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THIRD AMENDMENT TO CREDIT AND SECURITY AGREEMENT
THIRD AMENDMENT TO CREDIT AND SECURITY AGREEMENT (this “Third Amendment”), dated as of February 25, 2021, by and among TITAN INTERNATIONAL, INC., a Delaware corporation (“Titan International”), TITAN WHEEL CORPORATION OF ILLINOIS, an Illinois corporation (“Titan Wheel”), TITAN TIRE CORPORATION, an Illinois corporation (“Titan Tire”), TITAN TIRE CORPORATION OF FREEPORT, an Illinois corporation (“Titan Freeport”), TITAN TIRE CORPORATION OF BRYAN, an Ohio corporation (“Titan Bryan”), TITAN TIRE CORPORATION OF UNION CITY, a Tennessee corporation (“Titan Union City”), and TITAN MARKETING SERVICES, LLC, an Illinois limited liability company (“Titan Marketing”; and together with Titan International, Titan Wheel, Titan Tire, Titan Freeport, Titan Bryan and Titan Union City, collectively, “Borrowers”), BMO HARRIS BANK N.A., as agent for the Lenders (in such capacity, “Agent”) and the Lenders signatory hereto.  Capitalized words and terms used but not defined herein shall have the meanings given to them in the Credit Agreement (as hereinafter defined).
BACKGROUND
A.    Borrowers, the Lenders signatory thereto and Agent are parties to that certain Credit and Security Agreement dated as of February 17, 2017 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”).
B.    Borrowers have requested that Agent and the Lenders amend certain provisions of the Credit Agreement as more specifically set forth herein.
C.    Subject to the terms and conditions set forth herein, Agent and each of the Lenders are willing to enter into this Third Amendment.
NOW THEREFORE, in consideration of the matters set forth in the recitals and the covenants and provisions herein set forth, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1.Amendment.  On the Third Amendment Effective Date (as defined below), the Credit Agreement is hereby amended as follows:
(a)The following definitions are added to Section 1.1 of the Credit Agreement in alphabetical order:
Available Tenor:  as of any date of determination and with respect to the then-current Benchmark, as applicable, any tenor for such Benchmark or payment period for interest calculated with reference to such Benchmark, as applicable, that is or may be used for determining the length of an Interest Period pursuant to this Agreement as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark that is then-removed from the definition of “Interest Period” pursuant to clause (e) of Section 3.11.
									
			

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Benchmark:  initially, LIBOR; provided that if a Benchmark Transition Event, a Term SOFR Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date have occurred with respect to LIBOR or the then-current Benchmark, then “Benchmark” means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to clause (a) or (b) of Section 3.11.
Benchmark Replacement:  for any Available Tenor, the first alternative set forth in the order below that can be determined by the Agent for the applicable Benchmark Replacement Date:
(i)the sum of:  (a) Term SOFR and (b) the related Benchmark Replacement Adjustment;
(ii)the sum of:  (a) Daily Simple SOFR and (b) the related Benchmark Replacement Adjustment;
(iii)the sum of:  (a) the alternate benchmark rate that has been selected by the Agent and the Borrowers as the replacement for the then-current Benchmark for the applicable Corresponding Tenor giving due consideration to (i) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement for the then-current Benchmark for Dollar denominated syndicated credit facilities at such time and (b) the related Benchmark Replacement Adjustment;
provided that, in the case of clause (1), such Unadjusted Benchmark Replacement is displayed on a screen or other information service that publishes such rate from time to time as selected by the Agent in its reasonable discretion (display of the alternate benchmark rate is preferred but not required in the case of clause (3)); provided further that, notwithstanding anything to the contrary in this Agreement or in any other Loan Document, upon the occurrence of a Term SOFR Event, and the delivery of a Term SOFR Notice, on the applicable Benchmark Replacement Date the “Benchmark Replacement” shall revert to and shall be deemed to be the sum of (a) Term SOFR and (b) the related Benchmark Replacement Adjustment, as set forth in clause (1) of this definition (subject to the first proviso above).
If the Benchmark Replacement as determined pursuant to clause (1), (2) or (3) above would be less than the Floor, the Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Loan Documents.
Benchmark Replacement Adjustment:  with respect to any replacement of the then current Benchmark with an Unadjusted Benchmark Replacement for any applicable Interest Period and Available Tenor for any setting of such Unadjusted Benchmark Replacement:
									
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(1)for purposes of clauses (1) and (2) of the definition of “Benchmark Replacement,” the first alternative set forth in the order below that can be determined by the Agent:
(a)the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) as of the Reference Time such Benchmark Replacement is first set for such Interest Period that has been selected or recommended by the Relevant Governmental Body for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for the applicable Corresponding Tenor;
(b)the spread adjustment (which may be a positive or negative value or zero) as of the Reference Time such Benchmark Replacement is first set for such Interest Period that would apply to the fallback rate for a derivative transaction referencing the ISDA Definitions to be effective upon an index cessation event with respect to such Benchmark for the applicable Corresponding Tenor; and
(2)for purposes of clause (3) of the definition of “Benchmark Replacement,” the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Agent and the Borrowers for the applicable Corresponding Tenor giving due consideration to (i) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body on the applicable Benchmark Replacement Date and/or (ii) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for Dollar denominated syndicated credit facilities;
provided that, in the case of clause (1) above, such adjustment is displayed on a screen or other information service that publishes such Benchmark Replacement Adjustment from time to time as selected by the Agent in its reasonable discretion.
Benchmark Replacement Conforming Changes:  with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of “Base Rate,” the definition of “Business Day,” the definition of “Interest Period,” the timing and frequency of determining rates and making payments of interest, the timing of borrowing requests or prepayment, conversion or continuation notices, the length of lookback periods, the applicability of breakage provisions, and other technical, administrative or operational matters) that the Agent decides may be appropriate, from time to time, to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by the Agent in a manner substantially consistent with market practice (or, if the Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Agent determines that no market practice for the administration of such Benchmark 
									
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Replacement exists, in such other manner of administration as the Agent decides is reasonably necessary in connection with the administration of this Agreement and the other Loan Documents) which changes may in Agent’s discretion, and with Agent’s sole authorization, be memorialized in one or more written amendments hereto as such conforming changes are made by the Agent pursuant hereto.
Benchmark Replacement Date:  the earliest to occur of the following events with respect to the then-current Benchmark:
(1)in the case of clause (1) or (2) of the definition of “Benchmark Transition Event,” the later of (a) the date of the public statement or publication of information referenced therein and (b) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide all Available Tenors of such Benchmark provided for herein (or such component thereof);
(2)in the case of clause (3) of the definition of “Benchmark Transition Event,” the date of the public statement or publication of information referenced therein;
(3)in the case of a Term SOFR Event, the date that is thirty (30) days after the date a Term SOFR Notice is provided to the Lenders and the Borrowers pursuant to Section 3.11(b); or
(4)in the case of an Early Opt-in Election, the 6th Business Day after the date notice of such Early Opt-in Election is provided to the Lenders, so long as the Agent has not received, by 5:00 p.m. on the 5th Business Day after the date notice of such Early Opt-in Election is provided to the Lenders, written notice of objection to such Early Opt-in Election from Lenders comprising the Required Lenders.
For the avoidance of doubt, (i) if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for such determination and (ii) the “Benchmark Replacement Date” will be deemed to have occurred in the case of clause (1) or (2) with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof).
Benchmark Transition Event:  the occurrence of one or more of the following events with respect to the then-current Benchmark:
(1)a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of such Benchmark provided for herein (or such component thereof), permanently or indefinitely; provided that, at the time of such statement or publication, 
									
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there is no successor administrator that will continue to provide any Available Tenor of such Benchmark provided for herein (or such component thereof);
(2)a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof), the FRB, the NYFRB, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark provided for herein (or such component), which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark provided for herein (or such component thereof) or
(3)a public statement or publication of information by the Agent or the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that all Available Tenors of such Benchmark provided for herein (or such component thereof) are (a) no longer representative or (b) not ascertainable by adequate and fair means.
For the avoidance of doubt, a “Benchmark Transition Event” will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark provided for herein (or the published component used in the calculation thereof).
Benchmark Unavailability Period:  the period (if any) (x) beginning at the time that a Benchmark Replacement Date pursuant to clauses (1) or (2) of that definition has occurred if, at such time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with Section 3.11 and (y) ending at the time that a Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with Section 3.11.
Beneficial Ownership Certification:  a certification regarding beneficial ownership required by the Beneficial Ownership Regulation, which certification shall be substantially similar in form and substance to the form of Certification Regarding Beneficial Owners of Legal Entity Customers published jointly, in May 2018, by the Loan Syndications and Trading Association and Securities Industry and Financial Markets Association.
Beneficial Ownership Regulation:  31 C.F.R. § 1010.230.
Consolidated Cash Balance:  at any time, (a) the aggregate amount of cash and Cash Equivalents held or controlled by Borrowers minus (b) the sum of (i) Cash Collateral that is Cash Collateralizing Obligations in accordance with this Agreement plus (ii) any outstanding checks 
									
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and similar payment items issued by Borrowers in the ordinary course of business and pending electronic funds transfers of Borrowers.
Corresponding Tenor:  with respect to any Available Tenor means, as applicable, either a tenor (including overnight) or an interest payment period having approximately the same length (disregarding Business Day adjustment) as such Available Tenor.
Daily Simple SOFR:  for any day, SOFR, with the conventions for this rate (which will include a lookback) being established by the Agent, in its reasonable discretion, in accordance with the conventions for this rate selected or recommended by the Relevant Governmental Body for determining “Daily Simple SOFR” for syndicated business loans; provided, that if the Agent decides that any such convention is not administratively feasible for the Agent, then the Agent may establish another convention in its reasonable discretion.
Division:  the creation of one or more new limited liability companies by means of any statutory division of a limited liability company pursuant to any applicable limited liability company act or similar statue of any jurisdiction.  “Divide” shall have the corresponding meaning.
Early Opt-in Election:  if the then-current Benchmark is LIBOR, the occurrence of:
(1)a notification by the Agent to (or the request by the Borrowers to the Agent to notify) each of the other parties hereto that at least five (5) currently outstanding Dollar denominated syndicated credit facilities at such time contain (as a result of amendment or as originally executed) a SOFR-based rate (including SOFR, a Term SOFR or any other rate based upon SOFR) as a benchmark rate (and such syndicated credit facilities are identified in such notice are publicly available for review), and
(2)the joint election by the Agent and the Borrowers to trigger a fallback from LIBOR and the provision by the Agent of written notice of such election to the Lenders.
Floor:  the benchmark rate floor, being 0.50%, provided herein (as of the execution of this Agreement, the modification, amendment or renewal of this Agreement or otherwise) with respect to LIBOR.
FRB:  the Board of Governors of the Federal Reserve System of the United States.
ISDA Definitions:  the 2006 ISDA Definitions published by the International Swaps and Derivatives Association, Inc. or any successor thereto, as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time to time by the International Swaps and Derivatives Association, Inc. or such successor thereto.
NYFRB:  the Federal Reserve Bank of New York.
NYFRB’s Website:  the website of the NYFRB at http://www.newyorkfed.org, or any successor source.
									
