Document:

EX-10.3

Table of Contents

 Exhibit 10.3 

 
  

 
 RECEIVABLES
PURCHASE 
 AND SALE AGREEMENT 

DATED AS OF DECEMBER 19, 2012 

AMONG 
 MOHAWK CARPET DISTRIBUTION, INC. AND 
 DAL-TILE DISTRIBUTION, INC., 
 AS ORIGINATORS, 
 AND 

MOHAWK FACTORING, LLC, 
 AS THE BUYER 
  

 
  

Table of Contents

 TABLE OF
CONTENTS 
  

							
	SECTION	  	HEADING	  	 	PAGE	  
		
	ARTICLE I AMOUNTS AND TERMS OF THE PURCHASE	  	 	2	  
			
	 Section 1.1.
	  	Purchase of Receivables	  	 	2	  
	 Section 1.2.
	  	Payment for the Purchases	  	 	3	  
	 Section 1.3.
	  	Purchase Price Credit Adjustments	  	 	3	  
	 Section 1.4.
	  	Payments and Computations, Etc	  	 	4	  
	 Section 1.5.
	  	Transfer of Collection Records; License of Software; Access to Contracts	  	 	4	  
	 Section 1.6.
	  	Characterization	  	 	5	  
		
	ARTICLE II REPRESENTATIONS AND WARRANTIES	  	 	5	  
			
	 Section 2.1.
	  	Representations and Warranties of Originators	  	 	5	  
		
	ARTICLE III CONDITIONS OF PURCHASE	  	 	9	  
			
	 Section 3.1.
	  	Conditions Precedent to Effectiveness	  	 	9	  
	 Section 3.2.
	  	Conditions Precedent to Subsequent Payments	  	 	9	  
		
	ARTICLE IV COVENANTS	  	 	10	  
			
	 Section 4.1.
	  	Affirmative Covenants of Originators	  	 	10	  
	 Section 4.2.
	  	Negative Covenants of Originators	  	 	16	  
		
	ARTICLE V TERMINATION EVENTS	  	 	17	  
		
	SECTION 5.1. TERMINATION EVENTS	  	 	17	  
	 Section 5.2.
	  	Remedies	  	 	18	  
		
	ARTICLE VI INDEMNIFICATION	  	 	19	  
			
	 Section 6.1.
	  	Indemnities by Originators	  	 	19	  
	 Section 6.2.
	  	Other Costs and Expenses	  	 	21	  
		
	ARTICLE VII MISCELLANEOUS	  	 	21	  
			
	 Section 7.1.
	  	Waivers and Amendments	  	 	21	  
	 Section 7.2.
	  	Notices	  	 	21	  
	 Section 7.3.
	  	Protection of Ownership Interests of the Buyer	  	 	22	  
	 Section 7.4.
	  	Confidentiality	  	 	23	  
	 Section 7.5.
	  	Bankruptcy Petition	  	 	23	  
	 Section 7.6.
	  	Choice of Law	  	 	23	  
	 Section 7.7.
	  	Consent to Jurisdiction	  	 	24	  
	 Section 7.8.
	  	Waiver of Jury Trial	  	 	24	  
	 Section 7.9.
	  	Integration; Binding Effect; Survival of Terms	  	 	24	  
	 Section 7.10.
	  	Counterparts; Severability; Section References	  	 	25	  

  
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 EXHIBITS AND SCHEDULES 

 

					
	EXHIBIT I	  	—	  	Definitions
	EXHIBIT II	  	—  	  	Principal Place of Business; Location(s) of Collection Records; Federal Employer Identification Number; Organizational Identification Number; Other Names
	EXHIBIT III	  	—  	  	Form of Compliance Certificate
	EXHIBIT IV	  	—  	  	Form of Purchase Report
			
	SCHEDULE A	  	—  	  	List of Documents to Be Delivered to the Buyer Prior to Effectiveness

  
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 RECEIVABLES PURCHASE AND SALE
AGREEMENT 
 THIS RECEIVABLES PURCHASE AND
SALE AGREEMENT, dated as of December 19, 2012, is by and among Mohawk Carpet Distribution, Inc., a Delaware corporation (“Mohawk Distribution”), Dal-Tile Distribution, Inc., a Delaware corporation
(“Dal-Tile”); each of Mohawk Distribution, Dal-Tile and any other Person that becomes an “Originator” hereunder pursuant to Section 7.9(b) hereof, an “Originator” and collectively the
“Originators”), and Mohawk Factoring, LLC, a Delaware limited liability company (“Buyer”). 

PRELIMINARY STATEMENTS 
 Pursuant to the terms of that certain Third Amended and Restated Receivables Purchase and Sale Agreement dated as of September 2, 2009 (as amended, the “Existing Agreement”) by and
among the Originators, as sellers, and Mohawk Factoring II, Inc., a Delaware corporation formerly known as Mohawk Factoring, Inc. (the “Previous Buyer”), as buyer, the Originators sold Receivables to Previous Buyer. 

Each of the Originators party to this Agreement on the date hereof and the Previous Buyer intended that the past transfers of Receivables
under the Existing Agreement be true sales to the Previous Buyer thereunder. 
 The Buyer is a wholly-owned Subsidiary of
Previous Buyer and pursuant to that certain Contribution Agreement effective as of December 1, 2012 (the “Contribution Agreement”), Previous Buyer contributed to Buyer all Receivables of Previous Buyer. 

Each of the Originators and the Buyer intend that all transfers of Receivables hereunder, be true sales to the Buyer by such Originator
of the Receivables originated by it, providing the Buyer with the full benefits of ownership of such Receivables, and none of the Originators nor the Buyer intends these transactions to be, or for any purpose to be characterized as, loans from the
Buyer to such Originator. 
 Each of the Originators acknowledges that from and after the date hereof, the Buyer intends to
finance purchases of Receivables from the Originators, in part, from the proceeds of loans made pursuant to a Credit and Security Agreement of even date herewith (the “Credit and Security Agreement”) among the Buyer, as the
borrower, Mohawk Servicing, LLC, a Delaware limited liability company, as the initial Servicer, the Lenders thereunder, the Co-Agents thereunder and SunTrust Bank, as administrative agent for the Co-Agents and the Lenders (in such capacity, together
with its successors, the “Administrative Agent”). 
 NOW, THEREFORE, in
consideration of the foregoing premises and the mutual agreements herein contained and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows: 

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 ARTICLE I 

AMOUNTS AND TERMS OF THE PURCHASE

 Section 1.1. Purchase of Receivables. 

 

	 	(a)	In consideration for the Purchase Price paid to each Originator upon the terms and subject to the conditions set forth herein, each Originator does hereby sell, assign,
transfer, set-over and otherwise convey to the Buyer, without recourse (except to the extent expressly provided herein), and the Buyer does hereby purchase from such Originator all Receivables originated on and after December 1, 2012 by such
Originator through and including the Termination Date, together, in each case, with all Related Security relating thereto. In accordance with the preceding sentence, the Buyer shall acquire all of each Originator’s right, title and interest in
and to all Receivables arising on and after the date hereof through and including the Termination Date, together with all of such Originator’s rights in and to all Related Security relating thereto. The Buyer shall be obligated to pay the
Purchase Price for the Receivables purchased hereunder from each Originator in accordance with Section 1.2. From and after the Termination Date, the Buyer shall not be obligated to purchase Receivables from any Originator.

  

	 	(b)	On each Monthly Reporting Date, each Originator shall (or shall require the Servicer to) deliver to the Buyer a report in substantially the form of Exhibit IV
hereto (each such report being herein called a “Purchase Report”) with respect to the Receivables sold by such Originator to the Buyer during the Calculation Period most recently ended. In addition to, and not in limitation of, the
foregoing, in connection with the payment of the Purchase Price for any Receivables purchased hereunder, the Buyer may request that the applicable Originator deliver, and such Originator shall deliver, such approvals, opinions, information or
documents as the Buyer may reasonably request. 

  

	 	(c)	 It is the intention of the parties hereto that each Purchase of Receivables from an Originator made hereunder shall constitute a sale, which sale is
absolute and irrevocable and provides the Buyer with the full benefits of ownership of the Receivables originated by such Originator. Except for the Purchase Price Credits owed to such Originator pursuant to Section 1.3, the sale of Receivables
hereunder by each Originator is made without recourse to such Originator; provided, however, that (i) such Originator shall be liable to the Buyer for all representations, warranties, covenants and indemnities made by such Originator
pursuant to the terms of the Transaction Documents to which such Originator is a party, and (ii) such sale does not constitute and is not intended to result in an assumption by the Buyer or any assignee thereof of any obligation of such
Originator or any other Person arising in connection with the Receivables, the related Contracts and/or other Related Security or any other obligations of such Originator. In view of the intention of the parties hereto that each Purchase of
Receivables made hereunder shall constitute a sale of such Receivables rather than loans secured thereby, each Originator agrees that it will, on or prior to the date hereof and in accordance with Section 4.1(e)(ii), make appropriate notation
in its computer files relating to the Receivables originated by it with a legend properly evidencing that the Buyer has 

  
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purchased such Receivables as provided in this Agreement and to note in its financial statements that its Receivables have been sold to the Buyer. Upon the request of the Buyer or the
Administrative Agent (as the Buyer’s assignee), each Originator will execute and file such financing or continuation statements, or amendments thereto or assignments thereof, and such other instruments or notices, as may be necessary or
appropriate to perfect and maintain the perfection of the Buyer’s ownership interest in the Receivables originated by such Originator and the Related Security with respect thereto, or as the Buyer may reasonably request. 

Section 1.2. Payment for the Purchases. 
  

	 	(a)	The Purchase Price for the Purchase from each Originator of its Receivables in existence as of the close of business on the applicable Initial Cutoff Date and not
previously assigned or transferred to the Buyer, if any, shall be payable in full by the Buyer to such Originator on the Business Day following such Initial Cutoff Date in immediately available funds. 

 

	 	(b)	The Purchase Price for each Receivable coming into existence after the applicable Initial Cutoff Date shall be due and owing in full by the Buyer to the applicable
Originator or its designee in immediately available funds on the date each such Receivable came into existence except that the Buyer may, with respect to any such Purchase Price: 

 

	 	(i)	offset against such Purchase Price any amounts owed by such Originator to the Buyer hereunder and which have become due but remain unpaid; and/or

  

	 	(ii)	elect to defer payment of all or any portion of the Purchase Price for Receivables originated by such Originator during the same Calculation Period (based on the
information contained in the Purchase Report delivered by such Originator for the Calculation Period then most recently ended) until the next succeeding Settlement Date. 

