Document:

Exhibit 10.2

 Exhibit 10.2 
 LOAN MODIFICATION AGREEMENT 
 This LOAN MODIFICATION AGREEMENT (the “Modification”) is entered into as of September 30___, 2009, by and between the lender listed on Exhibit A
(“Lender”), whose address is 8377 East Hartford Drive, Suite 200, Scottsdale, Arizona 85255-5401, and SPPR-SOUTHBEND, LLC, a Delaware limited liability company
(“Borrower”), whose address is 305 North 5th Street, P. O. Box 1448, Norfolk, Nebraska, 68701. This Modification is also joined in by SUPERTEL HOSPITALITY, INC., A Virginia corporation, SUPERTEL HOSPITALITY, REIT TRUST, a Maryland real
estate investment trust and SUPERTEL LIMITED PARTNERSHIP, a Virginia limited partnership (collectively, if more than one, “Guarantor”) whose address is 305 North 5th Street, P. O. Box 1448, Norfolk, Nebraska, 68701. 
 PRELIMINARY STATEMENT 
 A. Pursuant to the loan agreement described on Exhibit A (as previously amended and modified, the “Loan Agreement”) between Lender and Borrower, Lender has extended
loans to Borrower (collectively, the “Loan”). The Loan is evidenced by one or more promissory notes (collectively, the “Note”). The Loan Agreement, the Note and the other documents and instruments
currently evidencing and securing the Loan are referred to collectively as the “Current Loan Documents.” The Current Loan Documents, as modified by this Modification, are referred to as the “Loan
Documents,” and references in the Current Loan Documents and this Modification to the “Loan Documents,” or any of them, shall be deemed to be a reference to such Loan Documents, as modified by this Modification. 
 B. The Loan has been guaranteed by Guarantor. 
 C. Borrower has requested that Lender modify the Loan and the Current Loan Documents as provided in this Modification, and Lender is willing to so modify the Loan and the Current Loan Documents, subject
to the terms and conditions set forth in this Modification. 
 D. Capitalized terms used in this Modification and not otherwise
defined in this Modification shall have the meanings given to those terms in the Loan Agreement. 
 AGREEMENT: 

For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Borrower, Guarantor and Lender agree
as follows: 
 1. Accuracy of Preliminary Statement; Effective Date. Borrower and Guarantor acknowledge the accuracy of
the Preliminary Statement and the parties agree that the Preliminary Statement is a part of this Modification. Borrower and Guarantor also acknowledge and agree that the information set forth on Exhibit A is complete and correct. The
modifications of the Loan Documents and the obligations of Lender pursuant to this Modification will be effective on the date that Lender determines that the conditions precedent set forth in this Modification have been satisfied in full (such date,
the “Effective Date”). 
 2. Modification of Current Loan Documents. The following provisions
shall be deemed incorporated into the Loan Documents as of the Effective Date, and shall supersede any other provision in conflict therewith: 
 (a) Reamortization. Upon a principal pay down of the outstanding balance of the Loan as a result of a sale of any of the Premises (as defined in the Loan Documents) of Borrower or Affiliates, and
at the request of the Borrower, the remaining loan balance shall be reamortized at the interest rate shown in the Note for the purpose of calculating the monthly payments due pursuant to the Note. 
 (b) Certain Accounting Terms and Principles. Notwithstanding any other provision contained in this Modification or any
of the other Loan Documents, all terms of an accounting or financial nature used in the Loan Documents shall be construed, all financial statements delivered pursuant to any of