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Reference Time:  with respect to any setting of the then-current Benchmark means (1) if such Benchmark is LIBOR, 11:00 a.m. (London time) on the day that is two (2) London banking days preceding the date of such setting, and (2) if such Benchmark is not LIBOR, the time determined by the Agent in its reasonable discretion.
Relevant Governmental Body:  the FRB and/or the NYFRB, or a committee officially endorsed or convened by the FRB and/or the NYFRB, or any successor thereto.
SOFR:  with respect to any Business Day, a rate per annum equal to the secured overnight financing rate for such Business Day published by the SOFR Administrator on the SOFR Administrator’s Website on the immediately succeeding Business Day.
SOFR Administrator:  the NYFRB (or a successor administrator of SOFR).
SOFR Administrator’s Website:  the NYFRB’s Website, currently at http://www.newyorkfed.org, or any successor source for SOFR identified as such by the SOFR Administrator from time to time.
Term SOFR:  for the applicable Corresponding Tenor as of the applicable Reference Time, the forward-looking term rate based on SOFR that has been selected or recommended by the Relevant Governmental Body.
Term SOFR Event:  the determination by the Agent that (a) Term SOFR has been recommended for use by the Relevant Governmental Body, (b) the administration of Term SOFR is administratively feasible for the Agent and (c) a Benchmark Transition Event has previously occurred resulting in a Benchmark Replacement in accordance with Section 3.11 that is not Term SOFR.
Term SOFR Notice:  a notification by the Agent to the Lenders and the Borrowers of the occurrence of a Term SOFR Event.
Third Amendment Effective Date:  February 25, 2021.
Unadjusted Benchmark Replacement:  the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment.
i.The following definitions in Section 1.1 of the Credit Agreement are hereby amended and restated in their entirety to read as follows:
Accounts Formula Amount:  the sum of (x) 85% of the Value of Eligible Accounts (including Insured Eligible Accounts) plus (y) the lesser of (i) of $5,000,000 and (ii) 85% of the Value of Dated Eligible Accounts (including Insured Dated Eligible Accounts) plus (z) the lesser of (i) the sum of (A) 5% of the Value of Insured Dated Eligible Accounts plus (B) 5% of the Value of Insured Eligible Accounts and (ii) $1,000,000.
									
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Agent Fee Letter:  those certain fee letters dated as of February 17, 2017, May 17, 2019 and February 25, 2021, by and between Agent and Titan International.
Applicable Margin:  with respect to any Type of Loan, the margin set forth below, as determined by the Average Availability for the prior Fiscal Quarter, subject to the below:
												
	Level	Average Availability	Base Rate Loans	LIBOR Loans
	I	> $30,000,000	0.75%	1.75%
	II	≤ $30,000,000 $15,000,000
	1.00%	2.00%
	III	≤ $15,000,000	1.25%	2.25%

The Applicable Margins shall be subject to change upon receipt by Agent pursuant to Section 8.1 of the Borrowing Base Certificate for the last Fiscal Quarter, which change shall be effective on the first day of the Fiscal Quarter following the Fiscal Quarter to which the Borrowing Base Certificate applies.  If, by the first day of a month any Borrowing Base Certificate due in the preceding month has not been received, then, at the option of Agent or Required Lenders, the Applicable Margins shall be determined as if Level III were applicable, from such day until the first day of the month following actual receipt, at which time the Applicable Margins shall be determined in accordance with the grid above based on such Borrowing Base Certificate received  Beginning on the Third Amendment Effective Date until the Borrowing Base Certificate for the calendar month ending March 31, 2021 is due, the Applicable Margin shall be determined as if Level II were applicable.
Asset Disposition:  a sale, lease, license, consignment, transfer or other disposition (including by Division) of Property of a Borrower, including a disposition of Property in connection with a sale-leaseback transaction or synthetic lease.
Commitment:  for any Lender, the aggregate amount of such Lender’s Revolver Commitment.  “Commitments” means the aggregate amount of all Revolver Commitments.  The Commitments as of the Third Amendment Effective Date shall be $100,000,000.
Dominion Trigger Period:  the period (a) commencing on the day that an Event of Default occurs, or Availability is less than the greater of 10.0% of the Commitments at any time and $10,000,000; and (b) continuing until, during the preceding thirty (30) consecutive days, no Event of Default has existed and Average Availability is equal to or more than the greater of 10.0% of the Commitments and $10,000,000 for such period; provided, that the Borrowers shall not be permitted to cure an event giving rise to a Dominion Trigger Period more than two (2) times in any Fiscal Year.
Fixed Charge Trigger Period:  The period commencing on the day that Availability is less than the greater of (a) $10,000,000 and (b) ten percent (10%) of the Commitments at any time and continuing until, during the preceding thirty (30) consecutive days, Availability is equal to or 
									
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greater than the greater of (a) $10,000,000 or (b) ten percent (10%) of the Commitments for such period.
LIBOR:
1.for any Interest Period with respect to a LIBOR Loan, the rate per annum equal to (but in no event less than one-half of one percent (0.50%)) (i) the ICE Benchmark Administration (or the successor thereto if the ICE Benchmark Administration is no longer making the LIBOR Rate available) LIBOR Rate (“ICE LIBOR”), as published by Reuters (or such other commercially available source providing quotations of ICE LIBOR as designated by Agent from time to time) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, for Dollar deposits (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period or, (ii) if such rate is not available at such time for any reason, the rate per annum determined by Agent to be the rate at which deposits in Dollars for delivery on the first day of such Interest Period in same day funds in the approximate amount of the LIBOR Loan being made, continued or converted and with a term equivalent to such Interest Period would be offered by such other authoritative source (as is selected by the Lender in its sole reasonable discretion)  to major banks in the London interbank eurodollar market at their request at approximately 11:00 a.m. (London time) two (2) Business Days prior to the commencement of such Interest Period; and
2.for any interest calculation with respect to a Base Rate Loan on any date, the rate per annum equal to (but which shall never be less than one-half of one percent (0.50%)) (i) ICE LIBOR, at approximately 11:00 a.m., London time determined two Business Days prior to such date for Dollar deposits being delivered in the London interbank eurodollar market for a term of one month commencing that day or (ii) if such published rate is not available at such time for any reason, the rate per annum determined by Agent to be the rate at which deposits in Dollars for delivery on the date of determination in same day funds in the approximate amount of the Base Rate Loan being made or maintained and with a term equal to one month would be offered by such other authoritative source (as is selected by Agent in its sole reasonable discretion) to major banks in the London interbank eurodollar market at their request at the date and time of determination.
Reporting Trigger Period:  the period (a) commencing on the day that (i) an Event of Default has existed, or (ii) Availability is less than the greater of 12.5% of the Commitments and $12,500,000 at any time; and (b) continuing until, during the preceding thirty (30) consecutive days, no Event of Default has existed and Average Availability is more than the greater of 12.5% of the Commitments and $12,500,000 for such period.
Revolver Termination Date:  February 16, 2023.
Unused Line Fee Rate:  a per annum rate equal to 0.375%.
									
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ii.Section 2.1.7 of the Credit Agreement is hereby amended and restated to read as follows:
2.1.7    Increase in Revolver Commitments.  Borrowers, through Borrower Agent, may request an increase in Revolver Commitments from time to time upon notice to Agent, as long as (a) such increase is approved by Agent in its Permitted Discretion and is subject to terms and conditions mutually agreed upon by Agent and Borrower Agent, (b) the requested increase is in a minimum amount of $20,000,000 (or such lesser amount which would, when added to all previously authorized increases pursuant hereto, cause such increase to reach the maximum amount set forth below) and is offered on the same terms as existing Revolver Commitments, except for a closing fee specified by Borrowers, (c) increases under this Section do not collectively exceed $50,000,000 in the aggregate and no more than three (3) increases are made, (d) no reduction in Commitments pursuant to Section 2.1.4 has occurred prior to the requested increase and (e) the requested increase does not cause the Commitments to exceed 90% of any applicable cap under any Subordinated Debt agreement or the Indenture (the “Accordion”).  Agent shall promptly notify Lenders of the requested increase and, within 10 Business Days thereafter, each Lender shall notify Agent if and to what extent such Lender commits to increase its Revolver Commitment.  Agent shall promptly notify Borrower Agent of each Lender’s response.  Any Lender not responding within such period shall be deemed to have declined an increase.  If Lenders fail to commit to the full requested increase, Eligible Assignees may issue additional Revolver Commitments and become Lenders hereunder so as to bring the Revolver Commitment up to the amount requested by Borrower Agent.  Agent may allocate, in its discretion, the increased Revolver Commitments among committing Lenders and, if necessary, Eligible Assignees.  If the full increase requested by Borrower’s Agent is not committed to by the Lenders after taking into account the participation of Eligible Assignees, then the Revolving Commitment nonetheless shall be increased to the extent any Lender or Lenders and/or Eligible Assignees expressly commit thereto pursuant to this Section 2.1.7.  Provided the conditions set forth in Section 6.2 are satisfied, total Revolver Commitments shall be increased by the requested amount (or such lesser amount committed by any Lender or Lenders and Eligible Assignees) on a date agreed upon by Agent and Borrower Agent.  Agent, Borrowers, and new and existing Lenders shall execute and deliver such documents and agreements as Agent deems appropriate to evidence the increase in and allocations of Revolver Commitments.  On the effective date of an increase, all outstanding Revolver Loans, LC Obligations and other exposures under the Revolver Commitments shall be reallocated among Lenders, and settled by Agent if necessary, in accordance with Lenders’ adjusted shares of such Commitments.
iii.Section 3.1.4 of the Credit Agreement is hereby amended to add to the beginning of such section:  “Subject to Section 3.11,”
iv.Section 3.5 of the Credit Agreement is hereby amended to add to the beginning of such section:  “Subject to Section 3.11,”
									
