Document:

Exhibit
10.1

 

AMENDMENT
NUMBER ONE TO LOAN AND SECURITY AGREEMENT

 

This
AMENDMENT NUMBER ONE TO LOAN AND SECURITY AGREEMENT (this “Amendment”), dated as of December 30, 2019, is entered
into by and between AUSTIN FINANCIAL SERVICES, INC., a Delaware corporation (“Lender”) and SUPERIOR DRILLING
PRODUCTS, INC., a Utah corporation, SUPERIOR DRILLING SOLUTIONS, LLC, a Utah limited liability company, HARD ROCK SOLUTIONS, LLC,
a Utah limited liability company, EXTREME TECHNOLOGIES, LLC, a Utah limited liability company, MEIER LEASING, LLC, a Utah limited
liability company, and MEIER PROPERTIES, SERIES LLC, a Utah limited liability company
(individually and collectively, “Borrower”), with reference to the following facts:

 

A.
Borrower and Lender previously entered into that certain Loan and Security Agreement, dated as of February 20, 2019 (as amended,
the “Loan Agreement”); and

 

B.
Borrower has requested that Lender provide a special advance term loan under the Loan Agreement and amend certain other terms
and provisions set forth in and/or contemplated by the Loan Agreement. Lender has agreed to Borrower’s requests, subject
to the terms and conditions of this Amendment.

 

NOW,
THEREFORE, in consideration of the foregoing, Borrower and Lender hereby agree as follows:

 

1.
Recitals. The foregoing recitals are hereby incorporated herein by this reference and made a part hereof, with the
same force and effect as if fully set forth herein.

 

2.
Defined Terms. All initially capitalized terms used but not defined herein have the meanings assigned to such terms
in the Loan Agreement.

 

3.
Amendments

 

(a)
Amendment to Section 2.3. Section 2.3 of the Loan Agreement is hereby amended and restated in its entirety as follows:

 

2.3
Term Loan. Subject to the terms and conditions hereof, Lender agrees to make the following Loan(s) to Borrower: (a) on
the Closing Date, a Loan in an amount equal to the Initial Term Loan Commitment (the “Initial Term Loan”),
and (b) on the Amendment Number One Effective Date, a Loan in an amount equal to the Special Advance Term Loan Commitment (the
“Special Advance Term Loan”). The Initial Term Loan and the Special Advance Term Loan, and Borrower’s
obligation to repay the same, shall be evidenced by this Agreement, and the books and records of Lender.

 

(b)
Amendment to Schedule A.

 

(i)
The following defined terms in Schedule A to the Loan Agreement are hereby amended and restated to read in their entirety as follows:

 

“Loans”
means the Advances, the Term Loan (consisting of the Initial Term Loan and the Special Advance Term Loan), and any other loans
or extensions of credit that Lender, in its sole discretion, may determine to provide to Borrower (each, a “Loan”).

 

    	 	1	 

    	 	 	 

    

 

“Term
Loan” means, collectively, the Initial Term Loan and the Special Advance Term Loan.

 

(ii)
The following new defined terms are hereby added to Schedule A to the Loan Agreement in alphabetical order as follows:

 

“Amendment
Number One Effective Date” means December 30, 2019.

 

“Initial
Term Loan” is defined in Section 2.3 of the Agreement.

 

“Initial
Term Loan Commitment” is defined in Section 2.3 of Schedule B.

 

“Special
Advance Term Loan” is defined in Section 2.3 of the Agreement.

 

“Special
Advance Term Loan Commitment” is defined in Section 2.3 of Schedule B.

 

(iii)
Schedule 3.4 to Schedule A to the Loan Agreement is hereby amended and restated and replaced with Schedule 3.4 to Schedule A attached
hereto.

 

(c)
Amendment and Restatement of Schedule B. Schedule B to the Loan Agreement is hereby amended and restated and replaced with
Schedule B attached hereto.

