EXHIBIT (b)(2) [LETTERHEAD OF KOHLBERG & COMPANY] March 27, 2001 Board of Directors Katy Industries, Inc. 6300 S. Syracuse Way, Suite 300 Englewood, CO 80111-6723 Ladies and Gentlemen: Reference is made to the Preferred Stock Purchase and...Preferred Stock Purchase and Recapitalization Agreement • April 25th, 2001 • Kkty Holding Co LLC • Special industry machinery, nec
Reference is made to the Preferred Stock Purchase and Recapitalization Agreement (the "Definitive Agreement") by and among KKTY Holding Company, L.L.C. ("Newco") and Katy Industries, Inc. (the "Company"). This letter evidences the commitment of Kohlberg Investors IV, L.P., Kohlberg TE investors IV, L.P., Kohlberg Partners IV, L.P., Kohlberg Offshore Investors IV, L.P., (collectively "Kohlberg Fund IV") to purchase up to $60 million of common stock or other securities in Newco. The proceeds of such investment will be used to purchase a combination of existing outstanding common stock and newly-issued convertible preferred stock of the Company in connection with a partial recapitalization of the Company. Kohlberg Fund IV will purchase newly-issued securities of Newco for cash, using its committed pool of $425 million of equity capital.
andPreferred Stock Purchase and Recapitalization Agreement • April 13th, 2001 • Katy Industries Inc • Special industry machinery, nec • Delaware