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v.Section 3.6 of the Credit Agreement is hereby amended to add to the beginning of such section:  “Subject to Section 3.11,”
vi.A new Section 3.11 is added to the Credit Agreement to read as follows:
3.11    Effect of Benchmark Transition Event.
a.Notwithstanding anything to the contrary herein or in any other Loan Document, (and any Hedge Agreement shall be deemed not to be a “Loan Document” for purposes of this Section 3.11)], if a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date have occurred prior to the Reference Time in respect of any setting of the then-current Benchmark, then (x) if a Benchmark Replacement is determined in accordance with clause (1) or (2) of the definition of “Benchmark Replacement” for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Loan Document in respect of such Benchmark setting and subsequent Benchmark settings without any amendment (except to the extent for any Benchmark Replacement Conforming Changes made by an amendment at the election of by Agent) to, or further action or consent of any other party to, this Agreement or any other Loan Document and (y) if a Benchmark Replacement is determined in accordance with clause (3) of the definition of “Benchmark Replacement” for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Loan Document in respect of any Benchmark setting at or after 5:00 p.m. on the 5th Business Day after the date notice of such Benchmark Replacement is provided to the Lenders without any amendment to (except to the extent for Benchmark Replacement Conforming Changes made by an amendment at the election of Agent), or further action or consent of any other party to, this Agreement or any other Loan Document so long as the Agent has not received, by such time, written notice of objection to such Benchmark Replacement from Lenders comprising the Required Lenders.
b.Notwithstanding anything to the contrary herein or in any other Loan Document and subject to the proviso below in this paragraph, if a Term SOFR Event and its related Benchmark Replacement Date have occurred prior to the Reference Time in respect of any setting of the then-current Benchmark, then the applicable Benchmark Replacement will replace the then-current Benchmark for all purposes hereunder or under any Loan Document in respect of such Benchmark setting and subsequent Benchmark settings, without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document; provided that, this clause (b) shall not be effective unless the Agent has delivered to the Lenders and the Borrowers a Term SOFR Notice.
c.In connection with the implementation of a Benchmark Replacement, the Agent will have the right to make Benchmark Replacement 
									
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Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document.
d.The Agent will promptly notify the Borrowers and the Lenders of (i) any occurrence of a Benchmark Transition Event, Term SOFR Event or Early Opt-in Election, as applicable, and its related Benchmark Replacement Date, (ii) the implementation of any Benchmark Replacement, (iii) any Benchmark Replacement Conforming Changes made by the Agent and the effective date therof, (iv) the removal or reinstatement of any tenor of a Benchmark pursuant to clause (e) below and (v) the commencement or conclusion of any Benchmark Unavailability Period.  Any determination, decision or election that may be made by the Agent or, if applicable, any Lender (or group of Lenders) pursuant to this Section 3.11, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party to this Agreement or any other Loan Document, except, in each case, as expressly required pursuant to this Section 3.11.
e.Notwithstanding anything to the contrary herein or in any other Loan Document, at any time (including in connection with the implementation of a Benchmark Replacement), (i) if the then-current Benchmark is a term rate (including Term SOFR or LIBOR) and either (A) any tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time to time as selected by the Agent in its reasonable discretion or (B) the regulatory supervisor for the administrator of such Benchmark has provided a public statement or publication of information announcing that any tenor for such Benchmark is or will be no longer representative, then the Agent may modify the definition of “Interest Period” for any Benchmark settings at or after such time to remove such unavailable or non-representative tenor and (ii) if a tenor that was removed pursuant to clause (i) above either (A) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (B) is not, or is no longer, subject to an announcement that it is or will no longer be representative for a Benchmark (including a Benchmark Replacement), then the Agent may modify the definition of “Interest Period” for all Benchmark settings at or after such time to reinstate such previously removed tenor.
f.Upon the Borrowers’ receipt of notice of the commencement of a Benchmark Unavailability Period, the Borrowers may revoke any request for a Borrowing of, conversion to or continuation of any LIBOR Loans to be made, 
									
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converted or continued during any Benchmark Unavailability Period and, failing that, the Borrowers will be deemed to have converted any such request into a request for a Borrowing of or conversion to Base Rate Loans.  During any Benchmark Unavailability Period or at any time that a tenor for the then-current Benchmark is not an Available Tenor, the component of Base Rate based upon the then-current Benchmark or such tenor for such Benchmark, as applicable, will not be used in any determination of Base Rate.
vii.Section 5.3(e) of the Credit Agreement is hereby amended and restated to read as follows:
(e)    Concurrently with any issuance of Equity Interests by a Borrower (excluding any issuance of Equity Interests:  (u) of Titan International’s Common Stock to make a Distribution permitted by Section 10.2.16(b)(iv); (v) in connection with a Qualifying PO; (w) in connection with a Permitted Acquisition; (x) pursuant to any employee or director option program, benefit plan or compensation program; (y) by a Subsidiary to Titan International or another Subsidiary to Titan International or another Subsidiary or (z) if waived by the Required Lenders, in connection with a Change of Control of any Borrower); Borrowers shall prepay Revolver Loans in an amount equal to the net proceeds of such issuance (except to the extent that such proceeds are intended to be, and in fact are, reinvested within 180 days from such date of issuance).
a.A new Section 7.7 is added to the Credit Agreement to read as follows:
7.7    Acknowledgement Regarding Any Supported QFCs.  To the extent that the Loan Documents provide support, through a guarantee or otherwise, for Hedging Agreements or any other agreement or instrument that is a QFC (such support, “QFC Credit Support” and each such QFC a “Supported QFC”), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the “U.S. Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States):
i.In the event a Covered Entity that is party to a Supported QFC (each, a “Covered Party”) becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and 
									
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such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S.  Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States.  In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States.  Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.
ii.As used in this Section 7.7, the following terms have the following meanings:
“BHC Act Affiliate” of a party means an “affiliate” (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.
“Covered Entity” means any of the following:
a.a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);
b.a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or
c.a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).
“Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.
									
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“QFC” has the meaning assigned to the term “qualified financial contract” in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).
b.Section 8.1 of the Credit Agreement is hereby amended and restated to read as follows:
8.1    Borrowing Base Certificates.  By the 15th day of the month following the end of each calendar month, Borrowers shall deliver to Agent (and Agent shall promptly deliver same to Lenders) a Borrowing Base Certificate prepared as of the close of business of the just ended calendar month or, after an Event of Default, at such other times as Agent may request; provided, that during any Reporting Trigger Period, Borrowers shall deliver to Agent by the third (3rd)  Business Day of each week following the end of the prior week a Borrowing Base Certificate prepared as of the close of business for the week just ended.  All calculations of Availability in any Borrowing Base Certificate shall originally be made by Borrower Agent and certified by a Senior Officer; provided that Agent may from time to time in its Permitted Discretion review and adjust any such calculation (a) to reflect its reasonable estimate of declines in value of any Collateral, due to collections received in the Dominion Account or otherwise; (b) to adjust advance rates to reflect changes in quality, mix and other factors (but excluding Dilution, Shrink or other components of the Availability Reserve) affecting Collateral; and (c) to the extent the calculation is not made in accordance with this Agreement or does not accurately reflect the Availability Reserve; provided, further that, if Agent shall make any such adjustment to any such calculation Agent shall provide Borrower Agent with a statement setting forth the basis for such adjustment.
c.Section 9.1.1 of the Credit Agreement is hereby amended and restated to read as follows:
9.1.1    Organization and Qualification.  Each Borrower and its Domestic Subsidiaries are duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization.  Each Borrower and its Domestic Subsidiaries are duly qualified, authorized to do business and in good standing as a foreign corporation in each jurisdiction where failure to be so qualified could reasonably be expected to have a Material Adverse Effect.  No Borrower nor, as of the Closing Date, any Lender is an EEA Financial Institution. The information included in each Beneficial Ownership Certification delivered hereunder is true and correct in all respects as of the date thereof.
d.A new Section 10.1.2(j) is added to the Credit Agreement to read as follows:
									
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(j)  information and documentation reasonably requested by Agent or any Lender for purposes of compliance with applicable “know your customer” requirements under the Patriot Act, the Beneficial Ownership Regulation or other applicable Anti-Terrorism Laws.
e.Section 10.1.3 of the Credit Agreement is hereby amended and restated to read as follows:
10.1.3    Notices.  Notify Agent in writing, promptly after a Borrower’s obtaining knowledge thereof, of any of the following that affects a Borrower:  (a) the commencement or written threat of any proceeding or investigation, whether or not covered by insurance, if an adverse determination could have a Material Adverse Effect; (b) any pending or threatened, in writing, labor dispute, strike or walkout, or the expiration (absent renewal or extension) of any material labor contract; (c) any default under or termination of a Material Contract; (d) the existence of any Default or Event of Default; (e) any judgment in an amount exceeding $10,000,000 or, while a Restriction Trigger Period exists, $2,500,000; (f) any violation or asserted violation of any Applicable Law (including ERISA, OSHA, FLSA, or any Environmental Laws), if an adverse resolution could have a Material Adverse Effect; (g) receipt of any material Environmental Notice; (h) the occurrence of any material ERISA Event; (i) the discharge of or any withdrawal or resignation by Borrowers’ independent accountants; (j) any opening of a new office or place of business, within 10 days after such opening; (k) any cancellation or material change in any insurance maintained by any Borrower to the extent related to any Collateral; or (l) any change in the information provided in the Beneficial Ownership Certification that would result in a change to the list of beneficial owners identified therein.
f.Section 10.1.9 of the Credit Agreement is hereby amended and restated to read as follows:
10.1.9    Future Subsidiaries.  Promptly notify Agent upon any Person becoming a Domestic Subsidiary (pursuant to a Permitted Acquisition, a Division or otherwise) and, at the election of Borrower Agent, cause such Domestic Subsidiary to be joined as a Borrower hereto by executing and delivering such documents, instruments and agreements (including without limitation a joinder to this Agreement and, to the extent applicable, any Security Documents) and to take such other actions as Agent shall require to evidence and perfect a Lien in favor of Agent on all Collateral of such Person, including delivery of such legal opinions, in form and substance satisfactory to Agent, as it shall deem appropriate (it being understood and agreed that if the Borrowers desire to add the Property of any Domestic Subsidiary to the Borrowing Base hereunder, 
									