 

4.
Conditions Precedent to Effectiveness of Amendment. The effectiveness of this Amendment is subject to and
contingent upon the fulfillment of each and every one of the following conditions to the satisfaction of Lender:

 

(a)
Lender shall have received this Amendment, duly executed by Borrower;

 

(b)
No Event of Default or Default shall have occurred and be continuing;

 

(c)
All of the representations and warranties set forth herein and in the Loan Agreement shall be true, complete and accurate in all
respects as of the date hereof (except for representations and warranties that are expressly stated to be true and correct as
of the date of the Loan Agreement); and

 

(d)
Lender shall have received (i) an amendment closing fee in the amount of $3,500.00, which fee shall be fully earned and nonrefundable
and (ii) all Lender’s reasonable expenses incurred through the date of this Amendment and the reasonable fees and costs
of Lender’s internal and outside counsel incurred in the negotiation and preparation of this Amendment, which Borrower hereby
authorizes to be paid by an Advance under the Loan Agreement.

 

5.
Representations and Warranties. In order to induce Lender to enter into this Amendment, Borrower hereby represents
and warrants to Lender that:

 

(a)
No Event of Default or Default is continuing;

 

(b)
All of the representations and warranties set forth herein and in the Loan Agreement are true, complete and accurate in all respects
(except for representations and warranties which are expressly stated to be true and correct as of the date of the Loan Agreement);
and

 

(c)
This Amendment has been duly executed and delivered by Borrower, and the Loan Agreement continues to constitute the legal, valid
and binding agreements and obligations of Borrower, enforceable in accordance with its terms, except as enforceability may be
limited by bankruptcy, insolvency, and similar laws and equitable principles affecting the enforcement of creditors’ rights
generally.

 

    	 	2	 

    	 	 	 

    

 

6.
Release.

 

(a)
In consideration of the agreements of Lender contained herein and for other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, Borrower and each guarantor, indemnitor, or obligor with respect to the Obligations, if any,
(collectively, “Obligors”), on behalf of itself and its successors, assigns and its present and former shareholders,
affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees, agents, and other representatives
(Borrower, each Obligor, if any, and all such other persons and parties being hereinafter referred to collectively as “Releasors”
and individually as a “Releasor”), hereby absolutely, unconditionally and irrevocably release, remise and forever
discharge Lender, and its successors and assigns, and its present and former shareholders, affiliates, subsidiaries, divisions,
predecessors, directors, officers, attorneys, employees, agents and other representatives (Lender and all such other persons being
hereinafter referred to collectively as “Releasees” and individually as a “Releasee”), of
and from all demands, actions, causes of action, suits, covenants, contracts, controversies, agreements, promises, sums of money,
accounts, bills, reckonings, damages and any and all other claims, counterclaims, defenses, rights of set-off, demands and liabilities
whatsoever (individually, a “Claim” and collectively, “Claims”) of every name and nature,
known or unknown, suspected or unsuspected, both at law and in equity, which Releasors may now or hereafter own, hold, have or
claim to have against Releasees or any of them for, upon, or by reason of any circumstance, action, cause or thing whatsoever
that arises at any time on or before the day and date of this Agreement for or on account of, or in relation to, or in any way
in connection with any of the Loan Agreement or any of the other Loan Documents or transactions thereunder or related thereto
or hereunder.

 

(b)
It is the intention of Borrower and each Obligor, if any, that this Agreement and the release set forth above constitute a full
and final accord and satisfaction of all claims that Releasors may have or hereafter be deemed to have against Releasees as set
forth herein. In furtherance of this intention, Borrower and each Obligor, on behalf of itself and each other Releasor, expressly
waive any statutory or common law provision that would otherwise prevent the release set forth above from extending to claims
that are not currently known or suspected to exist in any Releasor’s favor at the time of executing this Agreement and which,
if known by Releasors, might have materially affected the agreement as provided for hereunder. Borrower and each Obligor, on behalf
of itself and each other Releasor, acknowledge that it is familiar with section 1542 of California Civil Code:

 

A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER
FAVOR AT THE TIME OF EXECUTING THE RELEASE, AND THAT IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT
WITH THE DEBTOR OR RELEASED PARTY.

 

(c)
Borrower and each Obligor, if any, on behalf of itself and each other Releasor, waive and release any rights or benefits that
each may have under section 1542 to the full extent that it may lawfully waive such rights and benefits, and Borrower and each
Obligor, on behalf of itself and each other Releasor, acknowledge that each understands the significance and consequences of the
waiver of the provisions of section 1542 and that each has been advised by its attorney as to the significance and consequences
of this waiver.

 

(d)
Borrower and each Obligor, if any, understand, acknowledge and agree 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 that may be instituted,
prosecuted or attempted in breach of the provisions of such release.

