Document:

Exhibit 10.1

 

 

 

 

DATED 20th JULY
2022

 

 

 

 

ALL SEAS GLOBAL LIMITED

 (as Vendor)

 

and

 

YOSHITSU CO., LTD

(as Purchaser)

 

 

 

 

 

 

Agreement

for the Sale and Purchase of

100% of Issued Share Capital in

TOKYO LIFESTYLE LIMITED

(東京生活館有限公司)

 

 

 

 

 

 

Nixon Peabody
CWL

5th
Floor, Standard Chartered Bank Building

4-4A Des Voeux
Road Central

Hong Kong

Tel: (852)
2521 0880

Fax: (852)
2521 0220

E-mail: [*]

File Reference:
[*]

 

 

 

     

     

    

 

Table of contents

 

	1.	Definitions and Interpretation	1
	2.	Sale and Purchase of the Sale Shares	3
	3.	Consideration of Sale Shares	4
	4.	Completion	4
	5.	The Vendor’s Warranties and Undertakings	5
	6.	Limitations to the Vendor’s Warranties	6
	7.	The Purchaser’s Warranties	7
	8.	Regulatory Requirements	7
	9.	Stamp Duty and Costs	7
	10.	Confidentiality	8
	11.	Notice	8
	12.	Governing Law and Submission to Jurisdiction	9
	13.	Miscellaneous	9
	SCHEDULE 1	11
	SCHEDULE 1	12
	SCHEDULE 2	13
	SCHEDULE 3	14
	SCHEDULE 4	15
	SCHEDULE 5	16

 

    i

     

    

 

THIS AGREEMENT is made on 20th July 2022

 

BETWEEN

 

	1.	ALL SEAS GLOBAL LIMITED (普海環球有限公司),
a company incorporated in the British Virgin Islands and having its registered office at Vistra Corporate Services Centre, Wickhams Cay
II, Road Town, Tortola, VG 1110, British Virgin Islands (the “Vendor”); and

 

	2.	YOSHITSU CO., LTD (吉通貿易株式会社),
a company incorporated in Japan and listed on the Nasdaq (ticker: TKLF), having its registered office at Harumi Building, 2-5-9 Kotobashi,
Sumida-Ku, Tokyo 130-0022, Japan (the “Purchaser”).

 

In this Agreement, the Vendor and the Purchaser are
collectively referred to as “Parties”, and “Party” means each or any one of them, as the context
may require.

 

RECITALS:

 

	(A)	As at the date hereof, the Vendor owns 100% of the issued share capital of TOKYO LIFESTYLE LIMITED
(東京生活館有限公司)
(the “Company”), a company incorporated in Hong Kong with company number 2827237 and having its registered office at
Room 11, 12/F Wing On Plaza, 62 Mody Road, Tsimshatsui, Kowloon, Hong Kong.

 

	(B)	The Company is principally engaged in the import and retail of Japanese beauty and cosmetic products in
Hong Kong. As at the date hereof, the Company owns 100% of the issued share capital of SHENZHEN
QINGZHILIANGPIN NETWORK TECHNOLOGY CO., LTD (深圳市晴之良品网络科技有限公司).
Particulars of the Company (and its subsidiary collectively the “Group”) are set out in Schedule 1.

 

	(C)	The Purchaser wishes to purchase from the Vendor, and the Vendor wishes to sell to the Purchaser, 100%
of the issued share capital of the Company on the terms and conditions set out in this Agreement.

 

IT IS HEREBY AGREED:

 

		1.	Definitions and Interpretation

 

		1.1	In this Agreement where the context so admits the following words and expressions shall have the following
meanings:

 

	“Articles”	
    articles of association of the Company;

     

	
    “Business”

     
	
    the principal business of the Company, namely
the import and retail of Japanese beauty and cosmetic products in Hong Kong;

 

    1

     

    

 

	“Business Day”	
    a day, other than a Saturday, Sunday or public
    holiday or a day on which a tropical cyclone warning No. 8 or above or a “black rainstorm” warning signal is hoisted in Hong
    Kong at any time between 9:00 a.m. and 5:00 p.m., on which banks in Hong Kong are open for the general transaction of business;

     

	“Claim”	
    any action, litigation, suit, injunction, claim
    (whether or not any such claim involves or results in any actions or proceedings), demand, investigation, prosecution arbitration, judgment,
    awards and proceedings (whether based on contract, tort, made under common law or under statute, in any way relating to this Agreement
    and any document contemplated hereunder), whether joint or several, from time to time instituted, made or brought or threatened by any
    party being made or issued against the Purchaser or the Company by any third party which could directly and reasonably be expected to
    lead to a claim against a Vendor under this Agreement, including a claim for breach of warranties;

     

	“Completion”	
    completion of the sale and purchase of the Sale
    Shares as specified in Clause 4;

     

	“Completion Date”	
    date of completion of the sale and purchase of
    the Sale Shares as specified in Clause 4.1;

     

	“Encumbrance”	
    any option, right to acquire, right of pre-emption,
    mortgage, charge, pledge, lien, hypothecation, title retention, right of set off, counterclaim, trust arrangement or other security or
    any equity or restriction or adverse right of any description;

     

	
    “HK$”

     
	
    Hong Kong dollars, the lawful currency of Hong
    Kong;

     

	“Hong Kong”	
    the Hong Kong Special Administrative Region of
    the People’s Republic of China;

     

	“JPY”	
    Japanese Yen, the lawful currency of Japan;

