Document:

Exhibit 10.1

 

 

TERMINATION AND FEE AGREEMENT

 

This TERMINATION AND FEE AGREEMENT
(the “Agreement”), dated as of February 9, 2022, is entered into by and between Atlantic Coastal Acquisition Corp.,
a Delaware corporation (“ACAH”), Alpha Merger Sub 1, Inc., a Delaware corporation (“Merger Sub”),
and Essentium, Inc., a Delaware corporation (“Company” or “Essentium”) (each, a “Party”
and collectively, the “Parties”).

 

Recitals

 

WHEREAS, on November 30, 2021,
the Parties entered into a Business Combination Agreement (the “Business Combination Agreement”), pursuant to which,
among other things, Merger Sub would merge with and into the Company, with the Company surviving such merger as a wholly owned subsidiary
of ACAH; and

 

WHEREAS, pursuant to Section
7.1(a) of the Business Combination Agreement, the Business Combination Agreement may be terminated by the mutual written consent of
ACAH and the Company; and

 

WHEREAS, the Parties desire
to execute this Agreement in order to mutually terminate the Business Combination Agreement, effective as of the date hereof (the “Termination
Date”), pursuant to Section 7.1(a) of the Business Combination Agreement.

 

Statement Of Agreement

 

NOW, THEREFORE, in consideration
of the foregoing premises and the respective representations, warranties, covenants and agreements contained herein, and intending to
be legally bound, the Parties hereto hereby agree as follows:

 

article
I

DEFINITIONS

 

Section
1.1.   Definitions.
Unless otherwise specifically defined herein, each capitalized term used but not defined herein shall have the meaning assigned to such
term in the Business Combination Agreement.

 

article
II

TERMINATION OF THE BUSINESS COMBINATION AGREEMENT

 

Section
2.1.   Termination;
Effect of Termination on the Business Combination Agreement. The Business Combination Agreement is hereby terminated, effective as
of the Termination Date (the “Business Combination Agreement Termination”), in
accordance with Section 7.2 of the Business Combination Agreement and the Parties’ rights and obligations under the Business
Combination Agreement are those set forth in Section 7.2 of the Business Combination Agreement. The Parties hereto acknowledge
that, by virtue of the Business Combination Agreement Termination, the PIPE Subscription Agreements and all other Ancillary Documents
(other than the Confidentiality Agreement) shall also terminate in accordance with their terms on the Termination Date.

 

 

     

     

    

article
III

FEES

 

Section
3.1.   Payments.

 

(a)   As a reimbursement of certain expenses incurred by ACAH in connection with the Business Combination Agreement, and in consideration
of the representations, warranties, covenants and agreements contained herein, Essentium shall pay when due the amounts described in this
Section 3.1 as set forth below, in each case by wire transfer of immediately available funds to the account set forth in Annex
A (and/or shall issue and deliver, as the case may be):

 

(i)   within five (5) business days of the consummation of the first Financing Transaction completed after the date of this Agreement,
an amount in cash equal to five percent (5%) of the aggregate gross proceeds to the Company of such Financing Transaction; provided that
if one or more additional Financing Transactions are consummated on or prior to March 8, 2023, an additional amount of cash shall be paid
within five (5) business days of the consummation of each such Financing Transaction equal to five percent (5%) of the aggregate gross
proceeds to the Company of each such Financing Transaction; provided further that the total amount payable pursuant to this Section 3.1(a)(i)
shall not exceed $7,500,000; and

 

(ii)   if the Company consummates a Sale of the Company (as defined herein) on or before March 8, 2023, the greater of (x) $2,000,000
and (y) an amount in cash equal to five percent (5%) of the net proceeds received by the Company upon the consummation of such Sale of
the Company, in each case within five (5) business days of the consummation of such Sale of the Company; and

 

(iii)  if the Company has not consummated a Sale of the Company on or prior to March 8, 2023, the Company shall issue and deliver
to ACAH a warrant, on mutually agreeable terms to be negotiated in good faith, to acquire a number of Company Shares in an amount equal
to five percent (5%) of the Fully Diluted Shares Outstanding as of the date hereof, as adjusted to take into account any stock split,
stock dividend or similar event effected with respect to the Company Shares on or after the date hereof and on or prior to the date of
the warrant, with an exercise price reflective of an implied equity value for Essentium of five hundred million dollars ($500,000,000.00)
as of the date of the warrant; and

 

(iv)  if the Company has not consummated a Sale of the Company on or prior to March 8, 2023, and ACAH determines to redeem its
public shares and liquidate or dissolve on or after March 8, 2023 (and does not withdraw such determination) an amount equal to $2,000,000,
to be paid no later than immediately prior to the consummation of ACAH’s liquidation.