 

    	 	3	 

    	 	 	 

    

 

(e)
Borrower and each Obligor, if any, agree that no fact, event, circumstance, evidence or transaction which could now be asserted
or which may hereafter be discovered affects in any manner the final, absolute and unconditional nature of the release set forth
above.

 

(f)
Borrower and each Obligor, if any, on behalf of itself and its successors, assigns and other legal representatives, hereby absolutely,
unconditionally and irrevocably, covenant and agree 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 Borrower
and each Obligor pursuant to Section 6 of this Agreement. If Borrower and each Obligor, if any, or any of its successors, assigns
or other legal representations violates the foregoing covenant, Borrower and each Obligor, if any, for itself and each other Releasor,
agree 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.

 

7.
Counterparts; Telefacsimile Execution. This Amendment may be executed in any number of counterparts and by
different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and
all of which, when taken together, shall constitute but one and the same Amendment. Delivery of an executed counterpart of this
Amendment by telefacsimile shall be equally as effective as delivery of a manually executed counterpart of this Amendment. Any
party delivering an executed counterpart of this Amendment by telefacsimile also shall deliver a manually executed counterpart
of this Amendment but the failure to deliver a manually executed counterpart shall not affect the validity, enforceability, and
binding effect of this Amendment.

 

8.
Integration. The Loan Agreement as amended by this Amendment constitutes the entire agreement and understanding
between the parties hereto with respect to the subject matter hereof and thereof, and supersedes any and all prior agreements
and understandings, oral or written, relating to the subject matter hereof and thereof.

 

9.
No Waiver. The execution of this Amendment and the acceptance of all other agreements and instruments related hereto
shall not be deemed to be a waiver of any Default or Event of Default, whether or not known to Lender and whether or not existing
on the date of this Amendment.

 

10.
Reaffirmation of the Loan Agreement. The Loan Agreement as amended hereby is reaffirmed by Borrower and remains
in full force and effect.

 

11.
Expenses. Borrower shall be liable to reimburse Lender for all reasonable costs and expenses (including, without
limitation, reasonable legal fees and expenses) that Lender incurs in connection with the preparation, negotiation, and execution
of this Amendment, including, without limitation, the reasonable costs and fees of outside legal counsel to Lender. Borrower hereby
authorizes Lender to effect payment of all such fees and expenses by a loan or advance pursuant to the terms of the Loan Documents.

 

[remainder
of page intentionally left blank]

 

    	 	4	 

    	 	 	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as
of the day and year first above written.

 

	LENDER:	borrower:
	 	 
	AUSTIN
    FINANCIAL SERVICES, INC., 

    a Delaware corporation	SUPERIOR
    DRILLING PRODUCTS, INC.

    a Utah corporation
	 	 	 	 
	By:	/s/
    Lance Gillis	By:	/s/
    Annette Meier 
	Name:	Lance
    Gillis 	Name:	Annette
    Meier
	Its:	Senior
    Vice President	Its:	COO/President
	 	 	 	 
	 	 	SUPERIOR
    DRILLING SOLUTIONS, LLC,  

    a Utah limited liability company 
	 	 	 	 
	 	 	By:	/s/
    Annette Meier 
	 	 	Name:	Annette
    Meier
	 	 	Its:	President
	 	 	 	 
	 	 	HARD
    ROCK SOLUTIONS, LLC,

    a Utah limited liability company 
	 	 	 	 
	 	 	By:	/s/
    Annette Meier 
	 	 	Name:	Annette
    Meier
	 	 	Its:	President
	 	 	 	 
	 	 	EXTREME
    TECHNOLOGIES, LLC,  

    a Utah limited liability company 
	 	 	 	 
	 	 	By:	/s/
    Annette Meier 
	 	 	Name:	Annette
    Meier
	 	 	Its:	President
	 	 	 	 
	 	 	MEIER
    LEASING, LLC, 

    a Utah limited liability company 
	 	 	 	 
	 	 	By:	/s/
    Annette Meier 
	 	 	Name:	Annette
    Meier
	 	 	Its:	President
	 	 	 	 
	 	 	MEIER
    PROPERTIES SERIES, LLC,  

    a Utah limited liability company
	 	 	 	 
	 	 	By:	/s/
    Annette Meier 
	 	 	Name:	Annette
    Meier
	 	 	Its:	President
	 	 	 	 
	Address
    for notices: 	Address
    for notices: 
	 	 
	Austin
        Financial Services, Inc.

