Document:

amk-ex101_15.htm

Exhibit 10.1

 

SEPARATION AGREEMENT

This SEPARATION AGREEMENT is made and entered into as of this 3rd day of March, 2021 (the “Execution Date”) by and between AssetMark Financial Holdings, Inc., a Delaware corporation (the “Company”) and Charles Goldman (“Executive”).

W I T N E S S E T H:

WHEREAS, the Company and Executive have agreed that Executive’s service to the Company as its President and Chief Executive Officer, as a member of the Company’s Board of Directors (the “Board”) and as an employee shall terminate on the respective dates set forth below.

NOW, THEREFORE, in consideration of the promises and mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are mutually acknowledged, the Company and Executive hereby agree as follows:

(1) Termination of Service.

(a) As an Officer and Board Member.  Effective as of the close of business on March 3, 2021 (the “Transition Date”) Executive, automatically and without further action on his part or any other person or entity, shall cease to hold the offices and titles of President and Chief Executive Officer of the Company, shall cease to be a member of the Board, and shall resign all other offices and titles of the Company and its subsidiaries, and membership on all boards of directors (or similar governing bodies) of the Company’s subsidiaries, including all committees of such boards of directors (or similar governing bodies). Executive acknowledges and agrees that he will not be listed on the slate of nominees for election to the Board that the Board presents to the stockholders of the Company in the Company’s Definitive Proxy Statement on Schedule 14A for the Company’s upcoming Annual Meeting.

(b) Transition Period.  Following the Transition Date, Executive will remain an employee of the Company through the Effective Date (used here as defined in Section 1(c) below). Executive acknowledges and agrees that, following the Transition Date, the senior most officer of the Company will be the Chief Executive Officer and that, during the period immediately following the Transition Date and ending on the Effective Date (the “Transition Period”), the scope of Executive’s responsibilities will relate to assisting the Chief Executive Officer and the Board with such requests as either deems appropriate in assisting in the transition of the duties and responsibilities of the offices of President and Chief Executive Officer. For the avoidance of doubt, Executive will exercise such responsibilities if and to the extent requested by the Chief Executive Officer or the Board.

(c) As an Employee:  Effective as of the close of business on April 2, 2021 (the “Effective Date”) Executive, automatically and without further action on his part or any other person or entity, shall cease to be an employee of the Company.

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(2) Consulting Arrangement:

(a) Consulting Period.  Executive will be engaged as a consultant to the Company for a period beginning the day immediately following the Effective Date and ending on the one-year anniversary of the Effective Date (the “Consulting End Date,” and the period immediately following the Effective Date and ending on the Consulting End Date, the “Consulting Period”). Executive’s services hereunder during the Consulting Period will consist of such consulting and advisory services, and shall be provided at such times, as may be requested from time to time by the Board or the Chief Executive Officer of the Company. During the Consulting Period, Executive may perform such services from any location; provided that, the Company shall reimburse Executive for any reasonable travel and lodging expenses incurred in connection with any travel undertaken by the Executive at the request of the Board or the Chief Executive Officer in connection with such services. During the Consulting Period, Executive will not be treated as an employee of the Company or any of its subsidiaries or affiliates for any purposes, including, without limitation, for purposes of any past, present or future employee benefit plan, program or arrangement of the Company or any of its subsidiaries or affiliates, and Executive will not have any authority to bind the Company or any of its subsidiaries or affiliates in any way. Executive’s services hereunder during the Consulting Period will be performed in the capacity of an independent contractor. For avoidance of doubt, it is not anticipated that the Executive will have access to material non-public information of the Company during the Consulting Period. Accordingly, it is anticipated that the Executive will not be considered an insider of the Company during the Consulting Period for purposes of the Company’s Insider Trading Policy based solely on consulting and advisory services provided to the Company hereunder.

(b) Consulting Fees.  In connection with Executive’s services as a consultant during the Consulting Period, the Company will pay an aggregate consulting fee of $130,000, with such amount to be paid in equal quarterly installments in arrears during the Consulting Period (the “Consulting Fees”).