Section 1.3. Purchase Price Credit Adjustments. If on any day: 

 

	 	(a)	the Outstanding Balance of a Receivable purchased from any Originator is: 

  

	 	(i)	reduced as a result of any defective or rejected or returned goods or services or any other adjustment (other than to reflect Collections on account of such Receivable)
by any Originator or any Affiliate thereof, or as a result of any tariff or other governmental or regulatory charge, or 

  

	 	(ii)	reduced or canceled as a result of a setoff in respect of any claim by any Person (whether such claim arises out of the same or a related or an unrelated transaction),
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	 	(iii)	reduced by the Servicer on account of the obligation of any Originator or any Affiliate thereof to pay to the related Obligor any rebate or refund, or

  

	 	(iv)	less than the amount included in calculating the Net Pool Balance for purposes of any Monthly Report (for any reason other than such Receivable becoming a Defaulted
Receivable), or 

  

	 	(b)	any of the representations and warranties set forth in Section 2.1(h), (i), (o), (p) and (q) hereof is not true when made or deemed made with respect to
any Receivable, 

 then, in such event, the Buyer shall be entitled to a credit (each, a “Purchase Price
Credit”) against the Purchase Price otherwise payable to the applicable Originator hereunder equal to the Purchase Price paid by the Buyer with respect to such Receivable (less any Collections received on or after the date of purchase to
and including the date that the Purchase Price Credit is determined). Each Purchase Price Credit shall be deemed to be a collection of the related Receivable. If such Purchase Price Credit exceeds the Original Balance of the Receivables originated
by the applicable Originator on any day, such Originator shall pay the remaining amount of such Purchase Price Credit in cash on or prior to the earlier of (i) the next Settlement Date or (ii) the Termination Date. 

Section 1.4. Payments and Computations, Etc. All amounts to be paid or deposited by the Buyer hereunder shall be paid or
deposited in accordance with the terms hereof on the day when due in immediately available funds to the account of the applicable Originator designated from time to time by such Originator or as otherwise directed by such Originator. In the event
that any payment owed by any Person hereunder becomes due on a day that is not a Business Day, then such payment shall be made on the next succeeding Business Day. If any Person fails to pay any amount hereunder when due, such Person agrees to pay,
on demand, interest that accrues at the Default Rate with respect to any amounts then due until paid in full; provided, however, that such Default Rate shall not at any time exceed the maximum rate permitted by applicable law. All
computations of interest payable hereunder shall be made on the basis of a year of 360 days for the actual number of days elapsed. 
 Section 1.5. Transfer of Collection Records; License of Software; Access to Contracts. In connection with, and in consideration of, the Purchase from each Originator of Receivables originated
by it, each Originator will deliver to the Buyer or to the Servicer, on behalf of the Buyer, originals or copies (in written, photostatic, electronic or other mutually acceptable form) of such Originator’s Collection Records relating to all
Receivables sold by it hereunder. Each Originator shall permit the Servicer and the Buyer (or their respective assigns including, for so long as the Credit and Security Agreement remains in effect, the Administrative Agent) during such
Originator’s normal business hours and without undue disruption to the Originator’s operations, at the expense of the Buyer or the Servicer, as applicable (but in no event at the expense of the Administrative Agent), to inspect and copy
all such Collection Records and other books and records regarding the Receivables and the Contracts solely for purposes of administering and collecting the Receivables hereunder and under the Servicing Agreement. In order to facilitate such
administration, collection and servicing of such Receivables, each 

  
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Originator hereby grants to each of the Buyer, Servicer, and, for so long as the Credit and Security Agreement remains in effect, the Administrative Agent, an irrevocable, non-exclusive license
to use, without royalty or payment of any kind, all software used by such Originator to account for such Receivables, to the extent necessary to administer such Receivables, whether such software is owned by such Originator or is owned by others and
used by such Originator under license agreements with respect thereto, provided that should the consent of any licensor of such software be required for the grant of the license described herein, to be effective, such Originator hereby agrees
that upon the request of the Servicer or the Buyer (or, for so long as the Credit and Security Agreement remains in effect, the Administrative Agent) such Originator will use its reasonable efforts to obtain the consent of such third-party licensor.
The license granted hereby shall be irrevocable until the later to occur of (i) the Final Payout Date, and (ii) the date on which this Agreement terminates in accordance with its terms. 

Section 1.6. Characterization. If, notwithstanding the intention of the parties expressed in Section 1.1(c), any sale by
an Originator to the Buyer of Receivables hereunder shall be characterized as a secured loan and not a sale or such sale shall for any reason be ineffective or unenforceable, then this Agreement shall be deemed to constitute a security agreement
under the UCC and other applicable law. For this purpose and without being in derogation of the parties’ intention that the sale of Receivables by each Originator hereunder shall constitute a true sale thereof, such Originator hereby grants to
the Buyer a duly perfected security interest in all of such Originator’s right, title and interest in and to all Receivables of such Originator which exist on the date hereof or arise thereafter through and including the Termination Date,
together with all Related Security with respect thereto, all other rights and payments relating to such Receivables and all proceeds of the foregoing, to secure the prompt and complete payment of a loan deemed to have been made in an amount equal to
the Purchase Price of the Receivables purchased from such Originator together with any Purchase Interest applicable thereto and all other obligations of such Originator hereunder, which security interest shall be prior to all other Adverse Claims
thereto. Upon the occurrence of a Termination Event, the Buyer shall have, in addition to the rights and remedies which it may have under this Agreement, all other rights and remedies provided to a secured creditor upon default under the UCC and
other applicable law, which rights and remedies shall be cumulative. 
 ARTICLE II 

REPRESENTATIONS AND WARRANTIES 

Section 2.1. Representations and Warranties of Originators. Each Originator (solely with respect to itself) hereby represents
and warrants to the Buyer on the date of the Purchase from such Originator hereunder and, except for representations and warranties that are limited to a certain date, on each date that any Receivable is originated by such Originator on or after the
date of such Purchase through and including the Termination Date, that: 
 (a) Existence and Power. Such
Originator (a) is duly organized or formed, validly existing and, as applicable, in good standing or the equivalent thereof (to the extent applicable) under the Laws of the jurisdiction of its incorporation, organization or formation,
(b) has all requisite power and authority and all requisite governmental 

  
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licenses, authorizations, consents and approvals to (i) own or lease its assets and carry on its business and (ii) execute, deliver and perform its obligations under the Transaction
Documents to which it is a party, and (c) is duly qualified and is licensed and, as applicable, in good standing or the equivalent thereof (to the extent applicable) under the Laws of each jurisdiction where its ownership, lease or operation of
properties or the conduct of its business requires such qualification or license; except in each case referred to in clause (b)(i) or (c), to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect.

 (b) Authorization, No Contravention. The execution, delivery and performance by such Originator of each
Transaction Document to which such Originator is party, have been duly authorized by all necessary corporate or other organizational action, and do not and will not (a) contravene the terms of any of such Originator’s organization
documents; (b) conflict with or result in any breach or contravention of, or the creation of any Adverse Claim under (i) any material provision of any security issued by such Originator or of any agreement, instrument or other written
undertaking to which such Originator is a party or by which it or any of its property is bound (except as created hereunder) or (ii) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such
Originator or its property is subject; or (c) violate any Law. 
 (c) Governmental Authorization; Other
Consent. No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance by such
Originator of this Agreement or any other Transaction Document to which it is a party (other than such notices or filings required hereunder or thereunder). 
 (d) Binding Effect. This Agreement has been, and each other Transaction Document to which such Originator is a party, when delivered hereunder, will have been, duly executed and delivered by such
Originator. This Agreement constitutes, and each other Transaction Document to which such Originator is a party when so delivered will constitute, a legal, valid and binding obligation of such Originator, enforceable against such Originator in
accordance with its terms; provided that the enforceability hereof and thereof is subject in each case to general principles of equity and to bankruptcy, insolvency and similar Laws affecting the enforcement of creditors’ rights
generally. 
 (e) Accuracy of Information; No Material Adverse Effect. No report, financial statement,
certificate or other written information furnished by or on behalf of such Originator or any of its Affiliates to the Buyer or its assigns (including the Administrative Agent) in connection with the transactions contemplated hereby and the
negotiation of this Agreement or delivered hereunder or under any other Transaction Document to which such Originator is a party (other than information of a general economic or general industry nature), as and when furnished and taken as a whole
with all such reports, financial statements, certificates and other information previously furnished, contained any material misstatement of fact or omitted to state any material fact necessary to make

  
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the statements therein, in the light of the circumstances under which they were made, not misleading; provided that, with respect to projections, such Originator makes only those
representations set forth in the last sentence of this Section. Since September 30, 2012, there has been no event or circumstance (including, without limitation, any casualty event), either individually or in the aggregate, that has had or
could reasonably be expected to have a Material Adverse Effect. Any projections delivered by such Originator or any of its Affiliates to the Buyer or its assigns (including the Administrative Agent) have been prepared in light of the past operations
of the businesses of such Originator or Affiliate, as applicable and are based upon estimates and assumptions stated therein, all of which such Originator or Affiliate, as applicable has determined to be reasonable in light of then current
conditions and current facts and reflect the good faith and reasonable estimates of such Originator or Affiliate, as applicable of the future financial performance of such Originator or Affiliate, as applicable of the other information projected
therein for the periods set forth therein (it being understood that actual results may differ from those set forth in such projections). 
 (f) Litigation. There are no actions, suits, proceedings, claims or disputes pending or, to the knowledge of such Originator overtly threatened in writing, at law, in equity, in arbitration or
before any Governmental Authority, by or against such Originator or against any of its properties or revenues that (a) purport to affect or pertain to this Agreement or any other Transaction Document to which such Originator is a party, or any
of the transactions contemplated hereby, or (b) could reasonably be expected to have a Material Adverse Effect. 
 (g) No Termination Event. No Termination Event has occurred and is continuing or would result from the consummation of the transactions contemplated by this Agreement or any other Transaction
Document to which such Originator is a party. 
 (h) Good Title. Such Originator is the legal and
beneficial owner of the Receivables sold by such Originator and Related Security with respect thereto, free and clear of any Adverse Claim, except as created hereby. 

(i) Perfection. This Agreement is effective to create a valid ownership interest of the Buyer in the Receivables
sold by such Originator hereunder and Related Security with respect thereto, free and clear of any Adverse Claim except as created by the Transaction Documents. There have been duly filed all financing statements or other similar instruments or
documents necessary under the UCC of all appropriate jurisdictions to perfect the Buyer’s ownership interest in such Receivables and the Related Security to the extent such interest can be perfected by filing a financing statement under the
UCC. 
 (j) Collections. Such Originator has directed all Obligors on the Receivables originated by it
existing on or after the applicable Initial Cutoff Date to make payments thereon directly to a Collection Account or Lock Box of the Buyer listed on Exhibit IV to the Credit and Security Agreement as the same may be amended from time to time.

  
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 (k) Margin Regulations; Use of Proceeds; Investment Company Act. Such
Originator is not engaged or will not engage, principally or as one of its important activities, in the business of purchasing or carrying margin stock (within the meaning of Regulation U issued by the Board of Governors of the Federal Reserve
System), or extending credit for the purpose of purchasing or carrying margin stock. Such Originator is not an “investment company” within the meaning of the Investment Company Act of 1940, as amended, or any successor statute. 