        11111
        Santa Monica Blvd. Suite 900

        Los
        Angeles, CA 90025-9823

        Attn:
        Lance Gillis

        Telephone:
        (310) 444-7939

        Facsimile:
        (310) 444-7959
	Superior
        Drilling Solutions, LLC

        1583
        South 1700 East

        Vernal,
        UT 84078

        Attn:
        Chris Cashion, Chief Financial Officer

        Telephone:
        (435) 789-0594

        Facsimile:
        435-789-0595

         

        Mailing
        Address:

         

        Superior
        Drilling Solutions, LLC

        P.O.
        Box 1656

        Vernal,
        UT 84078

        Attn:
        Chris Cashion, Chief Financial Officer

 

    	 

    	 

    

 

schedule
3.4

to

Schedule A

to

LOAN
AND SECURITY AGREEMENT

 

EQUIPMENT
COLLATERAL

 

    	 

    	 

    

 

SCHEDULE
3.4

to

schedule a

TO

LOAN AND SECURITY AGREEMENT

 

EQUIPMENT
COLLATERAL

 

Description:

 

Item
#1

 

	Qty:
    (1)	Okuma
    Model Multus B750Wx4000 CNC Turning Center, S/N SR8.160111. (2012); 41.34” Maximum Turning Diameter, 157.48” Maximum
    Turning Length 12.5” Through Hole Spindel; with 25’D 4-Jaw Chuck’ 80-Position Automatic Tool Charger; and
    Okuma CNC Control

 

Item
#2

 

	Qty:
    (1)	DMG
    Mori Model CTX Gamma 3000TC CNC Turning Center, S/N 670000101, (2014); 27.55” Maximum Turning Diameter, 118.11”
    Maximum Turning Length; with Heavy-Duty Turning/Milling Spindle’ 80-Tool Magazine; Mist Extractor; ChipBLASTER Model
    JV-40 Coolant System; and Siemens Model Sinumerk 840D CNC Control

 

Item
#3

 

	Qty:
    (1)	Okuma
    Model Multus B400Wx15000 CNC Turning Center, S/N SR152318, (2011); 15.75” Maximum Turning Diameter, 59.06” Maximum
    Turning Length 160,000

 

    	 

    	 

    

 

schedule
B

to

LOAN AND SECURITY AGREEMENT

 

CERTAIN
CREDIT TERMS

 

    	 

    	 

    

 

		schedule
        B

        to

        LOAN AND SECURITY AGREEMENT

         

        CERTAIN
        CREDIT TERMS
	SUperior
    Drilling products, inc., a Utah
    corporation, SUPERIOR DRILLING SOLUTIONS, LLC, a Utah
    limited liability company, HARD ROCK SOLUTIONS, LLC, a Utah
    limited liability company, EXTREME TECHNOLOGIES, LLC, a Utah
    limited liability company, MEIER LEASING, LLC, a Utah limited liability company, and MEIER PROPERTIES,
    SERIES LLC, a Utah limited liability company,

    as “Borrower”
	 

	Loan
        and Security Agreement Section

        
	 	Credit
    Terms
	 	 	 
	Section
    A – Total Commitment	 	$4,300,000

         

	Section
    2.1 – Line of Credit Commitment:	 	$3,500,000
        less the Term Loan Reserve

         

	Section
    B – Exceptions to Concentration Limit: 	 	Concentration
        limits for certain Account Debtors:

         

        N/A

         

	Section
        2.1 – Accounts Advance Rate:

         
	 	85%

         

	Section
        2.1 – Inventory Advance Rate:

         
	 	50%
    
	Section
    2.1 – Inventory Sublimit:	 	The
        lesser of (a) $500,000, or (b) an amount equal to 50% of availability under clause (a) of the definition of “Borrowing
        Base” set forth in Schedule A.

         

	Section
        2.3 – Initial Term Loan Commitment:

         
	 	$800,000

         

	Section
    2.3 – Special Advance Term Loan Commitment	 	An
        amount equal to the sum of (A) $200,000 and (B) the difference of: (i) the Initial Term Loan Commitment minus (ii) the
        outstanding principal amount of the Initial Term Loan on the Amendment Number One Effective Date.