 

    	 	-2-	 

     

    

 

(b)  For the purposes of this Agreement:

 

(i)   “Financing Transaction” means a transaction or series of related transactions in which Company Securities
are issued and sold for capital raising purposes or indebtedness for borrowed money is incurred by the Company.

 

(ii)   “Sale of the Company” means, whether in one or a series of transactions, (x) any merger, consolidation
or other business combination in which the Company is a constituent party or pursuant to which the business of the Company is combined
with that of another person, (y) the sale, lease, transfer, exclusive license or other disposition, in a single transaction or series
of related transactions, by the Company or any Subsidiary of the Company of a majority of the assets of the Company and its Subsidiaries
taken as a whole, or the sale or disposition (whether by merger or otherwise) of one or more Subsidiaries of the Company if a majority
of the assets of the Company and its Subsidiaries taken as a whole are held by such Subsidiary or Subsidiaries, except where such sale,
lease, transfer, exclusive license or other disposition is to a wholly-owned Subsidiary of the Company, or (z) the sale, transfer or other
disposition by Company Equityholders, in a single transaction or series of related transactions, to one Person or group of related Persons
(other than such transfers that would otherwise be permitted by the Transaction Support Agreements), Company Securities constituting at
least a majority of the Fully Diluted Shares Outstanding or Company Securities that represent at least a majority of the voting power
of all Company Securities, or any other transaction or series of related transactions of any kind or nature (other than transfers that
would otherwise be permitted by the Transaction Support Agreements) that results in a single party (or group of affiliated parties), acquiring
or holding Company Securities representing a majority of the outstanding voting power of the Company; provided that “Sale of
the Company” solely includes a bona fide, arms’ length transaction (or series of transactions, as the case may be) with
a third party and provided, further, that “Sale of the Company” does not include any Financing Transaction.

 

(c)   Essentium shall provide ACAH with at least five (5) Business Days’ prior written notice of the anticipated consummation
of a Financing Transaction or Sale of the Company, and shall provide ACAH with all reasonably requested information related thereto.

 

(d)   If the Company engages in any transaction that would be deemed a Sale of the Company absent the application of the first
proviso thereof, the Company shall (i) deliver the notice contemplated by Section 3.1(c) and (ii) include as an express provision
of such transaction the counterparty’s agreement to assume the obligations of the Company contained herein.

 

Section
3.2.   Default
Rate; Fees of Counsel.

 

(a)   If Essentium fails to pay any amounts payable under Section 3.1 or Section 3.2(b) due and owing pursuant to
the terms of this Agreement, the parties entitled to such unpaid amounts shall be permitted to impose a default interest that shall accrue
thereon and be paid by Essentium at the statutory legal rate set forth in 6 Del. C. §2301(a) from the date such amount was due and
payable pursuant to the terms of this Agreement until all such unpaid amounts have been paid in full.

 

    	 	-3-	 

     

    

 

(b)   In any action or other proceeding to enforce this Agreement, or for breach of this Agreement, the losing party shall pay
the prevailing Party the reasonable expenses (including attorneys’ fees, expert fees, and disbursements and costs) incurred by the
prevailing Party in that action. The losing Party shall pay or cause to be paid the prevailing Party’s reasonable expenses within
fourteen (14) calendar days of receipt of a written demand for payment of the prevailing Party’s expenses with supporting documentation
of those expenses.

 

Section
3.3.   Payments.
All payments due under this Agreement shall be paid in full, without deduction of taxes or other fees which may be imposed by any government
or other entity. All payments hereunder shall be in U.S. dollars in immediately available funds.