     

	
    “Nasdaq”

     
	
    the Nasdaq Stock Market of the United States of
    America, and any reference to a “stock exchange” shall include reference to Nasdaq;

     

	“Sale Shares”	
    the 1,000,000 Shares, representing the entire
issued share capital of the Company, to be sold by the Vendor to the Purchaser subject to the terms of this Agreement;

 

    2

     

    

 

	“SEC”	
    the Securities and Exchange Commission of the
    United States of America;

     

	“Shares”	
    the issued shares of the Company;

     

	“this Agreement”	
    this agreement for the sale and purchase of the
    Sale Shares, as amended from time to time; and

     

	“Warranty/ies”	the representations and warranties given by the Vendor under Schedule 2 and any other representations, warranties and undertakings made by or on behalf of the Company in this Agreement or which have become the terms of this Agreement.

 

	1.2	Any references, express or implied, to statutes or statutory provisions shall be construed as references
to those statutes or provisions as respectively amended or re-enacted or as their application is modified from time to time by other provisions
(whether before or after the date hereof) and shall include any statutes or provisions of which they are re-enactments (whether with or
without modification) and any orders, regulations, instruments or other subordinate legislation under the relevant statute or statutory
provision. References to sections of consolidating legislation shall, wherever necessary or appropriate in the context, be construed as
including references to the sections of the previous legislation from which the consolidating legislation has been prepared.

 

		1.3	References in this Agreement to Clauses and Schedules are to clauses in and schedules to this Agreement
(unless the context otherwise requires). The Recitals and Schedules to this Agreement shall be deemed to form part of this Agreement.

 

		1.4	Headings are inserted for convenience only and shall not affect the construction of this Agreement.

 

		1.5	Expressions in relation to the “Vendor”, the “Purchaser” and the Company include
their respective successors and permitted assigns.

 

		1.6	References to “persons” shall include bodies corporate, unincorporated associations and partnerships
(whether or not having separate legal personalities).

 

		1.7	References to writing shall include any methods of reproducing words in a legible and non-transitory form.

 

		1.8	Words importing the singular include the plural and vice versa, words importing one gender or the neuter
include both genders and the neuter.

 

		2.	Sale and Purchase of the Sale Shares

 

		2.1	Subject to the terms of this Agreement, the Vendor shall sell, and the Purchaser shall purchase, the Sale
Shares with effect from Completion, free from all Encumbrances.

 

    3

     

    

 

		2.2	The Purchaser shall be entitled to exercise all rights attached or accruing to the Sale Share including,
without limitation, the right to receive all dividends, distributions or any return of capital declared, paid or made by the Company after
Completion.

 

		2.3	The Vendor undertakes that it shall use its reasonable efforts to procure that, prior to Completion:

 

		(a)	the Business shall be operated in the normal course in compliance with all laws and regulations and in
substantially the same manner as it had been carried on before the date of this Agreement, so as to maintain the Business as a going concern;
and

 

		(b)	it will not do, procure or permit to be done anything to prevent or to jeopardize the sale of the Sale
Shares in any way.

 

		3.	Consideration of Sale Shares

 

On the Completion Date (as hereinafter
defined), the Purchaser shall pay JPY 392,000,000 (equivalent to HK$21,757,960, converted at the rate of JPY 1 = HK$0.055505) to the Vendor,
being the total consideration of sale and purchase of the Sale Shares, subject to the terms of this Agreement.

 

		4.	Completion

 

		4.1	Completion shall take place at Nixon Peabody CWL, 5th Floor, Standard Chartered Bank Building,
4-4A Des Voeux Road Central, Hong Kong forthwith upon the signing of this Agreement or at such other place and time (“Completion
Date”) as the Vendor and the Purchaser shall agree.

 

		4.2	At Completion, the Vendor shall deliver to the Purchaser:

 

		(a)	the instrument of transfer in respect of the Sale Shares duly executed by the Vendor as transferor in
favour of the Purchaser as transferee in the form set out in Schedule 3;

 

		(b)	the sold note in respect of the Sale Shares duly executed by the Vendor as transferor in favour of the
Purchaser as transferee in the form set out in Schedule 4;

 

		(c)	the original share certificate(s) of all the Sale Shares;

 

		(d)	a certified true copy of the duly executed resolutions by the sole director of the Company in the form
set out in Schedule 5 approving, among others, the transfer of the Sale Shares and the registration of the Sale Shares in the name
of the Purchaser upon presentation of the duly stamped instruments of transfer to the board of the Company;

 

		(e)	certified true copy of the duly executed resolutions of the sole director of the Vendor approving and
authorizing the execution and completion of this Agreement.

 

    4

     

    

 

		4.3	At Completion, the Purchaser shall, against compliance with the provisions of Clause 4.2, deliver to the
Vendor:

 

		(a)	the sum of JPY 392,000,000 by way of cheque payable to the Vendor drawn on a licenced bank in Hong Kong
and/or Japan or by way of (telegraphic) bank transfer to the Vendor’s designated bank account;

 

		(b)	the bought note in respect of the Sale Shares duly executed by the Purchaser as transferee to the Vendor
as transferor in the form set out in Schedule 3; and

 

		(c)	certified true copy of the duly executed resolutions of the board of directors of the Purchaser approving
and authorizing the execution and completion of this Agreement.