 
the Loan Documents shall be prepared, and all computations of financial covenants, including amounts and ratios, provided for in this Modification or any of the other Loan Documents shall be made
without giving effect to any election under Statement of Financial Accounting Standards 159 (or any other Financial Accounting Standard having a similar result or effect) to value any indebtedness or other liabilities of any Credit Party or any
Affiliate of any Credit Party at “fair value,” as defined therein. 
 3. Borrower Representations, Warranties and
Covenants. As additional consideration to and inducement for Lender to enter into this Modification, Borrower represents and warrants to and covenants with Lender as follows: 
 (a) Representations and Warranties. Each and all representations and warranties of Borrower in the Current Loan
Documents are and will continue to be accurate, complete and correct. The representations and warranties in this Modification are true, complete and correct as of the date set forth above, will continue to be true, complete and correct as of the
consummation of the modifications contemplated by this Modification, and will survive such consummation. 
 (b)
No Defaults. Borrower is not in default under any of the Loan Documents, nor has any event or circumstance occurred that is continuing that, with the giving of notice or the passage of time, or both, would be a default or an event of default
by Borrower under any of the Loan Documents. 
 (c) No Material Changes. There has been no material
adverse change in the financial condition of Borrower, Guarantor or any other person whose financial statement has been delivered to Lender in connection with the Loan from the most recent financial statement received by Lender from Borrower ,
Guarantor or such other persons. 
 (d) No Conflicts; No Consents Required. Neither execution nor delivery
of this Modification nor fulfillment of or compliance with the terms and provisions hereof will conflict with, or result in a breach of the terms or conditions of, or constitute a default under, any agreement or instrument to which Borrower is a
party or by which Borrower may be bound. No consents, approvals or authorizations are required for the execution and delivery of this Modification by Borrower or for Borrower’s compliance with its terms and provisions. 
 (e) Claims and Defenses. Borrower has no claims, counterclaims, defenses, or set-offs with respect to the Loan or the
Loan Documents. Lender and its predecessors in interest have performed all of their obligations under the Loan Documents, and Borrower has no defenses, offsets, counterclaims, claims or demands of any nature which can be asserted against Lender or
its predecessors in interest for damages or to reduce or eliminate all or any part of the obligations of Borrower under the Loan Documents. 
 (f) Validity. This Modification and the other Loan Documents are and will continue to be the legal, valid and binding obligations of Borrower, enforceable against Borrower in accordance with their
terms. 
 (g) Valid Existence, Execution and Delivery, and Due Authorization. Borrower validly exists
under the laws of the State of its formation or organization and has the requisite power and authority to execute and deliver this Modification and to perform the Loan Documents. The execution and delivery of this Modification and the performance of
the Loan Documents have been duly authorized by all requisite action by or on behalf of Borrower. This Modification has been duly executed and delivered on behalf of Borrower. 
 (h) Ratification of Current Loan Documents and Collateral. The Current Loan Documents, as modified by this
Modification, are ratified and affirmed by Borrower and shall remain in full force and effect. Except to the extent, if any, specifically provided for in this Modification: (i) the liens of Lender on and security interests in any and all real
or personal property (tangible or intangible) granted as security for the Loan shall continue in full force and effect and none of such property is or shall be released from such liens and security interests; and (ii) this Modification shall
not constitute a waiver of any rights or remedies of Lender in respect of the Loan Documents. 
  

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 4. Consent; Reaffirmation; and Acknowledgement. Guarantor (a) consents to the
terms and conditions of this Modification; and (b) reaffirms the Guaranty and confirms and agrees that, notwithstanding this Modification and consummation of the transactions contemplated thereby, including the release of any collateral, the
Guaranty and all of Guarantor’s covenants, obligations, agreements, waivers, and liabilities set forth in the Guaranty continue in full force and effect in accordance with their terms with respect to the obligations guaranteed, modified only to
the extent that the guaranteed obligations are modified by this Modification. 
 5. Guarantor Representations and
Warranties. Guarantor represents and warrants to Lender that: 
 (a) No Material Changes. There has
been no material adverse change in the financial condition of Guarantor from the most recent financial statement received by Lender from Guarantor. 
 (b) Existing Representations and Warranties. Each and all representations and warranties of Guarantor in the Current Loan Documents are and will continue to be accurate, complete and correct.

