Exhibit 10.1

EXECUTION VERSION

FIRST AMENDMENT TO CREDIT AGREEMENT

THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is entered into as
of May 7, 2020 among MOHAWK INDUSTRIES, INC., a Delaware corporation (the
“Company”), the Guarantors party hereto, each Lender party hereto, and WELLS
FARGO BANK, NATIONAL ASSOCIATION, as the Administrative Agent. All capitalized
terms used herein and not otherwise defined herein shall have the meanings given
to such terms in the Credit Agreement (as defined below).

RECITALS

WHEREAS, the Company, the Guarantors party thereto, the Lenders party thereto,
and Wells Fargo Bank, National Association, as the Administrative Agent, entered
into that certain Credit Agreement, dated as of April 7, 2020 (as amended,
restated, amended and restated, supplemented, extended, replaced or otherwise
modified from time to time, the “Credit Agreement”);

WHEREAS, the Company has requested that the Credit Agreement be amended as set
forth below, subject to the terms and conditions specified in this Amendment;
and

WHEREAS, the parties hereto are willing to amend the Credit Agreement, subject
to the terms and conditions specified in this Amendment.

NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

1. Amendments to Credit Agreement.

(a) The definition of “Applicable Cash Balance” in Section 1.01 of the Credit
Agreement is amended to read as follows:

“Applicable Cash Balance” means, as of any date of determination, an amount
equal to the Applicable Cash Balance (as defined in the Existing Revolving
Credit Agreement (as in effect on the First Amendment Effective Date)) as
calculated pursuant to the Existing Revolving Credit Agreement (as in effect on
the First Amendment Effective Date).

(b) The proviso to clause (a)(v) of the definition of “Consolidated EBITDA” in
Section 1.01 of the Credit Agreement is amended to read as follows:

provided, that, the aggregate amount permitted to be added to Consolidated Net
Income pursuant to this clause (a)(v)(B) for any period shall not exceed (1) for
any period that is a Covenant Relief Measurement Period, $120,000,000 for such
period, and (2) for any period not specified in the immediately preceding clause
(1), seven and one half percent (7.5%) of Consolidated EBITDA as calculated by
this definition (but without adding back any amounts pursuant to this clause
(a)(v)(B)) for such period,

(c) The definition of “Loan Documents” in Section 1.01 of the Credit Agreement
is amended to read as follows:

“Loan Documents” means this Agreement, each Note, the Guaranty, each Joinder
Agreement, each Committed Loan Notice, the Fee Letter, and the First Amendment
Fee Letter; provided, that, the First Amendment Fee Letter shall not constitute
a Loan Document for purposes of Section 11.01.

 

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(d) Section 1.01 of the Credit Agreement is amended to add the following defined
terms in the appropriate alphabetical order:

“Covenant Relief Period” means the period commencing on June 28, 2020 and ending
on the Maturity Date.

“Covenant Relief Measurement Period” means each of (a) the period of four
consecutive fiscal quarters of the Company ending September 26, 2020, (b) the
period of four consecutive fiscal quarters of the Company ending December 31,
2020, and (c) the period of four consecutive fiscal quarters of the Company
ending April 3, 2021.

“First Amendment Effective Date” means May 6, 2020.

“First Amendment Fee Letter” means that certain fee letter agreement dated the
First Amendment Effective Date among the Company, the Administrative Agent and
Wells Fargo Securities, LLC.

“Leverage Trigger Event” means, on any date during the Covenant Relief Period,
the delivery by the Company of a Compliance Certificate pursuant to
Section 6.02(b) demonstrating that the Consolidated Net Leverage Ratio, as of
the last day of the period of four consecutive fiscal quarters of the Company
most recently ended on or prior to such date, was greater than 3.75 to 1.00 (it
being understood and agreed that if, during the Covenant Relief Period, the
Company fails to deliver a Compliance Certificate when due in accordance with
Section 6.02(b), a “Leverage Trigger Event” shall be deemed to have occurred as
of the date such Compliance Certificate was required to have been delivered, if
the Administrative Agent determines that the Consolidated Net Leverage Ratio, as
of the last day of the period of four consecutive fiscal quarters of the Company
most recently ended on or prior to such date, was greater than 3.75 to 1.00).

“Leverage Trigger Event End Date” means, with respect to any Leverage Trigger
Event, the first (1st) date occurring after such Leverage Trigger Event on which
the Administrative Agent shall have received a Compliance Certificate
demonstrating that (a) the Consolidated Net Leverage Ratio, as of the last day
of the period of four consecutive fiscal quarters of the Company most recently
ended on or prior to such date, was not greater than 3.75 to 1.00, and (b) the
Company was in compliance with Section 7.12 as of the last day of the period of
four consecutive fiscal quarters of the Company most recently ended on or prior
to such date.

“Leverage Trigger Period” means, with respect to any Leverage Trigger Event, the
period commencing upon the occurrence of such Leverage Trigger Event and ending
on the Leverage Trigger Event End Date with respect to such Leverage Trigger
Event.

