Document:

Exhibit103-RegRightsExecutionVersion

EXHIBIT 10.3

STOCK RESTRICTION AND REGISTRATION RIGHTS AGREEMENT

THIS STOCK RESTRICTION AND REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of April 3, 2013, by and among Mohawk Industries, Inc., a Delaware corporation (the “Parent”), LuxELIT S.á r.l., a Luxembourg limited liability company (“LuxELIT") and Finceramica S.p.A., an Italian corporation (“Finceramica” and together with LuxELIT the “Sellers” and each a “Seller”).

R E C I T A L S

WHEREAS, pursuant to the terms of that certain Stock Purchase Agreement dated as of December 20, 2012 (as may be amended, the “Purchase Agreement”), by and among the Parent, Mohawk International Holdings (DE) Corporation, a wholly-owned subsidiary of the Parent (“Purchaser”), and Sellers, the Purchaser shall purchase from the Sellers all of the issued share capital (the “Shares”) of Fintiles S.p.A, an Italian corporation (società per azioni) with registered address at via B. Telesio 2, Milan (Italy), registered with the Companies Register of Milan at no. 06187460966 (the “Acquisition”), with a portion of the consideration therefore being the Sellers’ receipt of shares of the $0.01 par value common stock of the Parent (the “Parent Common Stock”); 

WHEREAS, the Parent has agreed, as a condition precedent to Sellers’ obligations under the Purchase Agreement, to grant the Sellers certain registration rights; and

WHEREAS, pursuant to Section 7.11 of the Purchase Agreement, LuxELIT (or, if applicable, its successor as selected pursuant to Section 7.11 of the Purchase Agreement, the “Seller Representative”) is each Seller's true and lawful attorney-in-fact for purposes of this Agreement (and, by execution of a joinder to this Agreement, each Permitted Transferee shall accept Seller Representative as its true and lawful attorney-in-fact for purposes of this Agreement); and
    
WHEREAS, the Parent and the Sellers desire to define such registration rights on the terms and subject to the conditions herein set forth.

NOW, THEREFORE, in consideration of the foregoing premises and for other good and valuable consideration, the parties hereby agree as follows:

1.    DEFINITIONS

As used in this Agreement, the following terms have the respective meanings set forth below:

“Affiliate” of any Person means any other Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such Person.  The term “control” (including the terms “controlling,” “controlled by” and “under common control with”) as used with respect to any Person means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise.

“Commission” means the Securities and Exchange Commission or any other federal agency at the time administering the Securities Act;

“Effective Date” means the date on which the Acquisition is consummated;

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder;

“Excluded Shares” means no more than that number of shares (rounded up to the nearest whole share) equal to 7.5% of the Mohawk Common Stock issued in connection with the Acquisition.

“Lock-up Party” means the Sellers and their Permitted Transferees, provided that, for the avoidance of doubt, if either or both of Private Equity Partners Fund IV (“PEP IV”) or Private Equity Partners SpA (“PEP SpA”) becomes a Permitted Transferee, it shall not be a Lock-up Party with respect to the Excluded Shares (provided, that if PEP IV or PEP SpA holds any Registrable Securities which are not Excluded Shares, then PEP IV or PEP SpA, as the case may be, shall be a Lock-up Party with respect to, but only with respect to, such other Registrable Securities).

“Permitted Transferee” means those Persons listed on Schedule 1 to this Agreement to the extent that such transferee executes a joinder to this Agreement substantially in the form of Exhibit A hereto.

“Person” means any individual, firm, corporation (wherever incorporated), partnership, limited liability company, joint venture, trust, association, organization, governmental authority, works council or employee representative body (whether or not having separate legal personality) or any other entity;

“register”, “registered” and “registration” means a registration effected by preparing and filing a registration statement in compliance with the Securities Act (and any post-effective amendments filed or required to be filed) and the declaration, ordering of or automatic  effectiveness of such registration statement;

“Registrable Securities” means (A) the shares of Parent Common Stock issued to the Investors under the Purchase Agreement, and (B) any securities of the Parent issued as a dividend or other distribution with respect to, or in exchange for or in replacement of, the shares of Parent Common Stock referred to in clause (A); provided, that Registrable Securities shall not include such securities as are actually sold pursuant to (i) a registration statement with respect to the sale of such securities that has become effective under the Securities Act, or (ii) Rule 144 (or any successor provision thereto) under the Securities Act (“Rule 144”);

“Registration Expenses” means all expenses incurred by the Parent in compliance with this Agreement, including, without limitation, all registration and filing fees, printing expenses, fees and disbursements of counsel for the Parent, fees and disbursements for any transfer agent for the Registrable Securities, printing expenses, blue sky fees and expenses (but excluding the compensation of regular employees of the Parent, which shall be paid in any event by the Parent);

“Securities Act” means the Securities Act of 1933, as amended and the rules and regulations promulgated thereunder; and

“Selling Expenses” means all selling commissions applicable to the sale of Registrable Securities and all fees and disbursements of counsel for each of the Sellers and, if applicable, their respective Permitted Transferees.

2.    LOCK-UP; RESTRICTIONS ON TRANSFER

(a)No Lock-up Party shall effect any transfer, sale or distribution or make any short sale of, or loan of, any Parent Common Stock received by a Seller pursuant to the Purchase Agreement (collectively, the “Lock-up Shares”) from the Effective Date until the date that is the earlier of (i) the date as the Parent shall agree and (ii) (A) 90 days following the Effective Date, with respect to 50 percent of the Lock-up Shares received by the applicable Seller and (B) 180 days following the Effective Date, with respect to the remaining Lock-up Shares received by such applicable Seller (each a “Lock-up Period”); provided that, notwithstanding the foregoing, the Sellers may transfer all or a portion of the Lock-up Shares to a Permitted Transferee (which Permitted Transferee shall, if applicable, become a Lock-up Party upon executing a joinder to this Agreement substantially in the form of Exhibit A hereto) during the Lock-Up Period; provided, further, that the Excluded Shares shall in no event be considered Lock-up Shares.

(b)    Following the applicable Lock-up Period and prior to any proposed transfer of any Registrable Securities (other than (x) under the circumstances described in Section 3 hereof and (y) with respect to Registrable Securities that no longer bear the restrictive legend set forth in Section 2(c) hereof), the applicable Seller shall give written notice to the Parent of its intention to effect such transfer.  Each such notice shall describe the manner of the proposed transfer and, with respect to transfers of Registrable Securities pursuant to an exemption from registration under the Securities Act, if requested by the Parent, shall be accompanied by an opinion of counsel reasonably satisfactory to the Parent (it being understood that Skadden, Arps, Slate, Meagher & Flom LLP shall be acceptable to render such opinion) to the effect that the proposed transfer may be effected without registration under the Securities Act, whereupon such Seller shall be entitled to transfer the Registrable Securities in accordance with the terms of its notice. Each certificate or instrument evidencing transferred Registrable Securities shall bear the legend set forth in Section 2(c), except that any such certificate or instrument shall not bear such legend if (i) such transfer is made pursuant to an effective registration statement, (ii) such transfer is in accordance with the provisions of Rule 144 (or any other rule permitting the resale of Registrable Securities without registration under the Securities Act) or (iii) the opinion of counsel referred to above is to the further effect that the transferee and any subsequent transferee that is not an Affiliate of the Parent would be entitled to transfer such Registrable Securities in a public sale without registration under the Securities Act.