 

		4.4	Subject to Clause 4.3, the Vendor shall perform such further acts and execute such further documents as
may be reasonably required to vest the beneficial and registered ownership of the Sale Shares in the Purchaser free from Encumbrances
and with all rights attached thereto and give effect to the obligations of the Vendor under this Agreement.

  

		5.	The Vendor’s Warranties and Undertakings

 

		5.1	The Vendor hereby represents and warrants to the Purchaser (for itself and for the benefit of its respective
successors) that the Warranties are true and accurate as at the date of this Agreement and at the time of Completion. The Vendor acknowledges
that the Purchaser is relying on the Warranties in entering into this Agreement. The Vendor agrees that the Purchaser shall treat each
of the Warranties as a condition of this Agreement.

 

		5.2	The Vendor agrees that the Purchaser may treat each of the Warranties as separate and independent. In
addition, each of the Warranties is without prejudice to any other Warranty and, except where expressly otherwise stated, no provision
in any Warranty shall govern or limit the extent or application of any other provision in any Warranty.

 

		5.3	In the event that any of the Warranties is breached or (as the case may be) proves to be untrue or misleading,
the Purchaser shall have the right to claim damages or otherwise take any actions against the Vendor for all losses, liabilities, damages,
costs and expenses (including legal expenses) which the Purchaser and its successors and assigns and/or the Company and its successors
and assigns may incur or sustain as a result thereof. Subject to Clause 6 and without prejudice to any other rights and remedies of the
Purchaser in relation any such breach of Warranties, the Vendor shall pay to the Purchaser and/or the Company:

 

		(a)	the full amount necessary to put the Purchaser and/or the Company into the position which would have existed
if the Warranties had not been breached or (as the case may be) had been true and not misleading; and

 

		(b)	all reasonable costs and expenses incurred by the Purchaser and/or the Company as a result of such breach.

 

    5

     

    

 

		5.4	The Purchaser shall only be entitled to take action after Completion in respect of any breach or non-fulfilment
of any of the Warranties and Completion shall not in any way constitute a waiver of any right of the Purchaser.

 

		5.5	The Vendor undertakes in relation to any Warranty which refers to the knowledge, information or belief
of the Vendor that it has made all reasonable and necessary enquiries into the subject matter of that Warranty and that it does not have
the knowledge, information or belief that the subject matter of that Warranty may not be correct, complete or accurate.

 

		5.6	Any Claim which has been made against the Vendor (and which has not been previously satisfied, settled
or withdrawn) shall be deemed to have been withdrawn and shall become fully barred and unenforceable on the expiry of the period of six
(6) months commencing on the date on which notice of the Claim was given to the Vendor unless:

 

		(a)	legal proceedings in respect of the Claim shall have been properly issued and validly served on the Vendor;
or

 

		(b)	in the case of a Claim based on a contingent liability, that contingent liability has become an actual
liability.

 

		6.	Limitations to the Vendor’s Warranties

 

		6.1	The Vendor shall not be liable for any claim in respect of the Warranties and other provisions under this
Agreement unless:

 

		(a)	the Vendor shall have received from the Purchaser written notice of such claim, specifying in reasonable
detail the event or default to which the claim relates and the nature of the breach and (if capable of being quantified at that time)
the amount claimed, not later than the expiry of the period of three years from the Completion Date (if the claim is not related to taxation
or corporate records and filings) or six (6) years from the Completion Date (if the claim is related to taxation or corporate records
and filings); and

 

		(b)	the aggregate amount of liability of the Vendor for all claims made in connection with this Agreement
shall not exceed the amount of the Consideration.

 

		6.2	Without prejudice to the Purchaser’s right to select the basis of any claim, to the extent to which the
Purchaser shall have been compensated in respect of any facts or circumstances for any one of a breach of Warranty in this Agreement,
the Purchaser shall not (to that extent) be entitled to recover compensation under any of the others of those bases in respect of the
same facts or circumstances.

 

    6

     

    

 

		7.	The Purchaser’s Warranties

 

		7.1	The Purchaser represents and warrants to the Vendor that:

 

		(a)	it has full power and authority to enter into and perform this Agreement and the provisions of this Agreement
constitute valid and binding obligations on it, in accordance with its terms; and

 

		(b)	the execution and delivery of, and the performance by it of its obligations under, this Agreement will
not result in a breach of any order, judgment or decree of any court or government agency in any country by which it is bound.

 

		8.	Regulatory Requirements

 

		8.1	The Parties acknowledge that the Purchaser is listed on the Nasdaq and may accordingly be subject to applicable
stock exchange and securities laws and regulations in respect of this Agreement and the sale and purchase contemplated hereunder. Performance
of the duties and obligations under this Agreement by the Parties shall be subject to compliance with the relevant laws and regulatory
requirements.

 

		8.2	Notwithstanding any provision of this Agreement to the contrary, where the Purchaser is for the time being
subject to any applicable laws or regulatory requirements in relation to its performance of this Agreement, the rights and obligations
of the Purchaser under the provisions of this Agreement shall be read and construed to the greatest extent permitted by, and in accordance
with such applicable laws and/or regulatory requirements.

 

		8.3	If any transaction contemplated under this Agreement requires the approval of the shareholders of the
Purchaser or the approval of the relevant regulatory authority, and such approval cannot be obtained in a timely manner, the Purchaser
has the absolute right to unilaterally terminate this Agreement and the sale and purchase hereunder with immediate effect upon written
notice to the Vendor, and without liability of whatever nature or for any loss or damage whatsoever and howsoever arising, or to postpone
the Completion Date until the relevant laws and regulatory requirements have been complied with.