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then such Domestic Subsidiary shall first be joined to this Agreement pursuant to the terms hereto) and deliver to Agent an each Lender all documentation and other information regarding such newly formed or acquired Domestic Subsidiary for purposes of compliance with applicable “know your customer” requirements under the Patriot Act, the Beneficial Ownership Regulation or other applicable Anti-Terrorism Laws.
g.A new Section 10.1.10 is added to the Credit Agreement to read as follows:
10.1.10  No Cash Hoarding.  If, at the end of any Business Day, there remains outstanding a principal balance on the Revolving Loans and the Consolidated Cash Balance exceeds $20,000,000.00 (or, if during a Cash Dominion Period, the Consolidated Cash Balance exceeds $0), then the Borrower shall, no later than the Business Day thereafter, (i) prepay the Revolver Loans outstanding on such Business Day in an aggregate principal amount equal to the lesser of (A) such excess and (B) the amount of Revolver Loans then outstanding and (ii) if a Default then exists, if Obligations remain after prepaying the all Revolver Loans because of LC Obligations, Cash Collateralize such LC Obligations, in each case to the extent any such excess remains on the date such prepayment is required to be made.
h.Section 10.2.8(b) of the Credit Agreement is hereby amended and restated to read as follows:
(b) at any time a Restriction Trigger Period is in effect or would result therefrom, purchase or redeem in cash, or through the issuance of Titan International’s Common Stock, any of Titan International’s Common Stock.
i.Section 10.2.16 of the Credit Agreement is hereby amended and restated to read as follows:
10.2.16 Conduct of Business; Issuance of Equity.  (a) Engage in any business, other than its business as conducted on the Closing Date and any activities incidental thereto or (b) issue any Equity Interests other than (i) any issuance of shares of Titan International’s Common Stock pursuant to (X) a stock split approved by Titan International’s Board or (Y) any employee or director option program, benefit plan or compensation program; (ii) any issuance by a Subsidiary to Titan International or another Subsidiary in accordance with Section 10.2.4; (iii) any issuance of shares of Titan International’s Common Stock in connection with an Acquisition permitted hereunder, and (iv) any issuance of shares of Titan International’s Common Stock to make a Distribution otherwise permitted to be made under Section 10.2.4(a)(i) and 10.2.4(b).
									
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j.Section 14.1.1 of the Credit Agreement is hereby amended to add to the beginning of such section:  “Subject to Section 3.11,”
k.Schedule 1.1 to the Credit Agreement is hereby amended and restated with Schedule 1.1 attached hereto.
2.Representations and Warranties.  To induce Agent and Lenders to enter into this Third Amendment, each Borrower represents and warrants to Agent and the Lenders that:
viii.each Borrower is duly authorized to execute, deliver and perform this Third Amendment;
ix.the execution, delivery and performance of this Third Amendment has been duly authorized by all necessary action, and does not (a) require any consent or approval of any holders of Equity Interests of any Borrower, except those already obtained; (b) contravene the Organic Documents of any Borrower; (c) violate or cause a default under any Applicable Law or Material Contract; or (d) result in or require the imposition of any Lien (other than Permitted Liens) on any Borrower’s Property;
x.this Third Amendment is the legal, valid and binding obligation of each Borrower, enforceable in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally;
xi.the representations and warranties of the Borrowers contained in the Credit Agreement and the other Loan Documents are true and correct as of the Third Amendment Effective Date (both before and after giving effect to the transactions contemplated hereby) with the same effect as though made on such date (except to the extent that such representations or warranties expressly relate to an earlier date, in which case such representations and warranties were true and correct as of such earlier date); and
xii.immediately prior to and after giving effect to this Third Amendment, no Default or Event of Default has occurred and is continuing.
3.Conditions Precedent.  The effectiveness of this Third Amendment is subject to each of the following conditions precedent being met and the date on which that has occurred shall be the Third Amendment Effective Date:
xiii.Amendment.  Agent shall have received counterparts of this Third Amendment duly executed by Borrowers, Agent and the Lenders;
xiv.Searches.  Agent shall have received such lien, tax, judgment, pending litigation and bankruptcy searches with respect to the Borrowers as it reasonably requires;
xv.Authorizing Documents.  Agent shall have received a certificate of a duly authorized officer of each Borrower, certifying (i) that the copies of such Borrower’s Organic Documents previously provided remain the same and are true and complete, and in full force and effect, without amendment except as shown; (ii) that an attached copy of resolutions authorizing 
									
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execution and delivery of the Loan Documents is true and complete, and that such resolutions are in full force and effect, were duly adopted, have not been amended, modified or revoked, and constitute all resolutions adopted with respect to this credit facility; and (iii) to the title, name and signature of each Person authorized to sign the Loan Documents;
xvi.Warranties and Representations.  The warranties and representations of the Borrowers contained in Section 2 of this Third Amendment shall each be true and correct;
xvii.Updated Projections.  Agent shall have received updated projections of Titan International’s Financial Statements and Borrowers’ Financial Statements for the 2021 Fiscal Year prepared in a manner consistent with past practices.
xviii.Closing Fee.  Agent shall have received a closing fee in the amount of $100,000 payable to Agent for the pro rata benefit of the Lenders;
xix.Fees.  Agent shall have received the fees required to be paid per the Fee Letter; and
xx.Fees and Costs.  Agent shall have received all fees, costs and expenses of Agent in connection with this Third Amendment including costs and fees of counsel to Agent and the Lenders.
4.Miscellaneous.
xxi.Effect of Third Amendment.  The parties hereto agree and acknowledge that nothing contained in this Third Amendment in any manner or respect limits or terminates any of the provisions of the Credit Agreement or any of the other Loan Documents other than as expressly set forth herein and further agree and acknowledge that the Credit Agreement and each of the other Loan Documents remain and continue in full force and effect and are hereby ratified and confirmed.  Instead, it is the express intention of the parties hereto to reaffirm the Debt created under the Credit Agreement, which is evidenced by certain Loan Documents and secured by the Collateral.  The execution, delivery and effectiveness of this Third Amendment shall not operate as a waiver of any rights, power or remedy of Lenders or Agent under the Credit Agreement or any other Loan Document, nor constitute a waiver of any provision of the Credit Agreement or any other Loan Document.  No delay on the part of any Lender or Agent in exercising any of their respective rights, remedies, powers and privileges under the Credit Agreement or any of the Loan Documents or partial or single exercise thereof, shall constitute a waiver thereof.  None of the terms and conditions of this Third Amendment may be changed, waived, modified or varied in any manner, whatsoever, except in accordance with Section 14.1.1 of the Credit Agreement.  No reference to this Third Amendment need be made in any note, instrument or other document, including, but not limited to, any Loan Document, making reference to the Credit Agreement, any reference to the Credit Agreement in any such note, instrument or other document (including, without limitation, the Loan Documents) to be deemed to be referring to in the Credit Agreement as amended hereby.
									
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xxii.Release and Covenant Not to Sue. In consideration of the agreements of Agent and Lenders contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, each Borrower, on behalf of itself and its successors, assigns, and other legal representatives, hereby absolutely, unconditionally and irrevocably releases, remises and forever discharges Agent and Lenders, and their successors and assigns, and their present and former shareholders, affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees, agents and other representatives (Agent, each Lender and all such other Persons being hereinafter referred to collectively as the "Releasees" and individually as a "Releasee"), of and from all demands, actions, causes of action, suits, controversies, damages and any and all other claims, counterclaims, defenses, rights of set off, demands and liabilities whatsoever known or suspected as of the date hereof (individually, a "Claim" and collectively, "Claims") of every name and nature, both at law and in equity, which any Loan Party or any of their successors, assigns, or other legal representatives may now own, hold, have or claim to have against the Releasees or any of them for, upon, or by reason of any circumstance, action, cause or thing whatsoever which arises at any time on or prior to the day and date of this Amendment for or on account of, or in relation to, or in any way in connection with any of the Credit Agreement, or any of the other Loan Documents or transactions thereunder or related thereto.
(i)Each Borrower understands, acknowledges and agrees that the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release.
(ii)Each Borrower agrees that no fact, event, circumstance, evidence or transaction which is now known and could now be asserted shall affect in any manner the final, absolute and unconditional nature of the release set forth above. 
(iii)Each Borrower, on behalf of itself and its successors, assigns, and other legal representatives, hereby absolutely, unconditionally and irrevocably, covenants and agrees with and in favor of each Releasee that it will not sue (at law, in equity, in any regulatory proceeding or otherwise) any Releasee on the basis of any Claim released, remised and discharged by it pursuant to this.  If any Borrower or any of their respective successors, assigns or other legal representations violates the foregoing covenant, each Borrower, for itself and its successors, assigns and legal representatives, agrees to pay, in addition to such other damages as any Releasee may sustain as a result of such violation, all reasonable attorneys' fees and costs incurred by any Releasee as a result of such violation. 
xxiii.Captions.  Section captions used in this Third Amendment are for convenience only, and shall not affect the construction of this Third Amendment.
xxiv.Governing Law.  This Third Amendment shall be governed by and shall be construed and enforced in accordance with the internal laws of the State of Illinois, without 
									
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regard to any conflict of law principles (but giving effect to federal laws relating to national banks).
xxv.Counterparts.  This Third Amendment may be executed in any number of counterparts, and each such counterpart shall be deemed to be an original, but all such counterparts shall together constitute but one and the same Third Amendment.  Delivery of an executed signature page to this Third Amendment by telecopy or e-mail (PDF) shall be deemed to constitute delivery of an originally executed signature page hereto and shall be legally binding on any party signing in such manner.
xxvi.Successors and Assigns.  This Third Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.
xxvii.Payment of Expenses.  The Borrowers agree to pay all out-of-pocket expenses (including reasonable attorneys’ fees) of Agent in connection with the preparation and execution of this Third Amendment.
(Signature Pages Follow)

									
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(Signature Page to Third Amendment to Credit and Security Agreement)

IN WITNESS WHEREOF, this Third Amendment has been executed and delivered as of the date set forth above.
						
