Document:

Exhibit 10.1

 

FRANCESCA’S HOLDINGS CORPORATION

2015 EQUITY INCENTIVE PLAN

	 	1.	PURPOSE OF PLAN

 

The purpose of this Francesca’s Holdings Corporation 2015
Equity Incentive Plan (this “Plan”) of Francesca’s Holdings Corporation, a Delaware corporation (the “Corporation”),
is to promote the success of the Corporation and the interests of the Corporation’s stockholders by providing an additional
means through the grant of awards to attract, motivate, retain and reward selected employees and other eligible persons.

 

	 	2.	ELIGIBILITY

 

The Administrator (as such term is defined in Section 3.1) may
grant awards under this Plan only to those persons that the Administrator determines to be Eligible Persons. An “Eligible
Person” is any person who is either: (a) an officer (whether or not a director) or employee of the Corporation or one
of its Subsidiaries; (b) a director of the Corporation or one of its Subsidiaries; or (c) an individual consultant or advisor who
renders or has rendered bona fide services (other than services in connection with the offering or sale of securities of the Corporation
or one of its Subsidiaries in a capital-raising transaction or as a market maker or promoter of securities of the Corporation or
one of its Subsidiaries) to the Corporation or one of its Subsidiaries and who is selected to participate in this Plan by the Administrator;
provided, however, that a person who is otherwise an Eligible Person under clause (c) above may participate in this Plan only if
such participation would not adversely affect either the Corporation’s eligibility to use Form S-8 to register under the
Securities Act of 1933, as amended (the “Securities Act”), the offering and sale of shares issuable under this
Plan by the Corporation or the Corporation’s compliance with any other applicable laws. An Eligible Person who has been granted
an award (a “participant”) may, if otherwise eligible, be granted additional awards if the Administrator shall
so determine. As used herein, “Subsidiary” means any corporation or other entity a majority of whose outstanding
voting stock or voting power is beneficially owned directly or indirectly by the Corporation; and “Board” means
the Board of Directors of the Corporation.

 

	 	3.	PLAN ADMINISTRATION

 

	 	3.1	The Administrator.  This Plan shall be administered by and all awards under this Plan shall be authorized by the Administrator. The “Administrator” means the Board or one or more committees appointed by the Board or another committee (within its delegated authority) to administer all or certain aspects of this Plan. Any such committee shall be comprised solely of one or more directors or such number of directors as may be required under applicable law. A committee may delegate some or all of its authority to another committee so constituted. The Board or a committee comprised solely of directors may also delegate, to the extent permitted by Section 157(c) of the Delaware General Corporation Law and any other applicable law, to one or more officers of the Corporation, its powers under this Plan (a) to designate the officers and employees of the Corporation and its Subsidiaries who will receive grants of awards under this Plan, and (b) to determine the number of shares subject to, and the other terms and conditions of, such awards. The Board may delegate different levels of authority to different committees with administrative and grant authority under this Plan. Unless otherwise provided in the Bylaws of the Corporation or the applicable charter of any Administrator: (a) a majority of the members of the acting Administrator shall constitute a quorum, and (b) the vote of a majority of the members present assuming the presence of a quorum or the unanimous written consent of the members of the Administrator shall constitute action by the acting Administrator.

 

	 	3.2	Powers of the Administrator.  Subject to the express provisions of this Plan, the Administrator is authorized and empowered to do all things necessary or desirable in connection with the authorization of awards and the administration of this Plan (in the case of a committee or delegation to one or more officers, within any express limits on the authority delegated to that committee or person(s)), including, without limitation, the authority to:

 

	 	(a)	determine eligibility and, from among those persons determined to be eligible, the particular Eligible Persons who will receive an award under this Plan;

 

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	 	(b)	grant awards to Eligible Persons, determine the price (if any) at which securities will be offered or awarded and the number of securities to be offered or awarded to any of such persons (in the case of securities-based awards), determine the other specific terms and conditions of awards consistent with the express limits of this Plan, establish the installment(s) (if any) in which such awards shall become exercisable or shall vest (which may include, without limitation, performance and/or time-based schedules), or determine that no delayed exercisability or vesting is required, establish any applicable performance-based exercisability or vesting requirements, determine the extent (if any) to which any applicable exercise and vesting requirements have been satisfied, and establish the events (if any) of termination, expiration or reversion of such awards;

 

	 	(c)	approve the forms of any award agreements (which need not be identical either as to type of award or among participants);

 

	 	(d)	construe and interpret this Plan and any agreements defining the rights and obligations of the Corporation, its Subsidiaries, and participants under this Plan, make any and all determinations necessary under this Plan and any such agreements, further define the terms used in this Plan, and prescribe, amend and rescind rules and regulations relating to the administration of this Plan or the awards granted under this Plan;

 

	 	(e)	cancel, modify, or waive the Corporation’s rights with respect to, or modify, discontinue, suspend, or terminate any or all outstanding awards, subject to any required consent under Section 8.6.5;

 

	 	(f)	accelerate, waive or extend the vesting or exercisability, or modify or extend the term of, any or all such outstanding awards (in the case of options or stock appreciation rights, within the maximum ten-year term of such awards) in such circumstances as the Administrator may deem appropriate (including, without limitation, in connection with a termination of employment or services or other events of a personal nature) subject to any required consent under Section 8.6.5;

 

	 	(g)	adjust the number of shares of Common Stock subject to any award, adjust the price of any or all outstanding awards or otherwise waive or change previously imposed terms and conditions, in such circumstances as the Administrator may deem appropriate, in each case subject to Sections 4 and 8.6 (and subject to the no repricing provision below);

 

	 	(h)	determine the date of grant of an award, which may be a designated date after but not before the date of the Administrator’s action to grant the award (unless otherwise designated by the Administrator, the date of grant of an award shall be the date upon which the Administrator took the action granting an award);

 

	 	(i)	determine whether, and the extent to which, adjustments are required pursuant to Section 7.1 hereof and take any of the actions contemplated by Section 7.2 in connection with the occurrence of an event of the type contemplated by Section 7.2;

 

	 	(j)	acquire or settle (subject to Sections 7 and 8.6) rights under awards in cash, stock of equivalent value, or other consideration (subject to the no repricing provision below); and

 

	 	(k)	determine the fair market value of the Common Stock or awards under this Plan from time to time and/or the manner in which such value will be determined.

 

Notwithstanding the foregoing and except for an
adjustment pursuant to Section 7.1 or a repricing approved by stockholders, in no case may the Administrator (1) amend an outstanding
stock option or SAR to reduce the exercise price or base price of the award, (2) cancel, exchange, or surrender an outstanding
stock option or SAR in exchange for cash or other awards for the purpose of repricing the award, or (3) cancel, exchange, or surrender
an outstanding stock option or SAR in exchange for an option or SAR with an exercise or base price that is less than the exercise
or base price of the original award.

 

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	 	3.3	Binding Determinations.  Any determination or other action taken by, or inaction of, the Corporation, any Subsidiary, or the Administrator relating or pursuant to this Plan (or any award made under this Plan) and within its authority hereunder or under applicable law shall be within the absolute discretion of that entity or body and shall be conclusive and binding upon all persons. Neither the Board nor any Board committee, nor any member thereof or person acting at the direction thereof, shall be liable for any act, omission, interpretation, construction or determination made in good faith in connection with this Plan (or any award made under this Plan), and all such persons shall be entitled to indemnification and reimbursement by the Corporation in respect of any claim, loss, damage or expense (including, without limitation, attorneys’ fees) arising or resulting therefrom to the fullest extent permitted by law and/or under any directors and officers liability insurance coverage that may be in effect from time to time. Neither the Board nor any Board committee, nor any member thereof or person acting at the direction thereof, nor the Corporation or any of its Subsidiaries, shall be liable for any damages of a participant should an option intended as an ISO (as defined below) fail to actually meet the requirements of the Internal Revenue Code of 1986, as amended (the “Code”), applicable to ISOs, should any other award(s) fail to qualify for any intended tax treatment, should any award grant or other action with respect thereto not satisfy Rule 16b-3 promulgated under the Securities Exchange Act of 1934, as amended, or otherwise for any tax or other liability imposed on a participant with respect to an award.

 

	 	3.4	Reliance on Experts.  In making any determination or in taking or not taking any action under this Plan, the Administrator may obtain and may rely upon the advice of experts, including employees and professional advisors to the Corporation. No director, officer or agent of the Corporation or any of its Subsidiaries shall be liable for any such action or determination taken or made or omitted in good faith.

 

	 	3.5	Delegation.  The Administrator may delegate ministerial, non-discretionary functions to individuals who are officers or employees of the Corporation or any of its Subsidiaries or to third parties.

 

	 	4.	SHARES OF COMMON STOCK SUBJECT TO THE PLAN; SHARE LIMITS

 

	 	4.1	Shares Available.  Subject to the provisions of Section 7.1, the capital stock that may be delivered under this Plan shall be shares of the Corporation’s authorized but unissued Common Stock and any shares of its Common Stock held as treasury shares. For purposes of this Plan, “Common Stock” shall mean the common stock of the Corporation and such other securities or property as may become the subject of awards under this Plan, or may become subject to such awards, pursuant to an adjustment made under Section 7.1.

 

	 	4.2	Share Limits.  The maximum number of shares of Common Stock that may be delivered pursuant to awards granted to Eligible Persons under this Plan (the “Share Limit”) is equal to the sum of the following:

 

	 	(1)	the number of shares of Common Stock available for additional award grant purposes under the Corporation’s 2011 Equity Incentive Plan (the “2011 Plan”) as of the date of stockholder approval of this Plan (the “Stockholder Approval Date”) and determined immediately prior to the termination of the authority to grant new awards under the 2011 Plan as of the Stockholder Approval Date, plus

 

	 	(2)	the number of any shares subject to stock options granted under the 2011 Plan and outstanding on the Stockholder Approval Date which expire, or for any reason are cancelled or terminated, after the Stockholder Approval Date without being exercised, plus;

 

	 	(3)	the number of any shares subject to restricted stock and restricted stock unit awards granted under the 2011 Plan that are outstanding and unvested on the Stockholder Approval Date that are forfeited, terminated, cancelled or otherwise reacquired by the Corporation without having become vested.

 

provided that in no event shall the Share Limit exceed 2,939,597
shares (which is the sum of the number of shares available under the 2011 Plan for additional award grant purposes as of the

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Effective Date (as such term is defined in Section 8.6.1), plus
the aggregate number of shares subject to awards previously granted and outstanding under the 2011 Plan as of the Effective Date).

 

The following limits also apply with respect to awards granted
under this Plan:

 

	 	(a)	The maximum number of shares of Common Stock that may be delivered pursuant to options qualified as incentive stock options granted under this Plan is 1,500,000 shares.

 

	 	(b)	The maximum number of shares of Common Stock subject to those options and stock appreciation rights that are granted under this Plan during any one calendar year to any one individual is 1,500,000 shares.

 

	 	(c)	Additional limits with respect to Qualified Performance-Based Awards are set forth in Section 5.2.3.

 

Each of the foregoing numerical limits is subject to adjustment
as contemplated by Section 4.3, Section 7.1, and Section 8.10.

 

	 	4.3	Awards Settled in Cash, Reissue of Awards and Shares.  Shares that are subject to or underlie awards granted under this Plan which expire or for any reason are cancelled or terminated, are forfeited, fail to vest, or for any other reason are not paid or delivered under this Plan shall not be counted against the Share Limit and shall be available for subsequent awards under this Plan. Except as provided below, to the extent that shares of Common Stock are delivered pursuant to the exercise of a stock appreciation right granted under this Plan, the number of underlying shares which are actually issued in payment of the award shall be counted against the Share Limit. (For purposes of clarity, if a stock appreciation right relates to 100,000 shares and is exercised at a time when the payment due to the participant is 15,000 shares, 15,000 shares shall be counted against the Share Limit with respect to such exercise.) Shares that are exchanged by a participant or withheld by the Corporation as full or partial payment in connection with any award granted under this Plan, as well as any shares exchanged by a participant or withheld by the Corporation or one of its Subsidiaries to satisfy the tax withholding obligations related to any award granted under this Plan, shall not be counted against the Share Limit and shall be available for subsequent awards under this Plan. In addition, shares that are exchanged by a participant or withheld by the Corporation after the Stockholder Approval Date as full or partial payment in connection with any award granted under the 2011 Plan, as well as any shares exchanged by a participant or withheld by the Corporation or one of its Subsidiaries after the Stockholder Approval Date to satisfy the tax withholding obligations related to any award granted under the 2011 Plan, shall be available for the grant of new awards under this Plan. To the extent that an award granted under this Plan is settled in cash or a form other than shares of Common Stock, the shares that would have been delivered had there been no such cash or other settlement shall not be counted against the Share Limit and shall be available for subsequent awards under this Plan. In the event that shares of Common Stock are delivered in respect of a dividend equivalent right granted under this Plan, the number of shares delivered with respect to the award shall be counted against the Share Limit. (For purposes of clarity, if 1,000 dividend equivalent rights are granted and outstanding when the Corporation pays a dividend, and 50 shares are delivered in payment of those rights with respect to that dividend, 50 shares shall be counted against the Share Limit). Except as otherwise provided by the Administrator, shares delivered in respect of dividend equivalent rights shall not count against any individual award limit under this Plan other than the aggregate Share Limit. Refer to Section 8.10 for application of the foregoing share limits with respect to assumed awards. The foregoing adjustments to the share limits of this Plan are subject to any applicable limitations under Section 162(m) of the Code with respect to awards intended as performance-based compensation thereunder.

