SEC Contract Filing

Filing Date: 2025-02-28

Document Content:
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>5
<FILENAME>eh250596666_ex1003.htm
<DESCRIPTION>EXHIBIT 10.3
<TEXT>
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<P STYLE="font: bold 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: right">EXHIBIT 10.3</P>

<P STYLE="font: bold 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: right">&nbsp;</P>

<P STYLE="font: bold 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">U.S. State and Local
Tax Sharing Agreement</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">This U.S. STATE AND LOCAL TAX SHARING
AGREEMENT, dated as of February 28, 2025 (this &#8220;<B>Agreement</B>&#8221;) is entered into by and between CompoSecure, Inc., a Delaware
corporation (&#8220;<B>Parent</B>&#8221;), and Resolute Holdings Management, Inc., (&#8220;<B>SpinCo</B>&#8221;), a Delaware corporation
(&#8220;<B>SpinCo</B>&#8221;, and together with Parent, the &#8220;<B>Companies</B>&#8221;, and each a &#8220;<B>Company</B>&#8221;).
Each of Parent and SpinCo is sometimes referred to herein as a &#8220;<B>Party</B>&#8221; and, collectively, the &#8220;<B>Parties</B>&#8221;.</P>

<P STYLE="font: bold 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Recitals</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">WHEREAS, pursuant to that certain
Separation and Distribution Agreement by and between the Parties, dated as of February 28, 2025 (the &#8220;<B>Separation and Distribution
Agreement</B>&#8221;), Parent intends to distribute 100 percent of the stock of SpinCo to its shareholders on a pro rata basis (the &#8220;<B>Spin-Off</B>&#8221;);</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">WHEREAS, after the Spin-Off, Parent,
and its affiliates, on the one hand, and SpinCo, and its affiliates, on the other hand, may be required to file certain Combined US State
and Local Tax Returns (as defined below); and</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">WHEREAS, Parent, and its affiliates,
on the one hand, and SpinCo and its affiliates, on the other hand, wish to allocate Tax assets and liabilities between themselves for
taxable periods ending after the Closing Date (defined below).</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">NOW, THEREFORE, in consideration of
the foregoing and the terms, conditions, covenants and provisions of this Agreement, each of the Parties mutually covenants and agrees
as follows:</P>

<P STYLE="font: bold 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: bold 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-bottom: 0pt">Section 1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Definitions.</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-bottom: 0pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">For purposes of this Agreement (including
the recitals hereof), the following terms have the following meanings:</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"><B>&#8220;Affiliate&#8221; </B>means
any entity that is directly or indirectly Controlled by either the person in question or an Affiliate of such person; provided, that neither
Parent nor SpinCo shall be considered an Affiliate of the other. As used in this paragraph, &#8220;<B>Control</B>&#8221; means the possession,
directly or indirectly, of the power to direct or cause the direction of the management and policies of a person, whether through ownership
of voting securities, by contract or otherwise;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">&#8220;<B>Apportionment Factor</B>&#8221;
means a ratio determined by a relevant taxing jurisdiction&#8217;s apportionment formula, including where applicable, sales, property
and payroll tax factors.</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-bottom: 0pt">&#8220;<B>Benefited Party</B>&#8221; shall have the meaning
set forth in Section 3.04(c) of this Agreement;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">&#8220;<B>Business Day</B>&#8221;
means any day other than a Saturday, a Sunday, or a day on which the Federal Reserve Bank