Document:

Form of Stock Appreciation Rights Agreement

 Exhibit 10.2 
 EFJ, INC. 2005 OMNIBUS INCENTIVE COMPENSATION PLAN 
 STOCK APPRECIATION RIGHTS AGREEMENT

 This Stock Appreciation Rights Agreement is made and entered into by and between EFJ, Inc. (the “Company”) and [Insert Full Name]
(“Participant”) as of the date of acceptance, pursuant to the EFJ, Inc. 2005 Omnibus Incentive Compensation Plan (the “Plan”). The Committee administering the Plan have selected the Participant to receive the following grant of
stock appreciation rights (“SAR”). This SAR entitles the Participant to receive a payment in shares of the common stock of EFJ, Inc. (the “Common Stock”) that reflects the appreciation over the Grant Price, as specified in
Section 1 hereof, for the number of shares of the Common Stock for which this SAR was granted, as specified in Section 1 hereof, (the “Grant Shares”), on the terms and conditions of the Plan and as set forth below, which
Participant accepts and to which the Participant agrees: 
 1. SAR Granted: 
  

			
	Number of Shares Subject to SAR	  	[Insert Number Shares]
	Grant Date	  	[Insert Grant Date]
	Grant Price per Share (U.S. dollars)	  	[Insert Exercise Price
	Expiration Date	  	[Insert Expiration Date]

 2. This SAR may be exercised in whole or in part until
fully exercised. The payment due to Participant upon exercise shall be equal to a number shares of Common Stock of the Company with an aggregate fair market value on the exercise date equal to (i) the difference between the fair market value of
the Common Stock on the date of exercise and the Grant Price, multiplied by (ii) the number of Grant Shares being exercised. The payment shall be made in the form of shares of the Common Stock (the “Payment Shares”), rounded down to
the nearest whole number, subject to applicable income and employment tax withholding. Except as herein otherwise stated, the SAR, to the extent not theretofore exercised, shall terminate on the day immediately preceding the fifth (5th) anniversary of the Grant Date, except that the SAR may expire earlier as provided elsewhere in this Agreement and/or in the Plan. The number of shares
subject to the SAR granted hereunder shall be adjusted as provided in the Plan. 
 3. This SAR shall be exercisable in all respects in accordance with
the terms of the Plan, which are incorporated herein by this reference. Participant acknowledges having received and read a copy of the Plan. 
 4. Shares of
Common Stock shall not be issued with respect to any SAR granted under the Plan, unless the exercise of that SAR and the issuance and delivery of the shares pursuant thereto shall comply with all applicable provisions of federal, state, local and
foreign laws. 
 5. This SAR shall vest and Participant shall have the right to exercise the SAR in accordance with the following schedule: 
 (a) 
  

				
	 Date
	  	Percentage
Vested	 
	 1st Anniversary of Grant
Date
	  	25	%
	 2nd Anniversary of Grant
Date
	  	25	%
	 3rd Anniversary of Grant
Date
	  	25	%
	 4th Anniversary of Grant
Date
	  	25	%

  

	 	(b)	The right to exercise the SAR shall be cumulative. Participant may exercise all, or from time to time any part, of the maximum number of Grant Shares which are exercisable under
this SAR, but in no case may Participant exercise the SAR with regard to a fraction of a Grant Share, or for any Grant Share for which the SAR is not exercisable. 