 

	 	4.4	No Fractional Shares; Minimum Issue.  Unless otherwise expressly provided by the Administrator, no fractional shares shall be delivered under this Plan. The Administrator may pay cash in lieu of any fractional shares in settlements of awards under this Plan. The Administrator may from time to time impose a limit (of not greater than 100 shares) on the minimum number of shares that may be purchased or exercised as to awards (or any particular award) granted under this Plan unless (as to

 

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	 	 	any particular award) the total number purchased or exercised is the total number at the time available for purchase or exercise under the award.

 

	 	5.	AWARDS

 

	 	5.1	Type and Form of Awards.  The Administrator shall determine the type or types of award(s) to be made to each selected Eligible Person. Awards may be granted singly, in combination or in tandem. Awards also may be made in combination or in tandem with, in replacement of, as alternatives to, or as the payment form for grants or rights under any other employee or compensation plan of the Corporation or one of its Subsidiaries. The types of awards that may be granted under this Plan are (subject, in each case, to the no repricing provisions of Section 3.2):

 

5.1.1 Stock Options.  A stock option
is the grant of a right to purchase a specified number of shares of Common Stock during a specified period as determined by the
Administrator. An option may be intended as an incentive stock option within the meaning of Section 422 of the Code (an “ISO”)
or a nonqualified stock option (an option not intended to be an ISO). The award agreement for an option will indicate if the option
is intended as an ISO; otherwise it will be deemed to be a nonqualified stock option. The maximum term of each option (ISO or nonqualified)
shall be ten (10) years. The per share exercise price for each option shall be not less than 100% of the fair market value of a
share of Common Stock on the date of grant of the option. When an option is exercised, the exercise price for the shares to be
purchased shall be paid in full in cash or such other method permitted by the Administrator consistent with Section 5.5.

 

5.1.2 Additional Rules Applicable to ISOs.  To
the extent that the aggregate fair market value (determined at the time of grant of the applicable option) of stock with respect
to which ISOs first become exercisable by a participant in any calendar year exceeds $100,000, taking into account both Common
Stock subject to ISOs under this Plan and stock subject to ISOs under all other plans of the Corporation or one of its Subsidiaries
(or any parent or predecessor corporation to the extent required by and within the meaning of Section 422 of the Code and the regulations
promulgated thereunder), such options shall be treated as nonqualified stock options. In reducing the number of options treated
as ISOs to meet the $100,000 limit, the most recently granted options shall be reduced first. To the extent a reduction of simultaneously
granted options is necessary to meet the $100,000 limit, the Administrator may, in the manner and to the extent permitted by law,
designate which shares of Common Stock are to be treated as shares acquired pursuant to the exercise of an ISO. ISOs may only be
granted to employees of the Corporation or one of its subsidiaries (for this purpose, the term “subsidiary” is used
as defined in Section 424(f) of the Code, which generally requires an unbroken chain of ownership of at least 50% of the total
combined voting power of all classes of stock of each subsidiary in the chain beginning with the Corporation and ending with the
subsidiary in question). No ISO may be granted to any person who, at the time the option is granted, owns (or is deemed to own
under Section 424(d) of the Code) shares of outstanding Common Stock possessing more than 10% of the total combined voting power
of all classes of stock of the Corporation, unless the exercise price of such option is at least 110% of the fair market value
of the stock subject to the option and such option by its terms is not exercisable after the expiration of five years from the
date such option is granted. If an otherwise-intended ISO fails to meet the applicable requirements of Section 422 of the Code,
the option shall be a nonqualified stock option.

 

5.1.3 Stock Appreciation Rights.  A
stock appreciation right or “SAR” is a right to receive a payment, in cash and/or Common Stock, equal to the
excess of the fair market value of a specified number of shares of Common Stock on the date the SAR is exercised over the “base
price” of the award, which base price shall be set forth in the applicable award agreement and shall be not less than
100% of the fair market value of a share of Common Stock on the date of grant of the SAR. The maximum term of a SAR shall be ten
(10) years.

 

5.1.4 Other Awards; Dividend Equivalent Rights.  The
other types of awards that may be granted under this Plan include: (a) stock bonuses, restricted stock, performance stock, stock
units, phantom stock or similar rights to purchase or acquire shares, whether at a fixed or variable price (or no price) or fixed
or variable ratio related to the Common Stock, and any of which may (but need not)

 

 

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be fully vested at grant or vest upon the passage of time, the
occurrence of one or more events, the satisfaction of performance criteria or other conditions, or any combination thereof; or
(b) cash awards. Dividend equivalent rights may be granted as a separate award or in connection with another award under this Plan;
provided, however, that dividend equivalent rights may not be granted as to a stock option or SAR granted under this Plan. In addition,
any dividends and/or dividend equivalents as to the unvested portion of a restricted stock award that is subject to performance-based
vesting requirements or the unvested portion of a stock unit award that is subject to performance-based vesting requirements will
be subject to termination and forfeiture to the same extent as the corresponding portion of the award to which they relate in the
event the applicable performance-based vesting requirements are not satisfied.

 

	 	5.2	Section 162(m) Performance-Based Awards.  Without limiting the generality of the foregoing, any of the types of awards listed in Section 5.1.4 above may be, and options and SARs granted to officers and employees also may be, granted as awards intended to satisfy the requirements for “performance-based compensation” within the meaning of Section 162(m) of the Code. An Award (other than an option or SAR) intended by the Administrator to satisfy the requirements for “performance-based compensation” within the meaning of Section 162(m) of the Code is referred to as a “Qualified Performance-Based Award.” An option or SAR intended to satisfy the requirements for “performance-based compensation” within the meaning of Section 162(m) of the Code is referred to as a “Qualifying Option or SAR.” The grant, vesting, exercisability or payment of Qualified Performance-Based Awards may depend (or, in the case of Qualifying Option or SAR, may also depend) on the degree of achievement of one or more performance goals relative to a pre-established targeted level or levels using one or more of the Business Criteria set forth below (on an absolute or relative (including, without limitation, relative to the performance of one or more other companies or upon comparisons of any of the indicators of performance relative to one or more other companies) basis) for the Corporation on a consolidated basis or for one or more of the Corporation’s subsidiaries, segments, divisions or business units, or any combination of the foregoing. Any Qualified Performance-Based Award shall be subject to all of the following provisions of this Section 5.2, and a Qualifying Option or SAR shall be subject to the following provisions of this Section 5.2 only to the extent expressly set forth below. Nothing in this Plan, however, requires the Administrator to qualify any award or compensation as “performance-based compensation” under Section 162(m) of the Code.

 

5.2.1 Class; Administrator.  The eligible
class of persons for Qualified Performance-Based Awards under this Section 5.2, as well as for a Qualifying Option or SAR, shall
be officers and employees of the Corporation or one of its Subsidiaries. To qualify awards as performance-based under Section 162(m),
the Administrator approving Qualified Performance-Based Awards or a Qualifying Option or SAR, or making any certification required
pursuant to Section 5.2.4, must constitute a committee consisting solely of two or more outside directors (as this requirement
is applied under Section 162(m) of the Code).

 

5.2.2 Performance Goals.  The specific
performance goals for Qualified Performance-Based Awards shall be, on an absolute or relative basis, established based on one or
more of the following business criteria (“Business Criteria”) as selected by the Administrator in its sole discretion:
earnings per share, cash flow (which means cash and cash equivalents derived from either net cash flow from operations or net cash
flow from operations, financing and investing activities), stock price, total stockholder return, gross revenue, revenue growth,
operating income (before or after taxes), net earnings (before or after interest, taxes, depreciation and/or amortization), return
on equity or on assets or on net investment, cost containment or reduction, or any combination thereof. To qualify awards as performance-based
under Section 162(m), the applicable Business Criterion (or Business Criteria, as the case may be) and specific performance formula,
goal or goals (“targets”) must be established and approved by the Administrator during the first 90 days of the performance
period (and, in the case of performance periods of less than one year, in no event after 25% or more of the performance period
has elapsed) and while performance relating to such target(s) remains substantially uncertain within the meaning of Section 162(m)
of the Code. The terms of the

 

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Qualified Performance-Based Awards may specify the manner, if
any, in which performance targets shall be adjusted to mitigate the unbudgeted impact of material, unusual or nonrecurring gains
and losses, accounting changes or other items specified by the Administrator at the time of establishing the targets. The applicable
performance measurement period may not be less than three months nor more than 10 years.

 

5.2.3 Form of Payment; Maximum Qualified Performance-Based
Award.  Grants or awards under this Section 5.2 may be paid in cash or shares of Common Stock or any combination
thereof. Qualifying Option or SAR awards granted to any one participant in any one calendar year shall be subject to the limit
set forth in Section 4.2(b). The maximum number of shares of Common Stock which may be subject to Qualified Performance-Based Awards
(including Qualified Performance-Based Awards payable in shares of Common Stock and Qualified Performance-Based Awards payable
in cash where the amount of cash payable upon or following vesting of the award is determined with reference to the fair market
value of a share of Common Stock at such time) that are granted to any one participant in any one calendar year shall not exceed
1,500,000 shares (counting such shares on a one-for-one basis for this purpose), either individually or in the aggregate, subject
to adjustment as provided in Section 7.1. The aggregate amount of compensation to be paid to any one participant in respect of
all Qualified Performance-Based Awards payable only in cash (excluding cash awards covered by the preceding sentence where the
cash payment is determined with reference to the fair market value of a share of Common Stock upon or following the vesting of
the award) and granted to that participant in any one calendar year shall not exceed $3,000,000. Awards that are cancelled during
the year shall be counted against these limits to the extent required by Section 162(m) of the Code.

 

5.2.4 Certification of Payment.  Before
any Qualified Performance-Based Award is paid and to the extent applicable to qualify the award as performance-based compensation
within the meaning of Section 162(m) of the Code, the Administrator must certify in writing that the performance target(s) and
any other material terms of the Qualified Performance-Based Award were in fact timely satisfied.

 

5.2.5 Reservation of Discretion.  The
Administrator will have the discretion to determine the restrictions or other limitations of the individual awards granted under
this Section 5.2 including the authority to reduce awards, payouts or vesting or to pay no awards, in its sole discretion, if the
Administrator preserves such authority at the time of grant by language to this effect in its authorizing resolutions or otherwise.

 

5.2.6 Expiration of Grant Authority.  As
required pursuant to Section 162(m) of the Code and the regulations promulgated thereunder, the Administrator’s authority
to grant new awards that are intended to qualify as performance-based compensation within the meaning of Section 162(m) of the
Code (other than a Qualifying Option or SAR) shall terminate upon the first meeting of the Corporation’s stockholders that
occurs in the fifth year following the year in which the Corporation’s stockholders first approve this Plan, subject to any
subsequent extension that may be approved by stockholders.

 

	 	5.3	Award Agreements.  Each award shall be evidenced by a written or electronic award agreement or notice in a form approved by the Administrator (an “award agreement”), and, in each case and if required by the Administrator, executed or otherwise electronically accepted by the recipient of the award in such form and manner as the Administrator may require.

 

	 	5.4	Deferrals and Settlements.  Payment of awards may be in the form of cash, Common Stock, other awards or combinations thereof as the Administrator shall determine, and with such restrictions (if any) as it may impose. The Administrator may also require or permit participants to elect to defer the issuance of shares or the settlement of awards in cash under such rules and procedures as it may establish under this Plan. The Administrator may also provide that deferred settlements include the payment or crediting of interest or other earnings on the deferral amounts, or the payment or crediting of dividend equivalents where the deferred amounts are denominated in shares.

 

 

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	 	5.5	Consideration for Common Stock or Awards.  The purchase price (if any) for any award granted under this Plan or the Common Stock to be delivered pursuant to an award, as applicable, may be paid by means of any lawful consideration as determined by the Administrator, including, without limitation, one or a combination of the following methods:

 

	 	•	services rendered by the recipient of such award;

 

	 	•	cash, check payable to the order of the Corporation, or electronic funds transfer;

 

	 	•	notice and third party payment in such manner as may be authorized by the Administrator;

 

	 	•	the delivery of previously owned shares of Common Stock;

 

	 	•	by a reduction in the number of shares otherwise deliverable pursuant to the award; or

 

	 	•	subject to such procedures as the Administrator may adopt, pursuant to a “cashless exercise” with a third party who provides financing for the purposes of (or who otherwise facilitates) the purchase or exercise of awards.

 

In no event shall any shares newly-issued by the Corporation
be issued for less than the minimum lawful consideration for such shares or for consideration other than consideration permitted
by applicable state law. The Corporation will not be obligated to deliver any shares unless and until it receives full payment
of the exercise or purchase price therefor and any related withholding obligations under Section 8.5 and any other conditions to
exercise or purchase have been satisfied. Unless otherwise expressly provided in the applicable award agreement, the Administrator
may at any time eliminate or limit a participant’s ability to pay any purchase or exercise price of any award or shares by
any method other than cash payment to the Corporation.