         

	Section
        2.4 – Monthly Term Loan Principal Reduction Payment:

         
	 	$27,778.00
	Section
    2.6(a) – Annual Facility Fee:	 	An
        amount equal to (i) 1.00% of the Total Commitment due on the Closing Date, and (ii) 0.50% of the Total Commitment due
        on every anniversary thereafter of the Closing Date.

         

    	 

    	 

    

 

	Loan
                                         and Security Agreement Section

        
	 	Credit
    Terms
	 	 	 
	Section
                                         2.6(d) – Collateral Management Fee Percentage:

         
	 	0.30%
	Section
                                         2.6(d) – Minimum Collateral Management Fee:

         
	 	Minimum
    Borrowing Amount times the Collateral Management Fee Percentage.
	Section
    2.6(e) – Line of Credit Termination and/or Reduction Fees:	 	An
                                         amount equal to the percentage of the Total Commitment set forth in the table below for
                                         the applicable period:

	 	 	 
	 	 	Year
                                         1              3.00%

                                                         Year
                                         2              2.00%

                                                         Year
                                         3              1.00%

                                                         Year
                                         4              1.00%

                                                         Year
                                         5                 
                                         0%

 

	Section 2.6(g) – Term Loan Prepayment Fees:

                                                                                 
	 	None.

         

	Section
    2.7(a) – Interest Rate:	 	The
        Interest Rate for all Advances shall be the sum of the Prime Rate plus two percentage points (2.00%).

         

        The
        Interest Rate for the Term Loan shall be the sum of the Prime Rate plus two percentage points (2.00%).

         

	Section
        2.7(c) – Minimum Interest:

         
	 	Minimum
        Borrowing Amount times the Interest Rate.

         

	Section
    5.9 Financial Statements Delivered at Closing:	 	CPA-audited
        financial statements for its fiscal year ended December 31, 2017, and internally-prepared financial statements for the
        fiscal-year-to-date period ended December 31, 2018

         

	Section
    6.3(f) – Annual Financial Statements:	 	CPA-reviewed
        within 120 days of fiscal year end

         

         

	Section
    9.1 – Initial Maturity Date:	 	February
    20, 2023EX-10.1

 Exhibit 10.1 

STOCKHOLDER AGREEMENT 

This Stockholder Agreement is entered into as of January 1, 2020 by and between The Carlyle Group Inc., a Delaware corporation (the
“Company”) and the undersigned stockholder (the “Stockholder Founder”). 
 RECITALS: 

WHEREAS, on our about the date hereof the Company has converted from a Delaware limited partnership to a Delaware corporation and, in
connection therewith, the Company and the Stockholder Founder wish to set forth certain understandings between them as set forth herein. 

NOW, THEREFORE, the parties agree as follows: 

ARTICLE I. 
 INTRODUCTORY MATTERS

 1.1 Defined Terms. In addition to the terms defined elsewhere herein, the following terms have the following meanings when
used herein with initial capital letters: 
 “Agreement” means this Stockholder Agreement, as the same may be amended,
supplemented, restated or otherwise modified from time to time in accordance with the terms hereof. 
 “Beneficially Own”
has the meaning set forth in Rule 13d-3 promulgated under the Exchange Act. 

“Board” means the board of directors of the Company. 

“Common Stock” means shares of common stock, par value $0.01 per share, of the Company, and any securities issued in respect
thereof, or in substitution therefor, in connection with any stock split, dividend or combination, or any reclassification, recapitalization, merger, consolidation or similar transaction. 

“Company” has the meaning set forth in the Preamble. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder,
as the same may be amended from time to time. 
 “Founders” means Messrs. William E. Conway, Jr., Daniel A. D’Aniello
and David M. Rubenstein. 
 “Stockholder Founder” has the meaning assigned to it in the preamble. 

“Stockholder Designator” means the Stockholder Founder or, in the event the Stockholder Founder is unable or unwilling
(whether as a result of the Stockholder Founder’s death or incapacity or otherwise) to act as Stockholder Designator hereunder for any reason, one or more members of the Stockholder Group that Beneficially Own a majority of the shares of Common
Stock Beneficially Owned by all members of the Stockholder Group. 