 (c) No Conflicts; No Consents Required. Neither execution nor delivery of this Modification nor
fulfillment of or compliance with the terms and provisions hereof will conflict with, or result in a breach of the terms or conditions of, or constitute a default under, any agreement or instrument to which Guarantor is a party or by which Guarantor
may be bound. No consents, approvals or authorizations are required for the execution and delivery of this Modification by Guarantor or for Guarantor’s compliance with its terms and provisions. 
 (d) Claims and Defenses. Guarantor has no claims, counterclaims, defenses, or offsets against Lender or its
predecessors in interest or with respect to any of its obligations or other liabilities under the Guaranty as a result of this Modifications or otherwise, any such claims, counterclaims, defenses or offsets being hereby waived and released.

 (e) Validity. This Modification is the legal, valid and binding agreement of Guarantor and is
enforceable against Guarantor in accordance with its terms. 
 (f) Power and Authority. Guarantor has the
full power, authority, capacity and legal right to execute and deliver this Modification and, with respect to each Guarantor that is an entity, the parties executing this Modification on behalf of such Guarantor are fully authorized and directed to
execute the same to bind such Guarantor. 
 6. Release. Borrower fully, finally and forever releases and
discharges Lender and each other Lender Party from any and all actions, causes of action, claims, debts, demands, liabilities, obligations and suits, of whatever kind or nature, in law or equity, that Borrower has or in the future may have, whether
known or unknown (i) in respect of the Loan, this Modification, the other Loan Documents or the actions or omissions of Lender in respect of the Loan or the Loan Documents and (ii) arising from events occurring prior to the date of this
Modification. BORROWER EXPRESSLY WAIVES ANY PROVISION OF STATUTORY OR DECISIONAL LAW TO THE EFFECT THAT A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN SUCH PARTY’S FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH, IF KNOWN BY SUCH PARTY, MUST HAVE MATERIALLY AFFECTED SUCH PARTY’S SETTLEMENT WITH THE RELEASED PARTIES, INCLUDING PROVISIONS SIMILAR TO SECTION 1542 OF THE CALIFORNIA CIVIL CODE, WHICH PROVIDES: “A GENERAL
RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.” For purposes of this
Modification “Lender Party” means Lender, each of its Related Persons, and the Affiliates of the Related Persons; “Affiliate” means, with respect to any Person, each officer, director, general partner
or joint-venturer of such Person and any other Person that directly or indirectly Controls, is Controlled by, or is under common Control

  

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with, such Person; “Person” means any individual, partnership, corporation (including a business trust and a public benefit corporation), joint stock company, estate,
association, firm, enterprise, trust, limited liability company, unincorporated association, joint venture and any other entity or Governmental Authority and “Related Persons” means, with respect to any Person, (a) each
Affiliate of such Person; (b) each director, officer, employee, agent, trustee, representative, attorney, and accountant of such Person or such Person’s Affiliates; and (c) each insurance, environmental, and other adviser or
consultant of or to such Person or such Person’s Affiliates. 
 7. Release by Guarantor. Guarantor fully, finally
and forever releases and discharges Lender and each other Lender Party from any and all actions, causes of action, claims, debts, demands, liabilities, obligations and suits of whatever kind or nature, in law or equity, that Guarantor has or may
have, whether known or unknown (i) in respect of the Loan, the Guaranty or the other Loan Documents, or the actions or omissions of Lender in respect of the Loan, the Loan Documents or the Guaranty and (ii) arising from events occurring
prior to the date hereof. GUARANTOR EXPRESSLY WAIVES ANY PROVISION OF STATUTORY OR DECISIONAL LAW TO THE EFFECT THAT A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN SUCH PARTY’S FAVOR
AT THE TIME OF EXECUTING THE RELEASE, WHICH, IF KNOWN BY SUCH PARTY, MUST HAVE MATERIALLY AFFECTED SUCH PARTY’S SETTLEMENT WITH THE RELEASED PARTIES, INCLUDING PROVISIONS SIMILAR TO SECTION 1542 OF THE CALIFORNIA CIVIL CODE, WHICH PROVIDES:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.”