 

	 	5.6	Definition of Fair Market Value.  For purposes of this Plan, “fair market value” shall mean, unless otherwise determined or provided by the Administrator in the circumstances, the closing price (in regular trading) for a share of Common Stock on the NASDAQ Stock Market (the “Market”) for the date in question or, if no sales of Common Stock were reported on the Market on that date, the closing price (in regular trading) for a share of Common Stock on the Market for the next preceding day on which sales of Common Stock were reported on the Market. The Administrator may, however, provide with respect to one or more awards that the fair market value shall equal the closing price (in regular trading) for a share of Common Stock on the Market on the last trading day preceding the date in question or the average of the high and low trading prices of a share of Common Stock on the Market for the date in question or the most recent trading day. If the Common Stock is no longer listed or is no longer actively traded on the Market as of the applicable date, the fair market value of the Common Stock shall be the value as reasonably determined by the Administrator for purposes of the award in the circumstances. The Administrator also may adopt a different methodology for determining fair market value with respect to one or more awards if a different methodology is necessary or advisable to secure any intended favorable tax, legal or other treatment for the particular award(s) (for example, and without limitation, the Administrator may provide that fair market value for purposes of one or more awards will be based on an average of closing prices (or the average of high and low daily trading prices) for a specified period preceding the relevant date).

 

	 	5.7	Transfer Restrictions.

 

5.7.1 Limitations on Exercise and Transfer.  Unless
otherwise expressly provided in (or pursuant to) this Section 5.7 or required by applicable law: (a) all awards are non-transferable
and shall not be subject in any manner to sale, transfer, anticipation, alienation, assignment, pledge, encumbrance or charge;
(b) awards shall be exercised only by the participant; and (c) amounts payable or shares issuable pursuant to any award shall be
delivered only to (or for the account of) the participant.

 

5.7.2 Exceptions.  The Administrator
may permit awards to be exercised by and paid to, or otherwise transferred to, other persons or entities pursuant to such conditions
and procedures, including limitations on subsequent transfers, as the Administrator may, in its sole discretion,

 

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establish in writing. Any permitted transfer shall be subject
to compliance with applicable federal and state securities laws and shall not be for value (other than nominal consideration, settlement
of marital property rights, or for interests in an entity in which more than 50% of the voting interests are held by the Eligible
Person or by the Eligible Person’s family members).

 

5.7.3 Further Exceptions to Limits on Transfer.  The
exercise and transfer restrictions in Section 5.7.1 shall not apply to:

 

	 	(a)	transfers to the Corporation (for example, in connection with the expiration or termination of the award),

 

	 	(b)	the designation of a beneficiary to receive benefits in the event of the participant’s death or, if the participant has died, transfers to or exercise by the participant’s beneficiary, or, in the absence of a validly designated beneficiary, transfers by will or the laws of descent and distribution,

 

	 	(c)	subject to any applicable limitations on ISOs, transfers to a family member (or former family member) pursuant to a domestic relations order if received by the Administrator,

 

	 	(d)	if the participant has suffered a disability, permitted transfers or exercises on behalf of the participant by his or her legal representative, or

 

	 	(e)	the authorization by the Administrator of “cashless exercise” procedures with third parties who provide financing for the purpose of (or who otherwise facilitate) the exercise of awards consistent with applicable laws and any limitations imposed by the Administrator.

 

	 	5.8	International Awards.  One or more awards may be granted to Eligible Persons who provide services to the Corporation or one of its Subsidiaries outside of the United States. Any awards granted to such persons may be granted pursuant to the terms and conditions of any applicable sub-plans, if any, appended to this Plan and approved by the Administrator from time to time. The awards so granted need not comply with other specific terms of this Plan, provided that stockholder approval of any deviation from the specific terms of this Plan is not required by applicable law or any applicable listing agency.

 

	 	6.	EFFECT OF TERMINATION OF EMPLOYMENT OR SERVICE ON AWARDS

 

	 	6.1	General.  The Administrator shall establish the effect (if any) of a termination of employment or service on the rights and benefits under each award under this Plan and in so doing may make distinctions based upon, inter alia, the cause of termination and type of award. If the participant is not an employee of the Corporation or one of its Subsidiaries, is not a member of the Board, and provides other services to the Corporation or one of its Subsidiaries, the Administrator shall be the sole judge for purposes of this Plan (unless a contract or the award otherwise provides) of whether the participant continues to render services to the Corporation or one of its Subsidiaries and the date, if any, upon which such services shall be deemed to have terminated.

 

	 	6.2	Events Not Deemed Terminations of Service.  Unless the express policy of the Corporation or one of its Subsidiaries, or the Administrator, otherwise provides, or except as otherwise required by applicable law, the employment relationship shall not be considered terminated in the case of (a) sick leave, (b) military leave, or (c) any other leave of absence authorized by the Corporation or one of its Subsidiaries, or the Administrator; provided that, unless reemployment upon the expiration of such leave is guaranteed by contract or law or the Administrator otherwise provides, such leave is for a period of not more than three months. In the case of any employee of the Corporation or one of its Subsidiaries on an approved leave of absence, continued vesting of the award while on leave from the employ of the Corporation or one of its Subsidiaries may be suspended until the employee returns to service, unless the Administrator otherwise provides or applicable law otherwise requires. In no event shall an award be exercised after the expiration of any applicable maximum term of the award.

 

 

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	 	6.3	Effect of Change of Subsidiary Status.  For purposes of this Plan and any award, if an entity ceases to be a Subsidiary of the Corporation a termination of employment or service shall be deemed to have occurred with respect to each Eligible Person in respect of such Subsidiary who does not continue as an Eligible Person in respect of the Corporation or another Subsidiary that continues as such after giving effect to the transaction or other event giving rise to the change in status unless the Subsidiary that is sold, spun-off or otherwise divested (or its successor or a direct or indirect parent of such Subsidiary or successor) assumes the Eligible Person’s award(s) in connection with such transaction.

 

	 	7.	ADJUSTMENTS; ACCELERATION

 

	 	7.1	Adjustments.  Subject to Section 7.2, upon (or, as may be necessary to effect the adjustment, immediately prior to): any reclassification, recapitalization, stock split (including a stock split in the form of a stock dividend) or reverse stock split; any merger, combination, consolidation, conversion or other reorganization; any spin-off, split-up, or similar extraordinary dividend distribution in respect of the Common Stock; or any exchange of Common Stock or other securities of the Corporation, or any similar, unusual or extraordinary corporate transaction in respect of the Common Stock; then the Administrator shall equitably and proportionately adjust (1) the number and type of shares of Common Stock (or other securities) that thereafter may be made the subject of awards (including the specific share limits, maximums and numbers of shares set forth elsewhere in this Plan), (2) the number, amount and type of shares of Common Stock (or other securities or property) subject to any outstanding awards, (3) the grant, purchase, or exercise price (which term includes the base price of any SAR or similar right) of any outstanding awards, and/or (4) the securities, cash or other property deliverable upon exercise or payment of any outstanding awards, in each case to the extent necessary to preserve (but not increase) the level of incentives intended by this Plan and the then-outstanding awards.

 

Unless otherwise expressly provided in the applicable award
agreement, upon (or, as may be necessary to effect the adjustment, immediately prior to) any event or transaction described in
the preceding paragraph or a sale of all or substantially all of the business or assets of the Corporation as an entirety, the
Administrator shall equitably and proportionately adjust the performance standards applicable to any then-outstanding performance-based
awards to the extent necessary to preserve (but not increase) the level of incentives intended by this Plan and the then-outstanding
performance-based awards.

 

It is intended that, if possible, any adjustments contemplated
by the preceding two paragraphs be made in a manner that satisfies applicable U.S. legal, tax (including, without limitation and
as applicable in the circumstances, Section 424 of the Code as to ISOs, Section 409A of the Code as to awards intended to comply
therewith and not be subject to taxation thereunder, and Section 162(m) of the Code as to any Qualifying Option or SAR and as to
Qualified Performance-Based Awards) and accounting (so as to not trigger any unintended charge to earnings with respect to such
adjustment) requirements.

 

Without limiting the generality of Section 3.3, any good faith
determination by the Administrator as to whether an adjustment is required in the circumstances pursuant to this Section 7.1, and
the extent and nature of any such adjustment, shall be conclusive and binding on all persons.

 

	 	7.2	Corporate Transactions — Assumption and Termination of Awards.  Upon any event in which the Corporation does not survive, or does not survive as a public company in respect of its Common Stock (including, without limitation, a dissolution, merger, combination, consolidation, conversion, exchange of securities, or other reorganization, or a sale of all or substantially all of the business, stock or assets of the Corporation, in any case in connection with which the Corporation does not survive or does not survive as a public company in respect of its Common Stock), then the Administrator may make provision for a cash payment in settlement of, or for the termination, assumption, substitution or exchange of any or all outstanding awards or the cash, securities or property deliverable to the holder of any or all outstanding awards, based upon, to the extent relevant under the circumstances, the distribution or consideration payable to holders of the

 

 

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	 	 	Common Stock upon or in respect of such event. Upon the occurrence of any event described in the preceding sentence in connection with which the Administrator has made provision for the award to be terminated (and the Administrator has not made a provision for the substitution, assumption, exchange or other continuation or settlement of the award): (1) unless otherwise provided in the applicable award agreement, each then-outstanding option and SAR shall become fully vested, all shares of restricted stock then outstanding shall fully vest free of restrictions, and each other award granted under this Plan that is then outstanding shall become payable to the holder of such award; and (2) each award shall terminate upon the related event; provided that the holder of an option or SAR shall be given reasonable advance notice of the impending termination and a reasonable opportunity to exercise his or her outstanding vested options and SARs (after giving effect to any accelerated vesting required in the circumstances) in accordance with their terms before the termination of such awards (except that in no case shall more than ten days’ notice of the impending termination be required and any acceleration of vesting and any exercise of any portion of an award that is so accelerated may be made contingent upon the actual occurrence of the event).

 

Without limiting the preceding paragraph, in connection with
any event referred to in the preceding paragraph or any change in control event defined in any applicable award agreement, the
Administrator may, in its discretion, provide for the accelerated vesting of any award or awards as and to the extent determined
by the Administrator in the circumstances.

 

The Administrator may adopt such valuation methodologies for
outstanding awards as it deems reasonable in the event of a cash or property settlement and, in the case of options, SARs or similar
rights, but without limitation on other methodologies, may base such settlement solely upon the excess if any of the per share
amount payable upon or in respect of such event over the exercise or base price of the award.

 

In any of the events referred to in this Section 7.2, the Administrator
may take such action contemplated by this Section 7.2 prior to such event (as opposed to on the occurrence of such event) to the
extent that the Administrator deems the action necessary to permit the participant to realize the benefits intended to be conveyed
with respect to the underlying shares. Without limiting the generality of the foregoing, the Administrator may deem an acceleration
and/or termination to occur immediately prior to the applicable event and, in such circumstances, will reinstate the original terms
of the award if an event giving rise to an acceleration and/or termination does not occur.

 

Without limiting the generality of Section 3.3, any good faith
determination by the Administrator pursuant to its authority under this Section 7.2 shall be conclusive and binding on all persons.

 

	 	7.3	Other Acceleration Rules.  The Administrator may override the provisions of Section 7.2 by express provision in the award agreement and may accord any Eligible Person a right to refuse any acceleration, whether pursuant to the award agreement or otherwise, in such circumstances as the Administrator may approve. The portion of any ISO accelerated in connection with an event referred to in Section 7.2 (or such other circumstances as may trigger accelerated vesting of the award) shall remain exercisable as an ISO only to the extent the applicable $100,000 limitation on ISOs is not exceeded. To the extent exceeded, the accelerated portion of the option shall be exercisable as a nonqualified stock option under the Code.

 

	 	8.	OTHER PROVISIONS

 

	 	8.1	Compliance with Laws.  This Plan, the granting and vesting of awards under this Plan, the offer, issuance and delivery of shares of Common Stock, and/or the payment of money under this Plan or under awards are subject to compliance with all applicable federal, state, local and foreign laws, rules and regulations (including but not limited to state and federal securities law and federal margin requirements) and to such approvals by any listing, regulatory or governmental authority as may, in the opinion of counsel for the Corporation, be necessary or advisable in connection therewith. The person acquiring any securities under this Plan will, if requested by the Corporation or one of its Subsidiaries, provide such assurances and representations to the Corporation or one of its Subsidiaries as the Administrator may deem necessary or desirable to assure compliance with all applicable legal and accounting requirements.

 

 

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	 	8.2	No Rights to Award.  No person shall have any claim or rights to be granted an award (or additional awards, as the case may be) under this Plan, subject to any express contractual rights (set forth in a document other than this Plan) to the contrary.

 

	 	8.3	No Employment/Service Contract.  Nothing contained in this Plan (or in any other documents under this Plan or in any award) shall confer upon any Eligible Person or other participant any right to continue in the employ or other service of the Corporation or one of its Subsidiaries, constitute any contract or agreement of employment or other service or affect an employee’s status as an employee at will, nor shall interfere in any way with the right of the Corporation or one of its Subsidiaries to change a person’s compensation or other benefits, or to terminate his or her employment or other service, with or without cause. Nothing in this Section 8.3, however, is intended to adversely affect any express independent right of such person under a separate employment or service contract other than an award agreement.

 

	 	8.4	Plan Not Funded.  Awards payable under this Plan shall be payable in shares or from the general assets of the Corporation, and no special or separate reserve, fund or deposit shall be made to assure payment of such awards. No participant, beneficiary or other person shall have any right, title or interest in any fund or in any specific asset (including shares of Common Stock, except as expressly otherwise provided) of the Corporation or one of its Subsidiaries by reason of any award hereunder. Neither the provisions of this Plan (or of any related documents), nor the creation or adoption of this Plan, nor any action taken pursuant to the provisions of this Plan shall create, or be construed to create, a trust of any kind or a fiduciary relationship between the Corporation or one of its Subsidiaries and any participant, beneficiary or other person. To the extent that a participant, beneficiary or other person acquires a right to receive payment pursuant to any award hereunder, such right shall be no greater than the right of any unsecured general creditor of the Corporation.