 “Stockholder Designee” means a director designated to the Board in
accordance with this Agreement. 
 “Stockholder Group” means, collectively, the (i) Stockholder Founder; (ii) a
member or members of the Stockholder Founder’s family (it being understood that “family” shall mean any relationship by blood, marriage or adoption including descendants of any degree of the Stockholder Founder or of the Stockholder
Founder’s spouse or siblings); (iii) a trust, estate, partnership or similar entity the beneficiaries of which are primarily the Stockholder Founder or a member or members of the Stockholder Founder’s family; (iv) a charitable trust,
partnership, foundation or similar entity controlled by any other member or members of the Stockholder Group; or (v) any other entity that is wholly owned by or established primarily for the benefit of such persons. 

1.2 Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express their
mutual intent, and no rule of strict construction will be applied against any party. Unless the context otherwise requires: (a) “or” is disjunctive but not exclusive, (b) words in the singular include the plural, and in the plural
include the singular, and (c) the words “hereof,” “herein,” and “hereunder” and words of similar import when used in this Agreement refer to this Agreement as a whole and not to any particular provision of this
Agreement, and Section references are to this Agreement unless otherwise specified. 
 ARTICLE II. 

CORPORATE GOVERNANCE MATTERS 
 2.1
Designation of Directors. 
 (a) (i) The Stockholder Designator shall be entitled to designate one Stockholder Designee for so
long as the Stockholder Group Beneficially Owns at least 5% of the issued and outstanding Common Stock. 
 (ii) In addition,
the Stockholder Designator shall be entitled to designate a second Stockholder Designee until the earlier of (x) such time as the Stockholder Group shall cease to beneficially own at least 20 million shares of Common Stock (as adjusted for
any stock split, stock dividend or other subdivision, reverse stock split or other combination, reclassification, reorganization or similar event) and (y) January 1, 2027. 

Whenever the Stockholder Designator designates a Stockholder Designee hereunder that is not a Founder (any such person, an “Additional
Director”), such Additional Director must be reasonably qualified as determined by the Nominating and Corporate Governance Committee of the Board acting in good faith; provided, that (A) the Nominating and Corporate Governance
Committee shall make a determination as to whether the Additional Director is reasonably qualified within 30 days of the Additional Director submitting to the Company a completed copy of the Company’s standard Directors and Officers
questionnaire (and if the Nominating and 

  
 2 

 
Corporate Governance Committee fails to make a determination and inform the Stockholder Designator in writing of such determination within such 30-day
period, such individual shall be deemed to be reasonably qualified for purposes of this Agreement); (B) in no event shall the Nominating and Corporate Governance Committee be permitted to unreasonably withhold, condition or delay its determination
that an individual is reasonably qualified; and (C) if the Company is no longer a “controlled company” under the applicable listing standards of the Nasdaq Stock Market or other national securities exchange upon which the Common Stock
is listed, at least one of the Stockholder Designees shall be independent under the applicable listing standards of the Nasdaq Stock Market or other national securities exchange upon which the Common Stock is listed. 

(b) No Stockholder Designee that the Stockholder Designator would then be entitled to designate pursuant to Section 2.1(a) shall be
removed without the consent of the Stockholder Designator delivered in accordance with Section 3.2 hereof. 
 (c) In the event that a
vacancy is created at any time by death, disability, retirement, removal (with or without cause), disqualification, resignation or otherwise with respect to any Stockholder Designee, the Company shall cause such vacancy to be filled, as soon as
possible, by a new designee of the Stockholder Designator who shall be entitled to serve the remaining term of the director whose vacancy such designee is filling (and such replacement shall be considered a “Stockholder Designee” for
purposes of this Agreement). 
 (d) The Company shall, to the fullest extent permitted by law, include in the slate of nominees recommended
by the Board at any meeting of stockholders called for the purpose of electing directors (or consent in lieu of meeting), each Stockholder Designee designated pursuant to this Section 2.1 and use its best efforts to cause the election of each
such Stockholder Designee to the Board, including nominating each such individual to be elected as a director as provided herein, recommending each such individual’s election and soliciting proxies or consents in favor thereof, in each case,
using the same level of efforts as it recommends, supports and solicits proxies or consents for the election of the other members of the Board. 