 8. Conditions Precedent. The obligations of Lender to consummate the transactions contemplated by this Modification
are subject to satisfaction of the following conditions precedent, each in the sole and absolute discretion of Lender: 
 (a) Borrower Performance. Borrower and Guarantor have duly executed and delivered this Modification and Borrower has paid all fees and other amounts and performed all obligations required under this Modification to be paid and
performed contemporaneously with the execution and delivery of this Modification. 
 (b) Representations and
Warranties. The representations and warranties of Borrower and Guarantor contained in this Modification and any other document or instrument expressly contemplated by this Modification shall be true and correct in all material respects.

 (c) Existence and Authority. If requested by Lender, Borrower shall have provided Lender with evidence
that Borrower and Guarantor are in good standing under the laws of their state of formation and in each state in which any collateral for the Loan is located and that the person or persons executing this Modification on behalf of Borrower and
Guarantor are duly authorized to do so. 
 (d) Lien Priority. Lender shall have received such UCC search
results, title reports and title insurance endorsements as Lender shall reasonably require evidencing the continuing first priority of all of Lender’s liens in the collateral described in the Loan Documents. 
 (e) Insurance. Borrower shall have provided Lender with evidence satisfactory to Lender that all insurance required by
the Loan Documents is in full force and effect. 
 9. Entire Agreement; Change; Discharge; Termination or Waiver. The
Current Loan Documents, as modified by this Modification, contain the entire understanding and agreement of Borrower and Lender in respect of the Loan and supersede all prior representations, warranties, agreements and understandings. No provision
of the Loan Documents may be changed, discharged, supplemented, terminated or waived except in a writing signed by Lender and Borrower. 
  

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 10. No Limitations. The description of the Loan Documents contained in this
Modification is for informational and convenience purposes only and shall not be deemed to limit, imply or modify the terms or otherwise affect the Loan Documents. 
 11. Time of the Essence. Time is of the essence in this Modification. 
 12.
Binding Effect. The Loan Documents, as modified by this Modification, shall be binding upon, and inure to the benefit of, Borrower, Guarantor and Lender and their respective successors and assigns. 
 13. Further Assurances. Borrower and Guarantor shall execute, acknowledge (as appropriate) and deliver to Lender such additional
agreements, documents and instruments as reasonably required by Lender to carry out the intent of this Modification. 
 14.
Counterpart Execution. This Modification may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same document. Signature pages may be detached from the
counterparts and attached to a single copy of this Modification to physically form one document. Delivery of an executed signature page of this Modification by facsimile or e-copy transmission shall be as effective as delivery of a manually executed
counterpart thereof. 
 15. Limitation of Liability for Certain Damages. In no event shall any Lender Party be liable to
Borrower , Guarantor or any of their respective affiliates (collectively the “Credit Parties” and individually a “Credit Party”) on any theory of liability for any special, indirect, consequential or
punitive damages (including any loss of profits, business or anticipated savings). BORROWER AND EACH OTHER CREDIT PARTY HEREBY WAIVE, RELEASE AND AGREE NOT TO SUE UPON (AND BORROWER SHALL CAUSE EACH OF THE OTHER CREDIT PARTIES TO SO WAIVE,
RELEASE, AND AGREE NOT TO SUE UPON) ANY SUCH CLAIM FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES, WHETHER OR NOT ACCRUED AND WHETHER OR NOT KNOWN OR SUSPECTED TO EXIST IN ITS FAVOR. 
 16. Jurisdiction and Service of Process. 
 (a) Submission to Jurisdiction. Any legal action or proceeding with respect to any Loan Document shall be brought
exclusively in the courts of the State of Arizona located in Maricopa County or of the United States for the District of Arizona, and Borrower and each other Credit Party accept for itself and in respect of its property, generally and
unconditionally, the jurisdiction of the aforesaid courts; provided, however, that nothing in this Modification shall limit or restrict the right of Lender to commence any proceeding in the federal or state courts located in the state
in which property securing the Loan is located to the extent Lender deems such proceeding necessary or advisable to exercise remedies available under any Loan Document. Lender, Borrower and each other Credit Party hereby irrevocably waive any
objection, including any objection to the laying of venue or based on the grounds of forum non conveniens, that any of them may now or hereafter have to the bringing of any such action or proceeding in such jurisdictions. 
 (b) Service of Process. Borrower and each other Credit Party hereby irrevocably waive personal service of any and all
legal process, summons, notices and other documents and other service of process of any kind and consents to such service in any suit, action or proceeding brought in the United States of America with respect to or otherwise arising out of or in
connection with any Loan Document by any means permitted by applicable law, including by the mailing thereof (by registered or certified mail, postage prepaid) to the address of Borrower specified on the signature page hereto (and shall be effective
when such mailing shall be effective, as provided therein). Borrower and each other Credit Party agree that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or
in any other manner provided by law. Nothing contained in this subsection shall affect the right of Lender to serve process in any other manner permitted by applicable law. 
  