(l) Compliance with Law. Such Originator is in compliance with the requirements of all Laws applicable to it or its
properties, except in such instances in which (i) such requirement of Law is being contested in good faith by appropriate proceedings diligently conducted or (ii) the failure to comply therewith, either individually or in the aggregate,
could not reasonably be expected to have a Material Adverse Effect. Each Receivable reflected in any Purchase Report as an Eligible Receivable, together with the Invoice related thereto, does not violate any Laws applicable thereto (including,
without limitation, Laws relating to truth in lending, fair credit billing, fair credit reporting, equal credit opportunity, fair debt collection practices and privacy), except where such violation is not reasonably likely to have a Material Adverse
Effect. 
 (m) Names. Places of Business and Locations of Collection Records. Since the later of
(i) such Originator’s date of formation and (ii) the past five (5) years ended on the date of this Agreement, such Originator has not used any corporate names, trade names or assumed names other than the name in which it has
executed this Agreement. The principal places of business and chief executive office of such Originator and the offices where it keeps all of its Collection Records are located at the address(es) listed on Exhibit II hereto or such other
locations of which the Buyer has been notified in accordance with Section 4.2(a) in jurisdictions where all action required by Section 7.3(a) has been taken and completed. Such Originator’s Federal Employer Identification Number is
correctly set forth on Exhibit II hereto. 
 (n) Compliance with Credit and Collection Policy. Such
Originator has complied in all material respects with the Credit and Collection Policy with regard to each Receivable originated by it and the related Contract, and since the Initial Cutoff Date has not made or consented to any material change to
such Credit and Collection Policy, except such material change as to which the Buyer has been notified and has consented, as required, in accordance with Section 4.1(b)(iv). 

(o) Payments to Applicable Originator. With respect to each Receivable transferred by such Originator to Buyer
under this Agreement, Buyer has given reasonably equivalent value to such Originator in consideration therefor and such transfer was not made for or on account of an antecedent debt. 

(p) Enforceability of Receivables. Each Receivable sold by such Originator to the Buyer hereunder represents a
legal, valid and binding obligation of the related Obligor to pay the Outstanding Balance thereof and any accrued interest or other Finance 

  
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Charges thereon, enforceable against the Obligor in accordance with its terms, except as such enforcement may be limited by applicable bankruptcy, insolvency, reorganization or other similar laws
relating to or limiting creditors’ rights generally and by general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law). 

(q) Eligible Receivables. Each Receivable originated by such Originator and sold to the Buyer hereunder reflected
in any Purchase Report as an Eligible Receivable was an Eligible Receivable on the date of its acquisition by the Buyer hereunder. 
 (r) Accounting. The manner in which such Originator accounts for the transactions contemplated by this Agreement does not jeopardize the true sale analysis with respect to transfers by such
Originator to Buyer pursuant to this Agreement. 
 (s) Solvency. Such Originator and its Subsidiaries
(taken as a whole) are Solvent. 
 (t) Taxes. There is no proposed tax assessment against any Originator
that could reasonably be expected to have a Material Adverse Effect. 
 (u) OFAC. Neither Originator nor
(to the knowledge of such Originator) any Affiliate of such Originator: (a) is a Sanctioned Person, (b) has any of its assets in Sanctioned Entities, or (c) derives any of its operating income from investments in, or transactions with
Sanctioned Persons or Sanctioned Entities, in each case, that would constitute a violation of applicable Laws. The proceeds of any Advance will not be used and have not been used to fund any operations in, finance any investments or activities in,
or make any payments to, a Sanctioned Person or a Sanctioned Entity, in each case, that would constitute a violation of applicable Laws. 
 ARTICLE III 
 CONDITIONS
OF PURCHASE 
 Section 3.1. Conditions Precedent to Effectiveness. Effectiveness
of this Agreement is subject to the conditions precedent that the Buyer shall have received on or before the date thereof the documents listed on Schedule A hereto. 
 Section 3.2. Conditions Precedent to Subsequent Payments. The Buyer’s obligation to pay for Receivables coming into existence after the applicable Initial Cutoff Date shall be subject to
the further conditions precedent that: (a) the Facility Termination Date shall not have occurred under the Credit and Security Agreement; (b) the Buyer (or, at any time the Credit and Security Agreement remains in effect, the
Administrative Agent as the Buyer’s assignee) shall have received such other approvals, opinions or documents as it may reasonably request; and (c) on the date such Receivable came into existence, the following statements shall be true
(and acceptance of the proceeds of any payment for such Receivable shall be deemed a representation and warranty by such Originator that such statements are then true): 

  
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	 	(i)	the representations and warranties set forth in Article II are true and correct on and as of the date such Receivable came into existence as though made on and as
of such date; and 

  

	 	(ii)	no event has occurred and is continuing that will constitute a Termination Event. 

 Notwithstanding the foregoing conditions precedent, and subject to the applicable Originator’s receipt of payment of the Purchase Price for any Receivable, all of such Originator’s right, title
and interest in and under such Receivable and the Related Security with respect thereto shall vest in the Buyer, whether or not the conditions precedent to the Buyer’s obligation to pay for such Receivable were in fact satisfied. The failure of
such Originator to satisfy any of the foregoing conditions precedent may, however, give rise to a claim for indemnity under Article VI of this Agreement. 
 ARTICLE IV 
 COVENANTS 

Section 4.1. Affirmative Covenants of Originators. Until the date on which this Agreement terminates in accordance with its
terms, each Originator hereby covenants (solely with respect to itself) as set forth below: 
  

	 	(a)	Financial Reporting. Such Originator will maintain, for itself and each of its Subsidiaries, a system of accounting established and administered in accordance
with GAAP, and furnish to the Buyer (or, at any time the Credit and Security Agreement remains in effect, the Administrative Agent as the Buyer’s assignee and in lieu of the Buyer): 

 

	 	(i)	 Annual Reporting. Annual Reporting. As soon as available, but in any event within 90 days after the end of each fiscal year of the
Parent (or, if earlier, 10 Business Days after the date required to be filed with the SEC), a consolidated balance sheet of the Parent and its Subsidiaries as at the end of such fiscal year, and the related consolidated statements of income or
operations and cash flows for such fiscal year, setting forth in each case in comparative form the figures for the previous fiscal year, prepared in accordance with GAAP, such consolidated statements to be audited and accompanied by a report and
opinion of an independent certified public accountant of nationally recognized standing, which report and opinion shall be prepared in accordance with generally accepted auditing standards or the standards of the Public Company Accounting Oversight
Board (or any entity succeeding to its principal functions), as applicable, and shall not be subject to any “going concern” or like qualification or exception or any qualification or exception as to

  
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the scope of such audit and accompanied by a report containing management’s discussion and analysis of such financial statements for the fiscal year then ended. 

 

	 	(ii)	Quarterly Reporting. As soon as available, but in any event within 45 days after the end of each of the first three (3) fiscal quarters of each fiscal
year of the Parent (commencing with the fiscal quarter ending March 30, 2013) (or, if earlier, 10 Business Days after the date required to be filed with the SEC), a consolidated balance sheet of the Parent and its Subsidiaries as at the end of
such fiscal quarter, the related consolidated statements of income or operations for such fiscal quarter and for the portion of the Parent’s fiscal year then ended, and the related consolidated statements of cash flows for the portion of the
Parent’s fiscal year then ended, in each case setting forth in comparative form, as applicable, the figures for the corresponding fiscal quarter of the previous fiscal year and the corresponding portion of the previous fiscal year, such
consolidated statements to be certified by the chief executive officer, chief financial officer, treasurer or controller of the Parent as fairly presenting in all material respects the financial condition, results of operations and cash flows of the
Parent and its Subsidiaries in accordance with GAAP, subject only to normal year-end audit adjustments and the absence of footnotes. 

  

	 	(iii)	Compliance Certificate. Together with the financial statements required hereunder, a compliance certificate in substantially the form of Exhibit III hereto
signed by one of Parent’s Responsible Officers and dated the date of such annual financial statement or such quarterly financial statement, as the case may be. 

 

	 	(iv)	Shareholders’ Statements and Reports; S.E.C. Filings. Promptly after the same are available, copies of each annual report, proxy or financial statement or
other material report or communication sent to the stockholders of the Parent generally, and copies of all annual, regular, periodic and special reports and material registration statements which the Parent may file or be required to file with the
SEC under Section 13 or 15(d) of the Securities Exchange Act of 1934, and not otherwise required to be delivered to the Buyer (or the Administrative Agent as the Buyer’s assignee) pursuant to this Agreement. 

 

	 	(v)	 Other Information. Promptly, from time to time, such other information, documents, records or reports relating to the Receivables or the
condition or results of operations of such Originator as the Buyer (or the Administrative Agent as the 

  
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Buyer’s assignee) may from time to time reasonably request in order to protect the interests of the Buyer (and, at any time the Credit and Security Agreement remains in effect, the
Administrative Agent as the Buyer’s assignee) under or as contemplated by this Agreement. 

 Documents
required to be delivered pursuant to Section 4.1(a) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which the Parent posts such documents, or provides a link thereto on the
Parent’s website currently found at http://www.mohawkind.com; or (ii) while the Credit and Security Agreement remains in effect, on which such documents are posted on the Parent’s behalf on an Internet or intranet website, if any, to
which the Administrative Agent have access (whether a commercial, third-party website or whether sponsored by the Administrative Agent); provided that: (x) the Buyer shall deliver paper copies of such documents to the Administrative
Agent or any Lender that reasonably requests the delivery of such paper copies until a written request to cease delivering paper copies is given by the Administrative Agent or such Lender and (y) the Loan Parties shall notify the Administrative
Agent of the posting of any such documents and provide to the Administrative Agent by electronic mail electronic versions (i.e., soft copies) of such documents. Notwithstanding anything contained herein, so long as the Credit and Security
Agreement remains in effect, in every instance the Buyer shall be required to provide paper copies of the compliance certificates required by Section 4.1(a)(iii) to the Administrative Agent. 

 

	 	(b)	Notices. Such Originator will notify the Buyer in writing of any of the following promptly upon learning of the occurrence thereof, describing the same and, if
applicable, the steps being taken with respect thereto: 

  

	 	(i)	Termination Events or Unmatured Termination Events. The occurrence of each Termination Event and each Unmatured Termination Event, by a statement of an
Responsible Officer of such Originator. 

  

	 	(ii)	Material Adverse Effect. The occurrence of any event or condition that has had, or is reasonably likely to have, a Material Adverse Effect.

  

	 	(iii)	ERISA Events. The occurrence of any ERISA Event. 

  

	 	(iv)	Change in Credit and Collection Policy. At least thirty (30) days prior to the effectiveness of any material change in or material amendment to the Credit
and Collection Policy, a copy of the Credit and Collection Policy then in effect and a notice indicating such proposed change or amendment and, if such proposed change is reasonably likely to adversely affect the collectability of the Receivables
originated by such Originator generally or materially decrease the credit quality of newly created Receivables originated by such Originator generally, requesting the Buyer’s consent thereto. 