(e) In addition to any vote or consent of the Board or the stockholders of the Company required by applicable law or the certificate of
incorporation or bylaws of the Company, and notwithstanding anything to the contrary in this Agreement, for so long as this Agreement is in effect, any action by the Board to increase the total number of directors comprising the Board to a number
greater than twelve (other than any such increase in connection with the election of one or more directors elected exclusively by the holders of one or more classes or series of the Company’s shares other than Common Stock) shall require the
prior written consent of the Stockholder Designator, delivered in accordance with Section 3.2 hereof. 
 2.2 Board Chair and
Committees. For so long as the Stockholder Designator has the right to designate two Stockholder Designees pursuant to Section 2.1(a) hereof, the Founders, if any, who then serve as directors on the Board shall be entitled (but not
obligated) to designate (i) a Chair or Co-Chair(s) of the Board provided, that any such Chair or Co-Chair shall be a Founder; and (ii) except as
otherwise required by applicable law or the listing standards of the Nasdaq Stock Market or other national securities exchange upon which the Common Stock is listed, a Founder to serve on each of the Compensation Committee, the Nominating and
Corporate Governance Committee of the Board and any Executive Committee of the Board. 

  
 3 

 2.3 Other Rights of Stockholder Designees. Each Stockholder Designee shall be
entitled to the same rights and privileges applicable to all other members of the Board generally or to which all such members of the Board are entitled. In furtherance of the foregoing, the Company shall indemnify, exculpate, and reimburse fees and
expenses of each Stockholder Designee (including by entering into an indemnification agreement in a form substantially similar to the Company’s form director indemnification agreement) and provide each Stockholder Designee with director and
officer insurance to the same extent it indemnifies, exculpates, reimburses and provides insurance for the other members of the Board pursuant to the certificate of incorporation or bylaws of the Company, applicable law or otherwise. 

2.4 Resignations. If at any time the number of Stockholder Designees on the Board exceeds the number that the Stockholder Designator is
then entitled to designate pursuant to Section 2.1(a) above and the Nominating and Corporate Governance Committee of the Board so requests, the Stockholder Designator shall cause one or more of the Stockholder Designees, as the case may be, to
promptly resign from the Board; provided that in no event shall the Stockholder Founder himself ever be required to resign from the Board pursuant to this Section 2.4.  

ARTICLE III. 
 GENERAL PROVISIONS

 3.1 Termination. Unless earlier terminated by the Stockholder Designator pursuant to a written notice delivered to the
Company, this Agreement shall terminate automatically at the later of (i) such time as the Stockholder Designator shall have no right to designate any Stockholder Designee pursuant to Section 2.1(a) above and (ii) such time as there
shall be no Stockholder Designee serving on the Board pursuant to Section 2.1 above. 
 3.2 Notices. Any notice,
designation, request, request for consent or consent provided for in this Agreement shall be in writing and shall be either personally delivered, sent by facsimile or sent by reputable overnight courier service (charges prepaid) to the Company at
the address set forth below and to the Stockholder Designator at the address(es) indicated on the Company’s records, or at such address or to the attention of such other person as the recipient party has specified by prior written notice to the
sending party. Notices and other such documents will be deemed to have been given or made hereunder when delivered personally or sent by facsimile (receipt confirmed) and one (1) business day after deposit with a reputable overnight
courier service. 
 The Company’s address is: 

The Carlyle Group Inc. 
 1001
Pennsylvania Avenue, NW 
 Washington, DC 20004 

  
 4 

 (T) (202) 729-5626 

(F) (202) 729-5325 
 Attention:
General Counsel 
 Email: jeffrey.ferguson@carlyle.com 

3.3 Amendment; Waiver. The terms and provisions of this Agreement may be modified or amended only with the written approval of the
Company and the Stockholder Designator. 
 (a) Except as expressly set forth in this Agreement, neither the failure nor delay on the part of
any party hereto to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy power or privilege preclude any other or further exercise of the
same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other
occurrence. 
 (b) No party shall be deemed to have waived any claim arising out of this Agreement, or any right, remedy, power or privilege
under this Agreement, unless the waiver of such claim, right, remedy, power or privilege is expressly set forth in a written instrument duly executed and delivered on behalf of such party; and any such waiver shall not be applicable or have any
effect except in in the specific instance in which it is given. 
 3.4 Further Assurances. The Company will sign such further
documents, cause such meetings to be held, resolutions passed and do and perform and cause to be done such further acts and things necessary, proper or advisable in order to give full effect to this Agreement and every provision hereof. To the
fullest extent permitted by law, the Company shall not directly or indirectly take any action that is intended to, or would reasonably be expected to result in, the Stockholder Founder being deprived of the rights contemplated by this Agreement.