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 (c) Non-Exclusive Jurisdiction. Nothing contained in this Section
shall affect the right of Lender to serve process in any other manner permitted by applicable Requirements of Law or commence legal proceedings or otherwise proceed against any Borrower Party in any other jurisdiction. 
 17. Disclosure Authorization. Borrower and Guarantor each authorize its respective banks, creditors (including trade creditors),
vendors, suppliers, customers, and each franchisor to disclose and release to Lender any and all information any of them may request from time to time regarding (a) any depository, loan or other credit account of Borrower and Guarantor;
(b) the status of each franchise agreement; (c) the affairs and financial condition of Borrower and Guarantor; and (d) Borrower’s and Guarantor’s respective business operations. Borrower and Guarantor each expressly
authorize Lender to perform background, credit, judgment, lien and other checks, searches, inspections and investigations and to obtain personal and business credit reports and asset reports with respect to Borrower and Guarantor and to answer
questions about their respective credit experience with Borrower and Guarantor. The information obtained by the Lender pursuant to this paragraph, together with all other information which any of the Lender now possess or in the future may acquire
with respect to Borrower and Guarantor, the Collateral, or the business operations of Borrower, is referred to as the “Borrower Information.” 
 18. Permitted Disclosures. Borrower and Guarantor each authorize each Lender Party to disclose Borrower Information as follows: (a) to each franchisor or licensor of Borrower or Guarantor,
upon written request by such franchisor or licensor; (b) to any proposed transferee, purchaser, assignee, servicer, participant, lender, investor, ratings agency, or other Person with respect to any proposed sale, assignment, or other transfer
by Lender of any of its rights in the Loan Documents, including servicing rights, or sale or other disposition of any of the Collateral; (c) to any of the other Lender Parties or any insurance or title company in connection with the
transactions contemplated by the Loan Documents, including any action, suit, or proceeding arising out of, in connection with, or relating to, this Modification and the other Loan Documents, the Loan, or any other transaction contemplated hereby,
including in connection with the exercise of Lender’s rights and remedies; (d) to the extent such information is or becomes available to a Lender Party from sources not known by such Lender Party to be subject to disclosure restrictions;
(e) to the extent disclosure is required by applicable law or other legal process or is requested or demanded by any governmental authority; and (f) as may otherwise be authorized in writing by Borrower. Borrower and Guarantor each agree
that the disclosures permitted by this Section and any other disclosures of Borrower Information authorized pursuant to any of the Loan Documents may be made even though any such disclosure may involve the transmission or other communication of
Borrower Information from the nation of residence or domicile of such Borrower or Guarantor or a Lender Party to another country or jurisdiction, and Borrower and each Guarantor waive the provisions of any data privacy law, rule, or regulation of
any applicable governmental authority that would otherwise apply to the disclosures authorized in this Section. 
 19. WAIVER
OF JURY TRIAL. LENDER, BORROWER AND EACH OTHER CREDIT PARTY, TO THE EXTENT PERMITTED BY LAW, WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING ARISING OUT OF, IN CONNECTION WITH OR RELATING TO, THIS MODIFICATION, THE OTHER LOAN
DOCUMENTS AND ANY OTHER TRANSACTION CONTEMPLATED HEREBY AND THEREBY. THIS WAIVER APPLIES TO ANY ACTION, SUIT OR PROCEEDING WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE. 
 20. Governing Law. The laws of the State of Arizona (without giving effect to its conflicts of laws principles) shall govern all
matters arising out of, in connection with or relating to this Modification and the other Loan Documents, including its validity, interpretation, construction, performance and enforcement; provided, however, that with respect to any
married individual signing this Modification who is not a resident of the State of Arizona, this Section shall not be a contractual choice of the community property laws of the State of Arizona. 
 [SIGNATURE PAGE FOLLOWS] 
  