 6. Withholding Taxes. All SARs are subject to the condition that if at any time the Company shall determine, in
its discretion, that the satisfaction of withholding tax or other withholding liabilities under any federal, state, local or foreign laws is necessary or desirable as a condition of, or in connection with, the grant, vesting or exercise of a SAR or
the delivery or purchase of shares pursuant thereto, then such action shall not be effective unless such withholding shall have been effected or obtained in a manner acceptable to the Company. Such withholding liabilities shall be satisfied by
reducing the number of whole shares that would otherwise be payable to Participant on exercise of a SAR by an amount equal in value to the withholding liability, unless at the Company’s sole and complete discretion, the Company determines to
require or accept cash from Participant. 
 7. Termination as a Service Provider other than by Death or Disability. If the Participant ceases to be an
employee, consultant or director of the Company or any Subsidiary (used herein as defined in the Plan) (collectively referred to as “Service Provider”) for any reason other than his or her death or disability, the SAR may be exercised, to
the extent it had vested at the time Participant ceases to be a Service Provider of the Company, at any time within three (3) months after his or her termination of continuous status as a Service Provider, but not beyond the otherwise
applicable term of the SAR. 
 For purposes of this Section 7, the Service Provider relationship shall be treated as continuing intact while the
Participant is an active Service Provider of the Company or any subsidiary, or other bona fide leave of absence to be determined in the sole discretion of the Committee. 
 8. Disability of Participant. If the Participant ceases to be a Service Provider of the Company due to becoming totally and permanently disabled within the meaning of Section 22(e)(3) of the Code, as
determined by the Committee in their sole discretion, the SAR may be exercised, to the extent it had vested at the time of termination of continuous status as a Service Provider of the Company and subject to the Plan, at any time within one year
after the Participant’s termination as a Service Provider, but not beyond the otherwise applicable term of the SAR. 
 9. Death of Participant.
If the Participant dies while a Service Provider, or after ceasing to be a Service Provider but during the period while he or she could have exercised the SAR, the SAR may be exercised, to the extent it had vested at the time of death and subject to
the Plan, at any time within one year after the Participant’s death, by the executors or administrators of his or her estate or by any person or persons who acquire the SAR by will or the laws of descent and distribution, but not beyond the
otherwise applicable term of the SAR. 
 10. Rights as a Shareholder. The Participant, or a transferee of the Participant, shall have no rights as a
shareholder of the Company with respect to any Payment Share for which his or her SAR is exercisable until the date of the issuance of such Payment Share. No adjustment shall be made for dividends, ordinary or extraordinary (whether in currency,
securities, or other property), distributions, or other rights for which the record date is prior to the date such stock is issued. 
 11. Modification,
Extension, and Renewal of SAR. Within the limitations of the Plan, the Committee may modify, extend or renew the SAR or accept the cancellation of the SAR for the granting of a new SAR in substitution therefor. Notwithstanding the preceding
sentence, no modification of the SAR shall, without the consent of the Participant, alter or impair any rights or obligations under the SAR. 
 12.
Nontransferability. This SAR may not be sold, transferred, pledged, assigned, encumbered or otherwise alienated or hypothecated otherwise than by will or by the laws of descent and distribution. 
 13. Acknowledgements. Participant acknowledges receipt of and understands and agrees to the terms of this SAR Agreement and the Plan. In addition to the above
terms, Participant understands and agrees to the following: 
 (a) Participant hereby acknowledges receipt of a copy of the Plan and agrees
to be bound by all of the terms and provisions thereof, including the terms and provisions adopted after the date of this Agreement but 

  

 2 

 
prior to the completion of the vesting period. If and to the extent that any provision contained in this Agreement is inconsistent with the Plan, the Plan
shall govern. 
 (b) Participant acknowledges that as of the date of this Agreement, the Agreement and the Plan set forth the entire
understanding between Participant and the Company regarding the acquisition of shares of Common Stock underlying the SAR and supersedes all prior oral and written agreements pertaining to the SAR. 
 (d) Participant understands that the Company has reserved the right to amend or terminate the Plan at any time, and that the award of this SAR under the
Plan at one time does not in any way obligate the Company or its subsidiaries to grant additional SARs in any future year or in any given amount. Participant acknowledges and understands that Participant’s participation in the Plan is voluntary
and that this SAR and any future SARs under the Plan are wholly discretionary in nature, the value of which do not form part of any normal or expected compensation for any purposes, including, but not limited to, calculating any termination,
severance, resignation, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments, other than to the extent required by local law. 
 14. No Right to Continued Employment. Neither this SAR nor any terms contained in this Agreement shall confer upon Participant any expressed or implied right to
be retained in the service of the Company or any of its subsidiaries for any period at all, nor restrict in any way the right of the Company or any such subsidiary, which right is hereby expressly reserved, to terminate his or her employment at any
time with or without cause. Participant acknowledges and agrees that any right to receive delivery of shares of Common Stock is earned only by continuing as an employee of the Company or its subsidiary at the will of Company or such subsidiary, or
satisfaction of any other applicable terms and conditions contained in this Agreement and the Plan, and not through the act of being hired, being granted this SAR or acquiring shares of Common Stock hereunder. 
 15. Compliance with Laws, Regulations and Plan Rules. The award of this SAR to Participant and the obligation of the Company to deliver shares of
Common Stock hereunder and the sale or the disposition of the Payment Shares received pursuant to the exercise of such SAR shall be subject to (a) all applicable federal, state, local and foreign laws, rules and regulations, and (b) any
registration, qualification, approvals or other requirements imposed by any government or regulatory agency or body which the Company shall, in its sole discretion, determine to be necessary or applicable. Moreover, shares of Common Stock shall not
be delivered hereunder if such delivery would be contrary to applicable law or the rules of any stock exchange. Exercise of the SAR shall be conditioned on the Participant’s compliance with procedures established from time to time by the
Committees for exercise, including but not limited to submission of such forms and documents as the Committees may require. 
 16. Definitions. All
capitalized terms that are used in this Agreement that are not defined herein have the meanings defined in the Plan. In the event of a conflict between the terms of the Plan and the terms of this Agreement, the terms of the Plan shall prevail.