(c)    Subject to the foregoing, each certificate evidencing Registrable Securities issued in connection with the Acquisition (“Restricted Shares”) shall bear a legend in substantially the following form:

“THESE SECURITIES ARE SUBJECT TO RESTRICTIONS CONTAINED IN THAT CERTAIN STOCK RESTRICTION AND REGISTRATION RIGHTS AGREEMENT DATED APRIL 3, 2013.  THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY STATE SECURITIES ACTS AND MAY NOT BE TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS THEY HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND ANY APPLICABLE STATE SECURITIES ACTS OR AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.”  

(d)    In the event that any Restricted Shares shall cease to be subject to the restrictions on transfer set forth in this Agreement, the Parent shall, upon the written request of the Seller, issue to such Seller one or more new certificates evidencing such shares without the legend required by Section 2(c) hereof endorsed thereon.

3.    REGISTRATION RIGHTS

(a)    Shelf Registration.

(i)    The Parent has filed a “shelf” registration statement on Form S-3 relating to delayed or continuous offerings pursuant to Rule 415 under the Securities Act, which registration statement became automatically effective upon the filing thereof (the “Shelf Registration”).  As promptly as practicable, but in no event more than 10 days, following the Effective Date, the Parent shall file a supplement to the prospectus that forms a part of the Registration Statement (the “Base Prospectus”) providing for the resale, subject to Section 3(a)(iv) hereof, from time to time by each of the Sellers and any Permitted Transferee of the Registrable Securities which prospectus supplement (such prospectus supplement and the Base Prospectus together, the “Prospectus”) shall name each of the Sellers and each person identified as a Permitted Transferee as selling securityholders of the Registrable Securities, in such a manner as to permit each of the Sellers and each Permitted Transferee to deliver the Prospectus to purchasers of Registrable Securities in accordance with applicable law.  The Parent shall, subject to Section 3(g) hereof, use its reasonable best efforts to keep the Shelf Registration continuously effective until February 28, 2015 (or, in the event that the Parent renews the Shelf Registration, April 3, 2016) in order to permit the Prospectus to be usable by Holders during such period (the “Effectiveness Period”).  

(ii)    If, for any reason, at any time during the Effectiveness Period the Shelf Registration ceases to be effective under the Securities Act, or ceases to be usable for the purposes contemplated hereunder, then the Parent shall use its reasonable best efforts to promptly cause the Shelf Registration to become effective or usable under the Securities Act (including obtaining the prompt withdrawal of any order suspending the effectiveness of such Shelf Registration), and in any event shall, as promptly as reasonably practicable, (A) amend the Shelf Registration in a manner reasonably expected to obtain the withdrawal of any order suspending the effectiveness of the Shelf Registration or (B) file an additional registration statement or prospectus supplement to a prospectus contained in an existing automatic shelf registration statement, as applicable (a “Subsequent Shelf Registration”), for an offering to be made on a delayed or continuous basis pursuant to Rule 415 registering the resale from time to time by the Sellers of all Registrable Securities as of the time of such filing.  If a Subsequent Shelf Registration is filed and such 

Subsequent Shelf Registration is not an automatic shelf registration statement or a prospectus supplement to a prospectus contained in an existing automatic shelf registration statement, the Parent shall use its commercially reasonable efforts to cause such Subsequent Shelf Registration to become effective under the Securities Act as promptly as practicable after such filing, but in no event later than the date that is one hundred eighty (180) days following  the date that such Subsequent Shelf Registration is required to be filed with the Commission.  The Parent shall use its reasonable best efforts to keep such Subsequent Shelf Registration (or another Subsequent Shelf Registration) continuously effective under the Securities Act from the date the Subsequent Shelf Registration is declared effective until the end of the Effectiveness Period.  Subject to Section 3(a)(iv) hereof, each such Subsequent Shelf Registration, if any, shall provide for the registration of such Registrable Securities for resale by each of the Sellers (and, if applicable, any Permitted Transferee) in accordance with any reasonable method of distribution elected by a Seller (and, if applicable, any Permitted Transferee).

(iii)    The Parent shall supplement and amend the Shelf Registration and any Subsequent Shelf Registration, as the case may be, if required by the rules, regulations or instructions applicable to the registration form used by the Parent for such Shelf Registration or Subsequent Shelf Registration, if required by the Securities Act or, if necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, as reasonably requested by one or more Sellers or any Permitted Transferee.

(iv)    Notwithstanding anything to the contrary in this Agreement, the Parent shall not be obligated to file or cause to be filed any Prospectus, including any prospectus included in a Subsequent Shelf Registration, that provides for the resale of Registrable Securities by means of an underwritten offering.

(b)    Expenses of Registration.  All Registration Expenses incurred in connection with any registration, qualification or compliance pursuant to this Agreement (including all Registration Expenses incurred in connection with the Shelf Registration and any supplements or amendments thereto, whether or not already effective or it becomes effective, and whether all, none or some of the Registrable Securities are sold pursuant to the Shelf Registration) shall be borne by the Parent, and all Selling Expenses shall be borne by the Seller (or, if applicable, their Permitted Transferee) incurring such expense severally and not jointly. 

(c)    Registration Procedures.  Subject to Section 3(a)(iv) hereof, the Parent shall use its reasonable best efforts to effect the registration and the sale of such Registrable Securities in accordance with each Seller’s (and, if applicable, each Permitted Transferee’s) intended methods of disposition thereof, and pursuant thereto the Parent shall, at its expense and as expeditiously as possible:
(i)    furnish to each Seller (and, if applicable, any Permitted Transferee) such number of conformed copies of the applicable registration statement and of each amendment and supplement thereto (in each case including all exhibits) and such number of copies of the prospectus forming a part of such registration statement (including each preliminary prospectus, any summary prospectus or any term sheet (as such term is used in Rule 434 under the Securities Act)) and any other prospectus filed under Rule 424 under the Securities Act, in conformity with the requirements of the Securities Act, and such other documents, including without limitation documents 