 

		8.4	Each Party shall at its own expense comply with all laws and regulations applicable from time to time
relating to the sale and purchase under this Agreement, and with any conditions binding upon it in connection with any applicable licences,
registrations, permits and approvals.

 

		9.	Stamp Duty and Costs

 

		9.1	Stamp duty payable on the sale and purchase of the Sale Shares shall be borne by the Purchaser.

 

		9.2	Each Party shall pay its own costs and expenses of, and incidental to, the preparation and execution of
this Agreement.

 

    7

     

    

 

	10.	Confidentiality

 

	10.1	Each Party undertakes and agrees that the existence of this Agreement, the contents thereof, and the identity,
structure and background of the Parties shall not be disclosed to any person, except to affiliated companies of such Party and their respective
directors, senior executives, or employees and advisors bound by professional duty of confidentiality unless (a) prior written consent
has first been obtained from the other Party, or (b) if required by applicable law, order of competent courts, or stock exchange or securities
regulation, in which case the disclosing Party must promptly notify the other Party of such requirements as soon as such requirements
come to its notice and, to the extent possible, seek confidential treatment for such portions of the disclosure as may be requested by
the other Party.

 

	10.2	No public announcement or communication of any kind shall be made in respect of the subject matter of
this Agreement unless such public announcement or communication is required pursuant to the applicable laws and regulations or the requirements
of any stock exchange, the SEC or other regulatory body or authority. Where the Purchaser is so required to make any public announcement
or communication relating to this Agreement and the sale and purchase contemplated hereunder, the Vendor shall use its best endeavor to
assist in such disclosure as requested by the Purchaser including but not limited to allowing disclosure of its identity, ultimate beneficial
shareholding and/or relationship with the Purchaser and its subsidiaries.

 

	10.3	The obligations of each Party under this Clause 10 shall continue without limit in point of time but shall
cease to apply to any information coming into the public domain otherwise than by breach of any such Party of its said obligations, provided
that nothing contained in this Clause 10 shall prevent any Party from disclosing any such information to the extent required in or in
connection with legal proceedings arising out of this Agreement.

 

	11.	Notice

 

	11.1	Any notice or other communications to a Party under this Agreement shall be in writing and sent by hand,
courier, post, fax or email per the details provided below (or as updated by a Party and notified to the other Party in writing from time
to time):

 

	ALL SEAS GLOBAL LIMITED	
    Vistra Corporate Services Centre, Wickhams Cay II, 

Road Town, Tortola,
    VG 1110, British Virgin Islands

     

    Attention: the sole director

    Email:

     

	YOSHITSU CO., LTD	
    Harumi Building, 2-5-9 Kotobashi, Sumida-Ku, 

Tokyo 130-0022, Japan

     

    Attention: the board of directors

    Email:

 

	11.2	Any such notice or communication shall be sent to the Party to whom it is addressed and contain sufficient
reference and/or particulars to render it readily identifiable with the subject matter of this Agreement.

 

    8

     

    

 

	11.3	If delivered by hand, by courier or sent by fax or email, such notice or communication shall be deemed
to be received on the date of dispatch. If sent by post, it shall be deemed to be received three (3) Business Days after the date of dispatch
(in the case of local mail), and five (5) Business Days after the date of dispatch (in the case of overseas registered/certified mail).

 

	12.	Governing Law and Submission to Jurisdiction

 

	12.1	This Agreement shall be governed by, and construed in accordance with, Hong Kong law.

 

	12.2	Each Party irrevocably agrees that the courts of Hong Kong shall have exclusive jurisdiction in relation
to any claim, dispute or difference concerning this Agreement and any matter arising hereunder.

 

	13.	Miscellaneous

 

	13.1	No Party may assign any of its rights or transfer any of its obligations under this Agreement except with
the prior approval in writing of the other Party or as otherwise expressly provided in this Agreement.

 

	13.2	The illegality, invalidity or unenforceability of any part of this Agreement shall not affect the legality,
validity or enforceability of any other part of this Agreement.

 

	13.3	This Agreement constitutes the whole agreement between the Parties in connection with the sale and purchase
of the Sale Shares.

 

	13.4	Unless otherwise required by law, if any provisions of the Articles at any time conflict with any of the
provisions of this Agreement, the provisions of this Agreement shall prevail.

 

	13.5	This Agreement may be executed in one or more counterparts each of which shall be binding on each Party
by whom or on whose behalf it is so executed, but which together shall constitute a single instrument. For the avoidance of doubt, this
Agreement shall not be binding on any Party hereto unless and until it has been executed by or on behalf of all persons expressed to be
a Party hereto.

 

	13.6	Any waiver by any Party of any breach of a provision of this Agreement shall not be construed as a waiver
of any continuing or succeeding breach of such provision, a waiver of the provision itself, or a waiver of any other right under this
Agreement.

 

	13.7	Save as the Company which shall have the right to enforce any term of this Agreement, a person or company
who is not a Party to this Agreement shall not have any rights under the Contracts (Rights of Third Parties) Ordinance (Chapter 623 of
the Laws of Hong Kong) to enforce any term of this Agreement.

 

	13.8	Each Party acknowledges that it has been afforded the opportunity to obtain independent legal advice and
confirms by the execution of this Agreement that they have either done so or waived their right to do so in connection with the entering
into of this Agreement.

