of the purchase agreement, the Selling Shareholders will enter into a mutually agreeable five-year, noncompetition agreement at closing of the transaction. As part of the shareholders’ agreement, any other officers of MotorMax participating in the equity of ICF will also enter into a mutually agreeable five-year, non-competition agreement.

 

Expenses

In any event, each of the parties will pay all of its own expenses (including fees and expenses of legal counsel, accountants, etc.) relating to the contemplated transaction. The parties agree to work in good faith to keep the expenses associated with this transaction to a minimum.

Purchase Agreement

The parties will negotiate in good faith a definitive Stock Purchase Agreement. The Stock Purchase Agreement will contain customary representations, warranties and covenants, including, without limitation, representations, warranties and indemnities concerning the capitalization of the Company, the condition and title of assets, the accuracy of financial statements, the absence of undisclosed liabilities, the absence of any material adverse change, tax, ERISA, labor and employment and environmental matters and compliance with laws. ICF’s counsel will prepare the first draft of the purchase agreement.

Purchase Investigation

  

A - 2

  

Following execution of this letter of intent, Motormax will, and the Selling Shareholders will cause MotorMax to, (i) permit ICF and its investors, lenders, accountants and legal representatives to conduct an investigation and evaluation of the Company, (ii) provide such assistance and information as is reasonably requested, (iii) give access at reasonable times to the business records and premises of the Company, and (iv) subject to the Company’s consent, allow ICF the opportunity to speak with vendors and customers to confirm information about the Company.

Conditions to Closing

The closing of the transaction would be subject to the completion of the due diligence investigation with results satisfactory to ICF, including ICF’s accountants review of the Company’s financial statements, negotiation and execution of the definitive Stock Purchase Agreement, completion of financing satisfactory to ICF and the absence of any material adverse change in Motormax’s business prior to closing.

Exclusivity

MotorMax and the Selling Shareholders agree that unless negotiations between them and ICF are terminated (it being understood that Motormax and the Selling Shareholders will not unilaterally terminate negotiations as long as ICF is proceeding in good faith), neither they nor any of their officers, agents or other affiliates will discuss or provide any information regarding a possible sale, acquisition or merger of Motormax or any of its assets with any other party for 120 days from the date of the Selling Shareholders’ written acceptance of this letter or close of the transaction proposed herein, whichever is earlier.

Conduct of Business

During the period from December 31, 2013 through closing: (a) MotorMax will conduct its business in the ordinary course in a manner consistent with past practices; (b) Motormax shall not enter into any transaction other than in the ordinary course of business; and (c) MotorMax shall not pay any distributions to its Selling Shareholders except normal salary, bonus and tax distributions consistent with past practices.

Public Disclosure

No public disclosure or publicity concerning the subject matter of the transaction contemplated hereby will be made without the written approval of Motormax and ICF.

Timing

The parties agree to work expeditiously towards the successful completion of the transaction with a target closing date within 120 days of the date of MotorMax’s written acceptance date hereof, or earlier as directed by ICF. ICF must furnish Proof of Funds in the form of a Commitment to Fund no later than April 15th, 2014.  It is understood and agreed that, except for the paragraphs entitled “Expenses,” “Exclusivity” and “Public Disclosure,” this letter is not a binding agreement but is merely an expression of the parties’ intent, and that neither party, nor any person affiliated with either party, shall have any liabilities or obligations hereunder, other than for obligations under such specified paragraphs.  Karl, we look forward to continue working with you on this transaction and to build MotorMax for the future.

	
Sincerely,

	  
	  	  
	
/s/M. Eugene Smith

	  
	M. Eugene Smith	 
	
Vice Chairman

	  
	
Sunset Brands, Inc

	  

  

A - 3

  

Agreed and Accepted this 10th Day of March 2014

	
By:

	
/s/Karl L. White

	  
	  	
 Karl L. White

	  
	  	  	  	  
	
Witnessed by:

	/s/Karen Glisson	  
	
Print Name:

	  Karen Glisson	  
	  	  	  	  
	
Notarized by:

	/s/Meghan W Garrett	  
	 	 	 

 

  

A - 4

  

 

 

 

 

Schedule A

 

December 31, 2013 Audited Financials

 

Provided by Management Upon Completion

 

Draft Internally generated Financials will be attached when completed

 

 

 

 

  

A - 5

  

 

 

Schedule B

 

List of Liabilities to be paid from cash proceeds at purchase

 

	
  

	
1.

	
All accounts showing payable to Shareholders

 

	
  

	
2.

	
Dividends Payable

 

	
  

	
3.

	
Bonds Payable

 

	
  

	
4.

	
Debt associated with life insurance (insurance going to Karl White)

 

	
  

	
5.

	
Debt associated with vehicles being removed from company

 

 

 

  

A - 6

  

 

 

Schedule C

 

List of Real Estate on Balance Sheet

 

 

 

  

A - 7

  

 

Schedule D

 

Management Positions with salary and benefits

 

Karen Glisson

Salary $120,000 - EOY Bonus based on net income of all entities

Company Vehicle, maintenance

One Year Contract

 Less than $2mil – 1%

 2mil-3mil – 2%

 3mil-4mil – 3%

 4mil-5mil – 4%

 Greater than 5 mil – 5%

 

Heather Benson

Salary $110,000

$5000 Year-end Bonus

Company Vehicle, maintenance

One Year Contract

 

Shannon Arnette

Salary $110,000

$5000 Year-end Bonus

Company Vehicle, maintenance

One Year Contract

 

Scott Richardson

Salary $86,400

$10 per car monthly bonus

Inventory/demo vehicle

One Year Contract

EOY bonus based on net income of Motors:

 

 Less than 2mil - .5%

 

 2mil-3mil – 1%

 

 3mil-4mil – 2%

 

 Greater than 4mil – 3%

 

  

A - 8

  

 EOY bonus base on net income of Automotive Group:

 

 Less than 2 mil - 1%

 

 2mil-3mil – 2%

 

 3mil-4mil- 3%

 

 4mil – 4%

 

 

Charles Solis

 

Salary $ 48,000

 

$13 per loan monthly bonus

 

Inventory/Demo vehicle

 

One Year Contract

 

 

 EOY bonus based on net income of MotorMax Financial Services

 

 Less than 2mil – 1%

 

 2mil-3mil – 2%

 

 3mil-4mil – 3%

 

 Greater than 4mil – 4%

 

  

A - 9

  

 

Schedule E

 

Items excluded from sale

 

Life Insurance for Karl White

 

Vehicles driven by Shareholders

 

Employee/Shareholder Loans (3)

 

 

 

  

A - 10

  

 

 

 

Schedule F

 

Copies of all corporate by-laws, stock certificates, and other corporate documents

 

 

 

A - 11

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