incorporated or deemed to be incorporated by reference prior to the effectiveness of such registration, as each of the Sellers (and, if applicable, any Permitted Transferee) from time to time may reasonably request; and
(ii)    notify the Sellers (and, if applicable, any Permitted Transferee), at any time during the Effectiveness Period of the occurrence of any event as a result of which any prospectus relating to the sale of Registrable Securities contains an untrue statement of a material fact or omits any material fact necessary to make the statements therein not misleading, and, at the request of any Seller (and, if applicable, any Permitted Transferee), the Parent shall prepare a supplement or amendment to such prospectus so that, as thereafter supplemented and/or amended, such prospectus shall not contain an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading;
 (iii)    use its reasonable best efforts to maintain the listing of the Registrable Securities on the New York Stock Exchange; 
(iv)    cause management of the Parent to cooperate reasonably with each of the Sellers (and, if applicable, each Permitted Transferee) with respect to significant placements of Registrable Securities, including by participating in one-on-one meetings with institutional investors and responding to reasonable requests for information; and
(v)    promptly notify each of the Sellers (and, if applicable, any Permitted Transferee):
(A)    when any registration statement, any pre-effective amendment, the prospectus or any prospectus supplement or post-effective amendment to any registration statement relating to the resale of Registrable Securities has been filed and, with respect to any such registration statement or any post-effective amendment, when the same has become effective;
(B)    of any written request by the Commission for amendments or supplements to any registration statement or any prospectus relating to the resale of Registrable Securities or of any inquiry by the Commission relating to any such registration statement or the Parent’s status as a well-known seasoned issuer; and
(C)    of the notification to the Parent by the Commission of its initiation of any proceeding with respect to the issuance by the Commission of any stop order suspending the effectiveness of any registration statement relating to the resale of Registrable Securities.
(d)    The Parent represents and warrants that no registration statement (including any amendments or supplements thereto and prospectuses contained therein) relating to the resale of Registrable Securities shall contain any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein not misleading (except that the Parent makes no representation or warranty with respect to information relating to the Sellers (and, if applicable, any Permitted Transferee) furnished to the Parent by or on behalf of the Sellers (and, if applicable, any Permitted Transferee) specifically for use therein).

 (e)    Indemnification.
(i)    The Parent will indemnify each of the Sellers (and, if applicable, their respective Permitted Transferees), as applicable, each of its officers, directors, members and partners, and each person controlling each of the Sellers (and, if applicable, their respective Permitted Transferees), with respect to any registration which has been effected pursuant to this Agreement against all claims, losses, damages and liabilities (or actions in respect thereof) arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any prospectus, offering circular or other document (including any related registration statement, notification or the like) incident to any such registration, qualification or compliance, or based on any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, or any violation by the Parent of the Securities Act or the Exchange Act or relating to action or inaction required of the Parent in connection with any such registration, qualification or compliance, and will reimburse each of the Sellers (and, if applicable, their respective Permitted Transferees), and each of their respective officers, directors, members and partners, and each person controlling each of the Sellers (and, if applicable, their respective Permitted Transferees), for any legal and any other expenses reasonably incurred in connection with investigating and defending any such claim, loss, damage, liability or action, provided that the Parent will not be liable in any such case to the extent that any such claim, loss, damage, liability or expense arises out of or is based on any untrue statement or omission based upon written information furnished to the Parent by the Sellers (and, if applicable, their respective Permitted Transferees) and stated to be specifically for use therein.
(ii)    Each of the Sellers (and, if applicable, their respective Permitted Transferees), severally and not jointly, will, if Registrable Securities held by it are included in the securities as to which any registration, qualification or compliance is being effected, indemnify the Parent, each of its directors and officers, and each person who controls the Parent, against all claims, losses, damages and liabilities (or actions in respect thereof) arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any such registration statement, prospectus, offering circular or other document made by such Seller (and, if applicable, any Permitted Transferee), or any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements by such Seller (and, if applicable, such Permitted Transferee) therein not misleading, and will reimburse the Parent and such directors, officers, persons or control persons for any legal or any other expenses reasonably incurred in connection with investigating or defending any such claim, loss, damage, liability or action, in each case to the extent, but only to the extent, that such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in such registration statement, prospectus, offering circular or other document in reliance upon and in conformity with written information furnished to the Parent by such Seller (and, if applicable, such Permitted Transferee) and stated to be specifically for use therein; provided, however, that the obligations of each of the Sellers (and, if applicable, their respective Permitted Transferees) hereunder and under clause (vi) below shall be limited to an amount equal to the net proceeds actually received by such Seller for securities sold as contemplated herein pursuant to such registration.
(iii)    Each party entitled to indemnification under this Section 3(e) (the “Indemnified Party”) shall give notice to the party required to provide indemnification (the “Indemnifying Party”) promptly after such Indemnified Party has actual knowledge of any claim 

as to which indemnity may be sought, and shall permit the Indemnifying Party to assume the defense of any such claim or any litigation resulting therefrom; provided that counsel for the Indemnifying Party, who shall conduct the defense of such claim or any litigation resulting therefrom, shall be approved by the Indemnified Party (whose approval shall not unreasonably be withheld) and the Indemnified Party may participate in such defense at such party’s expense (unless the Indemnified Party shall have reasonably concluded that there may be a conflict of interest between the Indemnifying Party and the Indemnified Party in such action, in which case the fees and expenses of one such counsel for all Indemnified Parties (in addition to any local counsel) shall be at the expense of the Indemnifying Party), and provided further that the failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this Section 3(e) unless the Indemnifying Party is materially prejudiced thereby.  No Indemnifying Party, in the defense of any such claim or litigation shall, except with the consent of each Indemnified Party (which consent shall not be unreasonably withheld or delayed), consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all liability in respect to such claim or litigation.  Each Indemnified Party shall furnish such information regarding itself or the claim in question as an Indemnifying Party may reasonably request in writing and as shall be reasonably required in connection with the defense of such claim and litigation resulting therefrom.
(iv)    If the indemnification provided for in this Section 3(e) is held by a court of competent jurisdiction to be unavailable to an Indemnified Party with respect to any loss, liability, claim, damage or expense referred to herein, then the Indemnifying Party, in lieu of indemnifying such Indemnified Party hereunder, shall contribute to the amount paid or payable by such Indemnified Party as a result of such loss, liability, claim, damage or expense in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party on the one hand and of the Indemnified Party on the other in connection with the statements or omissions which resulted in such loss, liability, claim, damage or expense, as well as any other relevant equitable considerations.  The relative fault of the Indemnifying Party and of the Indemnified Party shall be determined by reference to, among other things, whether the untrue (or alleged untrue) statement of a material fact or the omission (or alleged omission) to state a material fact relates to information supplied by the Indemnifying Party or by the Indemnified Party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Parent and the Sellers agree that it would not be just and equitable if contribution pursuant to this Section 3(e)(iv) were determined by pro rata allocation (even if the Sellers and their respective Permitted Transferees were treated as one entity for such purpose) or by any other method of allocation that does not take account of the equitable considerations referred to above.
(v)    The foregoing indemnity agreement of the Parent and Sellers is subject to the condition that, insofar as they relate to any loss, claim, liability or damage made in a preliminary prospectus but eliminated or remedied in the amended prospectus that is on file with the Commission at the time of a sale of Registrable Securities (the “Final Prospectus”), such indemnity or contribution agreement shall not inure to the benefit of any Seller (but only if such Seller was required to deliver such Final Prospectus) if a copy of such Final Prospectus was furnished to such Seller prior to the time of sale of such Registrable Securities and was not furnished to the person asserting the loss, liability, claim or damage at or prior to the time such action is required by the Securities Act.