 

	 	8.5	Tax Withholding.  Upon any exercise, vesting, or payment of any award, or upon the disposition of shares of Common Stock acquired pursuant to the exercise of an ISO prior to satisfaction of the holding period requirements of Section 422 of the Code, or upon any other tax withholding event with respect to any award, arrangements satisfactory to the Corporation shall be made to provide for any taxes the Corporation or any of its Subsidiaries may be required to withhold with respect to such award event or payment. Such arrangements may include (but are not limited to) any one of (or a combination of) the following:

 

	 	(a)	The Corporation or one of its Subsidiaries shall have the right to require the participant (or the participant’s personal representative or beneficiary, as the case may be) to pay or provide for payment of at least the minimum amount of any taxes which the Corporation or one of its Subsidiaries may be required to withhold with respect to such award event or payment.

 

	 	(b)	The Corporation or one of its Subsidiaries shall have the right to deduct from any amount otherwise payable in cash (whether related to the award or otherwise) to the participant (or the participant’s personal representative or beneficiary, as the case may be) the minimum amount of any taxes which the Corporation or one of its Subsidiaries may be required to withhold with respect to such award event or payment.

 

	 	(c)	In any case where a tax is required to be withheld in connection with the delivery of shares of Common Stock under this Plan, the Administrator may in its sole discretion (subject to Section 8.1) require or grant (either at the time of the award or thereafter) to the participant the right to elect, pursuant to such rules and subject to such conditions as the Administrator may establish, that the Corporation reduce the number of shares to be delivered by (or otherwise reacquire) the appropriate number of shares, valued in a consistent manner at their fair market value or at the sales price in accordance with authorized procedures for cashless exercises, necessary to satisfy the minimum applicable withholding obligation on exercise, vesting or payment. In no event shall the shares withheld exceed the minimum whole number of shares required for tax withholding under applicable law.

 

 

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	 	8.6	Effective Date, Termination and Suspension, Amendments.

 

8.6.1 Effective Date.  This Plan is
effective as of April 16, 2015, the date of its approval by the Board (the “Effective Date”). This Plan shall
be submitted for and subject to stockholder approval no later than twelve months after the Effective Date. Unless earlier terminated
by the Board and subject to any extension that may be approved by stockholders, this Plan shall terminate at the close of business
on the day before the tenth anniversary of the Effective Date. After the termination of this Plan either upon such stated termination
date or its earlier termination by the Board, no additional awards may be granted under this Plan, but previously granted awards
(and the authority of the Administrator with respect thereto, including the authority to amend such awards) shall remain outstanding
in accordance with their applicable terms and conditions and the terms and conditions of this Plan.

 

8.6.2 Board Authorization.  The Board
may, at any time, terminate or, from time to time, amend, modify or suspend this Plan, in whole or in part. No awards may be granted
during any period that the Board suspends this Plan.

 

8.6.3 Stockholder Approval.  To the
extent then required by applicable law or deemed necessary or advisable by the Board, any amendment to this Plan shall be subject
to stockholder approval.

 

8.6.4 Amendments to Awards.  Without
limiting any other express authority of the Administrator under (but subject to) the express limits of this Plan, the Administrator
by agreement or resolution may waive conditions of or limitations on awards to participants that the Administrator in the prior
exercise of its discretion has imposed, without the consent of a participant, and (subject to the requirements of Sections 3.2
and 8.6.5) may make other changes to the terms and conditions of awards. Any amendment or other action that would constitute a
repricing of an award is subject to the limitations set forth in Section 3.2.

 

8.6.5 Limitations on Amendments to Plan and Awards.  No
amendment, suspension or termination of this Plan or amendment of any outstanding award agreement shall, without written consent
of the participant, affect in any manner materially adverse to the participant any rights or benefits of the participant or obligations
of the Corporation under any award granted under this Plan prior to the effective date of such change. Changes, settlements and
other actions contemplated by Section 7 shall not be deemed to constitute changes or amendments for purposes of this Section 8.6.

 

	 	8.7	Privileges of Stock Ownership.  Except as otherwise expressly authorized by the Administrator, a participant shall not be entitled to any privilege of stock ownership as to any shares of Common Stock not actually delivered to and held of record by the participant. Except as expressly required by Section 7.1 or otherwise expressly provided by the Administrator, no adjustment will be made for dividends or other rights as a stockholder for which a record date is prior to such date of delivery.

 

	 	8.8	Governing Law; Construction; Severability.

 

8.8.1 Choice of Law.  This Plan, the
awards, all documents evidencing awards and all other related documents shall be governed by, and construed in accordance with
the laws of the State of Delaware, notwithstanding any Delaware or other conflict of law provision to the contrary.

 

8.8.2 Severability.  If a court of competent
jurisdiction holds any provision invalid and unenforceable, the remaining provisions of this Plan shall continue in effect.

 

	 	8.9	Captions.  Captions and headings are given to the sections and subsections of this Plan solely as a convenience to facilitate reference. Such headings shall not be deemed in any way material or relevant to the construction or interpretation of this Plan or any provision thereof.

 

 

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	 	8.10	Stock-Based Awards in Substitution for Stock Options or Awards Granted by Other Corporation.  Awards may be granted to Eligible Persons in substitution for or in connection with an assumption of employee stock options, SARs, restricted stock or other stock-based awards granted by other entities to persons who are or who will become Eligible Persons in respect of the Corporation or one of its Subsidiaries, in connection with a distribution, merger or other reorganization by or with the granting entity or an affiliated entity, or the acquisition by the Corporation or one of its Subsidiaries, directly or indirectly, of all or a substantial part of the stock or assets of the employing entity. The awards so granted need not comply with other specific terms of this Plan, provided that the awards shall reflect adjustments giving effect to the assumption or substitution consistent with any conversion applicable to the Common Stock (or the securities otherwise subject to the award) in the transaction and any change in the issuer of the security. Any shares that are delivered and any awards that are granted by, or become obligations of, the Corporation, as a result of the assumption by the Corporation of, or in substitution for, outstanding awards previously granted by an acquired company (or previously granted by a predecessor employer (or direct or indirect parent thereof) in the case of persons that become employed by the Corporation or one of its Subsidiaries in connection with a business or asset acquisition or similar transaction) shall not be counted against the Share Limit or other limits on the number of shares available for issuance under this Plan.

 

	 	8.11	Non-Exclusivity of Plan.  Nothing in this Plan shall limit or be deemed to limit the authority of the Board or the Administrator to grant awards or authorize any other compensation, with or without reference to the Common Stock, under any other plan or authority.

 

	 	8.12	No Corporate Action Restriction.  The existence of this Plan, the award agreements and the awards granted hereunder shall not limit, affect or restrict in any way the right or power of the Corporation or any Subsidiary (or any of their respective shareholders, boards of directors or committees thereof, as the case may be) to make or authorize: (a) any adjustment, recapitalization, reorganization or other change in the capital structure or business of the Corporation or any Subsidiary, (b) any merger, amalgamation, consolidation or change in the ownership of the Corporation or any Subsidiary, (c) any issue of bonds, debentures, capital, preferred or prior preference stock ahead of or affecting the capital stock (or the rights thereof) of the Corporation or any Subsidiary, (d) any dissolution or liquidation of the Corporation or any Subsidiary, (e) any sale or transfer of all or any part of the assets or business of the Corporation or any Subsidiary, (f) any other award, grant, or payment of incentives or other compensation under any other plan or authority (or any other action with respect to any benefit, incentive or compensation),or (g) any other corporate act or proceeding by the Corporation or any Subsidiary. No participant, beneficiary or any other person shall have any claim under any award or award agreement against any member of the Board or the Administrator, or the Corporation or any employees, officers or agents of the Corporation or any Subsidiary, as a result of any such action.

 

	 	8.13	Other Company Benefit and Compensation Programs.  Payments and other benefits received by a participant under an award made pursuant to this Plan shall not be deemed a part of a participant’s compensation for purposes of the determination of benefits under any other employee welfare or benefit plans or arrangements, if any, provided by the Corporation or any Subsidiary, except where the Administrator expressly otherwise provides or authorizes in writing. Awards under this Plan may be made in addition to, in combination with, as alternatives to or in payment of grants, awards or commitments under any other plans, arrangements or authority of the Corporation or its Subsidiaries.

 

	 	8.14	Clawback Policy.  The awards granted under this Plan are subject to the terms of the Corporation’s recoupment, clawback or similar policy as it may be in effect from time to time, as well as any similar provisions of applicable law, any of which could in certain circumstances require repayment or forfeiture of awards or any shares of Common Stock or other cash or property received with respect to the awards (including any value received from a disposition of the shares acquired upon payment of the awards).
	 	 	 

 

 

    	14EX-4.2

 Exhibit 4.2 

EXECUTION VERSION 
 SECOND
SUPPLEMENTAL INDENTURE 
 Dated as of June 9, 2015 

by and among 
 MOHAWK INDUSTRIES,
INC., 
 as Issuer, 
 U.S. BANK
NATIONAL ASSOCIATION, 
 as Trustee, 

ELAVON FINANCIAL SERVICES LIMITED, UK BRANCH, 

as initial Paying Agent 
 and 

ELAVON FINANCIAL SERVICES LIMITED, 

as initial Registrar 
  

 

€500,000,000 2.000% Senior Notes due 2022 
  

 
  

 TABLE OF CONTENTS 

ARTICLE I 
 DEFINITIONS 

 

					
	SECTION 1.1.		DEFINITIONS		1
	
	ARTICLE II
	ESTABLISHMENT OF SECURITIES
			
	SECTION 2.1.		TITLE OF SECURITIES		7
	SECTION 2.2.		AGGREGATE PRINCIPAL AMOUNT OF NOTES		7
	SECTION 2.3.		PAYMENT OF PRINCIPAL, INTEREST AND ADDITIONAL AMOUNTS ON THE NOTES		8
	SECTION 2.4.		DENOMINATIONS		10
	SECTION 2.5.		REDEMPTION		10
	SECTION 2.6.		OFFER TO REPURCHASE UPON CHANGE OF CONTROL TRIGGERING EVENT		12
	SECTION 2.7.		SINKING FUND		13
	SECTION 2.8.		PAYING AGENT AND REGISTRAR; CERTAIN TAX PROVISIONS		13
	SECTION 2.9.		LIMITATION ON LIENS		14
	SECTION 2.10.		LIMITATION ON SALE AND LEASE-BACK TRANSACTIONS		15
	SECTION 2.11.		DEFEASANCE		16
	
	ARTICLE III
	MISCELLANEOUS PROVISIONS		
			
	SECTION 3.1.		RECITALS BY COMPANY		16
	SECTION 3.2.		APPLICATION TO NOTES ONLY		17
	SECTION 3.3.		BENEFITS		17
	SECTION 3.4.		EFFECTIVE DATE		17
	SECTION 3.5.		RATIFICATION		17
	SECTION 3.6.		COUNTERPARTS		17
	SECTION 3.7.		GOVERNING LAW		17

  
 - i - 

 THIS SECOND SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”) is made as of
June 9, 2015, by and among MOHAWK INDUSTRIES, INC., a Delaware corporation (the “Company”), U.S. BANK NATIONAL ASSOCIATION, a national banking association, as trustee (the “Trustee”), ELAVON FINANCIAL SERVICES LIMITED, UK
BRANCH, as initial Paying Agent and ELAVON FINANCIAL SERVICES LIMITED, as initial Registrar. 
 WHEREAS, the Company and the Trustee entered
into that certain Indenture dated as of January 31, 2013 (the “Original Indenture” and as supplemented by this Supplemental Indenture, the “Indenture”) which provides for the issuance by the Company from time to time of
Securities, in one or more series as provided therein; 
 WHEREAS, the Company has determined to issue a series of Securities as provided
herein; 
 WHEREAS, Section 3.1 of the Indenture provides that certain terms and conditions for each series of Securities issued by the
Company thereunder may be set forth in an indenture supplemental to the Indenture; 
 WHEREAS, Section 11.1(9) of the Indenture
provides for the Company and the Trustee to enter into an indenture supplemental to the Indenture to establish the form or terms of Securities of any series as provided by Sections 2.1 and 3.1 of the Indenture; and 

WHEREAS, all the conditions and requirements necessary to make this Supplemental Indenture, when duly executed and delivered, a valid and
binding agreement in accordance with its terms and for the purposes herein expressed, have been performed and fulfilled. 
 NOW, THEREFORE,
in consideration of the agreements and obligations set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

ARTICLE I 
 DEFINITIONS

  

	SECTION 1.1.	DEFINITIONS 

 For all purposes of this Supplemental Indenture, except as otherwise
expressly provided for or unless the context otherwise requires: 
 (a) Capitalized terms used but not defined herein shall have the
respective meanings given them in the Indenture; 
 (b) All references herein to Articles and Sections, unless otherwise specified, refer to
the corresponding Articles and Sections of this Supplemental Indenture; and 

 (c) The following terms shall have the indicated definitions and if the definition of any of the
following terms differs from its respective definition set forth in the Indenture, the definition set forth herein shall control: 

“Acquisition” means the acquisition by Unilin of the capital stock of IFS and its subsidiaries from Enterhold. 