  
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	 	(c)	Compliance with Laws and Preservation of Existence. Such Originator will comply with the requirements of all Laws and all orders, writs, injunctions and decrees
applicable to it or to its business or property, except in such instances in which (a) such requirement of Law or order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently conducted; or
(b) the failure to comply therewith could not reasonably be expected to have a Material Adverse Effect. Such Originator will (i) reserve, renew and maintain in full force and effect its legal existence and in good standing or the
equivalent thereof (to the extent applicable) under the Laws of the jurisdiction of its organization and (ii) take all reasonable action to maintain all rights, privileges, permits, licenses and franchises necessary or desirable in the normal
conduct of its business, except to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect. 

  

	 	(d)	Audits. Such Originator will furnish to the Buyer from time to time such information with respect to it and the Receivables sold by it as the Buyer may
reasonably request. Such Originator will, from time to time during regular business hours as requested by the Buyer (or, at any time the Credit and Security Agreement remains in effect, the Administrative Agent as the Buyer’s assignee and in
lieu of the Buyer), upon not less than two (2) Business Days’ prior written notice unless a Termination Event has occurred, permit the Buyer or their respective agents or representatives: (i) to examine and make copies of and
abstracts from all Other Records in the possession or under the control of such Originator relating to the Receivables and the Related Security of such Originator, including, without limitation, the related Contracts to the extent permitted by
Section 1.5, and (ii) to visit the offices and properties of such Originator for the purpose of examining such materials described in clause (i) above, and to discuss, on a confidential basis, matters relating to such
Originator’s financial condition or the Receivables and the Related Security of such Originator or such Originator’s performance under any of the Transaction Documents or such Originator’s performance under the Contracts and, in each
case, with any of the officers or employees of such Originator having knowledge of such matters. 

  

	 	(e)	Keeping and Marking of Records and Books. 

 (i) Such Originator will maintain or will cause the Servicer to maintain administrative and operating procedures (including, without limitation, an ability to recreate records evidencing Receivables
in the event of the destruction of the originals thereof), and keep and maintain all documents, books, records and other 

  
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information reasonably necessary or advisable for the collection of all Receivables (including, without limitation, records adequate to permit the immediate identification of each new Receivable
and all Collections of and adjustments to each existing Receivable). Such Originator will give, or will direct the Servicer to give, the Buyer notice of any material change in the administrative and operating procedures referred to in the previous
sentence. 
 (ii) Such Originator will (A) on or prior to the date on which it becomes a party to this Agreement, make
appropriate notation in its computer files and other books and records relating to the Receivables describing the Buyer’s ownership interests in the Receivables and (B) upon the request of the Buyer following the occurrence of a
Termination Event, mark each Invoice applicable to any Receivable sold by such Originator to the Buyer hereunder with a legend or code describing the Buyer’s ownership thereof. 

 

	 	(f)	Compliance with Contracts and Credit and Collection Policy. Such Originator will timely (i) perform and comply in all material respects with all provisions,
covenants and other promises required to be observed by it under the Contracts related to the Receivables originated by it, and (ii) comply in all material respects with the Credit and Collection Policy in regard to each such Receivable and the
related Contract. 

  

	 	(g)	Ownership. Such Originator will take all necessary action to establish and maintain, irrevocably, the Buyer’s right, title and interest in and to the
Receivables originated or acquired by such Originator and sold to the Buyer hereunder, and to keep the Receivables and associated Related Security, in each case, free and clear of any Adverse Claims other than Adverse Claims in favor of the Buyer
(including, without limitation, the filing of all financing statements, continuation statements and/or financing statement amendments necessary under the UCC of all appropriate jurisdictions to perfect the Buyer’s interest in such Receivables
and Related Security to the extent such interest can be perfected by filing any of the foregoing under the UCC and such other action to perfect, protect or more fully evidence the interest of the Buyer as the Buyer may reasonably request).

  

	 	(h)	 Agents’ and Lenders’ Reliance. Such Originator acknowledges that the Agents and the Lenders are relying upon the Buyer’s identity
as a legal entity that is separate from such Originator and its other Affiliates and agrees to take all reasonable steps to maintain the Buyer’s identity as a separate legal entity and to make it manifest to third parties that the Buyer is an
entity with assets and liabilities distinct from those of such Originator and its other Affiliates and not just a division thereof. Without limiting the generality of the foregoing and in addition to the other covenants set

  
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forth herein, such Originator (i) will not hold itself out to third parties as liable for the debts of the Buyer nor purport to own any of the Receivables or Related Security sold to the
Buyer hereunder, and (ii) will conduct all business with the Buyer on terms reasonably believed by such Originator and the Buyer to be reasonably comparable to those applicable in transactions with an unaffiliated Person in similar
circumstances. 

  

	 	(i)	Payment of Taxes and Claims. Such Originator will pay and discharge as the same shall become due and payable, (a) all federal and other tax liabilities,
assessments and governmental charges or levies upon it or its properties or assets, unless (i) the same are being contested in good faith by appropriate proceedings diligently conducted and adequate reserves in accordance with GAAP are being
maintained by such Originator or (ii) the failure to so pay or discharge the same could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect, or (b) all lawful claims which, if unpaid, could not
reasonably be expected, either individually or in the aggregate, to have a Material Adverse Effect. 

  

	 	(j)	Collections. Except in the case of any Collection Account marked with an asterisk on Exhibit IV to the Credit and Security Agreement, such Originator will cause
(1) all proceeds from all Lock Boxes into which proceeds of any Receivables sold by such Originator to Buyer hereunder are paid to be directly deposited by a Collection Bank into a Collection Account and (2) each Lock Box and Collection
Account into which proceeds of any Receivables sold by such Originator to Buyer hereunder are paid to be subject at all times, to a Collection Account Agreement that is in full force and effect. If any new Lock Boxes or Collection Accounts into
which proceeds if any Receivables sold by such Originator to Buyer hereunder are paid are established after the date of this Agreement, in addition to compliance with the foregoing clause (2), such Originator will promptly provide the Buyer or any
of its assigns (including the Administrative Agent) with copies of an updated Exhibit IV to the Credit and Security Agreement (and upon such delivery both such Exhibit shall be deemed to be amended accordingly notwithstanding anything in
Section 14.1 of the Credit and Security Agreement the contrary). In the event any payments relating to the Receivables are remitted directly to such Originator or any Affiliate of such Originator, such Originator will remit (or will cause all
such payments to be remitted) directly to a Collection Bank and deposited into a Collection Account within two (2) Business Days following receipt thereof, and, at all times prior to such remittance, such Originator will itself hold or, if
applicable, will cause such payments to be held in trust for the exclusive benefit of the Buyer (and, at any time the Credit and Security Agreement remains in effect, the Administrative Agent as the Buyer’s assignee). 

  
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 Section 4.2. Negative Covenants of Originators. Until the date on which this
Agreement terminates in accordance with its terms, each Originator hereby covenants (solely with respect to itself) that: 
 (a) Name Change, Offices and Collection Records. Such Originator will not (i) change its state of organization, (ii) change its legal name, or (iii) relocate any office where
Collection Records are kept by or on behalf of such Originator unless, in each of the foregoing cases, it shall have: (A) given the Buyer at least 30 days’ prior written notice thereof (or such shorter period as may be acceptable to Buyer
and at any time the Credit and Security Agreement remains in effect, the Administrative Agent as the Buyer’s assignee) and (B) delivered to the Buyer all financing statements, instruments and other documents requested by the Buyer in
connection with such change or relocation. 
 (b) Change in Payment Instructions to Obligors. Such
Originator will not direct any Obligor on the Receivables sold by it to the Buyer hereunder to make payments to any location other than to one of the Buyer’s Lock-Boxes or Collection Accounts listed on Exhibit IV to the Credit and Security
Agreement as the same may be amended pursuant to Section 7.1(l) of the Credit and Security Agreement from time to time. 
 (c) Modifications to Credit and Collection Policy. Such Originator will not, and will not cause or authorize the Servicer to, make any material change to the Credit and Collection Policy that is
reasonably likely to materially adversely affect the collectability of the Receivables sold by such Originator to Buyer hereunder generally or materially decrease the credit quality of newly created Receivables sold by such Originator to Buyer
hereunder generally. 
 (d) Sales, Liens. Such Originator will not sell, assign (by operation of law or
otherwise) or otherwise dispose of, or grant any option with respect to, or create or suffer to exist any Adverse Claim upon (including, without limitation, the filing of any financing statement) or with respect to, any Receivable of such Originator
to be sold to Buyer hereunder or the Related Security, or upon or with respect to any Contract under which any such Receivable arises, or assign any right to receive income with respect thereto (other than, in each case, the creation of the
interests therein in favor of the Buyer provided for herein), and such Originator will defend the right, title and interest of the Buyer in, to and under any of the foregoing property, against all claims of third parties claiming through or under
such Originator. 
 (e) Accounting for Purchases. Such Originator will not account for the transactions
contemplated hereby in any manner other than the sale for financial accounting purposes by such Originator to the Buyer of the Receivables sold and transferred by such Originator on or after the applicable Initial Cutoff Date through and including
the Termination Date, together with the associated Related Security, except to the extent that such transactions are not recognized on account of consolidated financial reporting in accordance with generally accepted accounting principles.

  
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 ARTICLE V 

TERMINATION EVENTS 
 Section 5.1. Termination Events. The occurrence of any one or more of the following events shall constitute a “Termination Event”: 

(a) Such Originator shall fail to make any payment or deposit required hereunder when due, or to perform or observe any
term, covenant or agreement hereunder or under any other Transaction Document to which it is a party and such failure shall continue for 30 days after written notice of such failure is given. 

(b) Any representation, warranty, certification or written statement made by such Originator in this Agreement, any other
Transaction Document to which it is a party, or in any other document delivered pursuant hereto or thereto shall prove to have been materially incorrect when made or deemed made; provided that the materiality threshold in the preceding clause
shall not be applicable with respect to any representation or warranty which itself contains a materiality threshold. 
 (c) An Originator fails to (A) make any payment when due (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) in respect of any Indebtedness or Guarantee (other
than Indebtedness hereunder and Indebtedness under Swap Contracts) having an aggregate principal amount (including undrawn committed or available amounts and including amounts owing to all creditors under any combined or syndicated credit
arrangement) of more than $50,000,000, or (B) observe or perform any other agreement or condition relating to such Indebtedness or Guarantee referred to in the immediately preceding clause (A) or contained in any instrument or agreement
evidencing, securing or relating thereto, or any other event occurs, the effect of which default or other event is to cause, or to permit the holder or holders of such Indebtedness or the beneficiary or beneficiaries of such Guarantee (or a trustee
or agent on behalf of such holder or holders or beneficiary or beneficiaries) to cause, with the giving of notice if required, such Indebtedness to be demanded or to become due or to be repurchased, prepaid, defeased or redeemed (automatically or
otherwise), or an offer to repurchase, prepay, defease or redeem such Indebtedness to be made, prior to its stated maturity, or such Guarantee to become payable or cash collateral in respect thereof to be demanded. 