 

article
IV

REPRESENTATIONS AND WARRANTIES

 

Section
4.1.   Representations
and Warranties. Each of the Parties hereto represents and warrants to the other Parties that:

 

(a)   It has duly executed and delivered this Agreement and is fully authorized to enter into and perform this Agreement and every
term hereof and no further consents or approvals are required;

 

(b)   It has been represented by legal counsel in the negotiation and joint preparation of this Agreement, has received advice
from legal counsel in connection with this Agreement and is fully aware of this Agreement’s provisions and legal effect;

 

(c)   It enters into this Agreement freely, without coercion, and based on its own judgment and not in reliance upon any representations
or promises made by the other Party, apart from those set forth in this Agreement; and

 

(d)   It has the authority, and has obtained all necessary approvals, including but not limited to approval of the Parties’
respective Boards of Directors, as necessary, to enter into this Agreement and all the undertakings, covenants, representations, warranties
and other obligations and provisions contained in this Agreement.

 

article
V

RELEASE

 

Section
5.1.  Release
of ACAHi.. ACAH, for itself, and on behalf of its affiliates, equity holders, partners, joint venturers, lenders, administrators,
representatives, shareholders, parents, subsidiaries, officers, directors, attorneys, agents, employees, legatees, devisees, executors,
trustees, beneficiaries, insurers, predecessors, successors, heirs and assigns, hereby absolutely, forever and fully release and discharge
the Company and its affiliates and each of its respective present and former direct and indirect equity holders, directors, officers,
employees, predecessors, partners, shareholders, joint venturers, administrators, representatives, affiliates, attorneys, agents, brokers,
insurers, parent entities, subsidiary entities, successors, heirs, and assigns, and each of them, from all claims, contentions, rights,
debts, liabilities, demands, accounts, reckonings, obligations, duties, promises, costs, expenses (including, without limitation, attorneys’
fees and costs), liens, damages, losses, actions, and causes of action, of any kind whatsoever, whether due or owing in the past, present
or future and whether based upon contract, tort, statute or any other legal or equitable theory of recovery, and whether known or unknown,
suspected or unsuspected, asserted or unasserted, fixed or contingent, matured or unmatured, with respect to, pertaining to, based on,
arising out of, resulting from, or relating to the Business Combination Agreement, the Ancillary Documents or the transactions contemplated
by the Business Combination Agreement, provided however, that if a person or entity that is not a party to the Business Combination Agreement
or this Termination and Fee Agreement (other than any affiliate of ACAH) makes a claim of any sort against ACAH or both ACAH and Essentium,
this Agreement does not (i) bar ACAH from seeking indemnity or contribution from Essentium or (ii) bar Essentium from opposing any claim
by ACAH for indemnity or contribution.

 

    	 	-4-	 

     

    

 

Section
5.2.  Release
of Essentium. The Company, for itself, and on behalf of its affiliates, equity holders, partners, joint venturers, lenders, administrators,
representatives, shareholders, parents, subsidiaries, officers, directors, attorneys, agents, employees, legatees, devisees, executors,
trustees, beneficiaries, insurers, predecessors, successors, heirs and assigns, hereby absolutely, forever and fully release and discharge
ACAH, Merger Sub and their affiliates and each of their respective present and former direct and indirect equity holders, directors, officers,
employees, predecessors, partners, shareholders, joint venturers, administrators, representatives, affiliates, attorneys, agents, brokers,
insurers, parent entities, subsidiary entities, successors, heirs, and assigns, and each of them, from all claims, contentions, rights,
debts, liabilities, demands, accounts, reckonings, obligations, duties, promises, costs, expenses (including, without limitation, attorneys’
fees and costs), liens, damages, losses, actions, and causes of action, of any kind whatsoever, whether due or owing in the past, present
or future and whether based upon contract, tort, statute or any other legal or equitable theory of recovery, and whether known or unknown,
suspected or unsuspected, asserted or unasserted, fixed or contingent, matured or unmatured, with respect to, pertaining to, based on,
arising out of, resulting from, or relating to the Business Combination Agreement, the Ancillary Documents or the transactions contemplated
by the Business Combination Agreement, provided however, that if a person or entity that is not a party to the Business Combination Agreement
or this Termination and Fee Agreement (other than any affiliate of Essentium) makes a claim of any sort against Essentium or both ACAH
and Essentium, this Agreement does not (i) bar Essentium from seeking indemnity or contribution from ACAH or (ii) bar ACAH from opposing
any claim by Essentium for indemnity or contribution.