 

    9

     

    

 

IN WITNESS whereof this Agreement has been entered
into the day and year first above written.

 

	The Vendor	 
	 	 
	SIGNED by KANAYAMA Mei,	)
	Director, for and on behalf of	)
	ALL SEAS GLOBAL LIMITED	) /s/ KANAYAMA Mei
	 	)
	in the presence of:-	)
	 	 
	The Purchaser	 
	 	 
	SIGNED by	)
	Director, for and on behalf of	)
	YOSHITSU CO., LTD	) /s/ KANAYAMA Mei
	 	)
	in the presence of:-	)

 

    10

     

    

 

SCHEDULE 1

 

Particulars of the Group

 

	1.	Name of company:	
    TOKYO LIFESTYLE LIMITED

    (東京生活館有限公司)

     

	2.	Company number:	
    [*]

     

	3.	Address of registered office:	
    Room 11, 12/F Wing On Plaza, 62 Mody Road, Tsimshatsui, Kowloon, Hong
    Kong

     

	4.	Date and place of incorporation:	
    10 May 2019, Hong Kong

     

	5.	Issued shares:	
    1,000,000 shares

     

	6.	Issued share capital:	
    HK$1,000,000

     

	7.	Registered shareholder:	Name	Shareholding
	 	 	
     

    All Seas Global Limited

     
	
     

    1,000,000 (100%)

	8.	Director:	
    KANAYAMA Mei

     

	9.	Secretary:	NPCWL Tax and Corporate Services Limited

 

    11

     

    

 

SCHEDULE 1

 

Particulars of the Group

 

	1.	Name of company:	
    SHENZHEN QINGZHILIANGPIN NETWORK TECHNOLOGY CO., LTD

    (深圳市晴之良品网络科技有限公司)

     

	2.	Company number:	
    [*]

     

	3.	Address of registered office:	
    1708, Jinzhong Ring International Business Building, No. 3037, Jintan
    Road, Fu’an Community, Futian Street, Futian District, Shenzhen, the People’s Republic of China

     

	4.	Date and place of incorporation:	
    16 April 2020, the People’s Republic of China

     

	5.	Issued share capital:	
    RMB 20,000,000.00

     

	6.	Registered shareholder:	Name	Shareholding
	 	 	
     

    Tokyo Lifestyle Limited

     
	
     

    100%

	7.	Legal representative:	孙鹏

 

    12

     

    

 

SCHEDULE 2

 

The Vendor’s Warranties

 

Subject to the matters referred to herein, the
Vendor hereby represents, warrants and undertakes to the Purchaser that all statements of fact set out in this Schedule or otherwise contained
in this Agreement are true and accurate in all material respects as at the date hereof and at the time of the Completion.

 

	1.	The Vendor has full power and is authorised to enter into and perform this Agreement and this Agreement
will, when executed, constitute legal, valid and binding obligations on the Vendor in accordance with its terms.

 

	2.	The Sale Shares are fully paid or credited as fully paid and legally and beneficially owned by the Vendor
free from all Encumbrances and at Completion, the legal and beneficial ownership of the Sale Shares will be vested in the Purchaser or,
as the case may be, its respective nominees free from all Encumbrances together with all rights now or hereafter attaching thereto.

 

	3.	All information contained in this Agreement was when given true and accurate in all material respects
and there is no material fact or material matter which has not been disclosed, which may render any such information or documents untrue,
inaccurate or misleading in any material respect at the date of this Agreement or which if might reasonably be expected to influence materially
and adversely the Purchaser’s decision to purchase the Sale Shares on the terms of this Agreement.

 

	4.	No consent, licence, approval or authorisation of or filing or registration with or other requirements
of any governmental department authority or agency in the British Virgin Islands or any jurisdiction in which the Vendor reside or any
part thereof is required by the Vendor in relation to the valid execution, delivery or performance of this Agreement (or to ensure the
validity or enforceability thereof) and the sale of the Sale Shares.

 

	5.	The information set out in the recitals and this Schedule is true, accurate and complete in all material
respects.

 

	6.	All information (in writing) supplied or disclosed by or on behalf of the Vendor to the Purchaser or the
legal and professional advisers to the Purchaser for the purpose of this Agreement is true and accurate in all material respects.

 

    13

     

    

 

SCHEDULE 3

 

Form of Instrument of Transfer

 

    14

     

    

 

SCHEDULE 4

 

Form of Bought and Sold Notes 

 

    15

     

    

 

SCHEDULE 5

 

Form of Board Resolutions of the Company

 

 

16Document

Exhibit 10.1

GRANT NOTICE FOR
NON-EMPLOYEE DIRECTOR RESTRICTED STOCK UNIT AWARD 

[DATE]

PPG Industries, Inc. (the “Company”) and the Participant identified below are parties to a Non-Employee Director Restricted Stock Unit Award Agreement dated as of __________ (the “Agreement”).  Capitalized terms used in this Grant Notice shall have the respective meanings given to such terms in the Agreement, unless otherwise defined in this Grant Notice.  This Grant Notice confirms the grant to the Participant of an Award of Restricted Stock Units with the terms set forth below.  This Grant Notice is hereby incorporated by reference into and forms a part of the Agreement.  

						
	

Participant Name:
	
	

Date of Grant:
	
	

Number of Restricted Stock Units Granted:
	
	

Dividend Equivalents:
	“Dividend Equivalents” are granted with respect to this Restricted Stock Unit Award and shall be credited to Participant in accordance with paragraph 1.B of the Agreement.  “Dividend Equivalents” means the right to receive the equivalent value (in cash or shares) of dividends paid on one share of Common Stock for each share that may be issued under an Award. 