 17. Notices. Any notice or other communication required or permitted hereunder shall, if to the Company, be in accordance with the Plan, and, if to
Participant, be in writing and delivered in person or by registered or certified mail or overnight courier, postage prepaid, addressed to Participant at his or her last known address as set forth in the Company’s records. 
 18. Severability. If any of the provisions of this Agreement should be deemed unenforceable, the remaining provisions shall remain in full force and effect.

 19. Governing Law. This Agreement and this SAR shall be governed by the laws of the State of Delaware. 
 [Signature page to follow] 
  

 3 

 IN WITNESS WHEREOF, each of the parties hereto has executed this SAR Agreement, in the case of the Company by its duly
authorized officer, as of the date of acceptance. 
  

							
	Participant	 		 	[Insert Name of Company Signatory]
				
	 	 		 	By:	 	 
	(Signature)	 		 		 	
				
	 	 		 	Its:	 	 
	(Name)	 		 		 	

  

 4Engagement letter between Propex Inc. and Houlihan Lokey Howard

 Exhibit 10.1 
 October 23, 2007 
 Confidential 
 Mr. Joseph F. Dana 
 President and 
 Chief Executive Officer 
 Propex Inc. 
 6025 Lee Highway 
 Chattanooga, TN 37421 
 Dear Mr. Dana: 
 This letter agreement (this “Agreement”)
confirms the terms under which Propex Inc. and each of its direct and indirect subsidiaries, and any entity formed by, or at the direction of, Propex Inc. (collectively, the “Company”) has engaged Houlihan Lokey Howard & Zukin
Capital, Inc. (“Houlihan Lokey”), effective as of the date indicated above (the “Effective Date”), as its exclusive financial advisor to provide financial advisory services in connection with one or more financing transactions
for the Company and with respect to such other financial matters as to which the Company and Houlihan Lokey may agree in writing during the term of this engagement. 
 1. Services. In connection with a potential Transaction (as defined below), Houlihan Lokey will assist and advise the Company with the analysis, evaluation, pursuit and effectuation of a
Transaction. Houlihan Lokey’s services will consist of, if appropriate and if requested by the Company, (i) assisting the Company in the development, preparation and distribution of selected information, documents and other materials,
including financial projections, business plan presentations, and scenario-driven financial models, in an effort to create interest in and to consummate any Transaction; (ii) soliciting and evaluating indications of interest and proposals
regarding any Transaction from current and/or potential lenders (collectively, “Investors”); (iii) assisting the Company with the development, structuring, negotiation and implementation of any Transaction, including, among other
things, assisting the Company with due diligence investigations and participating as a representative of the Company in negotiations with creditors, their advisors, and other parties involved in any Transaction; (iv) advising and attending
meetings of the Company’s Board of Directors, creditor groups, official constituencies and other interested parties, as the Company determines to be necessary or desirable; and (vii) providing such other financial advisory services as may
be agreed upon by Houlihan Lokey and the Company. 
 2. Exclusive Agency. The Company agrees that none of it, its controlling equity holders or
other affiliates, or its management will proactively initiate discussions regarding a Transaction on a consistent basis during the term of this Agreement, except with prior consultation with Houlihan Lokey provided, however, that nothing herein is
intended to limit the Company’s conversations with its agent under the Credit Agreement in the ordinary course of business or any other selective discussions with financing parties, but the Company agrees that it will use reasonable efforts to
coordinate these discussions with Houlihan Lokey and include Houlihan Lokey as appropriate. In the event the Company, its controlling 

 
equity holders or other affiliates, or its management receives any inquiry regarding a Transaction from any party, the Company shall inform Houlihan Lokey of
such inquiry so that Houlihan Lokey can assist the Company in evaluating such party and its interest in a Transaction and in any resulting negotiations. 
 3. Fees. In consideration of Houlihan Lokey’s acceptance of this engagement and performance of services pursuant to this Agreement, the Company shall pay the following: 
  