 3.5 Assignment. The rights of the Stockholder Founder under this Agreement may not be assigned without the express
prior written consent of the Company, and any attempted assignment, without such consent, will be null and void; provided that, for the avoidance of doubt, in no event shall the exercise of any rights, claims or benefits inuring to members of the
Stockholder Group under this Agreement constitute an assignment. 
 3.6 Third Parties. Except as provided herein with respect to
any member of the Stockholder Group, this Agreement does not create any rights, claims or benefits inuring to any person that is not a party hereto nor create or establish any third party beneficiary hereto. 

3.7 Governing Law. THIS AGREEMENT AND ITS ENFORCEMENT AND ANY CONTROVERSY ARISING OUT OF OR RELATING TO THE MAKING OR PERFORMANCE
OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE. 

  
 5 

 3.8 Jurisdiction; Waiver of Jury Trial. Each party hereto hereby (i) agrees
that any action, directly or indirectly, arising out of, under or relating to this Agreement shall exclusively be brought in and shall exclusively be heard and determined by either the Court of Chancery of the State of Delaware or, if such court
does not have subject matter jurisdiction thereof, the federal district court of the State of Delaware, and (ii) solely in connection with the action(s) contemplated by subsection (i) hereof, (A) irrevocably and unconditionally consents
and submits to the exclusive jurisdiction of the courts identified in subsection (i) hereof, (B) irrevocably and unconditionally waives any objection to the laying of venue in any of the courts identified in clause (i) of this
Section 3.8, (C) irrevocably and unconditionally waives and agrees not to plead or claim that any of the courts identified in such clause (i) is an inconvenient forum or does not have personal jurisdiction over any party hereto, and
(D) agrees that mailing of process or other papers in connection with any such action in the manner provided herein or in such other manner as may be permitted by applicable law shall be valid and sufficient service thereof. EACH PARTY HERETO
HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM OR ACTION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE
SERVICES CONTEMPLATED HEREBY. 
 3.9 Specific Performance. Each party hereto acknowledges and agrees that in the event of any
breach of this Agreement by any of them, the other parties hereto would be irreparably harmed and could not be made whole by monetary damages. Each party accordingly agrees to waive the defense in any action for specific performance that a remedy at
law would be adequate and agrees that the parties, in addition to any other remedy to which they may be entitled at law or in equity, shall be entitled to specific performance of this Agreement without the posting of a bond. 

3.10 Entire Agreement. This Agreement sets forth the entire understanding of the parties hereto with respect to the subject matter
hereof. There are no agreements, representations, warranties, covenants or understandings with respect to the subject matter hereof. This Agreement supersedes all other prior agreements and understandings between the parties with respect to such
subject matter. 
 3.11 Severability. If any provision of this Agreement, or the application of such provision to any party or person
or circumstance or in any jurisdiction, shall be held to be invalid or unenforceable to any extent, (i) the remainder of this Agreement shall not be affected thereby, and each other provision hereof shall be valid and enforceable to the fullest
extent permitted by law, (ii) as to such party, person or circumstance or in such jurisdiction such provision shall be reformed to be valid and enforceable to the fullest extent permitted by law, and (iii) the application of such provision
to other parties, persons or circumstances or in other jurisdictions shall not be affected thereby. 
 3.12 Headings and
Captions. The headings, subheadings and captions contained in this Agreement are included for convenience of reference only, and in no way define, limit or describe the scope of this Agreement or the intent of any provision hereof. 

  
 6 

 3.13 Counterparts. This Agreement and any amendment hereto may be signed in any
number of separate counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one Agreement (or amendment, as applicable). 

[Remainder of Page Intentionally Left Blank] 

  
 7 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year
first above written. 
  

			
	COMPANY:
	
	THE CARLYLE GROUP INC.
		
	By:	 	 /s/ Curtis L. Buser

	Name:	 	Curtis L. Buser
	Title:	 	Chief Financial Officer

  

			
	STOCKHOLDER FOUNDER:
	
	 /s/ William E. Conway, Jr.

	Name: William E. Conway, Jr.

 [Signature Page to The Carlyle Group Inc. Stockholder Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00303-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00303-of-00352.parquet"}]]