(f)    Information by the Sellers.  Each of the Sellers (and, if applicable, their respective Permitted Transferees) holding securities included in any registration shall furnish to the Parent such information regarding such Seller (and, if applicable, such Permitted Transferee) and the distribution proposed by such Seller or Permitted Transferee as the Parent may reasonably request in writing and as shall be reasonably required in connection with any registration referred to in this Agreement.
(g)    Holdback Agreement; Postponement.  Notwithstanding the provisions of Section 3(a), if the Board of Directors of the Parent determines in good faith that it is in the best interests of the Parent (i) not to disclose the existence of facts surrounding any proposed or pending acquisition, disposition, strategic alliance or financing transaction involving the Parent or (ii) for any purpose, to suspend the registration rights set forth herein, the Parent may, by notice to the Seller Representative in accordance with Section 6(a) (a “Suspension Notice”), suspend the rights of the Sellers (and, if applicable, their respective Permitted Transferees) to make sales pursuant to the applicable Shelf Registration or Subsequent Shelf Registration, as the case may be, for such a period of time as the Board of Directors may reasonably determine; provided that such periods of suspension may not exceed 60 days in the aggregate during any period of 12 consecutive months.   If the Parent shall deliver to the Sellers (and, if applicable, their respective Permitted Transferees) any Suspension Notice, the Effectiveness Period shall be extended  by the number of days during the period from and including the date of the delivery of such Suspension Notice to and including the date the Seller (and, if applicable, their respective Permitted Transferees) is advised by the Parent that such suspension has ended. 
(h)    Assignment.  The registration rights set forth in Section 3 hereof may not be assigned, in whole or in part, by any Seller other than, if applicable, to Permitted Transferees who execute a joinder to this Agreement substantially in the form of Exhibit A hereto.  Any assignment to the contrary shall be null and void.
4.    RULE 144 REPORTING
With a view to making available the benefits of certain rules and regulations of the Commission which may permit the sale of restricted securities to the public without registration, the Parent agrees that it will:
(a)    make and keep current public information available (as those terms are understood and defined in Rule 144) at all times; 
(b)    use its reasonable best efforts to file with the Commission in a timely manner all reports and other documents required of the Parent under the Securities Act and the Exchange Act; and
(c)    so long as there are outstanding any Registrable Securities, furnish to each Seller (and, if applicable, each Permitted Transferee), upon request, a written statement by the Parent as to its compliance with the reporting requirements of Rule 144 and of the Securities Act and the Exchange Act, a copy of the most recent annual or quarterly report of the Parent, and such other reports and documents so filed as such Seller may reasonably request in availing itself of any rule or regulation of the Commission allowing such Seller (and, if applicable, such Permitted Transferee) to sell any such securities without registration.

5.    INTERPRETATION OF THIS AGREEMENT
(a)    Directly or Indirectly.  Where any provision in this Agreement refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such Person.
(b)    Generally.  In this Agreement, unless the context otherwise requires: (i) headings do not affect the interpretation of this Agreement; (ii) any phrase introduced by the terms “including”, “include”, “in particular” or any similar expression shall be construed as illustrative and shall not limit the sense of the words preceding those terms; and (iii) the words “hereof,” “hereby” and “herein” and words of similar meaning when used in this Agreement refer to this Agreement in its entirety and not to any particular Article, Section or provision of this Agreement.
6.    MISCELLANEOUS
(a)  Notices.  All notices, demands or other communications to be given or delivered under or by reason of the provisions of this Agreement will be in writing in English and will be deemed to have been given when delivered personally to the recipient or when sent to the recipient by facsimile (receipt confirmed), one (1) business day after the date when sent to the recipient by reputable overnight express courier services (charges prepaid) or three (3) business days after the date when mailed to the recipient by certified or registered mail, return receipt requested and postage prepaid. Such notices, demands and other communications will be sent the Parent and the Seller Representative at the addresses indicated below:
If to Seller Representative, to:
LuxELIT S.à r.l. 
282, Route de Longwy L – 1940  
Luxembourg 
Fax:  (+352) 26 86 81 86 
Attention:  Board of Managers

If to the Parent:     
Mohawk Industries, Inc.
P.O. Box 12069
160 South Industrial Boulevard
Calhoun, GA 30702
Fax:  706-624-2483
Attention:  James T. Lucke

(b)Entire Agreement.  This Agreement sets forth the entire agreement among the parties in respect of the subject matter hereof.  No party shall have any claim or remedy in respect of any statement, representation, warranty or undertaking relating to the subject matter hereof which is not expressly set forth in this Agreement.

(c)Waivers.  No failure or delay by a party in exercising any right or remedy provided by law or under this Agreement shall impair such right or remedy or operate or be construed as a waiver or variation of it or preclude its exercise at any subsequent time and no single or partial exercise of any such right or remedy shall preclude any further exercise of it or the exercise of any other remedy.
(d)Counterparts.  This Agreement may be executed in any number of separate counterparts (including by means of facsimile), each of which is an original but all of which taken together shall constitute one and the same instrument.
(e)Amendments.  No amendment to this Agreement shall be valid unless it is in writing and duly executed by the Parent and Seller Representative.
(f)Severability.  Each of the provisions of this Agreement is severable. If any such provision is held to be or becomes invalid or unenforceable in any respect under the law of any jurisdiction, it shall have no effect in that respect and the parties shall use all reasonable efforts to replace it in that respect with a valid and enforceable substitute provision the effect of which is as close to its intended effect as possible.
(g)Third Party Beneficiaries.  A person who is not a party to this Agreement shall have no right to enforce any of its terms and this Agreement is not intended to give any Person other than the parties hereto and their permitted assigns any rights hereunder.
(h)Governing Law.    THIS AGREEMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED IN ANY WAY TO THIS AGREEMENT, THE RELATIONSHIP OF THE PARTIES, THE PROPOSED TRANSACTION AND/OR THE INTERPRETATION AND ENFORCEMENT OF THE RIGHTS AND DUTIES OF THE PARTIES HEREUNDER OR RELATED IN ANY WAY TO THE FOREGOING, SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE DOMESTIC LAW OF THE STATE OF DELAWARE WITHOUT GIVING EFFECT TO ANY CHOICE OR CONFLICT OF LAW PROVISION OR RULE (WHETHER OF THE STATE OF DELAWARE OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE.
(i)Dispute Resolution.   EACH PARTY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN NEW CASTLE COUNTY, DELAWARE FOR THE PURPOSES OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY AND AGREES THAT ALL CLAIMS IN RESPECT OF THE SUIT, ACTION OR OTHER PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT.  EACH PARTY AGREES TO COMMENCE ANY SUCH SUIT, ACTION OR OTHER PROCEEDING IN THE STATE AND FEDERAL COURTS SITTING IN NEW CASTLE COUNTY, DELAWARE.  EACH PARTY WAIVES ANY DEFENSE OF IMPROPER VENUE OR INCONVENIENT FORUM TO THE MAINTENANCE OF ANY ACTION OR PROCEEDING SO BROUGHT AND WAIVES ANY BOND, SURETY, OR OTHER SECURITY THAT MIGHT BE REQUIRED OF ANY OTHER PARTY WITH RESPECT THERETO.  ANY PARTY MAY MAKE SERVICE ON 