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 Executed and effective as of the date first set forth above. 
  

									
	LENDER:
	
	GENERAL ELECTRIC CAPITAL
	CORPORATION, a Delaware corporation
		
	By:	 	 /s/ Kelly A. Halford

	Printed Name:	 	 Kelly A. Halford

									
	Its:	 	Authorized Signatory
	
	BORROWER:
	
	SPPR-SOUTHBEND, LLC, a Delaware limited liability company
		
		 	By: SUPERTEL LIMITED PARTNERSHIP, a Virginia limited partnership, its manager
		 	By: SUPERTEL HOSPITALITY REIT TRUST, a Maryland real estate investment trust, its General Partner
			
		 	By:	 	 /s/ Kelly A. Walters

		 	Kelly A. Walters , President and Secretary

									
	
	GUARANTOR:
	
	SUPERTEL HOSPITALITY, INC., A Virginia corporation,
		
	By:	 	 /s/ Kelly A. Walters

		 	Kelly A. Walters , Chief Executive Officer
	
	SUPERTEL HOSPITALITY, REIT TRUST, a Maryland real estate investment trust
		
	 By:
	 	 /s/ Kelly A. Walters

		 	Kelly A. Walters , President and Secretary
	
	SUPERTEL LIMITED PARTNERSHIP, a Virginia limited partnership
		 	By: SUPERTEL HOSPITALITY REIT TRUST, a Maryland real estate investment trust, its General Partner
			
		 	By:	 	 /s/ Kelly A. Walters

		 	Kelly A. Walters , President and Secretary

  

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 EXHIBIT A 
 THE LENDER AND THE LOAN 
  

							
	 Contract No.
	  	 Lender
	  	 Description of Loan Agreement
	  	Principal Balance,
as of 8/24/09
				
	14724006	  	 GENERAL ELECTRIC
 CAPITAL CORPORATION, a
 Delaware corporation
	  	Loan Agreement dated December 31, 2007	  	$5,499,000.00Letter of Agreement

 Exhibit 10.1 
 Letter of Agreement 
 10/8/09 
 Whereas the current economic environment is severely depressed, unstable and unpredictable, and Knolls labor costs have become uncompetitive relative to
industry norms and Knoll needs to reduce both direct and indirect labor costs at all U.S. sites immediately. 
 Whereas the Company and the
Union have agreed to the terms set forth below, and absent significantly diminished economic climate Knoll has no intention of closing the Grand Rapids manufacturing site. 
 Whereas, while Knoll is currently considering consolidation of some Grand Rapids work units to other Knoll sites (e.g. work surfaces), Knoll believes that immediate reduction in labor costs will enable
the Company to avoid additional consolidation for the duration of this labor contract. 
 Whereas, Knoll will commit to continuing panel and
roll form manufacturing in Grand Rapids for the duration of this labor agreement. In order to keep the Grand Rapids site fully utilized as business conditions allow, Knoll and the Union agree to the following amendments to the existing Collective
Bargaining Agreement. 
 This Letter of Agreement is an amendment to the Collective Bargaining Agreement between the Carpenters Industrial
Council of the United Brotherhood of Carpenters and Joiners of America, Local Union 1615 (the “Union”) and Knoll, Inc. (“Knoll” or the “Company”) dated as of August 27, 2006 (the “Collective Bargaining
Agreement”). This letter of agreement becomes effective October 8, 2009 and expires on August 28, 2011. 
 Knoll and the Union
agree that the Collective Bargaining Agreement is amended as follows: 
  