(c) Indemnification.  In the event that Executive’s services to the Company during the Consulting Period are determined to constitute services as an employee and not as an independent contractor, the Company shall hold Executive harmless and indemnify him from any additional taxes imposed with regard to payment of the Consulting Fees as a result of such determination, such that the benefit to Executive from the Consulting Fees is not less on an after-tax basis (taking into account, without limitation, federal, state and local income, payroll and self-employment taxes) than that applicable in the absence of such a determination.

(3) Severance Arrangements:

(a) Employment Agreement:  The Company and Executive acknowledge and agree that they are parties to that certain Amended and Restated Employment Agreement made and entered into by and between the Company and Executive as of the 28th day of August, 2019 (the “Employment Agreement”). The Company and Executive acknowledge and agree that, for purposes of the Employment Agreement, the cessation of 

 

		
	
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Executive’s employment with the Company on the Effective Date shall be considered a termination of Executive’s employment by the Company without Cause (used here as defined in the Employment Agreement) and other than due to death or Disability (used here as defined in the Employment Agreement). Accordingly, provided that Executive satisfies the requirements of Section 8(i) of the Employment Agreement regarding execution, delivery and non-revocation of the Release of Claims (used here as defined in the Employment Agreement) and otherwise remains in compliance with the terms and conditions of the Employment Agreement, Executive will be entitled to the payments and benefits provided for under Section 8(d) of the Employment Agreement and the acceleration of vesting on restricted stock awards under Section 8(h) of the Employment Agreement, in each case to the extent applicable and at such times and in such forms as set forth in such Employment Agreement.

(b) Equity Awards:  Attached as Exhibit A to this Agreement is a list of certain of Executive’s equity awards that are outstanding and unvested as of the date hereof (each, an “Outstanding Equity Award”). Each of the Outstanding Equity Awards has been granted pursuant to an award agreement setting forth the terms and conditions of such equity award (each, an “Award Agreement”). The Company and Executive agree that the Award Agreement for each Outstanding Equity Award is hereby amended such that (i) Executive will be deemed to continue in the service of the Company through the end of the Severance Term (used here as defined in the Employment Agreement) and experience a Termination of Service (used here as defined for purposes of each respective Award Agreement) on the last day of such Severance Term, and, accordingly, the Outstanding Equity Award will continue to vest through the end of such term, and (ii) on the last day of the Severance Term, any then remaining outstanding but unvested portion of the Outstanding Equity Award shall vest in full; provided that any shares that would otherwise be transferred to Executive after March 15, 2022 upon vesting of an Outstanding Equity Award in the form of an RSU (used here as defined for purposes of the respective Award Agreement) shall be transferred to Executive on or before March 15, 2022 to the extent necessary to avoid subjecting the Outstanding Equity Award to Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), subject to such transfer restrictions as may be imposed at the discretion of the Company until the applicable vesting date. Except as amended by effect of this Section 3(b), each such Award Agreement will remain in full force and effect.

(c) Benefit Programs:  Effective on the Effective Date, Executive waives future coverage and benefits under all Company disability programs to the extent not then vested based on a claim accrued through the Effective Date. The Company and Executive acknowledge and agree that this Agreement does not affect Executive’s eligibility for other Company medical, dental, life insurance, retirement, and benefit plans. Executive acknowledges and agrees that his rights and continued participation, if any, in those plans will be governed by their terms and applicable law, and that Executive generally will cease to participate in such benefits shortly after the Effective Date, after which Executive may be able to purchase continued coverage under certain of such plans.

(d) Section 409A:  Executive acknowledges and agrees that, as a “specified employee” (as such term is defined under Section 409A(a)(2)(B)(i) of the Code), a portion 

 

		
	
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of the payments and/or benefits that Executive may receive under this Agreement or other arrangements with the Company may be subject to an additional tax under Section 409A(a)(1)(B) of the Code unless the commencement of such payments and/or benefits is delayed until the earlier of (x) the date that is six months following the Effective Date or (y) the date of Executive’s death (in each case, the “Distribution Date”).