		BORROWERS:

TITAN INTERNATIONAL, INC.

By:            
Name:    David A. Martin
Title:    Senior Vice President and Chief 
        Financial Officer

		TITAN WHEEL CORPORATION OF ILLINOIS

By:            
Name:    David A. Martin
Title:    Authorized Agent

		TITAN TIRE CORPORATION

By:            
Name:    David A. Martin
Title:    Authorized Agent

		TITAN TIRE CORPORATION OF FREEPORT

By:            
Name:    David A. Martin
Title:    Authorized Agent

									
			

VP/#37368070.5 

(Signature Page to Third Amendment to Credit and Security Agreement)

						
		TITAN TIRE CORPORATION OF BRYAN

By:            
Name:    David A. Martin
Title:    Authorized Agent

		TITAN TIRE CORPORATION OF UNION CITY

By:            
Name:    David A. Martin
Title:    Authorized Agent

		TITAN MARKETING SERVICES, LLC

By:            
Name:    David A. Martin
Title:    Authorized Agent

		BMO HARRIS BANK N.A.,
as Agent and Lender

By:            
Name:    Clayton R. Foster
Title:    Vice President

									
			

VP/#37368070.5 

(Signature Page to Third Amendment to Credit and Security Agreement)

						
		BANK OF AMERICA, N.A.,
as a Lender

By:            
Name:        
Title:        

		JPMORGAN CHASE BANK, N.A.,
as a Lender

By:            
Name:        
Title:        

									
			

VP/#37368070.5 

SCHEDULE 1.1
to
Credit and Security Agreement
COMMITMENTS OF LENDERS
						
	Lender	Total Revolver Commitments
	BMO Harris Bank N.A.	$44,000,000
	Bank of America, N.A.	$28,000,000
	JPMorgan Chase Bank, N.A.	$28,000,000
	TOTAL	$100,000,000

									
			

VP/#37368070.5EX-10.1

 Exhibit 10.1 

EXECUTIVE EMPLOYMENT AGREEMENT 
 This
Executive Employment Agreement (this “Agreement”) is by and between Spirit of Texas Bancshares, Inc., a Texas corporation (the “Company”), and Allison Johnson, an individual (referred to herein as
“Executive” or “you”), and shall be effective as of November 19, 2020 (the “Effective Date”). 

Preliminary Statements 

Executive desires to be employed by the Company upon the terms and conditions stated herein, and the Company desires to employ Executive
provided that, in so doing, it can protect its confidential information, business, accounts, patronage and goodwill. 
 Executive and the
Company have specifically determined that the terms of this Agreement are fair and reasonable. 
 Executive and the Company previously
entered into the Original Agreement, effective as of June 1, 2017 which is now being replaced and amended by this new Executive Employment Agreement. 

Agreement 
 NOW,
THEREFORE, in consideration of the mutual agreements and covenants contained in this Agreement, the Company and you agree as follows: 
 1.
EMPLOYMENT. On the terms and subject to the conditions in this Agreement, the Company hereby employs you and engages your services to serve as Chief Financial Officer – Executive Vice President of Spirit of Texas Bancshares, Inc. and
Spirit of Texas Bank, SSB. You hereby accept employment with the Company according to the terms set forth in this Agreement. 
 2.
DUTIES. You are hereby employed and shall work at the location (or locations) of the Company as may be directed by the Chief Executive Officer of the Company (the “Chief Executive Officer”) (subject to your rights under
Section 6.4). You shall have the position (including status, offices and reporting requirements), authority, duties and responsibilities usually associated with your position in a financial services company having assets
similar in value and nature to the assets of the Company. Additionally, while employed by the Company, you shall: 
 (i) perform the duties
required of you hereunder and shall devote your best efforts and exclusive business time, energy and skill to performing such duties; 
 (ii)
report to, and your authority and responsibilities will be subject to the supervision of the Chief Executive Officer and/or the President; 

(iii) not make any disparaging remarks regarding the Company to any person with whom the Company has business relations, including any employee
or vendor of the Company; 

 (iv) use the Confidential Information (as defined in Section 9.1)
and the Goodwill (as defined in Section 9.2) between the Company and its customers and vendors solely for the benefit of the Company; 

(v) not interfere in such Goodwill, either during or following your employment with the Company; 

(vi) shall not take any action for the benefit of any competitor of the Company or any other Entity (as defined in
Section 9.4(ii)), other than the Company, engaged in business similar to that engaged in by the Company; and 

(vii) shall not recruit or otherwise facilitate the hiring of any Company employee by any Entity, other than the Company and its affiliates.

 3. COMPENSATION AND BENEFITS. Your compensation and other benefits shall include, in addition to any further benefits and
compensation as later approved by the Board, the following: 
 3.1. Base Salary. You will be paid an annual salary of
$300,000.00, as of March 1, 2021, subject to annual increases as determined by the Chairman/CEO and/or the President of the Company. Your annual salary shall be payable in accordance with the Company’s customary policies, subject to
payroll and withholding deductions as may be required by law. 
 3.2. Annual Incentive Program. You shall participate in an equitable
manner with all other senior management employees in the annual incentive program approved by the Board or the Compensation Committee. No other compensation provided for in this Agreement shall be deemed a substitute for your right to participate in
such annual incentive program. 
 3.3. Long Term Incentive Program. You will be entitled to participate in the Company’s long
term incentive program as approved by the Board or the Compensation Committee. 
 3.4. Expenses. You shall be reimbursed for any and
all reasonable expenses incurred by you in the performance of your duties and services as specified in this Agreement or incurred by you on behalf of, or in furtherance of the business of, the Company, including, but not limited to, business
expenses incurred in connection with travel and entertainment, provided that you shall submit to the Company satisfactory supporting receipts and other information with respect to reimbursable costs and expenses. 

3.5. Other Benefits. During your term of employment, you shall be entitled to participate in any benefit plan or arrangement that the
Company or its subsidiaries now or hereafter maintains that relates to (i) pension, profit sharing or other retirement benefits, (ii) medical insurance or reimbursement of medical or dependent care expenses, or (iii) other group
benefits, including disability and other life insurance plans, in the same manner as other senior management employees of the Company. You may also be reimbursed for expenses incurred in connection with your club dues at a club approved by the
Board. In addition, you will be provided with (i) the use of an automobile and reimbursed for all costs and expenses related to operating the vehicle or (ii) an annual vehicle allowance in an amount approved by the CEO, Board or
Compensation Committee. 

  
 2 

 4. TERM. This Agreement shall have an initial term beginning on the Effective Date,
and shall expire on the first anniversary of such date; provided, however, that the term shall be automatically extended for successive periods of one (1) year on a continuing basis unless either you or the Company shall give written notice of
intention not to so extend at least ninety (90) days prior to the end of the initial one (1) year period or any renewal period (the “Term”). 

5. CHANGE IN CONTROL. For purposes of this Agreement, “Change in Control” of the Company means the occurrence of any of
the following events: (i) any merger, consolidation or other reorganization whereby the Company’s equity holders existing immediately prior to such merger, consolidation or reorganization do not, immediately after consummation of such
merger, consolidation or reorganization, beneficially own (within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act of 1934 (as amended, the “Exchange Act”)) more than
50% of the combined voting power of the surviving entity’s then outstanding voting securities; (ii) the Bank is merged or consolidated into, or otherwise acquired by, an entity other than a wholly-owned subsidiary of the Company;
(iii) the Company sells, leases or exchanges all or substantially all of its assets to any other person or entity in which the Company, any subsidiary of the Company, or the Company’s equity holders existing immediately prior to such sale,
lease or exchange beneficially own less than 50% of the combined voting power of such acquiring entity’s then outstanding voting securities; (iv) the Company is dissolved and liquidated; (v) any person or entity, including a
“group” as contemplated by Section 13(d)(3) of the Exchange Act, acquires or gains beneficial ownership of more than 50% of the combined voting power of the Company’s then outstanding voting securities; or (vi) any change in
the identity of directors constituting a majority of the Board within a twenty-four month period unless the change was approved by a majority of the Incumbent Directors, where “Incumbent Director” means a member of the Board at the
beginning of the period in question, including any director who was not a member of the Board at the beginning of such period but was elected or nominated to the Board by, or on the recommendation of or with the approval of, at least two-thirds of the directors who then qualified as Incumbent Directors. 
 6. TERMINATION OF
EMPLOYMENT. 
 6.1. Death. Your employment under this Agreement shall terminate upon your death during the term of this Agreement.

 6.2. Disability. If, as a result of your incapacity due to physical or mental illness, you (i) are unable to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, or
(ii) are, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement
benefits for a period of not less than three (3) months under a disability plan of the Company, and within thirty (30) days after written notice of termination is given you shall not have returned to the performance of your essential
duties, with or without an accommodation, the Company may terminate your employment for “Disability.” 