	1.	Article VII: Wages: For all associates hired prior to October 8, 2009, the Union agrees to the following: 

  

	 	a.	Wage rates to be rolled back to August 23, 2009 and remain frozen for the duration of this agreement effective October 12, 2009. 

	 	b.	Shift differential reduced to $1.00 per hour effective January 1, 2010. 

	 	c.	The Union will forego all cola increases effective August 23, 2009 through the duration of the agreement. 

  

	2.	The 401 (K) match will be suspended should Knoll take such action across all other U.S. sites. 

  

	3.	For all associates hired after October 8, 2009, the Union agrees to a two tiered wage schedule for new hires as set forth on Exhibit A, shift
differential of $.50, recall rights equal to the lesser of 180 days or length of seniority. 

  

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	4.	For all associates hired after October 8, 2009, the Company and the Union agree to a 90 day training period with the 90 day probationary period to begin after the
completion of the training period. 

  

	5.	The Company and the Union agree to the adjusted posting procedure set forth in Exhibit B. 

  

	6.	Employees hired after October 8, 2009 will be eligible for vacation according to the following schedule: 

  

	 	(i)	One (1) year of accumulated length of service but less than three (3) years – one (1) week. 

  

	 	(ii)	Three (3) years accumulated length of service but less than ten (10) years – two (2) weeks. 

  

	 	(iii)	Ten (10) years accumulated length of service but less than twenty (20) years – three (3) weeks. 

  

	 	(iv)	Twenty (20) or more years accumulated length of service – four (4) weeks. 

  

	 	(v)	Vacation time shall be pro-rated during the employee’s first and last year of employment based on the portion of the year the employee is employed.

  

	7.	The provisions of the ESPP shall not apply to employees hired after October 8, 2009. 

  

	8.	For employees whose seniority date is prior to October 8, 2009, the Employee Security and Protection Plan (Article VI) (the “ESPP”) is amended to include
the following new provisions regarding Layoff Income and Benefits: 

  

	 	a.	The maximum sum available to an Eligible Employee for layoff income benefits will be applied on a cumulative basis, regardless of the number of times an Eligible
Employee is subsequently recalled and laid-off. In no event shall an Eligible Employee’s entitlement to layoff income benefits be fully restored by virtue of a recall. If an employee is laid off and recalled prior to the expiration of this
agreement, the layoff income benefit will be recalculated one time. For employees who are currently on layoff status, if they are recalled the layoff income benefit will be recalculated one time. The accrual for LIB calculation will be based on full
years of service effective October 8, 2009 and remain frozen at this level with no future accruals. 

  

	 	b.	 In no event will an eligible employee be entitled to more than fifty-two (52) weeks of cumulative medical benefits in the event of a lay off. In
no event shall an eligible employee’s entitlement to lay off medical benefits be fully restored by virtue of a recall. Once an employee has exhausted his allotment of medical benefit continuation

  

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during layoff, if that employee is subsequently recalled and then laid off again, the employee will be entitled to medical continuation for up to 30 days. 

 EXHIBIT A 
  

	1.	Wage scale for employees hired after October 8, 2009 

  

																															
	 Labor
 Grade
	  	90 day
Training
Period Rate
	  	Union
Start
date	  	3
Months	  	6
Months	  	1
Year	  	18
Months	  	2
Years	  	3
Years	  	4
Years	  	5
Years
	 1 (1-8)
	  	$	9.00	  	$	10.00	  	$	10.50	  	$	11.00	  	$	11.50	  	$	12.00	  	$	12.50	  	$	13.00	  	$	13.50	  	$	14.00
	 2 (9-10)
	  	$	10.00	  	$	11.00	  	$	11.50	  	$	12.00	  	$	12.50	  	$	13.00	  	$	 13.50	  	$	14.00	  	$	14.75	  	$	 15.50
	 3 (11-12)
	  	$	11.00	  	$	12.00	  	$	12.50	  	$	13.50	  	$	14.00	  	$	14.50	  	$	15.00	  	$	15.75	  	$	16.50	  	$	17.00
	 4 (13-14)
	  	 	16.00	  	$	17.00	  	$	17.50	  	$	18.00	  	$	19.00	  	$	20.00	  	$	21.00	  	$	22.00	  	$	23.00	  	$	24.00