(4.) Participation in Follow-On Offerings:  In the event that the Company undertakes any follow-on offering pursuant to its shelf registration on Form S-3 in effect as of the date hereof, subject to Executive’s continued compliance with the non-competition and non- interference provisions of the Non-Interference Agreement (used here as defined below) through the closing date of such offering, Executive shall have the right to participate in such offering at a rate of up to 10% of the secondary component of such offering, disregarding for this purpose any primary shares offered by the Company in such offering; provided that (i) any determination by the Company to undertake such an offering shall be determined by the Company in its sole discretion and (ii) the size of any such secondary component for any such offering shall be determined by the Company in its sole discretion based on the recommendations of bankers for such offering on applicable market practice.

(5.) Additional Representations and Promises:  Executive further acknowledges and agrees that:

(a) To the extent any payments owed to Executive under this Agreement, including the Plan, are subject to any withholding taxes or deductions, the Company is authorized to make any such withholdings or deductions as required by law, and Executive will not be eligible for any additional payments in relation to such withholdings or deductions.

(b) Executive has read and understands all of the provisions of this Agreement, and has not entered into this agreement in reliance upon any representation or statement, written or oral, not set forth in this Agreement.

(6.) Confidentiality, Non-Interference, and Invention Assignment Agreement:  Executive acknowledges and agrees that he is party to a Confidentiality, Non-Interference, and Invention Assignment Agreement dated as of January 10, 2014 by and between the Company and Executive (the “Non-Interference Agreement”), and that this Agreement is not intended to supersede the terms of such Non-Interference Agreement, which shall continue in effect according to the terms of such Non-Interference Agreement, including, without limitation, with respect to obligations of Executive in connection with or following termination of his employment. Notwithstanding the foregoing, and consistent with the Board’s prior approval for Executive to act as non-executive chairman of FinTech Evolution Acquisition Group (“FTEV”), the Company acknowledges and agrees that Executive’s prior and continued relationship with FTEV is consistent with and does not violate the Non-Interference Agreement.

(7.) Description of Departure.  The Company shall not issue any official press release or statement regarding Executive’s departure from employment with the Company that is inconsistent with the description of such departure in the Company’s press release issued on February 23, 2021, and shall direct each of its officers and directors to limit any public statements they may make 

 

		
	
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regarding such termination to statements consistent with such description. Notwithstanding the foregoing, the Company may disclose this Agreement and the terms and conditions hereof, in each case as it may deem necessary or appropriate for compliance with applicable securities laws.

(8.) Entire Agreement.  This Agreement represents the entire agreement between the Parties concerning the subject matter hereof and shall not be altered, amended, modified, or otherwise changed except by a writing executed by both Parties. If any provision of this Agreement is held by a court of competent jurisdiction or by an arbitrator to be unenforceable or contrary to law, the remainder of that provision and the remaining provisions of this Agreement will remain in full force and effect to the maximum extent permitted by applicable law. This Agreement is governed by federal laws and the laws of the State of Colorado.

 

 

 

		
	
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EXECUTIVE ACKNOWLEDGES AND AGREES THAT EXECUTIVE HAS FULLY READ, UNDERSTANDS, AND VOLUNTARILY ENTERS INTO THIS AGREEMENT. EXECUTIVE ACKNOWLEDGES AND AGREES THAT EXECUTIVE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND CONSULT WITH AN ATTORNEY OF EXECUTIVE’S CHOICE BEFORE SIGNING THIS AGREEMENT.

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Execution Date above.

 

	
ASSETMARK FINANCIAL HOLDINGS, INC.