	

Vesting Date:
	The “Vesting Date” of the Award is __________

	

Forfeiture:
	This Award shall be forfeited as of the date of any termination of the Participant’s service as a member of the Board of the Company (“Director”) if such termination occurs prior to the Vesting Date (as set forth above).  Notwithstanding the foregoing (but subject to the continuing conditions provisions of paragraph 3 of the Agreement), the Award will no longer be subject to forfeiture (i) upon a Change in Control or (ii) if the Participant’s service as a Director terminates (A) following the first anniversary of the Date of Grant and (B) such termination is not due to the Participant’s resignation or removal as a Director at the request of a majority of the Board.  

												
	PPG Industries, Inc.			
				
		/s/ K. R. Walling 
		
	By:  Kevin R. Walling, Vice President and Chief Human Resources Officer
	

     

NON-EMPLOYEE DIRECTOR RESTRICTED STOCK UNIT AWARD AGREEMENT 

[DATE]

This NON-EMPLOYEE DIRECTOR RESTRICTED STOCK UNIT AWARD AGREEMENT (this “Agreement”) is entered into as of the date first written above by and between PPG Industries, Inc. (the “Company”) and ___________ (the “Participant”).

The Company maintains the PPG Industries, Inc. Omnibus Incentive Plan (as amended from time to time, the “Plan”), which is incorporated into and forms a part of this Agreement, and the Participant, a non-employee Director of the Company, has been selected by the Human Capital Management and Compensation Committee (the “Committee”) to receive an Award under the Plan.  Capitalized terms used in this Agreement shall, unless defined elsewhere in this Agreement, have the respective meanings given to such terms in the Plan.

The Award of Restricted Stock Units shall be confirmed by a separate Grant Notice to which this Agreement is attached (“Grant Notice”), specifying the Date of Grant of the Award, the number of Restricted Stock Units granted and the terms and conditions applicable to the vesting or forfeiture of such Restricted Stock Units.  Each Restricted Stock Unit is a bookkeeping entry representing the equivalent in value of a share of Common Stock.  Such Award shall be subject to the terms and conditions of this Agreement and such Grant Notice shall be deemed incorporated by reference into this Agreement.

NOW, THEREFORE, the Company and the Participant, intending to be legally bound, agree as follows:

1.Terms and Conditions of the Award. 

A.This Agreement sets forth the terms and conditions applicable to the Award of Restricted Stock Units confirmed in the Grant Notice.  The Award of Restricted Stock Units is made under Article VII of the Plan.  Unless and until the Restricted Stock Units are vested in the manner set forth in the Grant Notice and paragraph 2.A. hereof, the Participant shall have no right to settlement of any such Restricted Stock Units.

B.On each date that the Company pays a dividend on its Common Stock prior to the payment of the Award, the Participant shall be entitled to a Dividend Equivalent on each Restricted Stock Unit subject to this Agreement.  Unless prohibited under applicable law or otherwise determined by the Committee in its discretion, in the event and to the extent the Participant is permitted and elects to defer payment of the Restricted Stock Units subject to this Agreement, the value of such Dividend Equivalents shall be automatically deferred, on behalf of the Participant, into the Company’s Deferred Compensation Plan for Directors.  In the event such Dividend Equivalents are not so deferred, the Dividend Equivalents shall be paid to the Participant in the same form, based on the same record date and at the same time, as such dividend is paid by the Company on its Common Stock.  For purposes of the time and form of payment requirements of Section 409A of the Code and the U.S. Treasury Regulations issued thereunder (collectively “Section 409A”), such Dividend Equivalents shall be treated separately from the Restricted Stock Units.

C.From the Date of Grant until the Restricted Stock Units become vested or are forfeited in accordance with the terms of the Grant Notice and this Agreement, the Restricted Stock Units granted under this Agreement shall be reflected in a bookkeeping account maintained by the Company.

D.Prior to settlement of any vested Restricted Stock Units, such Restricted Stock Units will represent an unsecured obligation of the Company, payable (if at all) only from the general assets of the Company.  The Company’s obligations under this Agreement shall be unfunded and unsecured, and no special or separate fund shall be established and no other segregation of assets shall be made and the Participant shall have no greater rights than an unsecured general creditor of the Company.  Except as otherwise specifically provided in the Grant Notice or this Agreement, the Participant shall have no rights as a stockholder of the Company by virtue of this Award unless and until such Award is determined to be vested and resulting shares of Common Stock are issued to the Participant.  In addition, the Restricted Stock Units shall be subject to such restrictions as the Company may deem advisable under the rules, regulations and other requirements of 
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the Securities and Exchange Commission, any stock exchange upon which Common Stock is then listed, and any applicable federal or state securities law.

2.Provisions Applicable to Settlement of Restricted Stock Unit Awards.

A.Upon attainment of the Vesting Date (as defined in the Grant Notice) without a forfeiture of the Restricted Stock Units, and upon the satisfaction of all other applicable conditions as to the issuance of the Restricted Stock Units (including the payment by the Participant of all applicable Tax-Related Items as defined in paragraph 7), the Restricted Stock Unit Award granted under this Agreement shall be settled by issuance to the Participant of shares of Common Stock equal to the number of Restricted Stock Units set forth in the Grant Notice.