ANY OTHER PARTY BY SENDING OR DELIVERING A COPY OF THE PROCESS TO THE PARTY TO BE SERVED AT THE ADDRESS AND IN THE MANNER PROVIDED FOR THE GIVING OF NOTICES IN SECTION 6(a).  NOTHING IN THIS SECTION 6(i).  HOWEVER, SHALL AFFECT THE RIGHT OF ANY PARTY TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR AT EQUITY.  EACH PARTY AGREES THAT A FINAL JUDGMENT IN ANY ACTION OR PROCEEDING SO BROUGHT SHALL BE CONCLUSIVE AND MAY BE ENFORCED BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW OR AT EQUITY.  
EACH OF THE PARTIES HEREBY WAIVES ITS RIGHT TO A JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THIS AGREEMENT, ANY RIGHTS OR OBLIGATIONS HEREUNDER OR THE PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS.   EACH OF THE PARTIES (i) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS AND (ii) ACKNOWLEDGES THAT SUCH OTHER PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE WAIVERS AND CERTIFICATIONS CONTAINED HEREIN.

[Signature pages follow]

    

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first set forth above.

SELLERS:
LUXELIT S.À R.L.
		
	By: 
	/s/ Eddy Perrier _______________  
Name: Eddy Perrier     
Title: Attorney

FINCERAMICA S.P.A.
By: /s/ Rosaria Marazzi  
Name: Rosaria Marazzi 
Title: Chairperson

PARENT:

MOHAWK INDUSTRIES, INC.
		
	By: /s/ Frank H. Boykin__________________  
Name: Frank H. Boykin
	 
Title: Chief Financial Officer

Exhibit A

JOINDER AGREEMENT
WHEREAS, simultaneously with the execution of this Joinder Agreement (this “Agreement”), [•] (the “Acquiror”) is acquiring from [•], [•] shares of common stock, par value $0.01 per share (the “Parent Common Shares”), of  [•], a Delaware corporation (the “Parent”); 
WHEREAS, as a condition to the acquisition of the Parent Common Shares, the Acquiror has agreed, upon the acquisition of the Parent Common Shares, to join that certain Stock Restriction and Registration Rights Agreement, dated as of  [•], 2012 (the “Registration Agreement”), among the Parent, LuxELIT and Finceramica;
WHEREAS, Acquiror  understands that the execution of this Agreement is a condition precedent to the acquisition of the Parent Common Shares; and
WHEREAS, capitalized terms used but not defined herein shall have the meaning set forth in the Registration Agreement.
NOW, THEREFORE, as an inducement to the transferor of the Parent Common Shares and pursuant to Sections 2(a) and 3(h) of the Registration Agreement, the parties agree as follows:
1. [•] hereby agrees that, immediately upon its acquisition of Parent Common Shares, it shall automatically join in the  Registration Agreement , and shall thereafter be bound by the terms and provisions and receive the benefits of the Registration Agreement with respect to the Parent Common Shares as fully as if it were an initial signatory thereto, and shall be deemed to be a “Permitted Transferee” and a “Seller” for all purposes thereunder.
2.Acquiror accepts Seller Representative as its true and lawful attorney-in-fact for purposes of this Agreement and the Registration Agreement.  Seller Representative shall be a third party beneficiary of this paragraph 2.
3.This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware without giving effect to the principles of conflicts of law, and Acquiror shall be subject to the provisions of Sections 6(h) and (i) of the Registration Agreement with respect to any dispute arising out of or relating to this Agreement.

IN WITNESS WHEREOF, the undersigned have executed this Agreement this ____ day of _______________ .
[ACQUIROR]
By: 

By:                         
 
    Name:
 
    Title:

 
Address:    

LEGAL02/33798187v2

Accepted:
MOHAWK INDUSTRIES, INC.
By:_________________________________ 
Name: 
Title:

LEGAL02/33798187v2    - 16 -

Schedule I

Permitted Transferees

		
	1.
	    P4 Sub L.P. 1

		
	2.
	    Permira IV L.P.2

		
	3.
	    Permira Investments Limited

		
	4.
	    P4 Co-Investment L.P.

		
	5.
	    Private Equity Partners Fund IV

		
	6.
	    Private Equity Partners SpA

		
	7.
	    Simon Fiduciaria

		
	8.
	    Rosaria Marazzi

		
	9.
	    Carolina Marazzi

		
	10.
	Emanuela Marazzi

LEGAL02/33798187v2    - 17 -Exhibit 10.1

Change
in Control Agreement

 

 

THIS CHANGE IN
CONTROL AGREEMENT (this “Agreement”) is made and entered into effective as of March _____, 2013 (the “Effective
Date”), by and between JD ALEXANDER (the “Employee”) and ALICO, INC., a Florida
corporation (the “Company”).

Recitals:

WHEREAS,
the Employee is a key employee of the Company; and

WHEREAS,
the Company desires to provide the Employee with certain additional compensation and benefits in the event that a Change in Control
(as defined herein) of the Company occurs.

NOW, THEREFORE,
in consideration of the mutual covenants, promises and obligations set forth herein, the parties agree as follows:

Section
1. Definitions. Certain terms used in this Agreement shall have the meanings set forth in Appendix A attached
hereto.

Section
2. Term. This Agreement is effective as of the Effective Date and will continue in effect until December 31,
2014; provided, however, that commencing on January 1, 2015, and each January 1 thereafter, the term of this Agreement
will automatically be extended for one (1) additional year beyond the expiration date otherwise then in effect, unless at least
thirty (30) calendar days prior to any such January 1, the Company or the Employee provides the other notice that this Agreement
will not be extended; and, provided, further, that this Agreement will continue in effect beyond the termination date then in effect
for a period of eighteen (18) calendar months following a Change in Control if a Change in Control has occurred during such term.

Section
3. Change in Control Termination.

(a) If the Employee’s
employment is terminated by the Employee for Good Reason or by the Company without Cause (other than on account of the Employee’s
death or Disability), in each case within eighteen (18) months following a Change in Control, and subject to the Employee’s
execution of a release in the form attached hereto as Appendix B (“Release”) which becomes effective within
thirty (30) calendar days following the Termination Date, then the Employee shall be entitled to receive, in addition to any other
compensation or benefits to which the Employee may otherwise be entitled, aggregate payments equal to two (2) times the sum of
(A) the Employee’s Base Salary for the year in which the Termination Date occurs (or if greater, the year immediately preceding
the year in which the Change in Control occurs), and (B) the average amount of cash compensation, other than Base Salary, that
was earned by the Employee with respect to the three (3) fiscal years (or such fewer number of fiscal years that the Employee was
employed by the Company) prior to the fiscal year in which the Termination Date occurs, which amount shall be payable in twenty-four
(24) monthly installments with the first installment to be paid within thirty (30) calendar days following the Termination Date.