	

	
 

 

	
By:
	
 
	
Bryan Lin

	
Title:
	
 
	
Director

 

	
EXECUTIVE

	
 
	
 

	
Charles Goldman

 

 

[Signature Page for Charles Goldman Separation Agreement]

 

 

EXHIBIT A

OUTSTANDING EQUITY AWARDS

 

 

	
Award Type
	
Grant Date
	
Initial

Shares
	
Vesting Schedule

	
Stock Option
	
July 17, 2019
	
284,605
	
Three equal annual installments beginning on July 18, 2020

	
Restricted Stock Unit
	
June 9, 2020
	
10,315
	
Four equal annual installments beginning on June 9, 2021

	
Stock Appreciation Right
	
June 9, 2020
	
88,415
	
Four equal annual installments beginning on June 9, 2021nl-ex1012_1093.htm

 

Exhibit 10.12

UNSECURED REVOLVING

DEMAND PROMISSORY NOTE

$40,000,000.00December 31, 2020

 

 

Section 1.  Promise to Pay.  For and in consideration of value received, the undersigned, Valhi, Inc., a corporation duly organized under the laws of the state of Delaware (“Borrower”), promises to pay, in lawful money of the United States of America, to the order of Kronos Worldwide, Inc., a corporation duly organized under the laws of the state of Delaware (“Kronos Worldwide”), or the holder hereof (as applicable, Kronos Worldwide or such holder shall be referred to as the “Noteholder”), the principal sum of FORTY MILLION and NO/100ths United States Dollars ($40,000,000.00) or such lesser amount as shall equal the unpaid principal amount of the loan made by the Noteholder to Borrower together with accrued and unpaid interest on the unpaid principal balance from time to time pursuant to the terms of this Unsecured Revolving Demand Promissory Note, as it may be amended from time to time (this “Note”).  This Note shall be unsecured and will bear interest on the terms set forth in Section 7 below. Capitalized terms not otherwise defined shall have the meanings given to such terms in Section 19 of this Note.

 

Section 2.  Amendment and Restatement.  This Note renews, replaces, amends and restates in its entirety the Unsecured Revolving Demand Promissory Note dated December 31, 2019 in the original principal amount of $60,000,000.00 payable to the order of the Noteholder and executed by the Borrower (the “Prior Note”).  As of the close of business on December 31, 2020, the unpaid principal balance of the Prior Note was nil, the accrued and unpaid interest thereon was nil and the accrued and unpaid commitment fee thereon was nil, which is the unpaid principal, accrued and unpaid interest and accrued and unpaid commitment fee owed under this Note as of the close of business on the date of this Note.  This Note contains the entire understanding between the Noteholder and the Borrower with respect to the transactions contemplated hereby and supersedes all other instruments, agreements and understandings between the Noteholder and the Borrower with respect to the subject matter of this Note.

 

Section 3.  Place of Payment.  All payments will be made at Noteholder’s address at Three Lincoln Centre, 5430 LBJ Freeway, Suite 1700, Dallas, Texas 75240-2620, Attention:  Treasurer, or such other place as the Noteholder may from time to time appoint in writing.

 

Section 4.  Payments.  The unpaid principal balance of this Note and any accrued and unpaid interest thereon shall be due and payable on the Final Payment Date.  Prior to the Final Payment Date, any accrued and unpaid interest on an unpaid principal balance shall be paid in arrears quarterly on the last day of each March, June, September and December, commencing March 31, 2021.  All payments on this Note shall be applied first to accrued and unpaid interest, next to accrued interest not yet payable and then to principal.  If any payment of principal or interest on this Note shall become due on a day that is not a Business Day, such payment shall be made on the next succeeding Business Day and the payment shall be the amount owed on the original payment date.

 

Section 5.  Prepayments.  This Note may be prepaid in part or in full at any time without penalty.

 

Section 6.  Borrowings.  Prior to the Final Payment Date, Noteholder expressly authorizes Borrower to borrow, repay and re-borrow principal under this Note in increments of $100,000 on a daily basis so long as:

 

	
 
	
•
	
the aggregate outstanding principal balance does not exceed $40,000,000.00; and

	
 
	
•
	
no Event of Default has occurred and is continuing.