(d) There occurs under any Swap Contract an Early Termination Date (as defined in such Swap Contract) resulting from
(A) any event of default under such Swap Contract as to which an Originator is the Defaulting Party (as defined in such Swap Contract) or (B) any Termination Event (as so defined) under such Swap Contract as to which an Originator is an
Affected Party (as so defined) and, in either event, the Swap Termination Value owed by such Originator as a result thereof is greater than $50,000,000. 

  
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 (e) An Originator institutes or consents to the institution of any
proceeding under any Debtor Relief Law, or makes an assignment for the benefit of creditors; or applies for or consents to the appointment of any receiver, trustee, custodian, conservator, liquidator, examiner, rehabilitator or similar officer for
it or for all or any material part of its property; or (ii) any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer is appointed without the application or consent of such Originator and the appointment
continues undischarged or unstayed for 60 calendar days; or any proceeding under any Debtor Relief Law relating to an Originator or to all or any material part of its property is instituted without the consent of such Person and continues
undismissed or unstayed for 60 calendar days, or an order for relief is entered in any such proceeding. 
 (f) A
Change of Control shall occur. 
 (g) There is entered against an Originator (i) one or more final judgments
or orders for the payment of money in an aggregate amount (as to all such judgments or orders) exceeding the $50,000,000 (to the extent not covered by independent, third-party insurance as to which the applicable insurer has not disputed, denied or
failed to acknowledge coverage), or (ii) any one or more nonmonetary final judgments that have, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect and, in either case, (A) enforcement
proceedings are commenced by any creditor upon such judgment or order, or (B) there is a period of 30 consecutive days during which a stay of enforcement of such judgment, by reason of a pending appeal or otherwise, is not in effect.

 Section 5.2. Remedies. Upon the occurrence and during the continuation of a Termination Event, the Buyer may take
any of the following actions: (i) declare the Termination Date to have occurred, whereupon the Termination Date shall forthwith occur, without demand, protest or further notice of any kind, all of which are hereby expressly waived by each
Originator; provided, however, that upon the occurrence of a Termination Event described in Section 5.1(e), the Termination Date shall automatically occur, without demand, protest or any notice of any kind, all of which are hereby
expressly waived by each Originator and (ii) to the fullest extent permitted by applicable law, declare that interest shall accrue at the Default Rate with respect to any amounts then due and owing by such Originator to the Buyer. The
aforementioned rights and remedies shall be without limitation and shall be in addition to all other rights and remedies of the Buyer and, so long as the Credit and Security Agreement remains in effect, the Administrative Agent as the Buyer’s
assignee otherwise available under any other provision of this Agreement, by operation of law, at equity or otherwise, all of which are hereby expressly preserved, including, without limitation, all rights and remedies provided under the UCC, all of
which rights shall be cumulative. 

  
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 ARTICLE VI 

INDEMNIFICATION 
 Section 6.1. Indemnities by Originators. Without limiting any other rights that the Buyer may have hereunder or under applicable law, each Originator hereby agrees to indemnify (and pay upon
demand to) the Buyer and its assigns, officers, directors, agents and employees (each, an “Indemnified Party”) from and against any and all damages, losses, claims, taxes, liabilities, costs, expenses and for all other amounts
payable, including reasonable attorneys’ fees and disbursements actually incurred (all of the foregoing being collectively referred to as “Indemnified Amounts”) awarded against and actually paid or actually incurred by any of
them arising out of or as a result of this Agreement or the acquisition, either directly or indirectly, by the Buyer of any interest in the Receivables originated by such Originator, excluding, however: 

 

	 	(a)	Indemnified Amounts to the extent a final judgment of a court of competent jurisdiction holds that such Indemnified Amounts resulted from gross negligence or willful
misconduct on the part of the Indemnified Party seeking indemnification; 

  

	 	(b)	Indemnified Amounts to the extent the same arise out of or as a result of claims of one or more Indemnified Parties against another Indemnified Party;

  

	 	(c)	Indemnified Amounts to the extent the same includes losses in respect of Receivables originated by such Originator that are uncollectible on account of the insolvency,
bankruptcy or lack of creditworthiness of the related Obligor; or 

  

	 	(d)	taxes imposed by the jurisdiction in which such Indemnified Party’s principal executive office is located, on or measured by the overall net income or gross
receipts of such Indemnified Party; 

 provided, however, that nothing contained in this sentence shall limit the liability
of such Originator or limit the recourse of the Buyer to such Originator for amounts otherwise specifically provided to be paid by such Originator under the terms of this Agreement. Without limiting the generality of the foregoing indemnification,
but subject in each case to clauses (a) through (d) above, each Originator shall indemnify the Buyer for Indemnified Amounts relating to or resulting from: 
  

	 	(i)	any representation or warranty made by such Originator (or any officers of such Originator) under or in connection with any Purchase Report, this Agreement, any other
Transaction Document to which such Originator is a party or any other information or report delivered by such Originator pursuant hereto or thereto for which the Buyer has not received a Purchase Price Credit that shall have been false or incorrect
when made or deemed made; 

  

	 	(ii)	the failure by such Originator, to comply with any applicable law, rule or regulation with respect to any Receivable or Contract related thereto, or the nonconformity
of any Receivable or Contract included therein with any such applicable law, rule or regulation or any failure of such Originator to keep or perform any of its obligations, express or implied, with respect to any Contract; 

  
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	 	(iii)	any failure of such Originator to perform its duties, covenants or other obligations in accordance with the provisions of this Agreement or any other Transaction
Document; 

  

	 	(iv)	any products liability, personal injury or damage, suit or other similar claim arising out of or in connection with goods or services that are the subject of any
Contract or any Receivable relating to such Originator; 

  

	 	(v)	any dispute, claim, offset or defense (other than discharge in bankruptcy of the Obligor) of the Obligor to the payment of any Receivable sold by such Originator to
Buyer hereunder (including, without limitation, a defense based on such Receivable or the related Contract not being a legal, valid and binding obligation of such Obligor enforceable against it in accordance with its terms), or any other claim
resulting from the sale of the goods or service related to such Receivable or the furnishing or failure to furnish such goods or services; 

  

	 	(vi)	any Collections received, directly or indirectly by an Originator (or its agent) which are not promptly remitted to Buyer; 

 

	 	(vii)	any investigation, litigation or proceeding related to or arising from this Agreement or any other Transaction Document, the transactions contemplated hereby, such
Originator’s use of the proceeds of the Purchase from it hereunder, the ownership of the Receivables originated by such Originator or any other investigation, litigation or proceeding relating to such Originator in which any Indemnified Party
becomes involved as a result of any of the transactions contemplated hereby; 

  

	 	(viii)	any inability to litigate any claim against any Obligor in respect of any Receivable sold by such Originator to Buyer hereunder reflected in any Purchase Report as
being an Eligible Receivable as a result of such Obligor being immune from civil and commercial law and suit on the grounds of sovereignty or otherwise from any legal action, suit or proceeding; 

 

	 	(ix)	any Termination Event described in Section 5.1(e); 

  

	 	(x)	any failure to vest and maintain vested in the Buyer, or to transfer to the Buyer, ownership of the Receivables originated by such Originator and purported to be
conveyed to the Buyer hereunder, together with the associated Related Security, in each case, free and clear of any Adverse Claim; 

  

	 	(xi)	the failure to have filed, or any delay in filing, financing statements or other similar instruments or documents under the UCC of any applicable jurisdiction or the
applicable laws of Canada with respect to any Receivable originated by such 

  
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Originator and the Related Security with respect thereto, and the proceeds of any thereof, whether at the time of the Purchase from such Originator hereunder or at any subsequent time, in each
case to the extent required to do so pursuant to this Agreement; 

  

	 	(xii)	any action or omission by such Originator which impairs the rights of the Buyer with respect to any Receivable sold by Originator to Buyer hereunder or reduces the
value of any such Receivable (for any reason other than the application of Collections thereto or charge-off of any Receivable as uncollectible) unless the Buyer has received a Purchase Price Credit therefor; and 

 

	 	(xiii)	the failure of any Receivable sold by Originator to Buyer hereunder reflected as an Eligible Receivable on any Purchase Report prepared by such Originator to be an
Eligible Receivable at the time acquired by the Buyer. 

 Section 6.2. Other Costs and Expenses. Each
Originator shall pay to the Buyer on demand all reasonable costs and out-of-pocket expenses actually incurred in connection with the preparation, execution and delivery of this Agreement, the transactions contemplated hereby and the other documents
to be delivered hereunder. In addition to the foregoing, each Originator shall pay, on demand, any and all reasonable costs and expenses, including reasonable counsel fees and expenses, actually incurred by the Buyer (or, at any time the Credit and
Security Agreement remains in effect, the Administrative Agent as the Buyer’s assignee) in connection with (i) any amendment to or waiver of this Agreement, and/or (ii) the enforcement of this Agreement and the other documents
delivered hereunder following a Termination Event. 
 ARTICLE VII 

MISCELLANEOUS 
 Section 7.1. Waivers and Amendments. (a) No failure or delay on the part of the Buyer (or, at any time the Credit and Security Agreement remains in effect, the Administrative Agent as the
Buyer’s assignee) in exercising any power, right or remedy under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or remedy preclude any other further exercise thereof or the
exercise of any other power, right or remedy. The rights and remedies herein provided shall be cumulative and nonexclusive of any rights or remedies provided by law. Any waiver of this Agreement shall be effective only in the specific instance and
for the specific purpose for which given. 
 (b) No provision of this Agreement may be amended, supplemented, modified or waived
except in writing signed by each Originator and the Buyer and, to the extent required under the Credit and Security Agreement, the applicable Agent and the Liquidity Banks or the Required Liquidity Banks. 

Section 7.2. Notices. All communications and notices provided for hereunder shall be in writing (including bank wire,
telecopy or electronic facsimile transmission or similar writing) and shall be given to the other parties hereto at their respective addresses or telecopy numbers set 

  
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forth on the signature pages hereof or at such other address or telecopy number as such Person may hereafter specify for the purpose of notice to each of the other parties hereto. Each such
notice or other communication shall be effective (a) if given by telecopy, upon the receipt thereof, (b) if given by mail, three (3) Business Days after the time such communication is deposited in the mail with first-class postage
prepaid or (c) if given by any other means, when received at the address specified in this Section 7.2. 