(b) If the Employee’s
employment is terminated by the Employee for Good Reason or by the Company without Cause (other than on account of the Employee’s
death or Disability),

    	 

    	 

    

this shall be communicated by written
notice of termination (“Notice of Termination”) to the other party hereto in accordance with Section 14. The
Notice of Termination shall specify:

		(i)	the facts and circumstances claimed to provide a basis
for Good Reason, if the Notice of Termination is given by the Employee; and

		(ii)	the applicable Termination Date.

Section
4. No Employment or Service Contract. Nothing in this Agreement is intended to provide the Employee with any
right to continue in the employ of the Company for any period of specific duration or interfere with or otherwise restrict in any
way the Employee’s rights or the rights of the Company, which rights are hereby expressly reserved by each, to terminate
the Employee’s employment at any time for any reason or no reason whatsoever, with or without Cause.

Section
5. Dispute Resolution. Any controversy or claim arising out of or relating to this Agreement shall be settled
by arbitration administered by the American Arbitration Association under its National Rules for the Resolution of Employment Disputes
and judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. The place of
arbitration shall be Fort Myers, Florida.

Section
6. Governing Law; Jurisdiction and Venue. This Agreement, for all purposes, shall be construed in accordance
with the laws of Florida without regard to conflicts of law principles. Subject to Section 5, any action or proceeding by either
of the parties to enforce this Agreement shall be brought only in a state or federal court located in the state of Florida, County
of Lee. The parties hereby irrevocably submit to the exclusive jurisdiction of such courts and waive the defense of inconvenient
forum to the maintenance of any such action or proceeding in such venue.

Section
7. Attorneys’ Fees. If any legal action or other proceeding is brought for the enforcement of this Agreement,
or because of an alleged dispute, breach, default, claim, or misrepresentation arising out of or in connection with any of the
provisions of this Agreement, the prevailing party shall be entitled to recover its reasonable attorneys’ fees, arbitration
expenses, court costs, and other expenses, whether at trial, upon appeal, or during investigation by such prevailing party in prosecuting
or defending such arbitration, legal action or other proceeding. The prevailing party shall be entitled to recover attorneys’
fees, costs, and expenses incurred in establishing or quantifying the amount of attorneys’ fees, costs, and expenses due
to it. The costs and expenses to which the prevailing party shall be entitled pursuant to this Agreement are not limited to taxable
costs and shall include, but not be limited to, costs of experts and investigation; costs of copying documents and other materials
(whether for discovery, trial, or any other purpose); costs for electronic discovery; Westlaw, Lexis Nexis, and other electronic
research service charges; telephone charges; mailing, commercial delivery service, and courier charges; travel expenses (whether
for investigation, depositions, hearings, trial, or any other purpose); information technology support charges; any and all consultant
or expert witness fees (whether or not the consultant or expert witness prepares a court-ordered report or testifies at a deposition,
hearing, or trial); and any other costs or expenses incurred in any legal action or other proceeding as described in this paragraph.
Nothing contained herein shall be deemed to create any obligation for any party to advance fees to another party prior to the conclusion
of any proceedings.

    	2

    	 

    

Section 8. Entire Agreement.
Unless specifically provided herein, this Agreement contains all of the understandings and representations between the Employee
and the Company pertaining to the subject matter hereof and supersedes all prior and contemporaneous understandings, agreements,
representations and warranties, both written and oral, with respect to such subject matter. The parties mutually agree that the
Agreement can be specifically enforced in court and can be cited as evidence in legal proceedings alleging breach of the Agreement.
This Agreement supersedes and replaces in its entirety the cash severance agreement referenced in the Offer Letter between
the Company and the Employee dated March 13, 2012. Notwithstanding the foregoing, nothing contained in this Agreement shall
be deemed to (i) modify the terms of any outstanding awards or benefits to Employee under the 2008 Incentive Equity Plan or
the 2013 Incentive Equity Plan, the Company’s MSP Plan or any Restricted Stock Award Agreement between Employee and the Company,
or (ii) release any of Employee’s rights to indemnification under any indemnification agreement between Employee and
the Company or under the Articles of Incorporation or bylaws of the Company or under Section 607.0850, Florida Statutes, or
any of Employee’s rights to advances or reimbursement under any directors’ and officers’ liability policies maintained
by the Company.

Section
9. Modification and Waiver. No provision of this Agreement may be amended or modified unless such amendment or
modification is agreed to in writing and signed by the Employee and by the Chairman of the Board of the Company. No waiver by either
of the parties of any breach by the other party hereto of any condition or provision of this Agreement to be performed by the other
party hereto shall be deemed a waiver of any similar or dissimilar provision or condition at the same or any prior or subsequent
time, nor shall the failure of or delay by either of the parties in exercising any right, power or privilege hereunder operate
as a waiver thereof to preclude any other or further exercise thereof or the exercise of any other such right, power or privilege.

Section
10. Severability. Should any provision of this Agreement be held by a court of competent jurisdiction to be enforceable
only if modified, or if any portion of this Agreement shall be held as unenforceable and thus stricken, such holding shall not
affect the validity of the remainder of this Agreement, the balance of which shall continue to be binding upon the parties with
any such modification to become a part hereof and treated as though originally set forth in this Agreement. The parties further
agree that any such court is expressly authorized to modify any such unenforceable provision of this Agreement in lieu of severing
such unenforceable provision from this Agreement in its entirety, whether by rewriting the offending provision, deleting any or
all of the offending provision, adding additional language to this Agreement or by making such other modifications as it deems
warranted to carry out the intent and agreement of the parties as embodied herein to the maximum extent permitted by law. The parties
expressly agree that this Agreement as so modified by the court shall be binding upon and enforceable against each of them. In
any event, should one or more of the provisions of this Agreement be held to be invalid, illegal or unenforceable in any respect,
such invalidity, illegality or unenforceability shall not affect any other provisions hereof, and if such provision or provisions
are not modified as provided above, this Agreement shall be construed as if such invalid, illegal or unenforceable provisions had
not been set forth herein.

Section
11. Captions. Captions and headings of the sections and paragraphs of this Agreement are intended solely for
convenience and no provision of this Agreement is to be construed by reference to the caption or heading of any Section or
paragraph.

Section 12. Counterparts.
This Agreement may be executed in separate counterparts, each of which shall be deemed an original, but all of which taken together
shall constitute one and the same instrument.

    	3

    	 

    

Section
13. Successors and Assigns.  This Agreement is personal to the Employee and shall not be assigned by the Employee.
Any purported assignment by the Employee shall be null and void from the initial date of the purported assignment. The Company
may assign this Agreement to any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise)
to all or substantially all of the business or assets of the Company. This Agreement shall inure to the benefit of the Company
and permitted successors and assigns.