 

Notwithstanding anything else in this Note, in no event will Noteholder be required to lend money to Borrower under this Note and loans under this Note shall be at the sole and absolute discretion of Noteholder.

 

Section 7.  Interest.  The unpaid principal balance of this Note shall bear interest at the rate per annum of the Prime Rate plus one percent (1.00%).  In the event that an Event of Default occurs and is continuing, the unpaid principal amount shall bear interest from the Event of Default at the rate per annum of the Prime Rate plus four percent (4.00%) until such time as the Event of Default is cured.  Accrued interest on the unpaid principal of this Note shall be computed on the basis of a 365- or 366-day year for actual days (including the first, but excluding the last day) elapsed, but in no event shall such computation result in an amount of accrued interest that would exceed accrued interest on the unpaid principal balance during the same period at the Maximum Rate. Notwithstanding anything to the contrary, this Note is expressly limited so that in no contingency or event whatsoever shall the amount paid or agreed to be paid to the Noteholder exceed the Maximum Rate.  If, from any circumstances whatsoever, the Noteholder shall ever receive as interest an amount that would exceed the Maximum Rate, such amount that would be excessive 

 

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interest shall be applied to the reduction of the unpaid principal balance and not to the payment of interest, and if the principal amount of this Note is paid in full, any remaining excess shall be paid to Borrower, and in such event, the Noteholder shall not be subject to any penalties provided by any laws for contracting for, charging, taking, reserving or receiving interest in excess of the highest lawful rate permissible under applicable law.  All sums paid or agreed to be paid to Noteholder for the use, forbearance or detention of the indebtedness of the Borrower to Noteholder shall, to the extent permitted by applicable law, be amortized, prorated, allocated and spread throughout the full term of such indebtedness until payment in full of the principal (including the period of any renewal or extension thereof) so that the interest on account of such indebtedness shall not exceed the Maximum Rate.  If at any time the Contract Rate is limited to the Maximum Rate, any subsequent reductions in the Contract Rate shall not reduce the rate of interest on this Note below the Maximum Rate until the total amount of interest accrued equals the amount of interest that would have accrued if the Contract Rate had not been limited by the Maximum Rate.  In the event that, upon the Final Payment Date, the total amount of interest paid or accrued on this Note is less than the amount of interest that would have accrued if the Contract Rate had not been limited by the Maximum Rate, then at such time, to the extent permitted by law, in addition to the principal and any other amounts Borrower owes to the Noteholder, the Borrower shall pay to the Noteholder an amount equal to the difference between:  (i) the lesser of the amount of interest that would have accrued if the Contract Rate had not been limited by the Maximum Rate or the amount of interest that would have accrued if the Maximum Rate had at all times been in effect; and (ii) the amount of interest actually paid on this Note.

 

Section 8.  Fees and Expenses. On the last day of each March, June, September and December, commencing March 31, 2021, and on the Final Payment Date, Borrower shall pay to Noteholder the Unused Commitment Fee for such period, provided, however, Borrower will not owe any Unused Commitment Fee for any part of such period (prorated as applicable) that the Noteholder is a net borrower of money from the Borrower.  In addition, Borrower and any guarantor jointly and severally agree to pay on the Final Payment Date to Noteholder any other cost or expense reasonably incurred by Noteholder in connection with Noteholder’s commitment to Borrower pursuant to the terms of this Note, including without limitation any other cost reasonably incurred by Noteholder pursuant to the terms of any credit facility of Noteholder.

 

Section 9.  Remedy.  Upon the occurrence and during the continuation of an Event of Default, the Noteholder shall have all of the rights and remedies provided in the applicable Uniform Commercial Code, this Note or any other agreement among Borrower and in favor of the Noteholder, as well as those rights and remedies provided by any other applicable law, rule or regulation.  In conjunction with and in addition to the foregoing rights and remedies of the Noteholder, the Noteholder may declare all indebtedness due under this Note, although otherwise unmatured, to be due and payable immediately without notice or demand whatsoever.  All rights and remedies of the Noteholder are cumulative and may be exercised singly or concurrently.  The failure to exercise any right or remedy will not be a waiver of such right or remedy.