 

 

article
VI

GENERAL PROVISIONS

 

Section
6.1.  Press
Release; Required Disclosure. In the event that the Parties terminate the Business Combination Agreement, the Parties shall issue
a press release with respect to such termination in a form that is mutually agreed upon by the Parties. Thereafter, none of ACAH, Merger
Sub, the Company or any of their respective Affiliates shall make any public announcement or issue any public communication regarding
this Agreement or such termination, or any matter related to the foregoing, without first obtaining the prior consent of the Company or
ACAH, as applicable (which consent shall not be unreasonably withheld, conditioned or delayed), except if such announcement or other communication
is required by applicable Law or legal process (including pursuant to Securities Laws or the rules of any national securities exchange),
in which case ACAH or the Company, as applicable, shall use their commercially reasonable efforts to coordinate such announcement or communication
with the other party, prior to announcement or issuance and allow the other party a reasonable opportunity to comment thereon (which shall
be considered by ACAH or the Company, as applicable, in good faith); provided, however, that, notwithstanding anything contained
in this Agreement to the contrary, each Party and its Affiliates may make announcements and may provide information regarding this Agreement
and such termination to their respective owners, their Affiliates, and its and their respective directors, officers, employees, managers,
advisors, direct and indirect investors and prospective investors without the consent of any other Party.

 

 

    	 	-5-	 

     

    

The Parties acknowledge and
agree that, following the earlier of the Termination Date or the execution of this Agreement by ACAH (the “Applicable Date”),
ACAH may issue a Current Report on Form 8-K reporting the execution of this Agreement in the form and timing mutually agreed to by ACAH
and the Company; provided that in no event shall the Current Report on Form 8-K be issued later than four business days after the
Applicable Date. The Parties shall mutually agree as to the timing (subject to the foregoing proviso) and contents of any press release
or public announcement, or any additional communications required by Law or applicable stock exchange regulation in respect of this Agreement,
the Business Combination Agreement or the transactions contemplated hereby and thereby in accordance with Section 5.4 of the Business
Combination Agreement.

 

Section
6.2.  Counterparts;
Electronic Signatures. may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which
shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement or any Ancillary
Document (including any of the closing deliverables contemplated hereby) by e-mail, scanned pages or other electronic imaging (including
 “pdf,” “tif,” “jpg,” DocuSign, AdobeSign or other similar electronic transmission) shall be effective
as delivery of a manually executed counterparty to this Agreement or any such Ancillary Document.

 

Section
6.3.  Notices.
All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given (and shall be deemed
to have been duly given) by delivery in person, by e-mail (having obtained electronic delivery confirmation thereof (i.e., an electronic
record of the sender that the e-mail was sent to the intended recipient thereof without an “error” or similar message that
such e-mail was not received by such intended recipient)), or by registered or certified mail (postage prepaid, return receipt requested)
(upon receipt thereof) to the other Parties as follows:

 

(a)          
If to ACAH or Merger Sub, to:

 

Atlantic Coastal Acquisition
Corp.

6 St. Johns Lane

New York, NY 10013

Attn:Shahraab Ahmad

Email:shahraab@atlanticcoastalacquisition.com

  

with a copy (which shall
not constitute notice) to:

 

    	 	-6-	 

     

    

 

Pillsbury Winthrop Shaw
Pittman LLP

31 West 52nd Street

New York, NY 10019

Attn:Stephen B. Amdur

Bianca K. Bowen

	Email:	stephen.amdur@pillsburylaw.com
	 	bianca.bowen@pillsburylaw.com

 

(b)          If to Essentium, to:

 

Essentium Inc.

19025 N Heatherwilde Blvd, Suite 100

Pflugerville, TX 78660

Attn:Blake Teipel, Ph.D., Chief Executive Officer

Email:blake.teipel@essentium.com

 

with a copy (which shall
not constitute notice) to:

 

Latham & Watkins
LLP

301 Congress Avenue, Suite 900

Austin, TX 78701

	Attn:	Jenifer Smith
	 	Nick S. Dhesi
	Email:	jen.smith@lw.com
	 	nick.dhesi@lw.com

  

or to such other address as
the Party to whom notice is given may have previously furnished to the others in writing in the manner set forth above.

 

Section
6.4. Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect
to any choice of law or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause
the application of the law of any jurisdiction other than the State of Delaware.