	 	(i)	Initial Fee: In addition to the other fees provided for herein, upon the execution of this Agreement, the Company shall pay Houlihan Lokey a nonrefundable cash fee of
$150,000, which shall be earned upon Houlihan Lokey’s receipt thereof in consideration of Houlihan Lokey accepting this engagement (“Initial Fee”); 

  

	 	(ii)	Monthly Fees: In addition to the other fees provided for herein, upon the first monthly anniversary of the Effective Date, and on every monthly anniversary of the Effective
Date during the term of this Agreement through to, and including, the third monthly anniversary of the Effective Date, the Company shall become obligated to pay Houlihan Lokey, without notice or invoice, a nonrefundable cash fee of $150,000, payable
in arrears 30 days after such time, and, on every monthly anniversary thereafter (beginning with the fourth monthly anniversary of the Effective Date), a nonrefundable cash fee of $125,000 (“Monthly Fee”). Each Monthly Fee shall be earned
upon Houlihan Lokey’s receipt thereof in consideration of Houlihan Lokey accepting this engagement and performing services as described herein. After the third Monthly Fee, 50% of all additional Monthly Fees paid to, and received by, Houlihan
Lokey shall be credited against any Transaction Fee (as defined below) to which Houlihan Lokey becomes entitled hereunder, except that, in no event, shall such Transaction Fee be reduced below zero; and 

  

	 	(iii)	Transaction Fee: In addition to the other fees provided for herein, the Company shall pay Houlihan Lokey the following transaction fee: 

 Transaction Fee. Upon the closing of a Transaction, Houlihan Lokey shall earn, and the Company shall thereupon pay immediately and directly from
the proceeds of such Transaction, as a cost of such Transaction, a cash fee (“Transaction Fee”) equal to .75% of the gross proceeds of any indebtedness issued, amended, restructured, restated, or otherwise addressed in such Transaction;
provided, however, such indebtedness should not include the 10% Senior Notes unless such Senior Notes are materially amended or restructured in connection with such transaction. The fees set forth herein shall be in addition to any other fees that
the Company may be required to pay to any Investor or other purchaser of securities to secure its financing commitment. 
 4. Term and
Termination. This Agreement may be terminated at any time by either party upon thirty days’ prior written notice to the other party. The expiration or termination of this Agreement shall not affect (i) any provision of this
Agreement other than Sections 1 through 3 and (ii) Houlihan Lokey’s right to receive, and the Company’s obligation to pay, any and all fees and expenses due, whether or not any Transaction shall be consummated prior to or subsequent
to the effective date of expiration or termination, all as more fully set forth in this Agreement. 
 In addition, notwithstanding the
expiration or termination of this Agreement, Houlihan Lokey shall be entitled to full payment by the Company of the Transaction Fees described in this Agreement: (i) so long as a Transaction is consummated during the term of this Agreement, or
within 6 months after the 