 

Section 10.  Right of Offset.  The Noteholder shall have the right of offset against amounts that may be due by the Noteholder now or in the future to Borrower against amounts due under this Note.

 

Section 11.  Record of Outstanding Indebtedness.  The date and amount of each repayment of principal outstanding under this Note or interest thereon shall be recorded by Noteholder in its records.  The principal balance outstanding and all accrued or accruing interest owed under this Note as recorded by Noteholder in its records shall be the best evidence of the principal balance outstanding and all accrued or accruing interest owed under this Note; provided that the failure of Noteholder to so record or any error in so recording or computing any such amount owed shall not limit or otherwise affect the obligations of the Borrower under this Note to repay the principal balance outstanding and all accrued or accruing interest.

 

Section 12.  Waiver.  Borrower and each surety, endorser, guarantor, and other party now or subsequently liable for payment of this Note, severally waive demand, presentment for payment, notice of nonpayment, notice of dishonor, protest, notice of protest, notice of the intention to accelerate, notice of acceleration, diligence in collecting or bringing suit against any party liable on this Note, and further agree to any and all extensions, renewals, modifications, partial payments, substitutions of evidence of indebtedness, and the taking or release of any collateral with or without notice before or after demand by the Noteholder for payment under this Note.

 

Section 13.  Costs and Attorneys’ Fees.  In addition to any other amounts payable to Noteholder pursuant to the terms of this Note, in the event the Noteholder incurs costs in collecting on this Note, this Note is placed in the hands of any attorney for collection, suit is filed on this Note or if proceedings are had in bankruptcy, receivership, 

 

Page 2 of 5.

 

reorganization, or other legal or judicial proceedings for the collection of this Note, Borrower and any guarantor jointly and severally agree to pay on demand to the Noteholder all expenses and costs of collection, including, but not limited to, reasonable attorneys’ fees incurred in connection with any such collection, suit, or proceeding, in addition to the principal and interest then due.

 

Section 14. Time of Essence.  Time is of the essence with respect to all of Borrower’s obligations and agreements under this Note.

 

Section 15.  Jurisdiction and Venue.  THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE DOMESTIC LAWS OF THE STATE OF TEXAS, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICT OF LAW PROVISION OR RULE (WHETHER OF THE STATE OF TEXAS OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF TEXAS.  BORROWER CONSENTS TO JURISDICTION IN THE COURTS LOCATED IN DALLAS, TEXAS.

 

Section 16.  Notice.  Any notice or demand required by this Note shall be deemed to have been given and received on the earlier of (i) when the notice or demand is actually received by the recipient or (ii) 72 hours after the notice is deposited in the United States mail, certified or registered, with postage prepaid, and addressed to the recipient.  The address for giving notice or demand under this Note (i) to the Noteholder shall be the place of payment specified in Section 3 or such other place as the Noteholder may specify in writing to the Borrower and (ii) to Borrower shall be the address below the Borrower’s signature or such other place as the Borrower may specify in writing to the Noteholder.

 

Section 17. Amendment or Waiver of Provisions of this Note.  No amendment or waiver of any provision of this Note shall in any event be effective unless the same shall be in a writing referring to this Note and signed by the Borrower and the Noteholder.  Such amendment or waiver shall be effective only in the specific instance and for the specific purpose for which given.  No waiver of any of the provisions of this Note shall be deemed or shall constitute a waiver of any other provisions, whether or not similar, nor shall any waiver constitute a continuing waiver.

 

Section 18.  Successors and Assigns.  All of the covenants, obligations, promises and agreements contained in this Note made by Borrower shall be binding upon its successors and permitted assigns, as applicable.  Notwithstanding the foregoing, Borrower shall not assign this Note or its performance under this Note without the prior written consent of the Noteholder.  Noteholder at any time may assign this Note without the consent of Borrower.