“Share Repurchase” means any payment (whether in cash, securities or other
property), including any sinking fund or similar deposit, on account of the
purchase, redemption, retirement, acquisition, cancellation or termination of
any Equity Interest of the Company, or on account of any return of capital to
the Company’s stockholders, partners or members (or the equivalent Person
thereof).

 

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(e) The definitions of “Leverage Increase Period”, “Qualified Acquisition” and
“Qualified Acquisition Notice” in Section 1.01 of the Credit Agreement are
deleted.

(f) Section 2.09(b) of the Credit Agreement is amended to add a new clause
(iii) thereto immediately following clause (ii) to read as follows:

(iii) The Company shall pay to the Administrative Agent, in Dollars, fees in the
amounts, for the account of the Persons, and at the times, specified in the
First Amendment Fee Letter. Such fees shall be fully earned when paid and shall
not be refundable for any reason whatsoever.

(g) Section 7.06 of the Credit Agreement is amended as follows: (i) the “.” at
the end of Section 7.06(e) is amended to be a “;”; and (ii) the following
proviso is added immediately following Section 7.06(e) to read as follows:

provided, that, notwithstanding anything to the contrary set forth in this
Section 7.06, during any Leverage Trigger Period, the Company shall not, nor
shall it permit any Restricted Subsidiary to, declare of make, directly or
indirectly, any Share Repurchase (except to the extent permitted pursuant to
Section 7.06(c) or Section 7.06(e)).

(h) Section 7.12(b) of the Credit Agreement is amended to read as follows:

(b) Consolidated Net Leverage Ratio. Permit the Consolidated Net Leverage Ratio
as of the end of any fiscal quarter of the Company to be greater than (i) 3.75
to 1.00, for any fiscal quarter ending during the period from January 1, 2020 to
and including June 27, 2020, and (ii) 4.75 to 1.00, for any fiscal quarter
ending thereafter.

2. Conditions Precedent. This Amendment shall be effective upon satisfaction of
the following conditions precedent:

(a) receipt by the Administrative Agent of counterparts of this Amendment duly
executed by the Loan Parties, the Required Lenders, and the Administrative
Agent; and

(b) receipt by the Administrative Agent of evidence that an amendment to the
Existing Revolving Credit Agreement, in form and substance reasonably
satisfactory to the Administrative Agent, is effective (or will be effective
simultaneously with the effectiveness of this Amendment).

3. Miscellaneous.

(a) The Loan Documents and the obligations of the Loan Parties thereunder are
hereby ratified and confirmed and shall remain in full force and effect
according to their terms. This Amendment is a Loan Document.

(b) Each Loan Party represents and warrants that: (i) such Loan Party has all
requisite power and authority and all requisite governmental licenses,
authorizations, consents and approvals to execute, deliver and perform its
obligations under this Amendment; (ii) the execution, delivery and performance
by such Loan Party of this Amendment have been duly authorized by all necessary
corporate or other organizational action, and do not and will not (A) contravene
the terms of such Loan Party’s Organization Documents, (B) conflict with or
result in any breach or contravention of (1) any material Contractual Obligation
to which such Loan Party

 

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is a party or affecting such Loan Party or the properties of such Loan Party or
any of its Restricted Subsidiaries, or (2) any order, injunction, writ or decree
of any Governmental Authority or any arbitral award to which such Loan Party or
its property is subject, (C) result in the creation of any Lien under any
material Contractual Obligation to which such Loan Party is a party or affecting
such Loan Party or the properties of such Loan Party or any of its Restricted
Subsidiaries, except for Liens permitted under the Credit Agreement, or
(D) violate any Law; (iii) no approval, consent, exemption, authorization, or
other action by, or notice to, or filing with, any Governmental Authority or any
other Person is necessary or required in connection with the execution, delivery
or performance by such Loan Party of this Amendment; (iv) this Amendment has
been duly executed and delivered by such Loan Party and constitutes a legal,
valid and binding obligation of such Loan Party, enforceable against such Loan
Party in accordance with its terms; provided, that, the enforceability of this
Amendment is subject in each case to general principles of equity and to
bankruptcy, insolvency (including administration) and similar Laws affecting the
enforcement of creditors’ rights generally; and (v) after giving effect to this
Amendment, (A) the representations and warranties of the Loan Parties contained
in Article V of the Credit Agreement (as amended by this Amendment) or in any
other Loan Document, or in any document furnished at any time under or in
connection therewith, shall be true and correct in all material respects (or, if
qualified by materiality or Material Adverse Effect, in all respects) on and as
of the date of this Amendment (except to the extent that such representations
and warranties specifically refer to an earlier date, in which case they shall
be true and correct as of such earlier date) and except that for purposes of
this Section 3(b)(v)(A), the representations and warranties contained in
Section 5.05(a) of the Credit Agreement shall be deemed to refer to the most
recent statements furnished pursuant to Section 6.01(a) of the Credit Agreement,
and (B) no Default shall exist.