 
date of expiration or termination of this Agreement (“Tail Period”), and/or (ii) if an agreement in principle to consummate a Transaction is
executed by the Company during the term of this Agreement, or within the Tail Period, and such Transaction is consummated at any time in the ensuing 6 months following such execution with the counterparty named in such agreement, or with any
affiliate, employee or investor in such counterparty, or any affiliate of any of the foregoing. 
 5. Transaction. As used in this Agreement,
the term “Transaction” shall mean the following: (a) Any transaction or series of related transactions that constitutes any refinancing of all or any portion of the Company’s existing obligations and/or (b) any transaction
or series of transactions that constitute a modification or amendment to the terms, conditions, or covenants (including, without limitation, the payment terms, interest rates, advance rates, structure, other debt service requirements, and/or
financial or operating covenants) of the Company’s existing Credit Agreement, dated January 31, 2006 (as amended). Transaction shall not include a waiver of a quarterly covenant default or any short term forbearance agreement entered into
with the senior secured lenders. 
 6. Reasonableness of Fees. The parties acknowledge that a substantial professional commitment of time and
effort will be required of Houlihan Lokey and its professionals hereunder, and that such commitment may foreclose other opportunities for the firm. Moreover, the actual time and commitment required for the engagement may vary substantially, creating
“peak load” issues for the firm. Given the numerous issues which may arise in engagements such as this, Houlihan Lokey’s commitment to the variable level of time and effort necessary to address such issues, the expertise and
capabilities of Houlihan Lokey that will be required in this engagement, and the market rate for Houlihan Lokey’s services of this nature, whether in-court or out-of-court, the parties agree that the fee arrangement provided for herein is
reasonable, fairly compensates Houlihan Lokey, and provides the requisite certainty to the Company. 
 7. Expenses. In addition to all of the
other fees and expenses described in this Agreement, and regardless of whether any Transaction is consummated, the Company shall reimburse Houlihan Lokey for its reasonable out-of-pocket expenses incurred from time to time in connection with its
services hereunder, promptly after invoicing the Company therefor. Houlihan Lokey bills its clients for its reasonable out-of-pocket expenses including, but not limited to (i) travel-related expenses, without regard to volume-based or similar
credits or rebates Houlihan Lokey may receive from travel agents and airlines on a periodic basis, and (ii) research, database and similar information charges paid to third party vendors, and postage, telecommunication and duplicating expenses,
to perform client-related services that are not capable of being identified with, or charged to, a particular client or engagement in a reasonably practicable manner, based upon a uniformly applied monthly assessment or percentage of the fees due to
Houlihan Lokey. 
 8. Invoicing and Payment. All amounts payable to Houlihan Lokey shall be made in lawful money of the United States in
accordance with the payment instructions set forth on the invoice provided with this Agreement, or to such accounts as Houlihan Lokey shall direct, and the Company shall provide contemporaneous written notice of each such payment to Houlihan
Lokey. All amounts invoiced by Houlihan Lokey shall be exclusive of value added tax, withholding tax, sales tax, and any other similar taxes (“Taxes”). All amounts charged by Houlihan Lokey will be invoiced together with Taxes where
appropriate. 
 9. Information. The Company will provide Houlihan Lokey with access to management and other representatives of the Company, as
reasonably requested by Houlihan Lokey. The Company will furnish Houlihan Lokey with such information as Houlihan Lokey may reasonably request for the purpose of carrying out its engagement hereunder, all of which will be, to the Company’s best
knowledge, accurate and complete at the time furnished. The Company further represents and warrants that any financial 