Section 7.3. Protection of Ownership Interests of the Buyer. (a) Each Originator agrees that from time to time, at its
expense, it will promptly execute and deliver all instruments and documents, and take all actions, that may be necessary or desirable, or that the Buyer (or, at any time the Credit and Security Agreement remains in effect, the Administrative Agent
as the Buyer’s assignee) may request, to perfect, protect or more fully evidence the interest of the Buyer (or, at any time the Credit and Security Agreement remains in effect, the Administrative Agent as the Buyer’s assignee) hereunder,
or to enable the Buyer (or, at any time the Credit and Security Agreement remains in effect, the Administrative Agent as the Buyer’s assignee) to exercise and enforce their rights and remedies hereunder. At any time following a Termination
Event, the Buyer (or, at any time the Credit and Security Agreement remains in effect, the Administrative Agent as the Buyer’s assignee) may, at such Originator’s sole cost and expense, direct such Originator to notify the Obligors of
Receivables of the ownership interests of the Buyer under this Agreement and may also direct that payments of all amounts due or that become due under any or all Receivables be made directly to the Buyer (or, at any time the Credit and Security
Agreement remains in effect, the Administrative Agent as the Buyer’s assignee) or the Buyer’s (or such assignee’s) designee. 
 (b) If any Originator fails to perform any of its obligations hereunder, the Buyer (or, at any time the Credit and Security Agreement remains in effect, the Administrative Agent as the Buyer’s
assignee) may (but shall not be required to) perform, or cause performance of, such obligations, and the Buyer’s (or such assignee’s) costs and expenses incurred in connection therewith shall be payable by such Originator as provided in
Section 6.2. Each Originator irrevocably authorizes the Buyer (and, at any time the Credit and Security Agreement remains in effect, the Administrative Agent as the Buyer’s assignee) at any time and from time to time in the sole discretion
of the Buyer (or, at any time the Credit and Security Agreement remains in effect, the Administrative Agent as the Buyer’s assignee), and appoints the Buyer (and, at any time the Credit and Security Agreement remains in effect, the
Administrative Agent as the Buyer’s assignee) as its attorney(ies)-in-fact, to act on behalf of such Originator (i) to execute on behalf of such Originator as debtor, in the event such Originator fails to timely execute, and to file
financing statements necessary in the Buyer’s (or, at any time while the Credit and Security Agreement remains in effect, the Administrative Agent’s) reasonable opinion to perfect and to maintain the perfection and priority of the interest
of the Buyer in the Receivables originated by such Originator and (ii) in the event such Originator fails to deliver any financing statement requested pursuant to the preceding clause (i), to file a carbon, photographic or other reproduction of
this Agreement or any financing statement with respect to the Receivables as a financing statement in such offices as the Buyer (or, at any time the Credit and Security Agreement remains in effect, the Administrative Agent as the Buyer’s
assignee) in their sole discretion deem necessary or desirable to perfect and to maintain the perfection and priority of the Buyer’s interest in such Receivables. This appointment is coupled with an interest and is irrevocable. 

  
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 Section 7.4. Confidentiality. (a) Each Originator shall maintain and shall
cause each of its employees and officers to maintain the confidentiality of the Fee Letters and the electronic models and files (including electronic files containing model accounting entries for securitization transactions) provided by any Agent or
any Conduit in connection with the Credit and Security Agreement; provided, however, such information may be disclosed to third parties to the extent such disclosure is (i) required to comply with any applicable law (including federal
and state securities laws) or order of any judicial or administrative proceeding, or (ii) required in response to any summons or subpoena or in connection with any litigation, provided, further, that such Originator inform such person
that such information is sensitive, proprietary and confidential. Notwithstanding the foregoing, each Originator shall have no obligation of confidentiality in respect of any information which may be generally available to the public or becomes
available to the public through no fault of such Originator or its Affiliates. 
 (b) The Buyer (and, accordingly, each of its
assignees) shall maintain, shall cause each of its employees, officers and agents to maintain, and shall require the Lenders to maintain and to cause each of their respective employees, officers and agents to maintain, the confidentiality of any
information obtained by it in respect of the Receivables (including, without limitation, credit losses and delinquency levels) and any other proprietary or confidential information with respect to Parent, the Obligors, the Receivables, the
Originators and the Servicer in communications with third parties; provided, however, such information may be disclosed to third parties to the extent such disclosure is (i) required to comply with any applicable law (including federal
and state securities laws) or order of any judicial or administrative proceeding, or (ii) required in response to any summons or subpoena or in connection with any litigation, or (iii) to any Person specified in Section 14.5 of the
Credit and Security Agreement on the terms set forth therein. 
 Section 7.5. Bankruptcy Petition. (a) Each
Originator and the Buyer covenant and agree that, prior to the date that is one year and one day after the payment in full of all outstanding senior indebtedness of all Conduits, it will not institute against, or join any other Person in instituting
against, any Conduit any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other similar proceeding under the laws of the United States or any state of the United States. 

(b) Each Originator covenants and agrees that, prior to the date that is one year and one day after the payment in full of all
outstanding obligations of the Buyer under the Credit and Security Agreement, it will not institute against, or join any other Person in instituting against, the Buyer any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings or other similar proceeding under the laws of the United States or any state of the United States. 

Section 7.6. CHOICE OF LAW. THIS AGREEMENT
SHALL, IN ACCORDANCE WITH SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF
THE STATE OF NEW YORK, BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT
REGARD TO ANY CONFLICT OF LAWS PRINCIPLES THEREOF THAT WOULD CALL FOR
THE APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION AND EXCEPT TO
THE EXTENT THAT THE PERFECTION OF THE OWNERSHIP INTEREST OF THE BUYER
IN ANY OF THE COLLATERAL IS GOVERNED BY THE LAWS OF A
JURISDICTION OTHER THAN THE STATE OF NEW YORK. 

  
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 Section 7.7. CONSENT TO JURISDICTION.
EACH PARTY TO THIS AGREEMENT HEREBY IRREVOCABLY SUBMITS TO THE
NON-EXCLUSIVE JURISDICTION OF THE FEDERAL COURTS FOR THE SOUTHERN DISTRICT
OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR ANY DOCUMENT EXECUTED BY SUCH PERSON
PURSUANT TO THIS AGREEMENT, AND EACH SUCH PARTY HEREBY IRREVOCABLY AGREES
THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE
HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY
OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF
ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR
THAT SUCH COURT IS AN INCONVENIENT FORUM. NOTHING HEREIN SHALL LIMIT
THE RIGHT OF BUYER (OR ITS ASSIGNS) TO BRING PROCEEDINGS AGAINST
ORIGINATOR IN THE COURTS OF ANY OTHER JURISDICTION. 

SECTION 7.8. WAIVER OF JURY TRIAL.
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY HERETO
HEREBY WAIVES TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY
OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE)
IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS
AGREEMENT, ANY DOCUMENT EXECUTED BY ORIGINATOR PURSUANT TO THIS AGREEMENT OR
THE RELATIONSHIP ESTABLISHED HEREUNDER OR THEREUNDER. 
 Section 7.9. Integration; Binding Effect; Survival of Terms. (a) The Transaction Documents contain the final and complete integration of all prior expressions by the parties hereto with
respect to the sale and collection of the Receivables and Related Security and shall constitute the entire agreement among the parties hereto with respect to such subject matter, superseding all prior oral or written understandings with respect to
the sale and collection of the Receivables and Related Security. 
 (b) Nothing contained herein or in any other Transaction
Document shall be deemed to prohibit or limit any merger or consolidation of an Originator with another Originator so long as any necessary financing statements are filed, promptly after the effectiveness of such merger or consolidation, under the
UCC in all jurisdictions necessary to make the representations and warranties contained in this Agreement true and correct after giving effect to such merger or consolidation. Nothing contained herein or any other Transaction Document shall be
deemed to prohibit or limit any new entity from becoming an Originator hereunder so long as items 2 through 5 of Schedule A attached hereto are satisfied by such entity. This Agreement shall be binding upon and inure to the benefit of the
Originators, the Buyer and their respective successors and permitted assigns (including any trustee in bankruptcy). No Originator may assign any of its rights and obligations hereunder or any interest herein without the prior written consent of the
Buyer; provided, however, that no consent of the Buyer shall be required in connection with an assignment by operation of law to the surviving Originator in a merger or consolidation described in the first sentence of this
Section 7.9(b). The Buyer may pledge or assign at any time its rights and obligations hereunder and interests herein to any other Person without the consent of any Originator. Without limiting the foregoing, each Originator acknowledges that
the Buyer, pursuant to the Credit and Security Agreement, may grant to the Administrative Agent for the benefit of the Secured Parties, a security interest in the Buyer’s 

  
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rights, remedies, powers and privileges hereunder. This Agreement shall create and constitute the continuing obligations of the parties hereto in accordance with its terms and shall remain in
full force and effect until terminated in accordance with its terms; provided, however, that the rights and remedies with respect to (i) any breach of any representation and warranty made by any Originator pursuant to Article II;
(ii) the indemnification and payment provisions of Article VI; and (iii) Section 7.4 shall be continuing and shall survive any assignment or termination of this Agreement. 

Section 7.10. Counterparts; Severability; Section References. This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same Agreement. Any provisions of this
Agreement which are prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. Unless otherwise expressly indicated, all references herein to “Article,” “Section,”
“Schedule” or “Exhibit” shall mean articles and sections of, and schedules and exhibits to, this Agreement. 

[SIGNATURE PAGES FOLLOW] 

  
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 IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be executed and delivered by their duly authorized officers as of the date hereof in Wilmington, Delaware. 
  

			
	MOHAWK CARPET DISTRIBUTION, INC.
		
	By:	 	/s/ Shaila Bettadapur
		 	Name: Shaila Bettadapur
		 	Title: VP & Treasurer

  

			
	Address:	 	Mohawk Carpet Distribution, Inc.
		 	160 South Industrial Boulevard
		 	Calhoun, Georgia 30301
		 	 Attn: James T. Lucke, General

Counsel

		 	Phone: (706) 624-2660
		 	Fax: (706) 624-2483

  

			
	DAL-TILE DISTRIBUTION, INC.
		
	By:	 	/s/ Shaila Bettadapur
		 	Name: Shaila Bettadapur
		 	Title: VP & Treasurer

  

			
	Address:	 	Dal-Tile Distribution, Inc.
		 	160 South Industrial Boulevard
		 	Calhoun, Georgia 30301
		 	 Attn: James T. Lucke, General

Counsel

		 	Phone: (706) 624-2660
		 	Fax: (706) 624-2483

  

			
	MOHAWK FACTORING, LLC
		
	By:	 	/s/ John J. Koach
		 	Name: John J. Koach
		 	Title: Secretary

  

			
	Address:	 	Mohawk Factoring, LLC
		 	300 Delaware Avenue, Suite 1273-D
		 	Wilmington, Delaware, 19801

 [Signature Page to the Receivables Purchase and Sale Agreement] 

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		 	Attn: John J. Koach, Secretary and
		 	Assistant Treasurer
		 	Phone: (302) 576-2843
		 	Fax: (302) 658-4269
		
		 	With a copy to:
		
		 	 Attn: James T. Lucke, General

Counsel

		 	Phone: (706) 624-2660
		 	Fax: (706) 624-2483

 [Signature Page to the Fourth Amended and Restated Receivables Purchase and Sale Agreement]

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 EXHIBIT I 

DEFINITIONS 
 This is Exhibit I to the Agreement (as hereinafter defined). As used in the Agreement and the Exhibits and Schedules thereto, capitalized terms have the meanings set forth in this Exhibit I
(such meanings to be equally applicable to the singular and plural forms thereof). Unless defined elsewhere herein, capitalized terms used in this Agreement shall have the meanings assigned to such terms in Exhibit I to the Credit and Security
Agreement. 
 “Agreement” means the Receivables Purchase and Sale Agreement, dated as of December 19,
2012, among Originators and the Buyer. 
 “Buyer” has the meaning set forth in the preamble to the Agreement.