B.Any shares of Common Stock issued to the Participant with respect to his or her Award shall be subject to such restrictions as the Committee may deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission, the New York Stock Exchange and any applicable state or foreign securities laws, and the Committee may cause a legend or legends to be endorsed on any stock certificates for such shares making appropriate references to such legal restrictions.

C.Except as otherwise provided in this Agreement, and except in the event the Participant is permitted and has made an election to defer payout of the Restricted Stock Units pursuant to the terms and conditions established by the Company, the issuance of the shares of Common Stock in accordance with the provisions of this paragraph 2 will be delivered within thirty (30) days following the Vesting Date.  Payout of Restricted Stock Units that have been deferred shall be governed by the terms and conditions of the deferral election form.  In addition, any distribution that becomes due under the terms of this Agreement will be delayed in the following circumstances: (i) if the Company reasonably anticipates that the distribution will violate Federal securities laws or other applicable law, provided that the distribution is made at the earliest date at which the Company reasonably anticipates that the distribution will no longer cause such violation; or (ii) upon such other events and conditions as the Commissioner of the Internal Revenue Service may prescribe in generally applicable guidance published in the Internal Revenue Bulletin.

3.Continuing Conditions.  Notwithstanding any other provisions herein, the Participant, by execution of this Agreement, agrees and acknowledges that in return for the Award granted by the Company in this Agreement, the following continuing conditions shall apply:

A.If at any time prior to the Vesting Date or within one (1) year after the Vesting Date, without the prior written consent of the Company, the Participant engages in any activity in competition with any activity of the Company or any of its Subsidiaries, or contrary or harmful to the interests of the Company or any of its Subsidiaries, as determined in the sole discretion of the Board, including, but not limited to:  (i) conduct related to the Participant’s service as a Director of the Company for which either criminal or civil penalties against the Participant may be sought; (ii) violation of Company (or Subsidiary) code of ethics or similar policy ; (iii) accepting employment with or serving as a consultant, advisor or in any other capacity to an employer that is in competition with or acting against the interests of the Company or any of its Subsidiaries, including employing or recruiting any present, former or future employee of the Company or any of its Subsidiaries; (iv) disclosing or misusing any confidential information or material concerning the Company or any of its Subsidiaries; or (v) participating in a hostile takeover attempt, then this Award shall terminate effective as of the date on which the Participant enters into such activity, unless terminated sooner by operation of another term or condition of this Agreement, and any “Award Gain” realized by the Participant shall be paid by the Participant to the Company.  “Award Gain” shall mean the cash and the Fair Market Value of the Common Stock delivered to the Participant pursuant to paragraph 2 on the date of such delivery times the number of shares so delivered.  Any shares of Common Stock deferred by the Participant shall be considered to have been delivered for the purpose of this paragraph 3.

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B.By accepting this Agreement, the Participant consents to a deduction from any amounts the Company or any of its Subsidiaries owes the Participant from time to time (including amounts owed the Participant as a retainer, wages or other compensation, fringe benefits or vacation pay, as well as any other amounts owed to the Participant by the Company or any of its Subsidiaries), to the extent of the amounts payable to the Company by the Participant under paragraph 3.A. above.  Whether or not the Company elects to make any set-off in whole or in part, if the Company does not recover by means of set-off the full amount payable by the Participant, calculated as set forth above, the Participant agrees to pay immediately the unpaid balance to the Company.

4.Award Subject to Plan Provisions.  Unless otherwise expressly provided in the Grant Notice or this Agreement, the Restricted Stock Unit Award shall be subject to the provisions of the Plan, including, without limitation, Article XI.  In the event of any conflict between this Agreement and either the Grant Notice or the Plan, the Grant Notice or Plan, as applicable, shall control over this Agreement.

5.Applicable Law; Entire Agreement; Venue.  This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania without reference to any choice of law principles.  The Grant Notice, this Agreement and the Plan contain all terms and conditions with respect to the subject matter hereof.

For purposes of litigating any dispute that arises under the Award or this Agreement, the parties hereby submit to and consent to the jurisdiction of the Commonwealth of Pennsylvania, and agree that such litigation shall be conducted in the courts of Allegheny County, Pennsylvania, or other federal courts for the United States for the Western District of Pennsylvania, and no other courts, where this Award of Restricted Stock Units is made and/or to be performed.  The parties agree that, if suit is filed in Allegheny County courts, application will be made by one or both parties, without objection, to have the case heard in the Center for Commercial and Complex Litigation of the Court of Common Pleas of Allegheny County.

6.Further Assurances.  The Participant agrees, upon demand of the Company or the Committee, to do all acts and execute, deliver and perform all additional documents, instruments and agreements (including, without limitation, stock powers with respect to shares of Common Stock issued or otherwise distributed in relation to the Restricted Stock Units) which may be reasonably required by the Company or the Committee, as the case may be, to implement the provisions and purposes of the Grant Notice, this Agreement and the Plan.

7.Taxes.  Regardless of any action the Company and/or the Subsidiary retaining the Participant (the “Service Recipient”) take with respect to any or all income tax (including U.S. federal, state, and local tax and/or non-U.S. tax), social insurance, payroll tax, payment on account or other tax-related withholding (“Tax-Related Items”), the Participant acknowledges that the ultimate liability for all Tax-Related Items legally due by the Participant is and remains the Participant’s responsibility and that the Company and/or the Service Recipient (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Award, including the grant and vesting of the Restricted Stock Units, the conversion of the Restricted Stock Units into shares or the receipt of an equivalent cash payment, the subsequent sale of any shares acquired pursuant to the Restricted Stock Units and the receipt of any dividends or Dividend Equivalents; and (ii) do not commit to structure the terms of the grant or any aspect of the Award to reduce or eliminate the Participant’s liability for Tax-Related Items.