 
projections delivered to Houlihan Lokey have been or will be reasonably prepared in good faith on bases reflecting the best currently available estimates and
judgments of the future financial results and condition of the Company. The Company will promptly notify Houlihan Lokey in writing of any material inaccuracy or misstatement in, or material omission from, any information previously delivered to
Houlihan Lokey, or any materials provided to any interested party. Houlihan Lokey shall rely, without independent verification, on the accuracy and completeness of all information that is publicly available and of all information furnished by or on
behalf of the Company or any other potential party to any Transaction or otherwise reviewed by Houlihan Lokey. The Company understands and agrees that Houlihan Lokey will not be responsible for the accuracy or completeness of such information, and
shall not be liable for any inaccuracies or omissions therein. The Company acknowledges that Houlihan Lokey has no obligation to conduct any appraisal of any real property or fixed assets or liabilities of the Company or any other participant in a
proposed Transaction. Any advice (whether written or oral) rendered by Houlihan Lokey pursuant to this Agreement is intended solely for the use of the Company. Any advice rendered by, or other materials prepared by, Houlihan Lokey may not be
disclosed, in whole or in part, to any third party, or summarized, quoted from, or otherwise referred to in any manner without the prior written consent of Houlihan Lokey. In addition, Houlihan Lokey may not otherwise be referred to without our
prior written consent. 
 10. Limitations on Services as Advisor. Houlihan Lokey’s services are limited to those specifically provided in
this Agreement, or subsequently agreed-upon, in writing, by the parties hereto. Houlihan Lokey shall have no obligation or responsibility for any other services including, without limitation, any crisis management or business consulting services
related to, among other things, the implementation of any operational, organizational administrative, cash management, or similar activities. Houlihan Lokey is providing the Company with Houlihan Lokey’s services hereunder as an independent
contractor, and the parties agree that this Agreement does not create an agency, fiduciary, or third party beneficiary relationship between Houlihan Lokey, on the one hand, and the Company and/or its creditors or any other person, on the other hand.
The Company agrees that the advice rendered to it by Houlihan Lokey may not be relied upon by any other person or entity or used for any purpose except as contemplated in this Agreement. In performing its services pursuant to this Agreement,
Houlihan Lokey is not assuming any responsibility for the Company’s decision to pursue, or not to pursue, any business strategy, or to effect, or not to effect, any Transaction(s), which decision shall be made by the Company in its sole
discretion. 
 11. Post-Termination Services. If Houlihan Lokey is required to render services not described herein, but which relate directly
or indirectly to the subject matter of this Agreement (including, but not limited to, producing documents, answering interrogatories, attending depositions, giving expert or other testimony, whether by subpoena, court process or order, or
otherwise), the Company shall pay Houlihan Lokey additional fees to be mutually agreed upon for such services, plus reasonable related out-of-pocket costs and expenses, including, among other things, the reasonable legal fees and expenses of
Houlihan Lokey’s counsel in connection therewith. 
 12. Credit. Upon the consummation of any Transaction, Houlihan Lokey may, at its own
expense, place announcements on its corporate website and in financial and other newspapers and periodicals (such as a customary “tombstone” advertisement, including the Company’s logo or other identifying marks) describing its
services in connection therewith. The content of any such announcement shall be subject to the Company’s prior approval, which approval shall not be unreasonably withheld. Furthermore, if requested by Houlihan Lokey, the Company agrees that in
any press release announcing any Transaction, the Company will include in such press release a mutually acceptable reference to Houlihan Lokey’s role as financial advisor to the Company with respect to such Transaction. 
 13. Choice of Law; Jury Trial Waiver; Jurisdiction. THIS AGREEMENT SHALL BE DEEMED TO BE MADE IN NEW YORK. ALL DISPUTES BETWEEN THE PARTIES TO

 
THIS AGREEMENT ARISING OUT OF OR RELATED TO THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. EACH
OF HOULIHAN LOKEY AND THE COMPANY (ON ITS OWN BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS EQUITY HOLDERS) IRREVOCABLY WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED UPON
CONTRACT, TORT OR OTHERWISE) RELATED TO OR ARISING OUT OF THE ENGAGEMENT OF HOULIHAN LOKEY PURSUANT TO, OR THE PERFORMANCE BY HOULIHAN LOKEY OF THE SERVICES CONTEMPLATED BY, THIS AGREEMENT. REGARDLESS OF ANY PRESENT OR FUTURE DOMICILE OR PRINCIPAL
PLACE OF BUSINESS OF THE PARTIES HERETO, EACH PARTY HEREBY IRREVOCABLY CONSENTS AND AGREES THAT ANY CLAIMS OR DISPUTES BETWEEN OR AMONG THE PARTIES HERETO ARISING OUT OF OR RELATED TO THIS AGREEMENT SHALL BE BROUGHT AND MAINTAINED IN ANY FEDERAL OR
STATE COURT OF COMPETENT JURISDICTION SITTING IN THE COUNTY OF NEW YORK IN THE STATE OF NEW YORK, WHICH COURTS SHALL HAVE EXCLUSIVE JURISDICTION OVER THE ADJUDICATION OF SUCH MATTERS; PROVIDED THAT SUCH CONSENT AND AGREEMENT SHALL NOT BE DEEMED TO
REQUIRE ANY BANKRUPTCY CASE INVOLVING THE COMPANY TO BE FILED IN SUCH COURTS, AND IF THE COMPANY BECOMES A DEBTOR UNDER CHAPTER 11 OF THE BANKRUPTCY CODE, DURING ANY SUCH CASE, ANY CLAIMS MAY ALSO BE HEARD AND DETERMINED BEFORE THE BANKRUPTCY COURT.
BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PARTY FURTHER IRREVOCABLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND HEREBY WAIVES IN ALL RESPECTS ANY CLAIM OR OBJECTION WHICH IT MAY
HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON-CONVENIENS. THE COMPANY AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION BROUGHT IN ANY SUCH COURT SHALL BE CONCLUSIVE AND BINDING UPON IT AND MAY BE ENFORCED IN
ANY OTHER COURTS HAVING JURISDICTION OVER IT BY SUIT UPON SUCH JUDGMENT. THE COMPANY IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN ALL SUCH DISPUTES BY THE MAILING OF COPIES OF SUCH PROCESS TO THE COMPANY AT 6025 LEE HIGHWAY, CHATTANOOGA, TN. 