“Acquisition Agreement” means that certain Share Purchase Agreement dated as of January 13, 2015, by and among the
Company, Unilin BVBA, a Belgian limited liability company (“Unilin”), International Flooring Systems S.A., a société anonyme incorporated under the laws of the Grand Dutch of Luxembourg (“IFS”),
and Enterhold S.A., a société anonyme incorporated under the laws of the Grand Dutch of Luxembourg (“Enterhold”). 

“Actual Basis” means (a) the actual number of days in the period for which interest is being calculated and (b) the
actual number of days from (and including) the last date on which interest was paid on the Notes (or June 9, 2015, if no interest has been paid on the Notes) to (but excluding) the next scheduled interest payment date. This convention is
referred to as “ACTUAL/ACTUAL (ICMA)” and is intended to be applied as defined in the rulebook of the International Capital Markets Association. 

“Additional Amounts” has the meaning given that term in Section 2.3(c). 

“Attributable Debt” means, on the date of any determination, the present value of the obligation of the lessee for Net Rental
Payments during the remaining term of the lease included in a Sale and Lease-Back Transaction, including any period for which such lease has been extended or may, at the option of the lessor, be extended. Such present value shall be calculated using
a discount rate equal to the interest rate set forth or implicit in the terms of such lease or, if not practicable to determine such rate, the weighted average interest rate per annum borne by the Notes on such date of determination, in either case
compounded semi-annually. 
 “Business Day” means any day, other than a Saturday or Sunday, (a) which is not a day on
which banking institutions in the City of New York or London are authorized or required by law or executive order to close and (b) on which the Trans-European Automated Real-time Gross Settlement Express Transfer system, or any successor
thereto, operates. 
 “Change of Control” means the occurrence of any one of the following: (1) the direct or indirect
sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the Company’s assets and the assets of the Company’s
Subsidiaries taken as a whole to any person other than to the Company or one of the Company’s Subsidiaries; (2) the consummation of any transaction (including without limitation, any merger or consolidation) the result of which is that any
“person” (other than the Company or one of the Company’s Subsidiaries) becomes the “beneficial owner” (as such terms are defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of
the Company’s outstanding Voting Stock or the Voting Stock of any parent company (as defined below) or other Voting Stock into which the Company’s Voting Stock or the Voting Stock of any parent company is reclassified, consolidated,
exchanged or changed, measured by voting power rather than number of shares; 

  
 - 2 - 

 
(3) the Company or any parent company consolidates with, or merges with or into, any person, or any person consolidates with, or merges with or into, the Company or any parent company, in any
such event pursuant to a transaction in which any of the Company’s outstanding Voting Stock, the Voting Stock of such parent company or the Voting Stock of such other person is converted into or exchanged for cash, securities or other property,
other than any such transaction where the shares of the Company’s Voting Stock or the Voting Stock of such parent company outstanding immediately prior to such transaction constitute, or are converted into or exchanged for, a majority of the
Voting Stock of the surviving person or any direct or indirect parent company of the surviving person immediately after giving effect to such transaction; (4) the first day on which the majority of the members of the Company’s board of
directors or the board of directors of any parent company cease to be Continuing Directors; or (5) the adoption of a plan relating to the Company’s liquidation or dissolution. Notwithstanding the foregoing, a transaction will not be deemed
to involve a Change of Control under clause (2) above if (i) the Company becomes a direct or indirect wholly-owned subsidiary of a holding company (a “parent company”) and (ii) the holders of the Company’s Voting Stock
or the Voting Stock of any parent company immediately prior to that transaction hold at least a majority of the Voting Stock of such parent company immediately following that transaction; provided, that any series of related transactions
shall be treated as a single transaction. The term “person,” as used in this definition, has the meaning given thereto in Section 13(d)(3) of the Exchange Act. 

“Change of Control Offer” has the meaning specified in Section 2.6. 

“Change of Control Payment” has the meaning specified in Section 2.6. 

“Change of Control Payment Date” has the meaning specified in Section 2.6. 

“Change of Control Triggering Event” means the occurrence of both a Change of Control and a related Rating Event. 

“Clearstream” means Clearstream Banking, société anonyme Luxembourg. 

“Comparable Government Bond Rate” means, with respect to any Redemption Date, the price, expressed as a percentage (rounded
to three decimal places, with 0.0005 being rounded upwards), at which the gross redemption yield on the Notes to be redeemed, if they were to be purchased at such price on the third Business Day prior to the date fixed for redemption, would be equal
to the gross redemption yield on such Business Day of the Comparable Government Bond on the basis of the middle market price of the Comparable Government Bond prevailing at 11:00 a.m. (London time) on such Business Day as determined by an
independent investment bank selected by the Company. 
 “Comparable Government Bond” means, in relation to any Comparable
Government Bond Rate calculation, at the discretion of an independent investment bank selected by the Company, a German government bond whose maturity is closest to the maturity of the Notes to be redeemed, or if such independent investment bank in
its discretion determines that such similar bond is not in issue, such other German government bond as such independent investment bank may, with the advice of three brokers of, and/or market makers in, German government bonds selected by the
Company, determine to be appropriate for determining the Comparable Government Bond Rate. 

  
 - 3 - 

 “Consolidated Net Tangible Assets” means, on the date of any determination, the
aggregate amount of assets, less applicable reserves and other properly deductible items, after deducting from that net amount: 
 (a) all
current liabilities, and 
 (b) all goodwill, trademarks, trade names, patents, unamortized debt-discount and other like intangibles, 

in each case as set forth on the most recently available consolidated balance sheet of the Company and the Consolidated Subsidiaries, in accordance with GAAP.

 “Continuing Director” means, as of any date of determination: 

(a) with respect to any member of the board of directors of the Company, any member who 

(i) was a member of such board of directors on the date of the initial issuance of the Notes; or 

(ii) was nominated for election, elected or appointed to such board of directors with the approval of a majority of the
Continuing Directors who were members of such board of directors at the time of such nomination, election or appointment; and 
 (b) with
respect to any member of the board of directors of any parent company, any member who 
 (i) was a member of the board of
directors of the Company on the date such parent company became the Company’s parent company; or 
 (ii) was nominated
for election, elected or appointed to such board of directors with the approval of a majority of the Continuing Directors who were members of such board of directors at the time of such nomination, election or appointment. 

“Directive” means a legal act of the European Union. 

“Enterhold” has the meaning given that term in the definition of “Acquisition Agreement”. 

“Euros” or “€” means the currency of the member states of the European Union. 

“Euroclear” means Euroclear Bank, S.A./N.V., as operator of the Euroclear System. 

“Fitch” means Fitch Inc., and its successors. 

  
 - 4 - 

 “Funded Debt” means (a) all Debt for money borrowed having a maturity of
more than 12 months from the date as of which the determination is made or having a maturity of 12 months or less but by its terms being renewable or extendible beyond 12 months from such date at the option of the borrower (excluding any amount
thereof included in current liabilities) and (b) all rental obligations payable more than 12 months from such date under leases that would be required to be capitalized in accordance with GAAP as in effect on the date of the Supplemental
Indenture (such rental obligations to be included as Funded Debt at the amount so capitalized). 
 “IFS” has the meaning
given that term in the definition of “Acquisition Agreement”. 
 “incur” means to, directly or indirectly, issue,
assume, guaranty, incur, become directly or indirectly liable with respect to (including as a result of an acquisition (by way of merger, consolidation or otherwise)), or otherwise become responsible for, contingently or otherwise. 

“Investment Grade” means a rating of Baa3 or better by Moody’s (or its equivalent under any successor rating category),
a rating of BBB- or better by Standard & Poor’s (or its equivalent under any successor rating category) and a rating of BBB- or better by Fitch (or its equivalent under any successor rating category). 

“Moody’s” means Moody’s Investors Service, Inc., and its successors. 

“Net Proceeds” means, with respect to a Sale and Lease-Back Transaction, the aggregate amount of cash or cash equivalents
received by the Company or a Consolidated Subsidiary, less the sum of all payments, fees, commissions and expenses incurred in connection with such Sale and Lease-Back Transaction, and less the amount (estimated reasonably and in good faith by the
Company) of income, franchise, sales and other applicable taxes required to be paid by the Company or any Consolidated Subsidiary in connection with such Sale and Lease-Back Transaction in the taxable year that such Sale and Lease-Back Transaction
is consummated or in the immediately succeeding taxable year, the computation of which shall take into account the reduction in tax liability resulting from any available operating losses and net operating loss carryovers, tax credits and tax credit
carryforwards, and similar tax attributes. 
 “Net Rental Payments” means the total amount of rent payable by the lessee
after excluding amounts required to be paid on account of maintenance and repairs, insurance, taxes, assessments, water rates and similar charges. 

“Notes” has the meaning specified in Section 2.1. 

“parent company” has the meaning specified in the definition of “Change of Control”. 

“Principal Property” means any mill, manufacturing plant, warehouse or other similar facility or any parcel of real estate or
group of contiguous parcels of real estate owned or leased by the Company or any Consolidated Subsidiary and the gross book value, without deduction of any depreciation reserves, of which on the date as of which the determination is being made
exceeds 1% of Consolidated Net Tangible Assets. 

  
 - 5 - 

 “Rating Agency” means: 

(a) each of Moody’s, S&P and Fitch, and 

(b) if any of Moody’s, S&P or Fitch ceases to rate a series of notes or fails to make a rating of such series of notes publicly
available for reasons outside of the Company’s control, a Substitute Rating Agency in lieu thereof. 
 “Rating Event”
with respect to the Notes means (i) the rating of the Notes is lowered by at least two of the Rating Agencies during the period (the “Trigger Period”) commencing on the earlier of the first public notice of (a) the
occurrence of a Change of Control or (b) the Company’s intention to effect a Change of Control and ending 60 days following consummation of such Change of Control (which period shall be extended so long as the rating of the Notes is under
publicly announced consideration for a possible downgrade by any of the Rating Agencies) and (ii) the Notes are rated below an Investment Grade rating by at least two of the three Rating Agencies on any day during the Trigger Period.
Notwithstanding the foregoing, a Rating Event will not be deemed to have occurred in respect of a particular Change of Control (and thus will not be deemed a Rating Event for purposes of the definition of Change of Control Triggering Event) if the
Rating Agencies making the reduction in rating to which this definition would otherwise apply do not publicly announce or confirm or inform the Trustee in writing at the Company’s request that the reduction was the result, in whole or in part,
of any event or circumstance comprised of or arising as a result of, or in respect of, such Change of Control (whether or not the applicable Change of Control has occurred at the time of the Rating Event). Unless at least two of the three Rating
Agencies are providing a rating for the Notes at the commencement of any Trigger Period, there will be deemed to have been a Rating Event with respect to the Notes during that Trigger Period. 

“Relevant Jurisdiction” means the United States of America or any jurisdiction in which the Company is organized or otherwise
a resident for tax purposes or through which payments are made or deemed made in respect of the Notes to be redeemed or, in the event that the Company appoints additional Paying Agents, the jurisdiction of any such additional Paying Agents or, in
each case, any political subdivision thereof or any authority or agency therein or thereof having power to tax. 
 “Remaining
Scheduled Payments” means, with respect to each Note to be redeemed, the remaining scheduled payments of the principal thereof and interest thereon that would be due after the related Redemption Date but for such redemption;
provided, however, that, if such Redemption Date is not an Interest Payment Date with respect to such Note, the amount of the next succeeding scheduled interest payment thereon will be deemed to be reduced by the amount of interest
accrued thereon to such Redemption Date. 
 “Sale and Lease-Back Transaction” means any arrangement whereby the Company or
any of its Subsidiaries has sold or transferred, or will sell or transfer, property and has or will take back a lease pursuant to which the rental payments are calculated to amortize the purchase price of the property substantially over the useful
life of such property. 

  
 - 6 - 

 “Special Mandatory Redemption Date” means the 30th calendar day (or if such day
is not a Business Day, the first Business Day thereafter) following the earlier of (1) December 31, 2015 and (2) the date the Acquisition Agreement is terminated. 

“Substitute Rating Agency” means a “nationally recognized statistical rating organization” within the meaning of
Section 3(a)(62) under the Exchange Act, selected by the Company (as certified by a resolution of our board of directors and reasonably acceptable to the Trustee) as a replacement agency for any or all of Moody’s, S&P or Fitch, as the
case may be. 
 “S&P” means Standard & Poor’s Financial Services LLC, and its successors. 

“Trigger Period” has the meaning assigned to such term in the definition of Rating Event. 

“Unlin” has the meaning given that term in the definition of “Acquisition Agreement”. 

“U.S. Dollars” means the lawful currency of the United States of America. 

“Voting Stock” solely as used in the definition of the term “Change of Control”, means, with respect to any person
as of any date, the capital stock of such person that is at the time entitled to vote generally in the election of the board of directors (or other analogous managing body) of such person. 

ARTICLE II 

ESTABLISHMENT OF SECURITIES 

The following provisions of this Article II are made pursuant to Section 3.1 of the Indenture in order to establish and set forth
the terms of the series of Securities described in Section 2.1. 
  

	SECTION 2.1.	TITLE OF SECURITIES 

 There is hereby established a series of Securities designated the
“2.000% Senior Notes due 2022” (the “Notes”). 
  