 

Section
6.5.  WAIVER
OF JURY TRIAL. EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY OF ANY PROCEEDING, CLAIM,
DEMAND, ACTION, OR CAUSE OF ACTION (I) ARISING UNDER THIS AGREEMENT OR UNDER ANY ANCILLARY DOCUMENT OR (II) IN ANY WAY CONNECTED WITH
OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES IN RESPECT OF THIS AGREEMENT OR ANY ANCILLARY DOCUMENT OR ANY OF THE TRANSACTIONS
RELATED HERETO OR THERETO OR ANY FINANCING IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED HEREBY OR ANY OF THE TRANSACTIONS CONTEMPLATED
THEREBY, IN EACH CASE, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY, OR OTHERWISE. EACH PARTY HEREBY
AGREES AND CONSENTS THAT ANY SUCH PROCEEDING, CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY
AND THAT THE PARTIES MAY FILE AN ORIGINAL COUNTERPART OF A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF
THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE, AGENT
OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK
TO ENFORCE THE FOREGOING WAIVER, (B) EACH SUCH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) EACH SUCH PARTY
MAKES THIS WAIVER VOLUNTARILY AND (D) EACH SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION 5.5.

 

    	 	-7-	 

     

    

 

Section
6.6.  Submission
to Jurisdiction. Each of the Parties irrevocably and unconditionally submits to the exclusive jurisdiction of the Chancery Court of
the State of Delaware (or, if the Chancery Court of the State of Delaware declines to accept jurisdiction, any state or federal court
within State of New York, New York County), for the purposes of any Proceeding, claim, demand, action or cause of action (a) arising under
this Agreement or (b) in any way connected with or related or incidental to the dealings of the Parties in respect of this Agreement,
and irrevocably and unconditionally waives any objection to the laying of venue of any such Proceeding in any such court, and further
irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such Proceeding has been brought in
an inconvenient forum. Each Party hereby irrevocably and unconditionally waives, and agrees not to assert, by way of motion or as a defense,
counterclaim or otherwise, in any Proceeding claim, demand, action or cause of action against such Party (i) arising under this Agreement
or (ii) in any way connected with or related or incidental to the dealings of the Parties in respect of this Agreement, (A) any claim
that such Party is not personally subject to the jurisdiction of the courts as described in this Section 5.6 for any reason, (B) that
such Party or such Party’s property is exempt or immune from the jurisdiction of any such court or from any legal process commenced
in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution
of judgment or otherwise) and (C) that (x) the Proceeding, claim, demand, action or cause of action in any such court is brought against
such Party in an inconvenient forum, (y) the venue of such Proceeding, claim, demand, action or cause of action against such Party is
improper or (z) this Agreement, or the subject matter hereof, may not be enforced against such Party in or by such courts. Each Party
agrees that service of any process, summons, notice or document by registered mail to such party’s respective address set forth
in Section 5.3 shall be effective service of process for any such Proceeding, claim, demand, action or cause of action.

 

Section
6.7.  Integration;
Assignment; Binding Effect. This Agreement (together with the surviving portions of the Business Combination Agreement, as set forth
in Section 7.2 of the Business Combination Agreement) constitutes the entire agreement among the Parties with respect to their rights
and obligations upon and after the termination of the Business Combination Agreement and supersedes all other prior agreements and understandings,
both written and oral, among the Parties with respect to this subject matter. This Agreement may not be assigned by any Party (whether
by operation of law or otherwise) without the prior written consent of ACAH and the Company. Any attempted assignment of this Agreement
not in accordance with the terms of this Section 5.7 shall be void.

 

    	 	-8-	 

     

    

 

Section
6.8.  Parties
in Interest. This Agreement shall be binding upon and inure solely to the benefit of each Party and its successors and permitted assigns
and nothing in this Agreement, express or implied, is intended to or shall confer upon any other Person any rights, benefits or remedies
of any nature whatsoever under or by reason of this Agreement.

 

Section
6.9.   Severability.
Whenever possible, each provision of this Agreement will be interpreted in such a manner as to be effective and valid under applicable
Law, but if any term or other provision of this Agreement is held to be invalid, illegal or unenforceable under applicable Law, all other
provisions of this Agreement shall remain in full force and effect so long as the economic or legal substance of the transactions contemplated
hereby is not affected in any manner materially adverse to any Party. Upon such determination that any term or other provision of this
Agreement is invalid, illegal or unenforceable under applicable Law, the Parties shall negotiate in good faith to modify this Agreement
so as to effect the original intent of the Parties as closely as possible in an acceptable manner in order that the transactions contemplated
hereby are consummated as originally contemplated to the greatest extent possible.