 14. Indemnification and Standard of Care. As a material part of the consideration for the agreement of Houlihan Lokey to furnish its
services under this Agreement, the Company agrees (i) to indemnify and hold harmless Houlihan Lokey and its affiliates, and their respective directors, officers, shareholders, partners, members, employees and controlling persons (collectively,
the “Indemnified Parties”), to the fullest extent lawful, from and against any and all losses, claims, damages or liabilities (or actions in respect thereof), joint or several, arising out of or related to Houlihan Lokey’s engagement
under this Agreement, any Transaction or proposed Transaction, or any actions taken or omitted to be taken by an Indemnified Party or the Company in connection with this Agreement and (ii) to reimburse each Indemnified Party for all expenses
(including without limitation the reasonable fees and expenses of counsel) as they are incurred in connection with investigating, preparing, pursuing, defending, settling or compromising any action, suit, inquiry, investigation or proceeding,
pending or threatened, brought by or against any person (including without limitation any shareholder or derivative action), arising out of or relating to such engagement, Transaction or actions. However, the Company shall not be liable under the
foregoing indemnity and reimbursement agreement for any loss, claim, damage or liability which is finally judicially determined by a court of competent jurisdiction to have resulted primarily from the willful misconduct or gross negligence of such
Indemnified Party. 

 If for any reason the foregoing indemnification or reimbursement is unavailable to any Indemnified Party or insufficient
fully to indemnify any such party or to hold it harmless in respect of any losses, claims, damages, liabilities or expenses referred to therein, then the Company shall contribute to the amount paid or payable by the Indemnified Party as a result of
such losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative benefits received by the Company, on the one hand, and Houlihan Lokey, on the other hand, in connection with the actual or potential
Transaction. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law, then the Company shall contribute to such amount paid or payable by the Indemnified Party in such proportion as is
appropriate to reflect not only such relative benefits, but also the relative fault of the Company, on the one hand, and such Indemnified Party, on the other hand, in connection therewith, as well as any other relevant equitable considerations.
Notwithstanding the foregoing, in no event shall the Indemnified Parties be required to contribute an aggregate amount in excess of the amount of fees actually received by Houlihan Lokey from the Company pursuant to this Agreement. The Company shall
not settle, compromise or consent to the entry of any judgment in or otherwise seek to terminate any pending or threatened action, suit, inquiry, investigation or proceeding in respect of which indemnification may be sought hereunder (whether or not
an Indemnified Party is an actual or potential party thereto), unless such settlement, compromise, consent or termination contains a release of the Indemnified Parties reasonably satisfactory in form and substance to Houlihan Lokey. 
 The Company further agrees that neither Houlihan Lokey nor any other Indemnified Party shall have any liability (whether direct or indirect and regardless
of the legal theory advanced) to the Company or any person or entity asserting claims on behalf of or in right of the Company related to or arising out of Houlihan Lokey’s engagement under this Agreement, any Transaction or proposed
Transaction, or any actions taken or omitted to be taken by an Indemnified Party or the Company in connection with this Agreement, except for losses, claims, damages or liabilities incurred by the Company which are finally judicially determined by a
court of competent jurisdiction to have resulted primarily from the willful misconduct or gross negligence of such Indemnified Party. The indemnity, reimbursement, and other obligations and agreements of the Company set forth herein (i) shall
apply to any services provided by Houlihan Lokey in connection with this engagement prior to the date hereof and to any modifications of this Agreement, (ii) shall be in addition to any obligation or liability which the Company may 

 
otherwise have to any Indemnified Party, (iii) shall remain operative and in full force and effect regardless of any investigation made by or on behalf
of the Company or any Indemnified Party or any person controlling any of them, and (iv) shall survive the completion of the services described in, and any expiration or termination of the relationship established by, this Agreement. 