 

Section 19. Definitions.  For purposes of this Note, the following terms shall have the following meanings:

 

	
(a)
	
“Basis Point” shall mean 1/100th of 1 percent.

 

	
(a)
	
“Business Day” shall mean any day banks are open in the state of Texas.

 

	
(a)
	
“Contract Rate” means the amount of any interest (including fees, charges or expenses or any other amounts that, under applicable law, are deemed interest) contracted for, charged or received by or for the account of Noteholder.

 

	
(a)
	
“Event of Default” wherever used herein, means any one of the following events:

 

	
 
	
(i)
	
the Borrower fails to pay any amount due on this Note and/or any fees or sums due under or in connection with this Note after any such payment otherwise becomes due and payable and three Business Days after demand for such payment;

 

	
 
	
(i)
	
the Borrower otherwise fails to perform or observe any other provision contained in this Note and such breach or failure to perform shall continue for a period of thirty days after notice thereof shall have been given to the Borrower by the Noteholder;

 

	
 
	
(i)
	
a case shall be commenced against Borrower, or Borrower shall file a petition commencing a case, under any provision of the Federal Bankruptcy Code of 1978, as amended, or shall seek relief under any provision of any other bankruptcy, reorganization, arrangement, 

 

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insolvency, readjustment of debt, dissolution or liquidation law of any jurisdiction, whether now or hereafter in effect, or shall consent to the filing of any petition against it under such law, or Borrower shall make an assignment for the benefit of its creditors, or shall admit in writing its inability to pay its debts generally as they become due, or shall consent to the appointment of a receiver, trustee or liquidator of Borrower or all or any part of its property; or

 

	
 
	
(i)
	
an event occurs that, with notice or lapse of time, or both, would become any of the foregoing Events of Default.

 

	
(a)
	
“Final Payment Date” shall mean the earlier of:

 

	
 
	
•
	
written demand by the Noteholder for payment of all or part of the unpaid principal, the accrued and unpaid interest thereon and the accrued and unpaid commitment fee thereon, but in any event no earlier than December 31, 2022; or

	
 
	
•
	
acceleration as provided herein.

 

	
(a)
	
“Maximum Rate” shall mean the highest lawful rate permissible under applicable law for the use, forbearance or detention of money.

 

	
(a)
	
“Prime Rate” shall mean the fluctuating interest rate per annum in effect from time to time equal to the base rate on corporate loans as reported as the Prime Rate in the Money Rates column of The Wall Street Journal or other reliable source.

 

	
(a)
	
“Unused Commitment Amount” for any period on after the date of this Note shall mean the average on each day of such period of the difference between (A) $40,000,000.00 and (B) the amount of the unpaid principal balance of this Note.

 

	
(a)
	
“Unused Commitment Fee” shall mean the product of (A) 50 Basis Points per annum (pro rated to take into account that the fee is payable quarterly, or such shorter period if applicable) and (B) the Unused Commitment Amount.

 

BORROWER:

 

Valhi, Inc.

 

 

 

	
 
	
By:
	
/s/ James W. Brown

James W. Brown

Executive Vice President and Chief Financial Officer

 

Address:

 

5430 LBJ Freeway, Suite 1700

Dallas, Texas   75240-2620

 

 

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As of the date hereof, Kronos Worldwide, Inc., as the Noteholder, hereby agrees that this Note renews, replaces, amends and restates in its entirety the Prior Note, and that the unpaid principal of nil, the accrued and unpaid interest thereon of nil and the accrued and unpaid commitment fee thereon of nil that was owed under the Prior Note as of the close of business on December 31, 2020 are the unpaid principal, the accrued and unpaid interest thereon and the accrued and unpaid commitment fee thereon, respectively, owed under this Note as of the close of business on the date of this Note.

 

 

KRONOS WORLDWIDE, INC.

 

 

 

 

	
 
	
By:
	
/s/ Tim C. Hafer

Tim C. Hafer

Senior Vice President and Controller

 

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