	SECTION 2.2.	AGGREGATE PRINCIPAL AMOUNT OF NOTES 

 There are initially to be authenticated and delivered
€500,000,000 principal amount of the Notes. Such principal amount of the Notes may be increased from time to time pursuant to Section 3.1 of the Indenture. 

All Notes of this series need not be issued at the same time and such series may be reopened at any time, without notice to or the consent of
any Holder, for issuances of additional Notes of such series. Any such additional Notes will rank equally with such series of Notes in all respects (other than the public offering price of such additional notes, the payment of interest accruing
prior to the issue date of such additional Notes and/or the first payment of interest following the issue date of such additional Notes) as the series of Notes initially issued 

  
 - 7 - 

 
hereunder. Any such additional Notes, together with the series of Notes initially issued hereunder, may be consolidated to form a single series of Securities under the Indenture and have the same
terms as to status, redemption or otherwise as the Notes initially issued hereunder; provided, however, that if such additional Notes are not fungible for U.S. federal income tax purposes with the Notes issued hereby, such additional
Notes shall be issued under a separate CUISP, ISIN and/or any other identifying number. 
 Nothing contained in this Section 2.2 or
elsewhere in this Supplemental Indenture, or in the Notes, is intended to or shall limit execution by the Company or authentication or delivery by the Trustee of Notes under the circumstances contemplated by Sections 3.4, 3.7, 3.8 and 11.5 of
the Indenture. 
 The Notes shall be issued in registered form without coupons and shall be in substantially the form of
Exhibit A hereto. The form of the Trustee’s certificate of authentication for the Notes shall be in substantially the form set forth in the form of Note attached hereto. The Notes shall be dated the date of authentication thereof.
The Notes will initially be represented by one or more fully registered Global Securities. Each such Global Security will be deposited with, or on behalf of, a common depositary, and registered in the name of the nominee of the common depositary for
the accounts of Clearstream and Euroclear. The Notes shall not be issuable in definitive form except under the limited circumstances specified in Section 3.7 of the Indenture. 

 

	SECTION 2.3.	PAYMENT OF PRINCIPAL, INTEREST AND ADDITIONAL AMOUNTS ON THE NOTES 

 (a) The Notes will mature
on January 14, 2022 and will bear interest at the rate of 2.000% per annum. Interest on the Notes will be payable annually in arrears on January 14 of each year, commencing on January 14, 2016, to the Holders thereof at the close
of business on the preceding January 1. Interest on the Notes will accrue from and including the most recent date to which interest has been paid or, if no interest has been paid, from and including the date of issuance of the Notes. Interest
on the Notes will be payable on an Actual Basis. 
 (b) All payments of interest and principal, including payments made upon any redemption
of the Notes, will be payable in Euros. The Company may elect that payment of interest on the Notes be made by wire transfer or by check mailed to each beneficial owner of Notes at its current address appearing in the Security Register. So long as
the beneficial owner of the Notes is a common depositary of Euroclear and Clearstream or their nominee, payment of principal and interest shall be made in accordance with the requirements of Euroclear and Clearstream. If, on or after the date of
this Supplemental Indenture, the Euro is unavailable to the Company due to the imposition of exchange controls or other circumstances beyond the Company’s control or if the Euro is no longer being used by the then-member states of the European
Monetary Union that have adopted the Euro as their currency or for the settlement of transactions by public institutions of or within the international banking community, then all payments in respect of the Notes will be made in U.S. Dollars until
the Euro is again available to the Company or so used. In such circumstances, the amount payable on any date in Euros will be converted into in U.S. Dollars on the basis of the most recently available market exchange rate for Euros. Any payment in
respect of the Notes so made in U.S. Dollars will not constitute an Event of Default under the Notes or the Indenture. Neither the Trustee nor the Paying Agent shall have any responsibility for any calculation or conversion in connection with the
foregoing. 

  
 - 8 - 

 (c) The Company will, subject to the exceptions and limitations set forth below, pay to a
beneficial owner of any Note, as additional interest, such additional amounts (the “Additional Amounts”) as may be necessary so that every net payment by the Company or a Paying Agent of the principal of and interest on such Note and any
other amounts payable on such Note after withholding or deduction for or on account of any present or future tax, assessment or governmental charge imposed or levied by the Relevant Jurisdiction will not be less than the amount provided for in such
Note to be then due and payable under the Notes. The obligation to pay Additional Amounts shall not apply: 
 (i) to any present or future
tax, assessment or other governmental charge that would not have been so imposed but for: 
 (A) the existence of any present
or former connection between the Holder or the beneficial owner for whose benefit such Holder holds such Notes (or between a fiduciary, settlor, beneficiary, member or shareholder of the Holder, if the Holder is an estate, a trust, a partnership, a
limited liability company or a corporation) and the Relevant Jurisdiction and its possessions, including, without limitation, the beneficial owner (or such fiduciary, settlor, beneficiary, member or shareholder) being or having been a citizen or
resident of the Relevant Jurisdiction or being or having been engaged in a trade or business or present in the Relevant Jurisdiction or having, or having had, a permanent establishment in the Relevant Jurisdiction, or 

(B) the presentation by the beneficial owner of any Note, where presentation is required, for payment on a date more than 30
days after the date on which payment became due and payable or the date on which payment thereof is duly provided for, whichever occurs later; 

(ii) to any estate, inheritance, gift, sales, transfer, capital gains, excise or personal property tax or any similar tax, assessment or
governmental charge; 
 (iii) to any tax, assessment or other governmental charge that is payable otherwise than by withholding or deduction
from payments on or in respect of any Note; 
 (iv) to any tax, assessment or other governmental charge that would not have been imposed but
for the failure to comply with certification, information or other reporting requirements concerning the nationality, residence or identity of the beneficial owner of any Notes, if compliance is required by statute or by regulation of the Relevant
Jurisdiction as a precondition to relief or exemption from the tax, assessment or other governmental charge; 
 (v) to any tax, assessment
or other governmental charge imposed by reason of the beneficial owner’s past or present status as the actual or constructive owner of 10% or more of the total combined voting power of all classes of stock of the Company entitled to vote or as
the Company’s direct or indirect Subsidiary; 

  
 - 9 - 

 (vi) to any withholding or deduction that is imposed on a payment to an individual and that is
required to be made pursuant to European Council Directive 2003/48/EC on the taxation of savings income or any other Directive amending, supplementing or replacing such Directive, or any law implementing or complying with, or introduced in order to
conform to such Directive or Directives; 
 (vii) to any tax, assessment or other governmental charge imposed under sections 1471 through
1474 of the Code as of the original issue date of the Notes (or any amended or successor provisions), any current or future regulations or official interpretations thereof, any agreement entered into pursuant to section 1471(b) of the Code or any
fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement entered into in connection with the implementation of such sections of the Code; 

(viii) to any tax, assessment or other governmental charge that would not have been imposed or withheld but for the beneficial owner being a
bank purchasing the Notes in the ordinary course of its lending business; 
 (ix) to any tax, assessment or other governmental charge
imposed on a “personal holding company,” a “passive foreign investment company” or a “controlled foreign corporation,” each as defined under the Code, that has accumulated earnings to avoid United States federal income
tax; 
 (x) to any tax, assessment or other governmental charge that would not have been imposed but for a change in law, regulation or
administrative or judicial interpretation that becomes effective more than 30 days after the payment becomes due or is duly provided for, whichever occurs later; or 

(xi) in the case of any combination of items (i) through (x) above. 

Additional Amounts also will not be paid with respect to any payment on a Note to a beneficial owner who is a fiduciary, a partnership, a limited liability
company, or anyone other than the sole beneficial owner of that payment to the extent that payment would be required by the laws of the Relevant Jurisdiction to be included in the income, for tax purposes, of a beneficiary or settlor with respect to
the fiduciary, a member of that partnership, an interest holder of that limited liability company, or a beneficial owner who would not have been entitled to the Additional Amounts had that beneficiary, settlor, member or interest holder been the
beneficial owner. 
  

	SECTION 2.4.	DENOMINATIONS 

 The Notes will be issued in denominations of €100,000 and integral
multiples of €1,000 in excess thereof. 
  

	SECTION 2.5.	REDEMPTION 

 (a) Optional Redemption. Prior to October 16, 2021, the Company may, at
its option, redeem the Notes, either in whole or in part, at any time and from time to time at a Redemption Price equal to the greater of the following amounts, plus, in each case, accrued and unpaid interest on the principal amount being redeemed
to, but excluding, the applicable Redemption Date: 
 (i) 100% of the principal amount of the Notes to be redeemed; and 

  
 - 10 - 

 (ii) the sum of the present values of the Remaining Scheduled Payments of
principal and interest on the Notes to be redeemed (not including any portion of such payments of interest accrued as of the applicable Redemption Date) discounted to the applicable Redemption Date on an Actual Basis at the applicable Comparable
Government Bond Rate plus 30 basis points, plus, accrued and unpaid interest on the principal amount being redeemed to, but excluding, the applicable Redemption Date. 

On or after October 16, 2021, the Company may, at its option, redeem the Notes, either in whole or in part, at any time or from time to
time, at a Redemption Price equal to 100% of the aggregate principal amount of the Notes being redeemed, plus, accrued and unpaid interest on the principal amount being redeemed to, but excluding, the applicable Redemption Date. 

(b) Special Mandatory Redemption. In the event the Company does not complete the Acquisition on or prior to December 31, 2015, or
if, prior to that date, the Acquisition Agreement is terminated, the Company will redeem all of the Notes on the Special Mandatory Redemption Date at a Redemption Price equal to 101% of the aggregate principal amount of the Notes, plus
accrued and unpaid interest thereon to, but excluding, the Special Mandatory Redemption Date. 
 The Company will cause the notice of
special mandatory redemption to be transmitted to each Holder of Notes no later than five Business Days after the occurrence of the event triggering redemption under this Section 2.5(b). On or prior to the Special Mandatory Redemption Date, the
Company will deposit with the Trustee an amount of money sufficient to pay the Redemption Price on the Special Mandatory Redemption Date, plus accrued and unpaid interest on all of the Notes, and from and after that date the Notes will cease
to bear interest and all rights under the Notes (other than the right to receive the Redemption Price on the Special Mandatory Redemption Date) shall terminate. 

(c) Redemption for Tax Reasons. The Company may redeem the Notes as a whole but not in part, at the Company’s option at any time
prior to Maturity, upon the giving of a notice of tax redemption to the Holders of Notes, if the Company determines that, as a result of (i) any change in or amendment to the laws, or any regulations or rulings promulgated under the laws of the
Relevant Jurisdiction affecting taxation, or (ii) any change in official position regarding the application or interpretation of the laws, regulations or rulings referred to in the foregoing clause (i), in the case of each of clauses
(i) and (ii), which change or amendment becomes effective or, in the case of a change in official position, is announced on or after the original issue date of the Notes, the Company is or will become obligated to pay Additional Amounts with
respect to the Notes provided the Company, in its reasonable business judgment, reasonably determines that such obligation cannot be avoided by the Company taking reasonable measures available to the Company. 

  
 - 11 - 

 The Redemption Price for tax redemptions under this Section 2.5(c) will be equal to 100% of
the principal amount of the Notes to be redeemed plus accrued and unpaid interest to the date fixed for redemption. The Redemption Date and the applicable Redemption Price will be specified in the notice of tax redemption, which will be given
by the Company by first-class mail, to each beneficial owner of Notes to be redeemed at its current address appearing in the Security Register, with a copy to the Trustee, not earlier than 90 days prior to, and not later than 90 days after, the
earliest date on which the Company would be obligated to pay Additional Amounts if a payment in respect of the Notes were actually due on such date and, at the time such notice of tax redemption is given, such obligation to pay such Additional
Amounts remains in effect. Prior to giving the notice of a tax redemption, the Company will deliver to the Trustee, with a copy to the Paying Agent, a certificate signed by a duly authorized Officer, which the Trustee and Paying Agent may rely upon
conclusively, stating that (i) the Company is entitled to effect the tax redemption and setting forth a statement of facts showing that the conditions precedent to the Company’s right to so redeem have occurred; and (ii) the Company
has received an opinion of independent legal counsel of recognized standing to the same effect based on the statement of facts. 
 (d)
Redemption Generally. The Redemption Prices of Notes to be redeemed will be calculated on an Actual Basis. Except as otherwise provided in the foregoing clause (c), notice of redemption of the Notes will be given as provided in
Section 4.4 of the Indenture or otherwise transmitted in accordance with applicable procedures of Euroclear and Clearstream. If the Company redeems less than all of the Notes, the Trustee will select the particular Notes to be redeemed by lot,
on a pro rata basis or by another method the Trustee deems fair and appropriate. 
 Unless the Company defaults in the payment of the
Redemption Price, on and after the applicable Redemption Date, interest will cease to accrue on the Notes or portions of the Notes called for redemption. The Company will deposit with the Paying Agent funds sufficient to pay the Redemption Price of,
and accrued and unpaid interest on, such Notes to be redeemed on the applicable Redemption Date in accordance with Section 4.5 of the Indenture. If fewer than all of the Notes are to be redeemed, the Trustee will select, not more than 60 days
prior to the applicable Redemption Date, the particular Notes or portions thereof for redemption from the outstanding Notes not previously called by such method as the Trustee deems fair and appropriate in its sole judgment and in accordance with
the applicable procedures of the depositary; provided, however, that no Notes of a principal amount of €100,000 or less shall be redeemed in part. 
  