  
 3 

 6.3 Cause. The Company may terminate your employment for Cause as provided below.
Termination of your employment by the Company for “Cause” shall mean termination upon (A) your breach of this Agreement, (B) your failure to satisfactorily perform your duties under this Agreement, to follow the
direction (consistent with your duties) of the Board, the Chief Executive Officer or any other individual to whom you report, or to follow the procedures, policies and rules of the Company or the Bank, (C) any willful act or omission by you
that is, or is likely to be, injurious to the Company or the Bank or the business reputation of the Company or the Bank, (D) your material breach of a material written policy of the Company or the Bank, (E) your dishonesty, fraud,
malfeasance, negligence or misconduct, including the delay of information delivered to the Board, the Chief Executive Officer, or any other individual to whom you report, the incompleteness of reporting to the Board, the Chief Executive Officer, or
any other individual to whom you report, or any effort to mislead or improperly influence the Board, the Chief Executive Officer, or any other individual to whom you report, or (F) your arrest, indictment for, or conviction of, or your entry of
a plea of guilty or no contest to, a felony or a crime involving moral turpitude. Notwithstanding the foregoing, no event or condition described in the foregoing (A) through (E) shall constitute Cause unless (x) within ninety
(90) days from the Company first acquiring actual knowledge of the existence of the Cause condition, the Company provides you with written notice of the event or condition constituting Cause; (y) such grounds for termination (if
susceptible to correction) are not corrected by you within thirty (30) days of your receipt of such notice (or, in the event that such grounds cannot be corrected within such thirty (30)-day period, you
have not taken all reasonable steps within such thirty (30)-day period to correct such grounds as promptly as practicable thereafter); and (z) the Company terminates your employment with the Company and
the Bank immediately following the expiration of such thirty (30)-day period. For purposes of the foregoing, any attempt by you to correct a stated Cause shall not be deemed an admission by you that the
Company’s assertion of Cause is valid. 
 6.4. Good Reason. You may terminate your employment for Good Reason as provided below.
“Good Reason” for you to terminate your employment shall exist if, at any time during the term of this Agreement, any of the following events shall occur: 

(i) An adverse change in your status or position as Chief Financial Officer(including as a result of a material diminution in your duties or
responsibilities or no longer reporting directly to the Chief Executive Officer); 
 (ii) The exercise by the Company of its rights to
terminate under 6.6 of this agreement or a change in your business location of more than thirty (30) miles; 
 (iii) A diminution by
the Company in your (a) Base Salary (as hereinafter defined); or (b) prior to and in connection with a Change in Control or within two (2) years after a Change in Control, a reduction in the target annual bonus amount under any annual
incentive plan in a manner inconsistent with other senior management employees; or 
 (iv) Any action or inaction that constitutes a
material breach of this Agreement by the Company, including but not limited to as provided in Section 14(i). 

  
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 For a termination of employment to constitute “Good Reason”, (x) you must provide
the Board with notice of the event or condition constituting Good Reason within ninety (90) days of the occurrence of the event or condition; (y) such event or condition (if susceptible to correction) are not corrected by the Board within
thirty (30) days of the receipt of such notice (or, in the event that such event or condition cannot be corrected within such thirty (30)-day period, the Board has not taken all reasonable steps within
such thirty (30)-day period to correct such grounds as promptly as practicable thereafter); and (z) you terminate your employment with the Company and the Bank immediately following expiration of such
thirty (30)-day period. For purposes of this Section 6.4, any attempt by the Board to correct a stated Good Reason shall not be deemed an admission by the Board that your assertion of Good Reason is
valid. 
 6.5. Voluntary Resignation. You may voluntarily resign from employment for other than Good Reason by: (i) giving the
Company thirty (30) days prior written notice, or (ii) giving the Company ninety (90) days written notice prior to the commencement of any renewal period of this Agreement in accordance with Section 4. 

6.6 Termination for Reason Other Than Cause. The Company may terminate your employment for any reason other than Cause by giving you
ninety (90) days written notice prior to the commencement of any renewal period of this Agreement in accordance with Section 4. 

6.7 Notice of Termination. Any termination by the Company or by you pursuant to Sections 6.2 through 6.6 above shall be
communicated by written Notice of Termination to the other party hereto. For purposes of this Agreement, a “Notice of Termination” shall mean a notice specifying the termination provision in this Agreement relied upon and, for
purposes of Sections 6.1 through 6.6 above, setting forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of your employment under the provision so specified. 

6.8. Date of Termination. “Date of Termination” shall mean (A) if your employment is terminated for
Disability, thirty (30) days after Notice of Termination is given (provided that you shall not have returned to the performance of your duties on a full-time basis during such thirty (30)-day period); (B)
if your employment is terminated for death, the date of your death; (C) if your employment hereunder is terminated because either party provides notice of non-renewal pursuant to Section 4, the
renewal date immediately following the date on which the applicable party delivers notice of non-renewal; and (D) if your employment is terminated for any other reason, the date specified in the Notice of
Termination. 
 7. RIGHTS AND OBLIGATIONS DURING DISABILITY. During any period that you fail to perform your duties hereunder as a
result of incapacity due to physical or mental illness, you shall continue to receive your full base salary at the rate then in effect, and any time of service for vesting purposes under any plan shall continue to accrue during such period of
incapacity until and if your employment is terminated pursuant to Section 6.2 hereof (and for any longer period as may be provided under applicable plans). 

  
 5 

 8. RIGHTS AND OBLIGATIONS UPON TERMINATION. 

8.1. Termination Related to Cause or Voluntary Termination. If your employment is terminated pursuant to
Section 6.3, or you resign voluntarily pursuant to Section 6.5, the Company shall pay you, or shall cause to be paid to you: (i) your full Base Salary and accrued vacation pay through the Date of Termination at
the rate in effect at the time Notice of Termination is given; plus (ii) any benefits or awards (including both the cash and stock components) which pursuant to the terms of any plans have been earned or become payable, but which have not yet
been paid to you and shall be payable in accordance with their terms (collectively, such (i) and (ii) being the “Accrued Rights”), and the Company shall have no further obligations to you under this Agreement. 

8.2. Termination Related to Death or Disability or for Reasons Other Than Cause or by Executive for Good Reason not in connection with a
Change in Control. If your employment is terminated (x) pursuant to Sections 6.1 or 6.2; (y) by the Company for reasons other than death, Disability or Cause pursuant to Section 6.6 not in connection with a
Change in Control and not within two years after the occurrence of a Change in Control; or (z) by Executive for Good Reason pursuant to Section 6.4 not in connection with a Change in Control and not within two
(2) years after the occurrence of a Change in Control, then the Company shall pay you or cause to be paid to you the following: 
 (i)
the Accrued Rights; plus 
 (ii) an amount equal to your Base Salary (not taking into account any reduction in your Base Salary that
constitutes Good Reason for your termination) for the calendar year in which the Date of Termination occurs, to be paid within sixty (60) days following the Date of Termination or, if the Company elects, such amount to be paid in eighteen
(18) equal installments during the eighteen (18) month period following the Date of Termination, provided that any amounts payable under this subsection that are not exempt from Section 409A of the Internal Revenue Code of 1986, as
amended (the “Code”) (including without limitation under the “short–term deferral rule” and the “involuntary separation pay plan exception”) shall in all events be paid within sixty (60) days
following the Date of Termination; plus 
 (iii) a lump sum amount equal to the costs to obtain benefits equal in value to each life,
health, accident, and disability benefit to which you were entitled (through insurance, direct reimbursement, or otherwise) immediately before the Date of Termination for eighteen (18) months after the Date of Termination, to be paid within
sixty (60) days following the Date of Termination. The value of the foregoing benefits shall be determined individually rather than in the aggregate, and shall be compared after subtracting applicable income and employment taxes. 

8.3. Termination by the Company for Reason Other Than Death, Disability or Cause or by Executive for Good Reason in connection with a Change
in Control. If (a) prior to and in connection with a Change in Control or (b) within two (2) years after the occurrence of a Change in Control, (i) the Company terminates your employment for a reason other than for death,
Disability or Cause pursuant to Section 6.6 hereof, or (ii) if you terminate your employment for Good Reason as provided for in Section 6.4, then the Company shall pay you or cause to be paid
to you the following: 

  
 6 

 (i) the Accrued Rights; plus 

(ii) an amount equal to the aggregate of 150% of (y) your Base Salary (not taking into account any reduction in your Base Salary that
constitutes Good Reason for your termination) for the calendar year in which the Date of Termination occurs and (z) all bonus, [profit sharing], and other annual incentive payments made by the Company to you with respect to the most recent full
year preceding the year in which the Date of Termination occurs, to be paid within sixty (60) days following the Date of Termination; plus 

(iii) a lump sum amount equal to the costs to obtain benefits equal in value to each life, health, accident, and disability benefit to which
you were entitled (through insurance, direct reimbursement, or otherwise) immediately before the Date of Termination for eighteen (18) months after the Date of Termination, to be paid within sixty (60) days following the Date of
Termination. The value of the foregoing benefits shall be determined individually rather than in the aggregate, and shall be compared after subtracting applicable income and employment taxes. An election by you to terminate for Good Reason shall not
be deemed a voluntary termination of employment by you for purposes of this Agreement or of any plan or practice of the Company. At the end of the period of coverage, you shall have the option to have assigned to you, at no cost and with no
apportionment of prepaid premiums, any assignable insurance policy owned by the Company or relating specifically to you. 
 8.4.
Release. As a condition to receiving the payments provided in Section 8.2 or 8.3 (other than the Accrued Rights) (the “Severance Payments”), Executive (or, as applicable, Executive’s estate) must timely
execute and not revoke a full release and waiver of all claims against the Company and its affiliates substantially in the form attached hereto as Exhibit A and such release becomes effective within sixty (60) days of the Date of
Termination (such sixty (60)-day period, the “Release Executive Period”). To the extent that the Release Executive Period begins in one taxable year and ends in another taxable year,
the Severance Payments shall not be made until the second taxable year. 
 8.5. Base Salary Defined. For purposes of this Agreement,
the term “Base Salary” shall include any amounts deducted pursuant to Sections 125 and 401(k) of the Code. Amounts other than the Accrued Rights paid pursuant to this Section 8 shall be deemed severance pay and in lieu
of any further salary for periods subsequent to the Date of Termination. 
 8.6. Parachute Payment. Notwithstanding anything in this
Section 8 to the contrary, if you are a “Disqualified Individual” (as defined in Section 280G(c) of the Code) and the payment provided for in this Section 8, together with any other
payments which you have the right to receive from the Company (including without limitation the payments under Section 8.3 and the acceleration of vesting of equity awards under Company equity incentive plans) would
constitute a “Parachute Payment” (as defined in Section 280G(b)(2) of the 