Section
14. Notice. Notices and all other communications provided for in this Agreement shall be in writing and shall
be delivered personally or sent by registered or certified mail, return receipt requested, or by overnight carrier to the parties
at the addresses set forth below (or such other addresses as specified by the parties by like notice):

	 	If to the Company:	Alico, Inc.
	 	 	10070 Daniels Interstate Court
	 	 	Suite 100
	 	 	Fort Myers, FL 33913
	 	 	Attention:  Chief Executive Officer
	 	If to the Employee:	JD Alexander
	 	 	________________________
	 	 	________________________
	 	 	________________________

  

  

  

Section
15. Withholding. The Company shall have the right to withhold from any amount payable hereunder any Federal,
state and local taxes in order for the Company to satisfy any withholding tax obligation it may have under any applicable law or
regulation.

Section
16. Survival. Upon the expiration or other termination of this Agreement, the respective rights and obligations
of the parties hereto shall survive such expiration or other termination to the extent necessary to carry out the intentions of
the parties under this Agreement.

Section
17. Acknowledgment of Full Understanding. THE EMPLOYEE ACKNOWLEDGES AND AGREES THAT THE EMPLOYEE HAS FULLY READ,
UNDERSTANDS AND VOLUNTARILY ENTERS INTO THIS AGREEMENT. THE EMPLOYEE ACKNOWLEDGES AND AGREES THAT THE EMPLOYEE HAS HAD AN OPPORTUNITY
TO ASK QUESTIONS AND CONSULT WITH AN ATTORNEY OF HIS OR HER CHOICE BEFORE SIGNING THIS AGREEMENT.

[Signature Page Follows]

    	4

    	 

    

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the date first above written.

	 	Alico, Inc.
	 	 
	 	 
	 	By _________________________________
	 	 
	 	Name: ______________________________
	 	 
	 	Title: _______________________________
	 	 
	 	 
	 	 
	 	 
	 	 
	 	JD ALEXANDER

 

    	5

    	 

    

Appendix
A

(a) “Base
Salary” means the Employee’s annual base salary, as in effect from time to time.

(b) “Board”
means the Board of Directors of the Company.

(c) “Cause”
means (i) the Employee’s willful failure to perform his duties (other than any such failure resulting from incapacity due
to physical or mental illness); (ii) the Employee’s willful failure to comply with any valid and legal directive of the Board;
(iii) the Employee’s willful engagement in dishonesty, illegal conduct or gross misconduct, which is, in each case, materially
injurious to the Company or its affiliates; (iv) the Employee’s embezzlement, misappropriation or fraud, whether or not related
to the Employee’s employment with the Company; (v) the Employee’s conviction of or plea of guilty or nolo contendere
to a crime that constitutes a felony (or state law equivalent) or a crime that constitutes a misdemeanor involving moral turpitude;
(vi) the Employee’s willful unauthorized disclosure of Confidential Information; or (vii) any material failure by the
Employee to comply with the Company’s written policies or rules, as they may be in effect from time to time during the Employment
Term, if such failure causes material harm to the Company. No act or failure to act on the part of the Employee shall be considered
“willful” unless it is done, or omitted to be done, by the Employee in bad faith or without reasonable belief that
the Employee’s action or omission was in the best interests of the Company. Except for a failure, breach or refusal which,
by its nature, cannot reasonably be expected to be cured, the Employee shall have ten (10) business days from the delivery of written
notice by the Company within which to cure any acts constituting Cause; provided however, that, if the Company reasonably expects
irreparable injury from a delay of ten (10) business days, the Company may give the Employee notice of such shorter period within
which to cure as is reasonable under the circumstances, which may include the termination of the Employee’s employment without
notice and with immediate effect.

(d) “Change
in Control” means (i) any time at which individuals who, as of the date hereof, constitute the board of directors (the “Incumbent
Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming
a director subsequent to the date hereof whose election, or nomination for election by the Company’s shareholders, was approved
by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual
were a member of the Incumbent Board; (ii) the acquisition by any individual, entity or group (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”)) (a “Person”) of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of fifty percent (50%) or more of either (A) the
then-outstanding shares of Stock (the “Outstanding Company Shares”) or (B) the combined voting power of the then-outstanding
voting securities entitled to vote generally in the election of directors (the “Outstanding Voting Securities”) of
the Company (the “Outstanding Company Voting Securities”); provided that, for purposes of this definition, the following
acquisitions shall not constitute a Change of Control; (x) any acquisition directly from the Company; (y) any acquisition by the
Company; and (z) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any
of its affiliates; (iii) the consummation of a reorganization, merger, consolidation, statutory share exchange or similar form
of corporate transaction involving the Company (a “Reorganization”), or the sale or other disposition of all or substantially
all of the Company’s assets (a “Sale”), unless immediately following such Reorganization or Sale, all of the
individuals and entitles that were the beneficial owners of the Outstanding Company Shares immediately prior to such Reorganization
or Sale beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding shares of common stock and
the combined voting power of the then outstanding voting shares entitled to vote

    	A-1

    	 

    

generally in the election of directors,
as the case may be, of the corporation resulting from such Reorganization or Sale, including, without limitation, a corporation
which as a result of such transaction owns the Company or all or substantially all of the Company’s assets or stock either
directly or through one or more subsidiaries; or (iv) a liquidation of the Company by vote of the shareholders of the Company.

(e) “Disability”
means mean the Employee’s inability, due to physical or mental incapacity, to substantially perform his duties and responsibilities
under this Agreement for one hundred eighty (180) days out of any three hundred sixty-five (365) day period or one hundred twenty
(120) consecutive days. Any question as to the existence of the Employee’s Disability as to which the Employee and the Company
cannot agree shall be determined in writing by a qualified independent physician mutually acceptable to the Employee and the Company.
If the Employee and the Company cannot agree as to a qualified independent physician, each shall appoint such a physician and those
two physicians shall select a third who shall make such determination in writing. The determination of Disability made in writing
to the Company and the Employee shall be final and conclusive for all purposes of this Agreement.

(f) “Good
Reason” means the occurrence of any of the following, in each case without the Employee’s written consent: (i) a reduction
in the Employee’s Base Salary or annual incentive compensation potential; (ii) a relocation of the Employee’s principal
place of employment by more than fifty (50) miles, except for required travel on Company business to an extent substantially consistent
with the Employee’s business travel obligations as of the date of relocation; (iii) a material adverse change in the
Employee’s title, authority, duties or responsibilities (other than temporarily while the Employee is physically or mentally
incapacitated or as required by applicable law).

(g) “Release”
means a release of claims in favor of the Company, its affiliates and their respective officers and directors in the form attached
as Appendix B.

(h) “Release
Execution Period” means a period of thirty (30) calendar days immediately following the Termination Date.

(i) “Termination
Date” means (i) if the Company terminates the Employee’s employment for Cause, the date the Notice of Termination is
delivered to the Employee; and (ii) if the Employee terminates his employment hereunder with Good Reason, the date specified
in the Employee’s Notice of Termination, which shall be no less than thirty (30) calendar days following the date on which
the Notice of Termination is delivered.