	SECTION 2.6.	OFFER TO REPURCHASE UPON CHANGE OF CONTROL TRIGGERING EVENT 

 Upon the occurrence
of a Change of Control Triggering Event, unless the Company has exercised its right to redeem the Notes as described in Section 2.5, each Holder of the Notes shall have the right to require the Company to repurchase all or a portion (equal to
€100,000 or an integral multiple of €1,000 in excess thereof) of such Holder’s Notes as set forth in this Section 2.6 (the “Change of Control Offer”), at a purchase price equal to 101% of the principal amount
thereof, plus accrued and unpaid interest, if any, to the date of repurchase (the “Change of Control Payment”), subject to the rights of Holders of the Notes on the relevant record date to receive interest due on the relevant
Interest Payment Date.  

  
 - 12 - 

 Within 30 days following the date upon which a Change of Control Triggering Event occurs, or at
the Company’s option, prior to any Change of Control but after the public announcement of the pending Change of Control, the Company shall send, by first-class mail, a notice to each Holder of Notes at its registered address, with a copy to the
Trustee, which notice will govern the terms of the Change of Control Offer. Such notice will state, among other things, the repurchase date, which shall be no earlier than 30 days nor later than 60 days from the date such notice is mailed, other
than as may be required by law (the “Change of Control Payment Date”). The notice, if mailed prior to the date of consummation of the Change of Control, shall state that the Change of Control Offer is conditioned on the Change of
Control Triggering Event occurring on or prior to the Change of Control Payment Date. Holders of Notes electing to have Notes repurchased pursuant to a Change of Control Offer shall be required to surrender their Notes, with the form entitled
“Option of Holder to Elect Repurchase” on the reverse of the Note completed, to the Paying Agent at the address specified in the notice, or transfer the Holder’s Notes to the Paying Agent by book-entry transfer pursuant to the
applicable procedures of the Paying Agent, prior to the close of business on the third Business Day prior to the Change of Control Payment Date. 

The Company shall not be required to make a Change of Control Offer with respect to the Notes if a third party makes such an offer in the
manner, at the times and otherwise in compliance with the requirements for such an offer if it had been made by the Company, and such third party purchases all Notes properly tendered and not withdrawn under its offer. In addition, the Company shall
not repurchase any Notes if there has occurred and is continuing on the Change of Control Payment Date an Event of Default, other than an Event of Default resulting from failure to pay the Change of Control Payment. 

The Company shall comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder
to the extent those laws and regulations are applicable in connection with the repurchase of Notes as a result of a Change of Control Triggering Event. To the extent that the provisions of any such securities laws or regulations conflict with the
Change of Control Offer provisions of the Notes, the Company shall comply with those securities laws and regulations and shall not be deemed to have breached the Company’s obligations under the Change of Control Offer provisions of the Notes by
virtue of any such conflict. 
  

	SECTION 2.7.	SINKING FUND 

 The Notes shall not have the benefit of a sinking fund. 

 

	SECTION 2.8.	PAYING AGENT AND REGISTRAR; CERTAIN TAX PROVISIONS 

 (a) Elavon Financial Services
Limited, UK Branch, shall initially serve as Paying Agent with respect to the Notes, with the Place of Payment for all Notes initially being the following office of the initial Paying Agent: Fifth Floor, 125 Old Broad Street, London EC2N 1AR, United
Kingdom. Elavon Financial Services Limited, shall initially serve as Registrar with respect to the Notes, and the Notes may be registered for transfer or exchange at the office of the Registrar at Block E, Cherrywood Business Park, Loughlinstown,
Dublin, Ireland. The Company reserves the right at any time to vary or terminate the appointment of any Paying 

  
 - 13 - 

 
Agent or Registrar for the Notes, to appoint additional or other Paying Agents or Registrars for the Notes and to approve any change in the office through which any Paying Agent or Registrar for
the Notes acts. 
 (b) The Company will, to the extent permitted by law, maintain a Paying Agent that will not be obliged to deduct or
withhold tax pursuant to European Council Directive 2003/48/EC on the taxation of savings income or any law implementing or complying with, or introduced in order to conform to, such Directive. 

 

	SECTION 2.9.	LIMITATION ON LIENS 

 (a) The Company shall not, and shall not permit any Consolidated
Subsidiary to, incur any Debt secured by a Lien on any Principal Property or on any shares of capital stock of any Consolidated Subsidiary (in each case, whether now owned or hereafter acquired) without making effective provision that the Notes
shall be secured equally and ratably with (or prior to) such secured Debt, unless, after giving effect to the incurrence of such Debt and any simultaneous permanent repayment of any secured Debt, the aggregate amount of all Debt secured by a Lien on
any Principal Property or on any shares of capital stock of any Consolidated Subsidiary, together with all Attributable Debt of the Company and its Consolidated Subsidiaries in respect of Sale and Lease-Back Transactions involving Principal
Properties, would not exceed 10% of the Consolidated Net Tangible Assets of the Company and the Consolidated Subsidiaries. The aggregate amount of all secured Debt referred to in the preceding sentence shall exclude any then existing secured Debt
that has been secured equally and ratably with the Notes. 
 (b) The restriction set forth in paragraph (a) above shall not apply to,
and there shall be excluded from secured Debt in any computation under the restriction in (a) above or under the restriction in Section 2.10(a)(1), Debt secured by: 

(1) Liens on any property existing at the time of acquisition thereof (including by way of merger or consolidation);
provided that (A) any such Lien was (i) in existence prior to the date of such acquisition, (ii) was not incurred in anticipation thereof and (iii) does not extend to any other property, and (B) the principal amount
of Debt secured by each such Lien does not exceed the cost to the Company or such Consolidated Subsidiary of the property subject to the Lien, as determined in accordance with GAAP; 

(2) Liens in favor of the Company or a Consolidated Subsidiary; 

(3) Liens in favor of governmental bodies to secure progress or advance payments pursuant to any contract or provision of any
statute; 
 (4) Liens created or incurred in connection with an industrial revenue bond, industrial development bond,
pollution control bond or similar financing arrangement between the Company or a Consolidated Subsidiary and any federal, state or municipal government or other governmental body or quasi-governmental agency; 

  
 - 14 - 

 (5) Liens on property to secure all or part of the cost of acquiring,
substantially repairing or altering, constructing, developing or substantially improving the property, or to secure Debt incurred for any such purpose; provided that (A) any such Lien relates solely to the property subject to the Lien
and (B) the principal amount of Debt secured by each such Lien (i) was incurred concurrently with, or within 18 months of, such acquisition, repair, alteration, construction, development or improvement and (ii) does not exceed the
cost to the Company or such Consolidated Subsidiary of the property subject to the Lien, as determined in accordance with GAAP; and 

(6) any extension, renewal or replacement of any Lien referred to above; provided that (A) such extension, renewal
or replacement Lien (i) will be limited to the same property that secured the Lien so extended, renewed or replaced and (ii) will not exceed the principal amount of Debt so secured at the time of such extension, renewal or replacement and
(B) such principal amount of Debt so secured shall continue to be included in the computation in paragraph (a) of this Section 2.9 and in Section 2.10(a)(1) to the extent so included at the time of such extension, renewal or
replacement. 
 For purposes of this Section 2.9, an “acquisition” of property (including real, personal or intangible
property or shares of capital stock or Debt) shall include any transaction or series of transactions by which the Company or a Consolidated Subsidiary acquires, directly or indirectly, an interest, or an additional interest (to the extent thereof),
in such property, including an acquisition through merger or consolidation with, or an acquisition of an interest in, a Person owning an interest in such property. 

This Section 2.9 has been included in this Supplemental Indenture expressly and solely for the benefit of the Notes. 

 

	SECTION 2.10.	    LIMITATION ON SALE AND LEASE-BACK TRANSACTIONS 

 (a) The Company shall
not, and shall not permit any of its Consolidated Subsidiaries to, enter into any Sale and Lease-Back Transaction involving any Principal Property unless either of the following conditions is met: 

(1) after giving effect thereto, the aggregate amount of all Attributable Debt with respect to Sale and Lease-Back Transactions
plus the aggregate amount of Debt secured by Liens incurred without equally and ratably securing the Securities pursuant to Section 2.9 would not exceed 10% of the Consolidated Net Tangible Assets of the Company and the Consolidated
Subsidiaries; or 
 (2) within 180 days of such Sale and Lease-Back Transaction, the Company or such Consolidated Subsidiary
applies to (A) the retirement or prepayment, and in either case, the permanent reduction, of Funded Debt of the Company or any Consolidated Subsidiary (including that in the case of a revolver or similar arrangement that makes credit available,
such commitment is so permanently reduced by such amount), or (B) the purchase of other property that will constitute Principal Property having a fair market value, in the opinion of the Board of Directors, at least equal to the fair market
value of the Principal Property leased in such Sale and Lease-Back transaction, an amount not less than the greater of: 

(i) the Net Proceeds of the Sale and Lease-Back Transaction; and 

  
 - 15 - 

 (ii) the fair market value of the Principal Property so leased at the time of
such transaction; 
 (b) The restriction set forth in paragraph (a) above shall not apply to any Sale and Lease-Back Transaction, and
there shall be excluded from Attributable Debt in any computation described in this Section 2.10 or in Section 2.9(a) with respect to any such transaction: 

(1) solely between the Company and a Consolidated Subsidiary or solely between Consolidated Subsidiaries; 

(2) financed through an industrial revenue bond, industrial development bond, pollution control bond or similar financing
arrangement between the Company or a Consolidated Subsidiary and any federal, state or municipal government or other governmental body or quasi-governmental agency; or 

(3) in which the applicable lease is for a period, including renewal rights, of three years or less. 

This Section 2.10 has been included in this Supplemental Indenture expressly and solely for the benefit of the Notes. 

 

	SECTION 2.11.  	DEFEASANCE 

 The provisions of Sections 10.2 and 10.3 of the Indenture, together with the
other provisions of Article X of the Indenture, shall be applicable to the Notes; provided that “other obligations” as contemplated by Section 10.4(a)(i) of the Indenture shall include (a) securities that are direct
obligations of the Federal Republic of Germany for the payment of which its full faith and credit is pledged or (b) obligations of a person controlled or supervised by and acting as an agency or instrumentality of the Federal Republic of
Germany, the payment of which is unconditionally guaranteed as a full faith and credit obligation by the Federal Republic of Germany, which, in either case under clauses (a) or (b) are not callable or redeemable at the option of the issuer
thereof; provided further that “Holders” as contemplated by Section 10.4(a)(ii) and Section 10.4(a)(iii) of the Indenture shall be replaced with “beneficial owners”. The provisions of Section 10.3 of the
Indenture shall apply to the covenants set forth in Sections 2.9 and 2.10 of this Supplemental Indenture and to those covenants specified in Section 10.3 of the Indenture. 

ARTICLE III 

MISCELLANEOUS PROVISIONS 
  

	SECTION 3.1.	RECITALS BY COMPANY 

 The recitals in this Supplemental Indenture are made by the Company only
and not by the Trustee, and all of the provisions contained in the Indenture in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect of the Notes and of this Supplemental Indenture as fully
and with like effect as if set forth herein in full. 

  
 - 16 - 

	SECTION 3.2.	APPLICATION TO NOTES ONLY 

 Each and every term and condition contained in this Supplemental
Indenture that modifies, amends or supplements the terms and conditions of the Indenture shall apply only to the Notes established hereby and not to any currently existing or future series of Securities established under the Indenture. 

 

	SECTION 3.3.	BENEFITS 

 Nothing contained in this Supplemental Indenture shall or shall be construed to
confer upon any person other than a Holder of the Notes, the Company and the Trustee any right or interest to avail itself of any benefit under any provision of the Indenture, the Notes or this Supplemental Indenture. 

 

	SECTION 3.4.	EFFECTIVE DATE 

 This Supplemental Indenture shall be effective as of the date first above
written upon the execution and delivery hereof by each of the parties hereto. 
  

	SECTION 3.5.	RATIFICATION 

 As supplemented hereby, the Indenture is in all respects ratified and confirmed
and all the terms, provisions and conditions thereof remain in full force and effect. 
  

	SECTION 3.6.	COUNTERPARTS 

 This Supplemental Indenture may be executed in multiple counterparts, each of
which shall be deemed to be an original, and such counterparts shall together constitute but one and the same instrument. 
  