  
 7 

 
Code), the total amounts received by you from the Company which constitute Parachute Payments shall be reduced by the minimum amount necessary so that no portion of such amounts received by you
shall be subject to the excise tax imposed by Section 4999 of the Code if and only if such reduction in the amount paid produces a better net after tax position (taking into account any applicable excise tax under Section 4999 of the Code
and any applicable income tax) than the total payment provided for herein. The determination as to whether and to what extent payments you have the right to receive from the Company are required to be reduced in accordance with the preceding
sentence shall be made at the Company’s expense by a legal, accounting or consulting firm expert in such matters as appointed by the Company (the “Outside Firm”), taking into account the value of any reasonable
compensation for services to be rendered by you before or after the change in control, including under any agreement not to render services to competitors pursuant to any non-competition provisions that may
apply to you to the extent permitted by Section 280G of the Code and the Company shall cooperate in the valuation of any such services, including any non-competition provisions. In the event of any
underpayment or overpayment under this Agreement, as determined by the Outside Firm, the amount of such underpayment or overpayment shall immediately be paid to you or refunded to the Company, as the case may be, with interest at the applicable
federal rate provided for in Section 7872(f)(2) of the Code. The payment reduction contemplated by this Section 8.6 shall be made by reducing, first, payments or benefits to be paid in cash hereunder in the order in
which such payment would be paid or provided (beginning with such payment that would be made last in time and continuing, to the extent necessary, through to such payment that would be made first in time) and, then, reducing any payment to be
provided in-kind hereunder in a similar order. 
 9. PROMISES AND COVENANTS REGARDING CONFIDENTIAL
INFORMATION AND GOODWILL; POST-EMPLOYMENT RESTRICTIONS. In consideration of your promises and covenants contained in this Agreement, including your promise and covenant not to disclose Confidential Information set forth in
Section 9.3, and in connection with your continued employment with the Company, the Company will provide you with Confidential Information necessary for you to execute your duties hereunder. In further consideration of your
promises and covenants contained in this Agreement, including your promise and covenant to utilize the Goodwill exclusively for the benefit of the Company set forth in Section 2, and in connection with the Company’s
continued employment of you, the Company will provide to you and allow you to utilize the Confidential Information and Goodwill in the performance of your duties hereunder. 

9.1 Confidential Information Defined. You acknowledge that the Company’s business is highly competitive; that the Company has and
will give you immediate access to Confidential Information of the Company that is a valuable, special, and unique asset used by the Company in its business; and that protection of such Confidential Information against unauthorized disclosure and use
is of critical importance to the Company. “Confidential Information” of the Company (or any affiliate) means and includes confidential and/or proprietary information and/or trade secrets of the Company and its affiliates and
subsidiaries that have been and/or will be developed or used and that cannot be obtained readily by third parties from outside sources. Confidential Information includes, but is not limited to, the following: information regarding customers,
employees, contractors and the industry not generally known to the public: strategies, methods, books, records and documents; technical 

  
 8 

 
information concerning products, equipment, services and processes; procurement procedures, pricing and pricing techniques; information concerning past, current and prospective customers,
investors and business affiliates (such as contact name, service provided, pricing, type and amount of services used, financial data and/or other such information); pricing strategies and price curves; positions; plans or strategies for expansion or
acquisitions; budgets; research; financial and sales data; trading methodologies and terms; communications information; evaluations, opinions and interpretations of information and data; marketing and merchandising techniques; electronic databases;
models; specifications; computer programs; contracts; bids or proposals; technologies and methods; training methods and processes; organizational structure; personnel information; payments or rates paid to consultants or other service providers; and
other such confidential or proprietary information. 
 9.2 Goodwill Defined. “Goodwill” means the value of the
relationships between the Company and its customers, vendors and employees. 
 9.3 Non-Disclosure
Obligations. The parties acknowledge that the Company is the sole and exclusive owner of the Confidential Information, and that the Company has legitimate business interests in protecting Confidential Information. The parties further acknowledge
that the Company has invested, and continues to invest, considerable amounts of time and money in obtaining, developing, and preserving the confidentiality of Confidential Information and that, by reason of the trust relationship arising between you
and the Company, you owe the Company a fiduciary duty to preserve and protect Confidential Information from all unauthorized disclosure and unauthorized use. You shall not, directly or indirectly, disclose Confidential Information to any third party
or use Confidential Information for any purpose other than for the direct benefit of the Company while in the Company’s employ and thereafter. You also agree that you shall deliver promptly to the Company at the termination of employment or at
any other time at the Company’s request, without retaining any copies, all documents and other material in your possession relating, directly or indirectly, to any Confidential Information or other information of the Company, or Confidential
Information or other information regarding third parties learned as an employee of the Company. 
 9.4
Non-Competition and Non-Solicitation Obligations. In order to protect the Confidential Information and Goodwill and in order to enforce your agreement not to
disclose Confidential Information, the Company and you agree that, during the term of your employment with the Company and for twelve (12) months after the termination of your employment with the Company pursuant to Sections 6.2, 6.3, 6.4,
6.5 or 6.6, you will not, except in your capacity as an employee of the Company, in any capacity for you or others, directly or indirectly: 

(i) compete or engage, anywhere in the geographic area comprised of Bee, Bexar, Brazos, Cherokee, Comanche, Dallas, DeWitt, Fort Bend, Gregg,
Harris, Henderson, Kaufman, Montgomery, Palo Pinto, Parker, Seguin, Smith, Tarrant and Travis Counties and contiguous counties in Texas, and any additional county in which the Company has established a branch office (the “Market
Area”), in a financial services business similar to that of the Company; 

  
 9 

 (ii) take any action to invest in, own, manage, operate, control, participate in, be
employed or engaged by or be connected in any manner with any partnership, association, corporation, limited liability company, trust, unincorporated organization or any other business entity (an “Entity”) engaging in a financial or
depository institution, financial planning or investment advisory business similar to that of the Company anywhere within the Market Area; except that you are permitted to own, directly or indirectly, up to two percent (2%) of the issued and
outstanding securities of any publicly traded financial institution conducting business in the Market Area; 
 (iii) Within the Market Area
(i) enter into, or facilitate any other Entity to enter into, an agreement with any customer of the Company to provide goods and services of the same or similar type as the Company provides, (ii) accept business from, or facilitate any
other Entity to gain or accept such business from or with any customer of the Company, (iii) assist a competitor of the Company in the sale to any customer of the Company of business of the same or similar type as the Company provides, or
(iv) encourage or facilitate any customer of the Company to purchase goods and services of the same or similar type as the Company provides from a competitor of the Company. 

(iv) Within the geographic Market Area, call on, service or solicit competing business from any customers of the Company if, within the twelve
(12) months before your termination, you had or made contact with the customer, or had access to information and files about the customer; or 

(v) call on, solicit or induce any employee of the Company whom you had contact, knowledge of, or association with in the course of employment
with the Company to terminate employment from the Company, and will not assist any other person or entity in such activities. 
 9.5
Permissible Business Interests. Your involvement in the business interests listed in Exhibit A to this Agreement shall not be deemed to compete with the interests of the Company. 

9.6 Injunctive Relief. You and the Company acknowledge and agree that breach of any of the covenants made by you in this
Section 9 would cause irreparable injury to the Company, which could not sufficiently be remedied by monetary damages; and, therefore, that the Company shall be entitled to obtain such equitable relief as declaratory
judgments; temporary, preliminary and permanent injunctions; and order of specific performance to enforce those covenants or to prohibit any act or omission that constitutes a breach thereof or any other equitable remedies. If a party must bring
suit to enforce this Agreement or to defend any such action, the prevailing party shall be entitled to recover its attorneys’ fees and costs related thereto. 

9.7 Tolling. In the event that the Company shall file a lawsuit in any court of competent jurisdiction alleging a breach of any of the
obligations under this Section of this Agreement, any time period you are in breach of this Agreement shall be deemed tolled as of the time such lawsuit is filed, and shall remain tolled until such dispute finally is resolved. 

  
 10 

 9.8 Permitted Disclosures.  

(i) Nothing in this agreement prohibits or restricts you (or your attorney) from initiating communications directly with, responding to an
inquiry from. or providing testimony before the Securities and Exchange Commission, The Financial Industry Regulatory Authority, any other self-regulatory organization, or any other federal or state regulatory authority. 

(ii) Notwithstanding any other provision of this Agreement: (A) you will not be held criminally or civilly liable under any federal or
state trade secret law for any disclosure of a trade secret that is made: (1) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney and solely for the purpose of reporting or
investigating a suspected violation of law; or (2) in a complaint or other document that is filed under seal in a lawsuit or other proceeding; and (B) if you file a lawsuit for retaliation by the Company for reporting a suspected violation
of law, you may disclose the Company’s trade secrets to your attorney and use the trade secret information in the court proceeding if you file any document containing the trade secret under seal and do not disclose the trade secret, except
pursuant to court order. 
 10. ACKNOWLEDGEMENTS REGARDING OTHER PROMISES AND COVENANTS. With regard to the promises and covenants set
forth herein, you acknowledge and agree that: 
 (i) the restrictions are ancillary to an otherwise enforceable agreement including the
provisions of this Agreement regarding the disclosure, ownership and use of the Confidential Information and Goodwill; 
 (ii) the
limitations as to time, geographical area, and scope of activity to be restricted are reasonable and acceptable to you, and do not impose any greater restraint than is reasonably necessary to protect the Goodwill and other legitimate business
interests of the Company; 
 (iii) your performance, and the enforcement by the Company, of such promises and covenants will cause no undue
hardship on you; and 
 (iv) the time periods covered by the promises and covenants will not include any period(s) of violation of, or any
period(s) of time required for litigation brought by the Company to enforce any such promise or covenant. 
 11. DUTY TO GIVE NOTICE OF
AGREEMENT. During employment by the Company and the period of any post-employment obligation applicable hereunder, you shall provide written notice to any prospective employer of your obligations under this Agreement, and shall provide a true
copy hereof to such prospective employer at the outset of any communications about employment. 
 12. INDEPENDENT ELEMENTS. The
parties acknowledge that the promises and covenants contained in Sections 9 and 10 above are essential independent elements of this Agreement and that, but for Executive agreeing to comply with them, the Company would not employ Executive.
Accordingly, the existence or assertion of any claim by Executive against the Company, whether based on this Agreement or otherwise, shall not operate as a defense to the Company’s enforcement of the promises and covenants in Sections 9 and
10. An alleged or actual breach of the Agreement by the Company will not be a defense to enforcement of any such promise or covenant, or other obligations of Executive to the Company. The promises and covenants in Sections 9 and 10 will
remain in full force and effect whether Executive is terminated by the Company or voluntarily resigns. 