Prior to the relevant taxable event, the Participant shall pay or make adequate arrangements satisfactory to the Company and/or the Service Recipient to satisfy all Tax-Related Items.  

In this regard, the Company will withhold in shares of Common Stock upon the relevant taxable or tax withholding event, as applicable, unless the use of such withholding method is problematic under applicable tax or securities law or has materially adverse accounting consequences, in which case, the obligation for Tax-Related Items may be satisfied by one or a combination of the following methods:  

(i) arranging for the sale of shares of Common Stock acquired upon the vesting of the Award (on the Participant’s behalf and at the Participant’s direction pursuant to this authorization) and withholding from the cash proceeds; and /or 
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(ii) withholding from any wages or other cash compensation paid to the Participant by the Company and/or the Service Recipient or from any equivalent cash payment received in connection with the Award.  

The Company may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding amounts or other applicable withholding rates, including maximum applicable rates in the Participant’s jurisdictions(s).  In the event of over-withholding, the Participant may receive a refund of any over-withheld amount in cash and will have no entitlement to the equivalent in Common Stock or if not refunded, the Participant may seek a refund from the local tax authorities.  In the event of under-withholding, the Participant may be required to pay any additional Tax-Related Items directly to the applicable tax authority or to the Company.  If the obligation for Tax-Related Items is satisfied by withholding a number of shares as described herein, the Participant shall be deemed, for tax purposes only, to have been issued the full number of shares of Common Stock subject to the vested portion of the Award, notwithstanding that a number of shares are held back solely for the purpose of paying the Tax-Related Items due as a result of any aspect of the Award.  The Participant shall pay to the Company and/or the Employer any amount of Tax-Related Items that is required to be withheld or accounted for in connection with the Restricted Stock Units that cannot be satisfied by the means previously described.  The Company may refuse to deliver to the Participant any shares of Common Stock pursuant to the Award if the Participant fails to comply with his or her obligations in connection with the Tax-Related Items.

8.Transfer Restrictions.  This Award and the Restricted Stock Units are not transferable other than by will or the laws of descent and distribution, and may not be assigned, hypothecated or otherwise pledged and shall not be subject to execution, attachment or similar process.  Upon any attempt to effect any such disposition, or upon the levy of any such process, the Award shall immediately become null and void and the Restricted Stock Units shall be forfeited.  

9.Capitalization Adjustments.  The number of Restricted Stock Units awarded is subject to adjustment as provided in Section 11.07(a) of the Plan.  The Participant shall be notified of such adjustment and such adjustment shall be binding upon the Company and the Participant.

10.Securities Law Compliance.  Notwithstanding anything to the contrary contained herein, no shares of Common Stock shall be issued to the Participant upon vesting of this Restricted Stock Unit Award unless the Common Stock is then registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or, if such Common Stock is not then so registered, the Company has determined that such vesting and issuance would be exempt from the registration requirements of the Securities Act.  By accepting this Award, the Participant agrees not to sell any of the shares of Common Stock received under this Award at a time when the applicable laws or Company policies prohibit a sale.

11.Award Confers No Rights to Continued Service.  Nothing contained in the Plan or this Agreement shall give the Participant the right to be retained in the service of the Company or any Subsidiary or affect the right of any such service recipient to terminate the Participant’s service.

12.Severability.  If any provision of this Agreement shall be held to be illegal, invalid or unenforceable, that provision will be enforced to the maximum extent permissible and the legality, validity and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

13.Waiver.  The Participant acknowledges that a waiver by the Company of breach of any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach of this Agreement.

14.Electronic Delivery and Acceptance.  The Company may, in its sole discretion, decide to deliver any documents related to the Award or future awards under the Plan by electronic means or request the Participant’s consent to participate in the Plan by electronic means.  The Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.

15.Code Section 409A.  It is the intent that the Restricted Stock Units shall be exempt from or comply with the requirements of Section 409A, and any ambiguities herein will be interpreted in accordance with this intent.  The Company reserves the right, to the extent the Company deems 
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necessary or advisable in its sole discretion, to unilaterally amend or modify this Agreement as may be necessary to ensure that all vesting or payouts provided under this Agreement are made in a manner that complies with Section 409A or to mitigate any additional tax, interest and/or penalties or other adverse tax consequences that may apply under Section 409A if compliance is not practical; provided, however, that nothing in this paragraph 15 creates an obligation on the part of the Company to modify the terms of this Agreement or the Plan, and the Company makes no representation that the terms of the Restricted Stock Units will comply with Section 409A or that payments under the Restricted Stock Units will not be subject to taxes, interest and penalties or other adverse tax consequences under Section 409A.  In no event whatsoever shall the Company or any of its Subsidiaries or affiliates be liable to any party for any additional tax, interest or penalties that may be imposed on the Participant by Section 409A or any damages for failing to comply with Section 409A.

												
	Director			
				
				
	[Full Name]			
				
	PPG Industries, Inc.			
				
		/s/ K. R. Walling 
		
	By:  Kevin R. Walling, Vice President and Chief Human Resources Officer
	

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