 

Section
6.10.  Construction;
Interpretation. The term “this Agreement” means this Termination and Fee Agreement together with the Annexes hereto, as
the same may from time to time be amended, modified, supplemented or restated in accordance with the terms hereof. The headings set forth
in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement. No
Party, nor its respective counsel, shall be deemed the drafter of this Agreement for purposes of construing the provisions hereof, and
all provisions of this Agreement shall be construed according to their fair meaning and not strictly for or against any Party. Unless
otherwise indicated to the contrary herein by the context or use thereof: (a) the words, “herein,” “hereto,”
 “hereof” and words of similar import refer to this Agreement as a whole, including the Annexes, and not to any particular
section, subsection, paragraph, subparagraph or clause set forth in this Agreement; (b) masculine gender shall also include the feminine
and neutral genders, and vice versa; (c) words importing the singular shall also include the plural, and vice versa; (d) the
words “include,” “includes” or “including” shall be deemed to be followed by the words “without
limitation”; (e) references to “$” or “dollar” or “US$” shall be references to United States
dollars; (f) the word “or” is disjunctive but not necessarily exclusive; (g) the words “writing”, “written”
and comparable terms refer to printing, typing and other means of reproducing words (including electronic media) in a visible form; (h) the
word “day” means calendar day unless Business Day is expressly specified; (i) the word “extent” in the phrase
 “to the extent” means the degree to which a subject or other thing extends, and such phrase shall not mean simply “if”;
(j) all references to Articles, Sections or Annexes are to Articles, Sections or Annexes of this Agreement; and (k)  all references
to any Law will be to such Law as amended, supplemented or otherwise modified or re-enacted from time to time. If any action under this
Agreement is required to be done or taken on a day that is not a Business Day, then such action shall be required to be done or taken
not on such day but on the first succeeding Business Day thereafter.

 

[Signature Page Follows]

 

 

 

    	 	-9-	 

     

    

 

IN WITNESS WHEREOF, the undersigned
have caused this Agreement to be duly executed and delivered as of the date first above written.

 

	 	ATLANTIC COASTAL ACQUISITION CORP.
	 	 
	 	By: /s/ Shahraab Ahmad
	 	Shahraab Ahmad
	 	Chief Executive Officer
	 	 
	 	 
	 	
     

     

    ALPHA MERGER SUB 1, INC.

	 	 
	 	By: /s/ Shahraab Ahmad
	 	Shahraab Ahmad
	 	President
	 	 
	 	 
	 	ESSENTIUM, INC.
	 	 
	 	 
	 	By: /s/ Blake Teipel
	 	Blake Teipel
	 	Chief Executive Officer

 

    [Signature Page to Termination and Fee Agreement]

     

    

 

ANNEX A

 

ACAH Account Wire InstructionsDocument

DESCRIPTION OF ALLIANCEBERNSTEIN UNITS AND
ALLIANCEBERNSTEIN HOLDING L.P. UNITS

General

                      Interests in AllianceBernstein L.P. (“ABLP”) are in the form of units of limited partnership interest (“ABLP units”). Interests in AllianceBernstein Holding L.P. (“AB Holding”) are in the form of units representing assignments of beneficial ownership of limited partnership interests (“AB Holding units”). AB Holding is the record owner of a number of ABLP units equal to the number of AB Holding units then outstanding.  As of December 31, 2021, there were 99,271,727 AB Holding units outstanding and 271,453,043 ABLP units outstanding.

            The Board of Directors (the “GP Board”) of AllianceBernstein Corporation, the general partner, controls the activities of both AB Holding and ABLP.  The Board is not classified.  Unitholders of ABLP and AB Holding do not have the right to vote for members of the GP Board.  The right to appoint members of the GP Board rests with Alpha Units Holdings, Inc. (“Alpha”), the sole stockholder of the general partner.  Alpha is a wholly-owned subsidiary of Equitable Holdings, Inc. (“EQH”).  The common stock of EQH trades publicly on the New York Stock Exchange under the ticker symbol “EQH.”

            Among other rights, Delaware law gives limited partners the right to maintain a derivative action, the right to exercise voting powers and the right to inspect and copy a partnership's books and records. The respective Amended and Restated Agreements of Limited Partnership of ABLP and AB Holding also grant limited partners such rights.