  
 11 

 13. INDEMNIFICATION. The Company’s Bylaws provide for indemnification of
directors and officers of the Company, including you, during the full term of this Agreement, and at all times to provide adequate insurance for such purposes. Further, you shall, to the extent permitted by law, be indemnified from and against any
and all cost or expense incurred by you as a result of being made a party or threatened to be made a party or involved in any way in any threatened, pending or contemplated action, suit or proceeding, whether civil, criminal, administrative,
arbitrative or investigative (herein a “Proceeding”), or any appeal related to such a Proceeding, or any inquiry or investigation that could lead to such a Proceeding by reason of the fact of your relationship with the Company. You
shall be indemnified to the full extent permitted by law, against any and all costs, expenses, judgments, penalties (including excise and similar taxes and punitive damages, fines, settlements and reasonable expenses (including without limitation,
attorneys’ fees)) incurred (or reasonably anticipated to be incurred) by you in connection with such Proceeding. Notwithstanding the above, the Company shall not be obligated to indemnify you in connection with any Proceeding or claim initiated
by you against the Company or its subsidiaries, officers, directors or employees. 
 14. SUCCESSOR’S BINDING AGREEMENT. 

(i) The Company will cause any entity that becomes a Successor (as hereinafter defined) to expressly assume the Company’s obligations
under this Agreement and acknowledge that the Successor is contractually bound to perform all of such obligations. Failure of such entity to furnish such assumption and acknowledgement by the time such entity becomes a Successor shall constitute
Good Reason for termination by you of your employment if a Change in Control of the Company occurs or has occurred. For purposes of this Agreement, “Successor” shall mean any entity that succeeds to, or has the practical ability to
control (either immediately or with the passage of time), the Company’s business directly, by merger or consolidation, or indirectly, by purchase of the Company’s voting securities or otherwise. 

(ii) This Agreement shall inure to the benefit of and be enforceable by your personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees. If you should die before all amounts that would still be payable to you hereunder if you had continued to live are paid, all such unpaid amounts, unless otherwise provided herein, shall he paid
in accordance with the terms of this Agreement to your devisee, legatee, or other designee or, if there be no such designee, to your estate. 

15. TAXES. All payments to be made to you under this Agreement will be subject to required withholding of applicable federal, state and
local taxes. To the extent that the payment provided for herein results in compensation income to you for federal or state income tax purposes, you shall pay to the Company at the time of such event such amount of money as the Company may require to
meet its withholding obligation under applicable tax laws or regulations, if any, and, if you fail to do so, the Company is authorized to withhold from any cash remuneration then or thereafter payable to you, any tax required to be withheld by
reason of such resulting compensation income. If you make the election authorized by Section 83(b) of the Code, you shall submit to the Company a copy of the statement filed to make such election. 

  
 12 

 16. SECTION 409A. 

16.1. Purpose. This section is intended to help ensure that compensation paid or delivered to you pursuant to this Agreement
either is paid in compliance with, or is exempt from, Section 409A of the Code and the rules and regulations promulgated thereunder (collectively, “Section 409A”). However, the Company does not warrant that
all compensation paid or delivered to you will be exempt from, or paid in compliance with, Section 409A. 
 16.2. Interpretation.
Notwithstanding anything herein to the contrary, this Agreement is intended to be interpreted and applied so that the payments and benefits set forth herein shall either be exempt from the requirements of Section 409A, or shall comply with the
requirements of Section 409A, and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be exempt from or in compliance with Section 409A. For purposes of the application of Treas. Reg. § 1.409A-1(b)(4) (or any successor provision), each payment under this Agreement (including any installment payments) shall be deemed a separate payment. 

16.3. Amounts Payable On Account of Termination. For the purposes of determining when amounts otherwise payable on account of your
termination of employment under this Agreement will be paid, which amounts become due because of your termination of employment, “termination of employment” or words of similar import, as used in this Agreement, shall be construed as the
date that you first incur a “separation from service” for purposes of Section 409A on or following termination of employment. Notwithstanding any provision in this Agreement or elsewhere to the contrary, if on your Date of Termination
you are deemed to be a “specified employee” within the meaning of Section 409A, any payments or benefits due upon a termination of your employment under any arrangement that constitutes a “deferral of compensation” within
the meaning of Section 409A (whether under this Agreement, any other plan, program, payroll practice or any equity grant) and which do not otherwise qualify under the exemptions under Treas. Reg. §
1.409A-1 (including, without limitation, the short-term deferral exemption and the permitted payments under Treas. Reg. § 1.409A-1(b)(9)(iii)(A)), shall be delayed
and paid or provided to you in a lump sum (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) on the earlier of (i) the date which is six months and one day after your
“separation from service” (as such term is defined in Section 409A of the Code) for any reason other than death, and (ii) the date of your death, and any remaining payments and benefits shall be paid or provided in accordance
with the normal payment dates specified for such payment or benefit. 
 16.4. Reimbursements. With respect to any expense,
reimbursement or in-kind benefit provided pursuant to this Agreement that constitutes a “deferral of compensation” within the meaning of Section 409A, (i) the expenses eligible for
reimbursement or in-kind benefits provided to you must be incurred during the Term (or applicable survival period), (ii) the amount of expenses eligible for reimbursement or
in-kind benefits provided to you during any calendar year will not affect the amount of expenses eligible for reimbursement or in-kind benefits provided to you in any
other calendar year, (iii) the reimbursements for expenses for which you are entitled to be reimbursed shall be made on or before the last day of the calendar year following the calendar year in which the applicable expense is incurred, and
(iv) the right to payment or reimbursement or in-kind benefits hereunder may not be liquidated or exchanged for any other benefit. 

  
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 17. SURVIVAL. Any termination of this Agreement and Executive’s employment shall
not release either the Company or Executive from their respective obligations to the date of termination nor from the provisions of this Agreement that, by necessary or reasonable implication, are intended to apply after such termination, including
without limitation the provisions of Section 9. Furthermore, neither the termination of this Agreement nor the termination of Executive’s employment hereunder shall affect, limit or modify in any manner the existence
or enforceability of any other written agreement between Executive and the Company, even if such other agreements provide employment-related benefits to Executive. 

18. NOTICES. Notices and all other communications provided for herein shall be in writing and shall be deemed to have been duly given
when delivered or mailed by certified or registered mail, return receipt requested, postage prepaid addressed to the respective addresses set forth on the signature page of this Agreement or to such other address as either party may have furnished
to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt. All notices to the Company shall be directed to the attention of the Chief Executive Officer of the Company with a copy to
the Corporate Secretary of the Company. 
 19. MISCELLANEOUS. No provision of this Agreement may be modified, waived or discharged
except in writing specifically referring to such provision and signed by you and such officer of the Company as may be specifically designated by the Board. No waiver at any time by either party hereto of the breach of any condition or provision of
this Agreement, or of compliance by the other party with the same, shall be deemed a waiver of any other condition or provision at the same or at any other time. No party hereto shall by any act (except by written instrument pursuant to this
Section), delay, indulgence, omission or otherwise be deemed to have waived any right, power, privilege or remedy hereunder or to have acquiesced in any default in or breach of any of the terms and conditions hereof. No failure to exercise, nor any
delay in exercising, on the part of any party hereto, any right, power, privilege or remedy hereunder shall operate as a waiver thereof. No single or partial exercise of any right, power, privilege or remedy hereunder shall preclude any other or
further exercise thereof or the exercise of any other right, power, privilege or remedy. No remedy set forth in this Agreement or otherwise conferred upon or reserved to any party shall be considered exclusive of any other remedy available to any
party, but the same shall be distinct, separate and cumulative and may be exercised from time to time as often as occasion may arise or as may be deemed expedient. No agreement or representation still in effect, oral or otherwise, express or
implied, with respect to the subject matter hereof has been made by either party other than (i) those set forth expressly in this Agreement or (ii) those in any equity award agreements. Upon termination of your employment, in the event of
any conflict between the terms of this Agreement and the terms of any other agreements between you and the Company, this Agreement shall be controlling. The validity, interpretation, construction and performance of this Agreement shall be governed
by the laws of the State of Texas, without regard to principles of conflicts of laws. Neither party to this Agreement may assign this Agreement or any or all of its rights or obligations hereunder without the prior written consent of the other party
hereto. Other than as provided in Section 12(i), neither party to this Agreement may assign this Agreement or any or all of its rights or obligations hereunder without the prior written consent of the other party hereto. 

  
 14 

 20. VALIDITY. The invalidity or unenforceability of any provisions of this Agreement
shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect. This Agreement and the agreements contemplated hereby or executed in connection herewith (i) constitute the
entire agreement of the parties hereto regarding the subject matter hereof, and (ii) supersede all prior employment agreements, both written and oral, among the parties hereto, or any of them. 

21. COUNTERPARTS. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of
which together will constitute one and the same instrument. 
 [Signature page follows] 

  
 15 

 Executed as of February 22, 2021. 

 

			
	COMPANY:
	
	Spirit of Texas Bancshares, Inc.
		
	By:	 	 /s/ Dean O. Bass

	Name:	 	Dean O. Bass
	Title:	 	Chairman & CEO
		
	Address:	 	1836 Spirit of Texas Way
		 	Conroe, Texas 77301
	
	 /s/ Allison Johnson

	Allison Johnson
		
	Address:	 	4 Ripple Rush Ct.
		 	The Woodlands, TX 77381

 Signature Page 

 EXHIBIT A 

Permissible Business Interests

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