 “Calculation Period” means each fiscal month of the Buyer or portion thereof which elapses during the term
of the Agreement. The first Calculation Period shall commence on the date of the initial Purchase hereunder and the final Calculation Period shall terminate on the Termination Date. For purposes of the use of this term in other definitions in
Exhibit I to this Agreement, Calculation Periods occurring prior to the date of the initial Purchase hereunder shall mean a fiscal month of the Buyer. 
 “Credit and Security Agreement” has the meaning set forth in the Preliminary Statements to the Agreement. 
 “Dal-Tile” has the meaning set forth in the preamble to the Agreement. 
 “Discount Factor” means a percentage calculated to provide the Buyer with a reasonable return on its investment in the Receivables originated by each Originator after taking account of
(i) the time value of money based upon the anticipated dates of collection of such Receivables and the cost to the Buyer of financing its investment in such Receivables during such period and (ii) the risk of nonpayment by the Obligors.
Each Originator and the Buyer may agree from time to time to change the Discount Factor based on changes in one or more of the items affecting the calculation thereof, provided that any change to the Discount Factor shall take effect as of
the commencement of a Calculation Period, shall apply only prospectively and shall not affect the Purchase Price payment made prior to such Calculation Period during which such Originator and the Buyer agree to make such change. 

“Excluded Receivable” means a Receivable for which the Obligor is an Obligor designated in writing by an Originator to
Buyer and approved in writing by the Administrative Agent and the Co-Agents with respect to Receivables owing by such Obligor that arises on or after the date specified in such written approval of such designation. 

“Factored Receivable” means, with respect to any Originator, any right to payment for goods sold or services performed
by such Originator existing on or after the applicable Initial Cutoff Date which is sold or pledged to any factor and designated on such Originator’s 

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accounting system with code “C”, “D”, “S”, “1” or any other code identified as such in writing by the Originator to the Buyer (and, as long as the Credit
and Security Agreement remains in effect, the Administrative Agent as the Buyer’s assignee), or which directs that payment be made to a Person other than the Buyer. 
 “Initial Cutoff Date” means, as to each Originator, the close of business on the Business Day immediately prior to the date on which such Originator became a party to this Agreement.

 “Material Adverse Effect” means a material adverse effect on (i) the financial condition of Parent and
its Subsidiaries, considered as a whole, (ii) the ability of any Originator to perform its material obligations under this Agreement or any other Transaction Document to which such Originator is a party, (iii) the legality, validity or
enforceability of this Agreement or any other Transaction Document to which such Originator is a party, (iv) any Originator’s, the Buyer’s, any Agent’s or any Lender’s interest in the Receivables generally or in any
significant portion of the Receivables or the Related Security with respect thereto, or (v) the collectability of the Receivables generally or of any significant portion of the Receivables. 

“Mohawk Distribution” has the meaning set forth in the preamble to the Agreement. 

“Original Balance” means, with respect to any Receivable coming into existence after the applicable Initial Cutoff Date,
the Outstanding Balance of such Receivable on the date it was created. 
 “Originator” has the meaning set
forth in the preamble to the Agreement. 
 “Parent” means Mohawk Industries, Inc., a Delaware corporation, and
its successors. 
 “Purchase” means the purchase by the Buyer from an Originator pursuant to
Section 1.1(a) of the Agreement of the Receivables originated by such Originator and the Related Security related thereto, together with all related rights in connection therewith. 

“Purchase Price” means, with respect to the Purchase from each Originator, the aggregate price to be paid by the Buyer
to such Originator for such Purchase in accordance with Section 1.2 of the Agreement for the Receivables originated by such Originator and the associated Related Security being sold to the Buyer, which price shall equal on any date (i) the
product of (x) the Outstanding Balance of such Receivables on such date, multiplied by (y) one minus the Discount Factor in effect on such date, minus (ii) any Purchase Price Credits to be credited against the Purchase Price
otherwise payable in accordance with Section 1.3 of the Agreement. 
 “Purchase Price Credit” has the
meaning set forth in Section 1.3 of the Agreement. 
 “Purchase Report” has the meaning set forth in
Section 1.1(b) of the Agreement. 

  
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 “Receivable” means an account receivable (including all rights to payment
created by or arising from the sale of goods, lease of goods or the rendition of services, no matter how evidenced (including in the form of a chattel paper or an instrument)) owed to any Originator at the time it arises and before giving effect to
any transfer or conveyance under this Agreement; provided, however, in no event shall the term “Receivable” include any Factored Receivable or any Excluded Receivable. 

“Termination Date” means the earliest to occur of (i) the date on which the Buyer is unable to pay the Purchase
Price for any Receivable in accordance with Section 1.2, (ii) the Business Day immediately prior to the occurrence of a Termination Event set forth in Section 5.1(e), (iii) the Business Day specified in a written notice from the
Buyer (or, at any time the Credit and Security Agreement remains in effect, the Administrative Agent as the Buyer’s assignee) to the Originators following the occurrence of any other Termination Event, (iv) the date which is 5 Business
Days after the Buyer’s receipt of written notice from any Originator that it wishes to terminate sales under this Agreement, and (v) the date which is 5 Business Days after each Originator receives written notice that the Buyer wishes to
terminate purchases under this Agreement. 
 “Termination Event” has the meaning set forth in Section 5.1
of the Agreement. 
 “Unmatured Termination Event” means an event which, with the passage of time or the giving
of notice, or both, would constitute a Termination Event. 
 All terms used in Article 9 of the UCC in the State of New
York, and not specifically defined herein, are used herein as defined in such Article 9. The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms. The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.” The word
“will” shall be construed to have the same meaning and effect as the word “shall.” Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other document (including any
organization document) shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set
forth herein or in any other Transaction Document), (ii) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (iii) the words “hereto,” “herein,” “hereof”
and “hereunder,” and words of similar import when used in any Transaction Document, shall be construed to refer to such Transaction Document in its entirety and not to any particular provision thereof, (iv) all references in a
Transaction Document to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, the Transaction Document in which such references appear, (v) any reference to any law
shall include all statutory and regulatory provisions consolidating, amending, replacing or interpreting such law and any reference to any law or regulation shall, unless otherwise specified, refer to such law or regulation as amended, modified or
supplemented from time to time, and (vi) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash,
securities, accounts and contract rights. In the computation of periods of time from a specified date to a later specified date, the word “from” means “from and including;” the words “to” and “until” each mean
“to but excluding;” and the word 

  
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“through” means “to and including.” Section and Article headings herein and in the other Transaction Documents are included for convenience of reference only and shall not
affect the interpretation of this Agreement or any other Transaction Document. All accounting terms not specifically or completely defined herein shall be construed in conformity with, and all financial data (including financial ratios and other
financial calculations) required to be submitted pursuant to this Agreement or any other Transaction Document shall be prepared in conformity with, GAAP applied on a consistent basis, as in effect from time to time, applied in a manner consistent
with that used in preparing the audited financial statements of the Parent for its fiscal year ended December 31, 2012, except as otherwise specifically prescribed herein. 

  
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 EXHIBIT II 

PLACES OF BUSINESS; LOCATIONS OF COLLECTION
RECORDS; 
 FEDERAL EMPLOYER IDENTIFICATION
NUMBER(S); ORGANIZATIONAL 
 IDENTIFICATION
NUMBER; OTHER NAMES 
 PLACES OF BUSINESS:

 Mohawk Carpet Distribution, Inc. 

160 S. Industrial Blvd. 
 Calhoun, GA 30703

 Dal-Tile Distribution, Inc. 
 160 S.
Industrial Blvd. 
 Calhoun, GA 30703 

LOCATION OF COLLECTION RECORDS: 
 Mohawk Servicing, LLC 
 160 S. Industrial Boulevard 

Calhoun, GA 30701 
 FEDERAL
EMPLOYER IDENTIFICATION NUMBER 
 AND ORGANIZATIONAL
IDENTIFICATION NUMBER: 
 Mohawk Carpet Distribution, Inc. 
 FEI # 58-2173403 
 Organizational ID# 2502648 

Dal-Tile Distribution, Inc. 
 FEI# 20-1881043

 Organizational ID# 3871291 

LEGAL, TRADE AND ASSUMED NAMES: 

 

			
		
	Aladdin Mills	  	Bigelow
		
	World Carpet	  	Harbinger
		
	Mohawk Commercial	  	Helios
		
	IMAGE	  	Delaware Valley Wool Scouring
		
	Galaxy	  	American Weavers
		
	Merit Hospitality	  	Burton Rug
		
	Custom Weave	  	Insignia

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	Wunda Weve	  	Sunrise
		
	Mohawk International	  	Hamilton
		
	Karastan	  	Ciboney Carpet
		
	Alliance Pad	  	Mohawk Rug & Textile
		
	Crown Craft	  	Ultra Weave
		
	Mohawk Carpet	  	Lees
		
	World	  	American Olean
		
	Diamond	  	Color Center
		
	Durkan Patterned Carpet	  	Floorscapes
		
	Rug & Textile Group	  	Portico
		
	Aladdin Rug	  	Wayn-tex
		
	Townhouse	  	Columbia
		
	Newmark & James	  	DALTILE
		
	Durkan Commercial	  	Mohawk Home
		
	American Rug Craftsman	  	Century
		
	Horizon	  	Keys Granite
	  
 Alexander Smith

 
 Nonpareil Dyeing and Finishing

 
 Rainbow International

 
 International Marble and Granite

 
 QuickStep
	  	  
 The Mohawk Group

  
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 EXHIBIT III 

FORM OF COMPLIANCE CERTIFICATE 

This Compliance Certificate is furnished pursuant to that certain Receivables Purchase and Sale Agreement dated as of December 19,
2012, among Mohawk Carpet Distribution, Inc., Dal-Tile Distribution, Inc., and each other Originator that is now or hereafter a party thereto from time to time, and Mohawk Factoring, LLC (as amended, restated or otherwise modified from time to time
in accordance with the Transaction Documents, the “Agreement”). Capitalized terms used and not otherwise defined herein are used with the meanings attributed thereto in the Agreement. 

THE UNDERSIGNED HEREBY CERTIFIES (IN MY
CAPACITY AS AN OFFICER OF THE PARENT AND NOT IN MY INDIVIDUAL
CAPACITY) THAT: 
 1. I am the duly
elected             and, accordingly, a Responsible Officer, of Mohawk Industries, Inc., a Delaware corporation (the “Parent”). 