            The general partner may, without the consent of the limited partners, amend either partnership agreement to qualify the partnership as a limited partnership or to preserve the limited liability of limited
partners.

            ABLP units do not trade publicly and are subject to significant transfer restrictions.  AB Holding units trade publicly on the New York Stock Exchange under the ticker symbol “AB.”

Restrictions on Transfers of ABLP Units

            As noted above, ABLP units are subject to significant liquidity restrictions. In general, transfers of ABLP units are allowed only with the written consent of both EQH and ABLP’s general partner. Only the written consent of EQH, and not the written consent of the general partner, is required for a “block transfer,” as described below, of units by a corporation or other business entity, provided that the partnership has received an opinion of counsel to the effect that the partnership will not be treated as a publicly-traded partnership for tax purposes as a result of the transfer. Either EQH or, where applicable, the general partner may withhold its consent to a transfer in its sole discretion, for any reason. Generally, neither EQH nor the general partner will permit any transfer that it believes would create a risk that ABLP would be treated as a corporation for tax purposes.

             ABLP does not recognize any transfer made without the appropriate consents. 

            EQH and the general partner may refuse to consent to any transfer that is not described in the safe harbors set forth in United States Treasury regulations. This fact does not imply, however, that either EQH or the general partner necessarily intends to permit transfers that are described in the safe harbors. Neither EQH, where relevant, the general partner is required to approve any transfer, and there can be no assurance that EQH or the general partner will approve a transfer even if the transfer would be permissible under the safe harbors. Permissible transfers under the safe harbors may include:

     (1) transfers at death;

     (2) transfers between certain family members; and

     (3) "block transfers."

            In general, a "block transfer" is the transfer within a 30-day period by a single holder, or group of related holders, of ABLP units representing more than 2% of the outstanding ABLP units. For these purposes, units held by EQH and its affiliates, other than AB Holding, will not be counted as outstanding.

Unitholders Have No Right to Direct the Business of AB Holding or ABLP

            The activities of AB Holding and ABLP are managed and controlled by the general partner. The general partner has agreed that it will conduct no active business other than managing AB Holding and ABLP, although it may make certain investments for its own account.  Neither AB Holding unitholders nor ABLP unitholders have any rights to manage or control AB Holding or ABLP, or, as noted above, to elect directors of the general partner. 

Change in Control

            As noted above, the general partner controls the activities of AB Holding and ABLP, and the general partner is a wholly-owned subsidiary of EQH.  Accordingly, any change in control of AB Holding or ABLP would require a sale by EQH of its interest in the general partner and consent of EQH.

Comparison of ABLP and AB Holding Unitholder Rights

            Set forth below is a comparison of AB Holding units and ABLP units. This summary is not complete and is qualified in its entirety by reference to the respective Amended and Restated Agreements of Limited Partnership of ABLP and AB Holding, each of which can be found on our firm’s website, www.alliancebernstein.com. 

            Under Delaware law and the Partnership Agreements, ABLP unitholders and AB Holding unitholders have substantially similar voting rights.

            The general partner may not be removed by AB Holding unitholders unless it is not, or is simultaneously removed as, the general partner of ABLP. The general partner also may not withdraw unless it is not, or simultaneously withdraws as, the general partner of both AB Holding and ABLP.

 Voting Rights

     AB Holding and ABLP unitholders generally have voting rights with respect to:

•the withdrawal, removal, transfer and replacement of the general partner;

•the merger or consolidation of AB Holding or ABLP with another entity,

•the sale of all or substantially all of the assets owned, directly or indirectly, by either AB Holding or ABLP;

•the dissolution of either AB Holding or ABLP;

•certain types of amendments to the Partnership Agreements;

•reconstitution of AB Holding or ABLP;

•election, compensation and approval of a liquidating trustee;

•conversion or reorganization of AB Holding or ABLP into another type of legal entity;

•issuance of units that rank senior to the originally issued AB Holding units or ABLP units, as the case may be.

            Each AB Holding unit and ABLP unit entitles the holder thereof to cast one vote on all matters presented to unitholders.