    	A-2

    	 

    

Appendix
B

RELEASE AGREEMENT

THIS RELEASE AGREEMENT
(this “Agreement”) is made and entered into by and between Alico, Inc. and its wholly owned subsidiaries and its successors
and assigns (“Alico”) and ___________________ and his/her heirs, spouse, assigns, executors, administrators and attorneys
(“Executive”).

Pursuant to his/her
Change in Control Agreement with Alico (“CIC Agreement”), Executive and Alico, desiring to resolve all actual or potential
claims Executive may have against Alico, agree as follows:

1.                 
Obligation of Alico. In consideration of Executive’s obligations set forth below, Alico shall provide to Executive
the compensation described in Section 3(a) of the CIC Agreement between Alico and Executive. Executive retains all of his rights
under any outstanding awards or benefits to Employee under the 2008 Incentive Equity Plan, the 2013 Incentive Equity Plan, Alico’s
MSP Plan, and any Restricted Stock Award Agreement between Executive and Alico. Nothing contained herein shall be deemed to release
any of Executive’s rights (i) to indemnification under any indemnification agreement between Executive and Alico or
under the articles of incorporation or bylaws of Alico, or under Section 607.0850, Florida Statutes, or any of Executive’s
rights to advances or reimbursement under any directors’ and officers’ liability insurance policies maintained by Alico
or (ii) under the 2008 Incentive Equity Plan, the 2013 Incentive Equity Plan, Alico’s MSP Plan, and any Restricted Stock
Award Agreement between Executive and Alico.

2.                 
Obligations of Executive. In consideration of Alico’s obligations set forth in this Agreement:

(a)               
Executive waives, and releases Alico, and its directors, officers, employees, representatives, benefit plan administrators,
agents and attorneys, both individually and collectively (hereinafter collectively referred to as “the Released Parties”),
from, all claims, rights, and causes of action, both known and unknown, in law or in equity, of any kind whatsoever that Executive
has or could have maintained against any of the Released Parties arising out of his employment with Alico through the date of signing
this Agreement or his separation from employment with Alico, including any claim for attorney’s fees. Without limiting the
generality of the foregoing, Executive waives, and releases all of the Released Parties from, all claims, rights, and causes of
action relating to or arising out of Executive’s employment with, conditions of employment with, compensation by, or separation
of employment from, Alico, including, without limitation, any claims, rights, charges, or causes of action arising under Title
VII of the Civil Rights Act of 1964, as amended; the Civil Rights Acts of 1866 and 1871; the Age Discrimination in Employment Act
of 1967, as amended; Executive Order Nos. 11246 and 11478; the Equal Pay Act of 1963, as amended; the Employee Retirement Income
Security Act of 1974, as amended; the Rehabilitation Act of 1973, as amended; the Florida Civil Rights Act of 1992; Florida Statutes
§§ 440.205 and 448.102; the Americans with Disabilities Act of 1990, as amended; the Family and Medical Leave Act of
1993; the National Labor Relations Act of 1935, as amended; the Fair Labor Standards Act of 1938, as amended; the Occupational
Safety and Health Act of 1970, as amended; the Genetic Information Nondiscrimination Act of 2008; and the Consolidated Omnibus
Budget Reconciliation Act of 1985, as amended, and any other federal or state law or local ordinance, including any suit in tort
(including fraud, promissory estoppel and negligence) or contract (whether oral, written or implied), or any other common law or

    	B-1

    	 

    

equitable basis of action, except
for any claim which may not lawfully be waived in this manner.

(b)              
Executive represents that while he/she is not legally barred from filing a charge of discrimination, he/she has not filed,
and does not intend to file, any charge of discrimination against any of the Released Parties with any federal, state or local
agency and understands that Alico has reasonably relied on his/her representations in this paragraph in agreeing to perform the
obligation set forth in Section 1 of this Agreement. Executive further waives any right to recovery based on any charge of discrimination
filed by him/her or on his/her behalf.

3.                 
Non-Admission. Neither this Agreement, nor anything contained in it, shall be construed as an admission by any of
the Released Parties of any liability, wrongdoing or unlawful conduct whatsoever.

4.                 
Severability. If a court of competent jurisdiction invalidates any provision of this Agreement, then all of the remaining
provisions of this Agreement shall continue unabated and in full force and effect.

5.                 
Entire Agreement. This Agreement contains the entire understanding and agreement between the parties regarding the
subject matter of this Agreement and shall not be modified or superseded except upon express written consent of the parties to
this Agreement. Executive represents and acknowledges that in executing this Agreement, he/she does not rely and has not relied
upon any representation or statement made by Alico or its agents, representatives or attorneys which is not set forth in this Agreement.

6.                 
Governing Law. The laws of the State of Florida shall govern this Agreement, and any action to enforce this Agreement
shall be brought in Lee County, Florida where jurisdiction and venue shall lie.

7.                 
Opportunity to Consider and Confer. Executive acknowledges that he/she has had the opportunity to read, study, consider,
and deliberate upon this Agreement. He/she further acknowledges and understands that he/she has been given a period of twenty-one
(21) days in which he/she may, but is not required to, consider this Agreement, that after he/she signs it, he/she has seven (7)
days in which to revoke it. Executive further acknowledges that he/she fully understands and completely agrees with all of the
terms of this Agreement and that he/she has been, and hereby is, specifically advised to consult with his/her attorney before executing
this Agreement.

8.                 
Effective Date. Assuming Executive signs this Agreement and does not revoke it as provided in Section 7 above, this
Agreement becomes effective thirty (30) days after the Termination Date as defined in Appendix A to the CIC Agreement.

[Signature Page Follows]

    	B-2

    	 

    

IN WITNESS WHEREOF,
and intending to be legally bound hereby, Alico and Executive hereby execute this Severance Agreement and Release, consisting of
three (3) pages (including this signature page) and including ten (10) enumerated sections, by signing below voluntarily and with
full knowledge of the significance of all of its provisions.

PLEASE READ CAREFULLY.
THIS RESIGNATION AGREEMENT, WAIVER AND RELEASE INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

	Sworn to and subscribed before me	 	 
	this _____ day of _______________, 20__.	 	 
	 	 	 
	 	 	 
	 	 	 
	Notary Public, State of Florida at Large	 	Executive
	My Commission Expires: 	 	 
	 	 	 
	 	 	Executed at Ft. Myers, Florida,
	 	 	this _____ day of __________, 20__.
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	Sworn to and subscribed before me	 	 
	this _____ day of _______________, 20__.	 	Alico, Inc.
	 	 	 
	 	 	 
	 	 	By ______________________________________
	Notary Public, State of Florida at Large	 	Its: ______________________________________
	My Commission Expires: 	 	 
	 	 	 
	 	 	Executed at Ft. Myers, Florida,
	 	 	this _____ day of __________, 20__.

 

    	B-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00216-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00216-of-00352.parquet"}]]