	SECTION 3.7.	GOVERNING LAW 

 THIS SUPPLEMENTAL INDENTURE AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS MADE AND PERFORMED WITHIN THE STATE OF NEW YORK, INCLUDING, WITHOUT LIMITATION, SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW AND RULE 327(b) OF THE NEW
YORK CIVIL PRACTICE LAWS AND RULES. 
 [Signatures on Next Page] 

  
 - 17 - 

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

			
	MOHAWK INDUSTRIES, INC.,
	a Delaware corporation
		
	By:		 /s/ Shailesh Bettadapur

	Name:		Shailesh Bettadapur
	Title:		Vice President and Treasurer
	
	 U.S. BANK NATIONAL ASSOCIATION,
 as
Trustee

		
	By:		 /s/ George Hogan

	Name:		George Hogan
	Title:		Vice President
	
	ELAVON FINANCIAL SERVICES LIMITED, UK BRANCH, as Paying Agent
		
	By:		 /s/ Hamyd Mazrae

	Name:		Hamyd Mazrae
	Title:		Authorised Signatory
		
	By:		 /s/ Laurence Griffiths

	Name:		Laurence Griffiths
	Title:		Authorised Signatory
	
	 ELAVON FINANCIAL SERVICES LIMITED,

as Registrar

		
	By:		 /s/ Hamyd Mazrae

	Name:		Hamyd Mazrae
	Title:		Authorised Signatory
		
	By:		 /s/ Laurence Griffiths

	Name:		Laurence Griffiths
	Title:		Authorised Signatory

 EXHIBIT A 

FORM OF 
 2.000% SENIOR NOTE DUE
2022 
 [THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE OF A DEPOSITARY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND MAY NOT BE TRANSFERRED EXCEPT AS A
WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY.]* 

[UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR BANK, S.A./N.V., AS OPERATOR OF THE EUROCLEAR SYSTEM (“EUROCLEAR”),
AND CLEARSTREAM BANKING, SOCIÉTÉ ANONYME (“CLEARSTREAM” AND, TOGETHER WITH EUROCLEAR, “EUROCLEAR /CLEARSTREAM”), TO THE COMPANY (AS DEFINED BELOW) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND
ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF USB NOMINEES (UK) LIMITED, AS NOMINEE OF ELAVON FINANCIAL SERVICES LIMITED OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF ELAVON FINANCIAL SERVICES LIMITED, AS COMMON
DEPOSITARY (THE “COMMON DEPOSITARY”) FOR EUROCLEAR/CLEARSTREAM (AND ANY PAYMENT IS MADE TO USB NOMINEES (UK) LIMITED OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE COMMON DEPOSITARY), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, USB NOMINEES (UK) LIMITED, HAS AN INTEREST HEREIN.]* 

 

	*	Insert in Global Securities 

  
 A-1 

   

MOHAWK INDUSTRIES, INC. 
  

 
  

€             

2.000% SENIOR NOTE DUE 2022 
 No. R-[●]

 ISN No. XS1117296381 
 COMMON
CODE: 111729638 
 CUSIP No.: 608190 AK0 

Mohawk Industries, Inc., a corporation organized and existing under the laws of the State of Delaware (herein called the
“Company”, which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to USB Nominees (UK) Limited, as nominee of Elavon Financial Services Limited, a common
depositary for the accounts of Euroclear Bank S.A./N.V. and Clearstream Banking, société anonyme, Luxembourg, or registered assigns (the “Holder”), the principal sum of
             (€            ) on January 14, 2022, and to pay interest thereon from the most recent Interest Payment
Date to which interest has been paid or duly provided for, or if no interest has been paid, from and including the date of issuance, annually in arrears on January 14 of each year (each, an “Interest Payment Date”) commencing
on January 14, 2016, at a rate of 2.000% per annum until the principal hereof is paid or made available for payment. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such
Indenture, be paid to the Person in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on the preceding January 1 (each, a “Regular Record Date”); provided that the
interest payable at Stated Maturity will be paid to the Person to whom principal is payable. Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be
paid to the Person in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given
to Holders of the Notes not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange or automated quotation system on which the
Notes may be listed or traded, and upon such notice as may be required by such exchange or automated quotation system, all as more fully provided in the Indenture. 

Payments of interest on the Notes will include interest accrued to but excluding the respective Interest Payment Dates. Interest on the Notes
will be payable on an Actual Basis. If any Interest Payment Date, Redemption Date or Maturity falls on a day that is not a Business Day, the payment of the interest and principal payable on such date will be made on the next Business Day with the
same force and effect as if made on such Interest Payment Date, Redemption Date or Maturity and no interest shall accrue on the amount of interest due on that Interest Payment Date for the period from and after such Interest Payment Date, Redemption
Date or Maturity to the date of payment. 

  
 A-2 

 Payments of principal of and interest on the Notes will be made in Euros. If the Euro is
unavailable to the Company due to the imposition of exchange controls or other circumstances beyond the Company’s control or if the Euro is no longer being used by the then-member states of the European Monetary Union that have adopted the Euro
as their currency or for the settlement of transactions by public institutions of or within the international banking community, then all payments in respect of the Notes will be made in U.S. Dollars until the Euro is again available to the Company
or so used. In such circumstances, the amount payable on any date in Euros will be converted into in U.S. Dollars on the basis of the most recently available market exchange rate for Euros. Any payment in respect of the Notes so made in U.S. Dollars
will not constitute an Event of Default under the Notes or the Indenture. Neither the Trustee nor the Paying Agent shall have any responsibility for any calculation or conversion in connection with the foregoing. Payment of interest, subject to such
surrender where applicable, (i) may be made at the Company’s option by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register and (ii) in the case of any Global Security, must
be made by wire transfer at such place and to such account at a banking institution as may be designated in writing to the Trustee at least sixteen (16) days prior to the date for payment by the Person entitled thereto. 

Reference is hereby made to the further provisions of this Note set forth on the reverse hereof, which further provisions shall for all
purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof by manual signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

[Signatures on Next Page] 

  
 A-3 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 

 

							
	Dated:                             				MOHAWK INDUSTRIES, INC.
				
					By:		  

					Name:		
					Title:		
				
					By:		  

					Name:		
					Title:		

 [Trustee’s Certificate of Authentication on Next Page] 

  
 A-4 

 CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 

 

							
					U.S. BANK NATIONAL ASSOCIATION,
					as Trustee
				
	Dated:                             				By:		  

							Authorized Signatory

  
 A-5 

 REVERSE OF SENIOR 2022 NOTE 

This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to
be issued in one or more series under an Indenture dated as of January 31, 2013, by and between the Company and U.S. Bank National Association, as Trustee (herein called the “Trustee”, which term includes any successor trustee
under the Indenture (as defined below)) (the “Original Indenture”), as supplemented by a Second Supplemental Indenture dated as of June 9, 2015 (the “Supplemental Indenture”; the Original Indenture, as
supplemented by the Supplemental Indenture and as further amended or supplemented from time to time, herein called the “Indenture”, which term shall have the meaning assigned to it in such instrument), among the Company, the
Trustee, Elavon Financial Services Limited, UK Branch, as initial Paying Agent and Elavon Financial Services Limited, as initial Registrar, and reference is hereby made to the Indenture for a statement of the respective rights, limitations of
rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered. This Security is one of the series designated on the
face hereof (the “Notes”) which is unlimited in aggregate principal amount. 
 Elavon Financial Services Limited, UK
Branch, shall initially serve as Paying Agent with respect to the Notes, with the Place of Payment for all Notes initially being the following office of the initial Paying Agent: Fifth Floor, 125 Old Broad Street, London EC2N 1AR, United Kingdom.
Elavon Financial Services Limited, shall initially serve as Registrar with respect to the Notes, and the Notes may be registered for transfer or exchange at the office of the Registrar at Block E, Cherrywood Business Park, Loughlinstown, Dublin,
Ireland. The Company reserves the right at any time to vary or terminate the appointment of any Paying Agent or Registrar for the Notes, to appoint additional or other Paying Agents or Registrars for the Notes and to approve any change in the office
through which any Paying Agent or Registrar for the Notes acts. 
 Prior to October 16, 2021, the Company may, at its option, redeem
the Notes, either in whole or in part, at any time and from time to time at a Redemption Price described in the Supplemental Indenture. 

On or after October 16, 2021, the Company may, at its option, redeem the Notes, either in whole or in part, at any time or from time to
time, at a Redemption Price equal to 100% of the aggregate principal amount of the Notes being redeemed, plus, accrued and unpaid interest on the principal amount being redeemed to, but excluding, the applicable Redemption Date. 

The Notes are subject to redemption for tax reasons as described in the Supplemental Indenture. 

Additional Amounts will be paid in respect of any payments of interest or principal so that the amount a beneficial owner receives after the
imposition of withholding tax by the Relevant Jurisdiction will not be less than the amount that the beneficial owner would have received if no withholding tax had been applicable, subject to the exceptions described in the Supplemental Indenture.

  
 A-6 

 In the event the Company does not complete the Acquisition (as defined in the Supplemental
Indenture) on or prior to December 31, 2015, or if, prior to that date, the Acquisition Agreement (as defined in the Supplemental Indenture) is terminated, the Company will redeem all of the Notes on the Special Mandatory Redemption Date at a
Redemption Price equal to 101% of the aggregate principal amount of the Notes, plus accrued and unpaid interest thereon to, but excluding, the Special Mandatory Redemption Date. 

Upon the occurrence of a Change of Control Triggering Event (as defined in the Supplemental Indenture), unless the Company has exercised its
right to redeem the Notes as described in the Supplemental Indenture, each Holder of the Notes shall have the right to require the Company to repurchase all or a portion (equal to €100,000 or an integral multiple of €1,000 in excess
thereof) of such Holder’s Notes as set forth in the Supplemental Indenture, at a purchase price equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, to the date of repurchase, subject to the rights of Holders
of the Notes on the relevant record date to receive interest due on the relevant Interest Payment Date. 
 If an Event of Default with
respect to the Notes shall occur and be continuing, the principal of the Notes may be declared due and payable in the manner and with the effect provided in the Indenture. 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations
of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the
time Outstanding of each series to be affected. The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all
Securities of such series, to waive certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and
of any Note issued upon the registration of transfer hereof or in exchange therefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note. 

As provided in and subject to the provisions of the Indenture, the Holder of this Note shall not have the right to institute, or to order or
direct the Trustee to institute, any proceeding, judicial or otherwise, with respect to the Indenture, or for the appointment of a receiver or trustee, or for any other remedy thereunder, unless such Holder shall have previously given the Trustee
written notice of a continuing Event of Default with respect to the Notes, the Holders of not less than 25% in aggregate principal amount of the Notes at the time Outstanding shall have made written request to the Trustee to institute proceedings in
respect of such Event of Default as Trustee and offered the Trustee security or indemnity reasonably satisfactory to it against the costs, expenses and liabilities to be incurred or reasonably probable to be incurred in compliance with such request,
the Trustee for 60 days after its receipt of such notice, request and offer of indemnity has failed to institute any such proceeding and no direction inconsistent with such written request has been given to the Trustee during such 60-day period by
the Holders of a 

  
 A-7 

 
majority in aggregate principal amount of the Outstanding Notes. The foregoing shall not apply to any suit instituted by the Holder of this Note for the enforcement of any payment of principal
hereof or premium, if any, or interest hereon on or after the respective due dates expressed or provided for herein. 
 No reference herein
to the Indenture and no provision of the Notes or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of, premium, if any, and interest on the Notes at the times, place and
rate, and in the coin or currency, herein prescribed. 
 As provided in the Indenture and subject to certain limitations therein set forth,
the transfer of this Note is registrable in the Security Register, upon surrender of this Note for registration of transfer at the office or agency of the Company in a Place of Payment for this Note, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Company and the Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Notes and of like tenor, of authorized denominations and for
the same aggregate principal amount, will be issued to the designated transferee or transferees. 
 The Notes are issuable only in
registered form without coupons in denominations of €100,000 and integral multiples of €1,000 in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, the Notes are exchangeable for a like
aggregate principal amount of Notes having the same Stated Maturity and of like tenor of any authorized denominations as requested by the Holder upon surrender of the Note or Notes to be exchanged at the office or agency of the Company. 

No service charge shall be made for any such registration of transfer or exchange of the Notes, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection therewith. 
 Prior to due presentment of this Note for
registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the
Company, the Trustee nor any such agent shall be affected by notice to the contrary. 
 All terms used in this Note that are defined in the
Indenture shall have the meanings assigned to them in the Indenture. 

  
 A-8 

 ABBREVIATIONS 

The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according
to applicable laws or regulations: 
  

					
	TEN COM -		as tenants in common		
			
	TEN ENT -		as tenants by the entireties		
		
	JT TEN -		as joint tenants with rights of survivorship and not as tenants in common
			
	UNIF GIFT MIN ACT -		  
		Custodian for
			(Cust)		
			
			  
		
			(Minor)		
			
			Under Uniform Gifts to Minors Act of		
			
			  
		
			(State)		

 Additional abbreviations may also be used though not on the above list. 

  
 A-9 

 To assign this Note, fill in the following form: 

FOR VALUE RECEIVED, the undersigned hereby sell(s) and transfer(s) unto 

 
  

(please insert Social Security or other identifying number of assignee) 

 
  
  

 
  

 
 PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS,
INCLUDING POSTAL ZIP CODE OF ASSIGNEE 
 the within Note and all rights thereunder, hereby irrevocably constituting and appointing 

 
  
  

 
  

 
 agent to transfer said Note on the books of
the Company, with full power of substitution in the premises. 
 Dated:             
    ,      
  

			
			  

 NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within instrument in
every particular without alteration or enlargement, or any change whatsoever. 

  
 A-10 

 OPTION OF HOLDER TO ELECT PURCHASE 

If you elect to have this Note purchased by the Company pursuant to Section 2.6 of the Supplemental Indenture, check this
box:   ̈ 
 If you want to elect to have only part of this Note purchased by the
Company pursuant to Section 2.6 of the Supplemental Indenture, state the amount in principal amount (must be at least €100,000 and integral multiples of €1,000 in excess thereof):
€                      
  

					
	Date:                     		            Your Signature:		  

					(Sign exactly as your name appears on the other side of the Security)
		
	Signature Guarantee:		  

			(Signature must be guaranteed)

 The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers, savings and loan associations
and credit unions with membership in an approved signature guarantee medallion program), pursuant to S.E.C. Rule 17Ad-15. 

  
 A-11

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