 The Company reserves the right to hire at a rate greater than outlined above but
not to exceed the top rate for any labor grade. 
 The seniority date shall be the Union start date for all employees hired
after 10-8-09. 
 The Company will not bring in new employees until all employees on layoff have exhausted all recall rights.

 The Company and the Union agree that employees who have exhausted all their recall rights and are re-hired by Knoll, would
start at a rate of $16.00 per hour and follow the normal progression until they reach top rate for their classification and thereafter remain frozen at that level. All other benefits would be the same as all new hires. These employees will still
need to complete their union probationary period (90 days). 
  

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 Exhibit B 
 Dear Mr. Griffith: 
 This will confirm that beginning October 8, 2009, the Company and
the Union will adhere strictly to the language of Article XI Sections 5 and 6 of the current collective bargaining agreement, with the following exceptions: 
  

	1.	Section 5(a)(2) – the 48 hour posting period will be reduced to 24 hours. 

  

	2.	Section 5(c)(2) – the 48 hour posting period will be reduced to 24 hours. 

  

	3.	Section 5(c)(4) – the 24 hour period during which an employee may decline a job bid is modified and the employee is required to accept or decline the job upon
completion of the interview process upon being notified that he or she had been awarded the bid (within 1 hour). 

  

	 	a.	When a bid is awarded the Company may reassign the employee to the new position at anytime but no later than the Monday following the expiration of the 24 hour posting
period. All employee effective date (s) will be the following day. For multiple position job postings, those employees awarded the job shall have the same effective start date. 

  

	 	b.	If more than one position is posted within a 24 hour period, any employee who wishes to sign more than one of the postings must indicate his/her order of preference for
the posted jobs, and he/she will be awarded the highest preferred job that his/her qualification and seniority allows. 

  

	4.	Section 5(c)(8) – the 48 hour posting period is reduced to 24 hours. 

  

	5.	Notwithstanding any provisions of the contract to the contrary, the following shall apply: 

  

	 	a.	When a job(s) becomes open due to a layoff, the Company may delay the job posting/bidding process for 45 days, and during that 45 day period, it may utilize active
employees to fill the positions, and on an “as needed” basis. 

  

 4 

					
	 Local 1615
	  		  	Knoll, Inc.
	 United Brotherhood of Carpenters
	  		  	Grand Rapids, Michigan
	 And Joiners of America Midwestern
	  		  	
	 Council of Industrial workers
	  		  	
			
	 /s/ Steve Griffith
	  		  	/s/ Paul Dean
	 S. Griffith
	  		  	Paul Dean
	 Business Representative
	  		  	Plant Manager
			
	 /s/ George Schultz
	  		  	/s/ Joyce TenElshof
	 G. Schultz
	  		  	Joyce TenElshof
	 President, Local 1615
	  		  	Human Resource Manager
			
	 /s/ Bryon Cantrell
	  		  	/s/ John Wilson
	 Bryon Cantrell
	  		  	John Wilson
	 Committee Member
	  		  	Attorney
			
	 /s/ Michael Pratt
	  		  	/s/ Kimberly Andres
	 Michael Pratt
	  		  	Kimberly Andres
	 Committee Member
	  		  	Human Resource Representative
			
	 /s/ Russell Yeck
	  		  	/s/ David Overholt
	 Russell Yeck
	  		  	David Overholt
	 Committee Member
	  		  	Manufacturing Manager
			
	 /s/ Robert Minnema
	  		  	
	 Robert Minnema
	  		  	
	 Committee Member
	  		  	

  

 5

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