The Company shall cause any new company that may be formed by the Company or the Company’s subsidiaries, for any purpose, to agree to all of the obligations in
this Section to Houlihan Lokey in accordance with the foregoing provisions. Prior to entering into any agreement or arrangement with respect to, or effecting, any (i) merger, statutory exchange or other business combination or proposed sale,
exchange, dividend or other distribution or liquidation of all or substantially all of its assets, or (ii) significant recapitalization or reclassification of its outstanding securities that does not directly or indirectly provide for the
assumption of the obligations of the Company set forth in this Agreement and this Section, the Company will notify Houlihan Lokey in writing thereof (if not previously so notified) and, if requested by Houlihan Lokey, shall arrange in connection
therewith alternative means of providing for the obligations of the Company set forth in this Agreement and this Section, including the assumption of such obligations by another party, insurance, surety bonds or the creation of an escrow, in each
case in an amount and upon terms and conditions reasonably satisfactory to Houlihan Lokey. 
 15. Miscellaneous. This Agreement shall be
binding upon the parties hereto and their respective successors, heirs and assigns and any successor, heir or assign of any substantial portion of such parties’ respective businesses and/or assets. If appropriate, in connection with
performing its services for the Company hereunder Houlihan Lokey may utilize the services of one or more of its affiliates, in which case the references herein to Houlihan Lokey shall include such affiliates, provided, however, that the fees and
other obligations of the Company described herein comprise all compensation and other obligations to be paid to or owed to Houlihan Lokey and its affiliates, and neither Houlihan Lokey, nor any affiliate of Houlihan Lokey, shall charge any separate
or additional fees, or seek the payment of any additional obligations, for services rendered pursuant hereto. 
 Nothing in this Agreement, express or
implied, is intended to confer or does confer on any person or entity, other than the parties hereto, the Indemnified Parties and each of their respective successors, heirs and assigns, any rights or remedies under or by reason of this Agreement or
as a result of the services to be rendered by Houlihan Lokey hereunder. 
 This Agreement is the complete and exclusive statement of the entire understanding
of the parties regarding the subject matter hereof, and supersedes all previous agreements or understandings regarding the same, whether written or oral. This Agreement may not be amended, and no portion hereof may be waived, except in a writing
duly executed by the parties hereto. 
 The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability
of any other provision of this Agreement, which shall remain in full force and effect pursuant to the terms hereof. 
 This Agreement may be executed in any
number of counterparts, each of which will be deemed an original and all of which will constitute one and the same instrument. Such counterparts may be delivered by one party to the other by facsimile or other electronic transmission, and such
counterparts shall be valid for all purposes. 

 The Company has all requisite power and authority to enter into this Agreement and the transactions contemplated hereby.
This Agreement has been duly and validly authorized by all necessary action on the part of the Company and has been duly executed and delivered by the Company and constitutes a legal, valid and binding agreement of the Company, enforceable in
accordance with its terms. This Agreement has been reviewed by the signatories hereto and their counsel. There shall be no construction of any provision against Houlihan Lokey because this Agreement was drafted by Houlihan Lokey, and the parties
waive any statute or rule of law to such effect. 
 The Company agrees that it will be solely responsible for ensuring that any Transaction complies with
applicable law. The Company understands that Houlihan Lokey is not undertaking to provide any legal, regulatory, accounting, insurance, tax or other similar professional advice and the Company confirms that it is relying on its own counsel,
accountants and similar advisors for such advice. 
 To the extent that the Company hereunder is comprised of more than one entity or company, the
obligations of the Company under this Agreement are joint and several, and any consent, direction, approval, demand, notice or the like given by any one of such entities or companies shall be deemed given by all of them and, as such, shall be
binding on the Company. 

 If the foregoing correctly sets forth our Agreement, please sign and return to us the enclosed duplicate hereof along
with a check (or wire transfer confirmation) for $150,000 on account of the Initial Fee. 
 All of us at Houlihan Lokey thank you for choosing us to advise
the Company, and look forward to working with you on this engagement. 
  

			
	Very truly yours,
	
	HOULIHAN LOKEY HOWARD & ZUKIN CAPITAL, INC.
		
	By:	 	 /s/ P. Eric Siegert

		 	P. Eric Siegert
		 	Senior Managing Director

 Accepted and agreed to as of the Effective Date: 
 PROPEX INC, On behalf of itself, its direct and indirect subsidiaries and its controlled affiliates 
  

			
	By:	 	 /s/ Joseph F. Dana

		 	Joseph F. Dana
		 	President and Chief Executive Officer

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