(c) This Amendment may be executed in counterparts (and by different parties
hereto in different counterparts), each of which shall constitute an original,
but all of which when taken together shall constitute a single contract.
Delivery of an executed counterpart of a signature page of this Amendment by
facsimile or other electronic imagine means shall be effective as delivery of a
manually executed counterpart of this Amendment.

(d) If any provision of this Amendment is held to be illegal, invalid or
unenforceable, (i) the legality, validity and enforceability of the remaining
provisions of this Amendment shall not be affected or impaired thereby and
(ii) the parties shall endeavor in good faith negotiations to replace the
illegal, invalid or unenforceable provisions with valid provisions the economic
effect of which comes as close as possible to that of the illegal, invalid or
unenforceable provisions. The invalidity of a provision in a particular
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

(e) THIS AMENDMENT AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION
(WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR
RELATING TO THIS AMENDMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY, SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

(f) The terms of Sections 11.14 and 11.15 of the Credit Agreement with respect
to submission to jurisdiction, waiver of venue and waiver of jury trial are
incorporated herein by reference, mutatis mutandis, and the parties hereto agree
to such terms.

[Signature pages follow]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed as of the date first above written.

 

COMPANY:     MOHAWK INDUSTRIES, INC.     By:  

/s/ Shailesh Bettadapur

    Name:   Shailesh Bettadapur     Title:   Vice President and Treasurer
GUARANTORS:     ALADDIN MANUFACTURING CORPORATION     By:  

/s/ Shailesh Bettadapur

    Name:   Shailesh Bettadapur     Title:   Authorized Representative    
DAL-TILE DISTRIBUTION, INC.     By:  

/s/ Shailesh Bettadapur

    Name:   Shailesh Bettadapur     Title:   Authorized Representative

 

 

MOHAWK INDUSTRIES, INC.

FIRST AMENDMENT TO CREDIT AGREEMENT

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ADMINISTRATIVE AGENT:     WELLS FARGO BANK, NATIONAL ASSOCIATION,     as
Administrative Agent     By:  

/s/ Kay Reedy

    Name:   Kay Reedy     Title:   Managing Director

 

MOHAWK INDUSTRIES, INC.

FIRST AMENDMENT TO CREDIT AGREEMENT

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LENDERS:     WELLS FARGO BANK, NATIONAL ASSOCIATION,     as a Lender     By:  

/s/ Kay Reedy

    Name:   Kay Reedy     Title:   Managing Director

 

MOHAWK INDUSTRIES, INC.

FIRST AMENDMENT TO CREDIT AGREEMENT

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PNC BANK, NATIONAL ASSOCIATION,

as a Lender

By:  

 

Name:   Title:  

 

MOHAWK INDUSTRIES, INC.

FIRST AMENDMENT TO CREDIT AGREEMENT

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U.S. BANK NATIONAL ASSOCIATION,

as a Lender

By:  

/s/ Sean P. Walters

Name:   Sean P. Walters Title:   Vice President

 

MOHAWK INDUSTRIES, INC.

FIRST AMENDMENT TO CREDIT AGREEMENT

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BNP PARIBAS,

as a Lender

By:  

/s/ Monica Tilani

Name:   Monica Tilani Title:   Vice President By:  

/s/ Kirk Hoffman

Name:   Kirk Hoffman Title:   Managing Director

 

MOHAWK INDUSTRIES, INC.

FIRST AMENDMENT TO CREDIT AGREEMENT

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BANK OF AMERICA, N.A.,

as a Lender

By:  

/s/ Stephen J. D’Elia

Name:   Stephen J. D’Elia Title:   Vice President

 

MOHAWK INDUSTRIES, INC.

FIRST AMENDMENT TO CREDIT AGREEMENT

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JPMORGAN CHASE BANK, N.A.,

as a Lender

By:  

/s/ Jonathan Bennett

Name:   Jonathan Bennett Title:   Executive Director

 

MOHAWK INDUSTRIES, INC.

FIRST AMENDMENT TO CREDIT AGREEMENT

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MIZUHO BANK, LTD.,

as a Lender

By:  

 

Name:   Title:  

 

MOHAWK INDUSTRIES, INC.

FIRST AMENDMENT TO CREDIT AGREEMENT

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UNICREDIT BANK AG, NEW YORK BRANCH,

as a Lender

By:  

 

Name:   Title:   By:  

 

Name:   Title:  

 

MOHAWK INDUSTRIES, INC.

FIRST AMENDMENT TO CREDIT AGREEMENT

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GOLDMAN SACHS BANK USA,

as a Lender

By:  

/s/ Jamie Minieri

Name:   Jamie Minieri Title:   Authorized Signatory

 

MOHAWK INDUSTRIES, INC.

FIRST AMENDMENT TO CREDIT AGREEMENT

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KBC BANK N.V., NEW YORK BRANCH,

as a Lender

By:  

/s/ Deborah Carlson

Name:   Deborah Carlson Title:   Director By:  

/s/ Francis Payne

Name:   Francis Payne Title:   Managing Director

 

MOHAWK INDUSTRIES, INC.

FIRST AMENDMENT TO CREDIT AGREEMENT