            Approval of any matter submitted to unitholders generally requires the affirmative vote of unitholders holding more than 50% of the units then outstanding, except that:

•any transfer by the general partner of all or substantially all of AB Holding’s or ABLP’s  assets where the general partner or its corporate affiliates have any direct or indirect equity interest in the person acquiring the partnership requires a vote of more than 50% of AB Holding or ABL unitholders, excluding employees of ABLP, their families, the general partner and its corporate affiliates;

•withdrawal of the general partner requires the approval of the holders of a majority of the units other than the general partner and its corporate affiliates;

•removal of the general partner without cause requires the vote of 80% of the outstanding units;

•except in limited circumstances, an election by the general partner to dissolve AB Holding or ABLP requires the approval of the holders of a majority of the units other than the general partner and its corporate affiliates;

•in certain circumstances upon which AB Holding or ABLP would otherwise be dissolved, a unanimous vote of the unitholders to continue the business of the partnership is necessary to avoid dissolution;

•any amendment that would adversely alter the rights and preferences of AB Holding or ABLP units requires the approval of the holders of a majority of the units other than the general partner and its corporate affiliates;

•any amendment that would adversely alter the rights and preference of any other class or series of units must be approved by a majority of that class; and

•any amendment for which AB Holding or ABLP does not receive a determination that as a result of such amendment:

▪the unitholders would not lose their limited liability pursuant to Delaware law or the applicable Partnership Agreement;

▪the partnership would not become subject to federal income tax or otherwise incur additional tax liabilities; and

▪certain advisory contracts of ABLP would not automatically be terminated or breached

requires the approval of the holders of a majority of the units other than the general partner and its corporate affiliates.

            Only the general partner may propose amendments to either the ABLP Partnership Agreement or the AB Holding Partnership Agreement.

            Any action that may be taken at a meeting of unitholders of AB Holding or ABLP may be taken by written consent in lieu of a meeting executed by unitholders of AB Holding or ABLP sufficient to authorize such action at a meeting of unitholders.

Distributions / Taxation

             AB Holding and ABLP each is required under its Partnership Agreement to distribute its available cash flow.

            AB Holding is subject to a 3.5% federal tax on its gross business income. Otherwise, AB Holding is not subject to federal or state income tax. Rather, unitholders include their respective 

shares of AB Holding’s income, gain, losses, deductions and credits in computing taxable income, without regard to the cash distributed to unitholders quarterly. Generally, cash distributions are not taxable, unless distributions exceed a unitholder’s basis in units.

            ABLP is not subject to the 3.5% federal tax, or any corresponding state tax, on its gross business income. Otherwise, its tax treatment identical to the tax treatment of AB Holding. 

            For the quarter ended December 31, 2021, each ABLP unit will be paid $1.38 per unit, while each AB Holding unitholder will be paid $1.29 per unit.  The difference in distribution rate primarily results from applicability of the 3.5% federal tax described immediately above.
Meetings

            Meetings of AB Holding unitholders may be called for any purpose with respect to which the unitholders are entitled to vote. Such meetings may be called by the general partner or by unitholders holding at least 50% of the issued and outstanding AB Holding units.

            Meetings of ABLP unitholders may be called for any purpose with respect to which the unitholders are entitled to vote. Such meetings may be called by the general partner, by unitholders holding at least 25% of the issued and outstanding ABLP units or at the request of AB Holding, in its capacity as a limited partner of ABLP, pursuant to the request of AB Holding unitholders holding at least 50% of the issued and outstanding AB Holding units. AB Holding unitholders have the right to attend meetings of ABLP unitholders.

Liquidation Rights

            In the event of the liquidation of either ABLP or AB Holding, the assets of the partnership remaining after the satisfaction of all debts and liabilities of the partnership will be distributed to unitholders pro rata in accordance with the positive balances in their capital accounts. Any remaining assets will be distributed to the unitholders in accordance with their percentage interests.

 Right to Compel Dissolution

            Under each Partnership Agreement, the general partner may dissolve AB Holding or ABLP if the general partner receives the approval of the holders of a majority of ABLP units or AB Holding units, as applicable, excluding units owned by the general partner and its corporate affiliates.  The general partner can compel dissolution by (1) means of a written determination that the projected future revenues of either AB Holding or ABLP over the next five years will not cover the partnership’s projected costs and expenses in the same period, or (2) the sale of all or substantially all of the assets of the partnership. In most cases, the withdrawal, removal, bankruptcy or dissolution of the general partner will also compel dissolution.

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