2. I have reviewed the terms of the Agreement and I have made, or have caused to be made under my supervision, a detailed
review of the transactions and conditions of Parent and its Subsidiaries during the accounting period covered by the attached financial statements. 
 3. The examinations described in paragraph 2 did not disclose, and I have no knowledge of, the existence of any condition or event which constitutes a Termination Event or an Unmatured Termination
Event, as each such term is defined under the Agreement, during or at the end of the accounting period covered by the attached financial statements or as of the date of this Certificate[, except as set forth below]. 

[4. Described below are the exceptions, if any, to paragraph 3 by listing, in detail, the nature of the condition or
event, the period during which it has existed and the action which Parent and its Subsidiaries have taken, is taking, or proposes to take with respect to each such condition or event:
            ]. 

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 The foregoing certifications, together with the computations set forth in Schedule I hereto
and the financial statements delivered with this Certificate in support hereof, are made and delivered this ____ day of ______________, 201_. 
 [Name] 

  
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 EXHIBIT IV 

FORM OF PURCHASE REPORT 

For the Calculation Period beginning [date] and ending [date] 

 
  
 TO: THE BUYER 
 CC: (WHILE THE CREDIT AND SECURITY AGREEMENT REMAINS IN EFFECT)
THE ADMINISTRATIVE AGENT 
 FROM: [INSERT ORIGINATOR NAME] 

 

											
	 Aggregate Outstanding Balance of all Receivables sold during the period:
	  	$	_____________	  	 				  	A
	 Less: Aggregate Outstanding Balance of all Receivables sold during such period which were not Eligible Receivables
on the date when sold:
	  	($	____________	) 	 				  	(B)
	 Equals: Aggregate Outstanding Balance of all Eligible Receivables sold during the period
(A—B):
	  				 	$	___________	  	  	=C
	 Less: Purchase Price discount during the Period:
	  	($	____________	) 	 				  	(D)
	 Equals: Gross Purchase Price Payable during the period (C – D)
	  				 	$	____________	  	  	=E
	 Less: Total Purchase Price Credits arising during the Period:
	  	($	____________	) 	 				  	(F)
	 Equals: Net Purchase Price payable during the Period (E – F):
	  				 	$	____________	  	  	=G
				
	 Cash Purchase Price Paid to Originator during the Period:
	  	$	_____________	  	 				  	H

 The undersigned hereby represents and warrants that the information set forth above is accurate and complete as of
the last day of the Calculation Period set forth above. 
  

					
		 	[ORIGINATOR NAME]
			
		 	By:	 	 
		 		 	 Name:

Title:

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 SCHEDULE A 

LIST OF DOCUMENTS TO BE DELIVERED
TO THE BUYER PRIOR TO EFFECTIVENESS 
  

	1.	Executed copies of the Receivables Purchase and Sale Agreement, duly executed by the parties thereto. 

 

	2.	Current copy of the Credit and Collection Policy of each Originator to attach to the Credit and Security Agreement as an Exhibit. 

 

	3.	Good Standing Certificates for each Originator issued by the Secretaries of State of its state of incorporation within thirty (30) days prior to closing.

  

	4.	A certificate of a Responsible Officer of each Originator certifying: 

  

	 	(a)	a copy of the Resolutions of the Board of Directors of such Originator, authorizing Originator’s execution, delivery and performance of the Receivables Purchase
and Sale Agreement and the other documents to be delivered by it thereunder; 

  

	 	(b)	a copy of the organizational documents of such Originator (also certified, to the extent that such documents are filed with any governmental authority, by the Secretary
of State of the jurisdiction of organization of such Originator on or within thirty (30) days prior to closing); 

  

	 	(c)	the names and signatures of the officers authorized on its behalf to execute the Receivables Purchase and Sale Agreement and any other documents to be delivered by it
thereunder; and 

  

	 	(d)	as of the date hereof, no Termination Event or Unmatured Termination Event exists and is continuing. 

 

	5.	UCC financing statements naming each Originator as debtor or seller, the Buyer as the assignor secured party or purchaser and the Administrative Agent as total assignee
of assignor secured partyUnassociated Document

 

NEITHER THIS COMMON STOCK PURCHASE WARRANT (THIS “PURCHASE WARRANT”) NOR THE SECURITIES WHICH MAY BE ACQUIRED UPON EXERCISE HEREOF (THE “UNDERLYING SECURITIES”) HAS BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE LAW. NONE OF THIS PURCHASE WARRANT, THE UNDERLYING SECURITIES OR ANY INTEREST THEREIN MAY BE OFFERED FOR SALE, SOLD OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT AND APPLICABLE STATE LAW.

 

THIS PURCHASE WARRANT IS EXERCISABLE UNTIL 5:00 P.M. EASTERN TIME ON DECEMBER 10, 2017.

 

FORM OF COMMON STOCK PURCHASE WARRANT

 

For the Purchase of Shares of Class A Common Stock

 

Of

 

DIGITAL CINEMA DESTINATIONS CORP.

 

1.           Purchase Warrant. THIS CERTIFIES THAT, in exchange for consideration duly received from or on behalf of Start Media, LLC (“Holder”), as registered owner of this Purchase Warrant, by Digital Cinema Destinations Corp. (the “Company”), the receipt and sufficiency of which is hereby acknowledged,  Holder is entitled, at any time or from time to time after the date hereof, and at or before 5:00p.m., Eastern Time on December 10, 2017 (the “Expiration Date”), but not thereafter, to subscribe for, purchase and receive, in whole or in part, up to 500,000 shares of Class A common stock of the Company, par value $0.01 per share (the “Shares”), subject to adjustment as provided in Section 5 hereof. If the Expiration Date is a day on which banking institutions are authorized by law to close, then this Purchase Warrant may be exercised on the next succeeding day which is not such a day in accordance with the terms herein. During the period ending on the Expiration Date, the Company agrees not to take any action that would terminate the Purchase Warrant. This Purchase Warrant is initially exercisable at $6.10 per Share; provided, however, that upon the occurrence of any of the events specified in Section 5 hereof, the rights granted by this Purchase Warrant, including the exercise price per Share and the number of Shares to be received upon such exercise, shall be adjusted as therein specified. The term “Exercise Price” shall mean the initial exercise price or the adjusted exercise price, depending on the context.

 

  

  

  

 

2.           Exercise.

2.1           Exercise Form. In order to exercise this Purchase Warrant, the exercise form attached hereto must be duly executed and completed and delivered to the Company, together with this Purchase Warrant and payment of the Exercise Price for the Shares being purchased payable in cash by wire transfer of immediately available funds to an account designated by the Company or by certified check or official bank check. If the subscription rights represented hereby shall not be exercised at or before 5:00 p.m., Eastern Standard Time, on the Expiration Date, this Purchase Warrant shall become and be void without further force or effect as to any unexercised subscription rights, and all further rights represented hereby shall cease and expire.

 

2.2           Delivery of Certificates. Upon receipt of the exercise form, the Company shall, as promptly as practicable, and, subject to receipt of any necessary regulatory approvals (including expiration of any applicable waiting period), in any event within ten (10) business days thereafter, deliver to Holder a duly executed certificate or certificates representing the aggregate number of shares of Shares issuable upon such exercise.  Such stock certificate or certificates shall be in such denominations and registered in the name designated in the subscription form. Holder shall be deemed to have become a holder of record of such Shares for all purposes, as of the date on which all items in Section 2.1 above have been received by Company. If this Purchase Warrant shall have been exercised in part, Company shall deliver to Holder a new Purchase Warrant evidencing the rights of Holder to purchase the remaining shares of Shares issuable upon exercise of this Purchase Warrant, which new Purchase Warrant shall in all other respects be identical with this Purchase Warrant. Notwithstanding the foregoing, if in connection with the exercise of this Purchase Warrant or acquisition of shares of Shares, any regulatory approval shall be required, including expiration of any applicable waiting period, then, if Holder attempts to exercise during such restricted period and the Expiration Date shall fall within that period, the Expiration Date shall be extended while any such regulatory approval or waiting period is pending and promptly following receipt of such approval or expiration of such waiting period (but in no event later than ten (10) business days thereafter), this Purchase Warrant shall be surrendered and the Exercise Price shall be paid as provided herein.

 

2.3           Legend. Each certificate for the securities purchased under this Purchase Warrant shall bear a legend as follows unless such securities have been registered under the Securities Act of 1933, as amended:

 

“The securities represented by this certificate have not been registered under the Securities Act of 1933, as amended (the “Securities Act”) or applicable state law. Neither the securities nor any interest therein may be offered for sale, sold or otherwise transferred except pursuant to an effective registration statement under the Securities Act, or pursuant to an exemption from registration under the Securities Act and applicable state law.”

 

3.           Transfer. The registered Holder of this Purchase Warrant agrees by his, her or its acceptance hereof, that transfers to others may be made only in compliance with or exemptions from applicable securities laws. In order to make any permitted assignment, the Holder must deliver to the Company the assignment form attached hereto duly executed and completed, together with the Purchase Warrant and payment of all transfer taxes, if any, payable in connection therewith. The Company shall within ten (10) business days transfer this Purchase Warrant on the books of the Company and shall execute and deliver a new Purchase Warrant or Purchase Warrants of like tenor to the appropriate assignee(s) expressly evidencing the right to purchase the aggregate number of Shares purchasable hereunder or such portion of such number as shall be contemplated by any such assignment.

 

  

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4.           New Purchase Warrants to be Issued.

 

4.1           Partial Exercise or Transfer. Subject to the restriction in Section 3 hereof, this Purchase Warrant may be exercised or assigned in whole or in part. In the event of the exercise or assignment hereof in part only, upon surrender of this Purchase Warrant for cancellation, together with the duly executed exercise or assignment form and funds sufficient to pay any Exercise Price and/or transfer tax if exercised pursuant to Section 2.1 hereto, the Company shall cause to be delivered to the Holder without charge a new Purchase Warrant of like tenor to this Purchase Warrant in the name of the Holder evidencing the right of the Holder to purchase the number of Shares purchasable hereunder as to which this Purchase Warrant has not been exercised or assigned.

 

4.2           Lost Certificate. Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction or mutilation of this Purchase Warrant and of reasonably satisfactory indemnification or the posting of a bond, the Company shall execute and deliver a new Purchase Warrant of like tenor and date. Any such new Purchase Warrant executed and delivered as a result of such loss, theft, mutilation or destruction shall constitute a substitute contractual obligation on the part of the Company.

 

5.           Adjustments.

 

5.1           Adjustments to Exercise Price and Number of Securities. The Exercise Price and the number of Shares underlying the Purchase Warrant shall be subject to adjustment from time to time as hereinafter set forth:

 

5.1.1           Share Dividends; Split Ups. If after the date hereof, and subject to the provisions of Section 5.3 below, the number of outstanding Shares is increased by a stock dividend payable in Shares or by a split up of Shares or other similar event, then, on the effective day thereof, the number of Shares purchasable hereunder shall be increased in proportion to such increase in outstanding shares, and the Exercise Price shall be proportionately decreased.

 

5.1.2                  Aggregation of Shares. If after the date hereof, and subject to the provisions of Section 5.3, the number of outstanding Shares is decreased by a consolidation, combination or reclassification of Shares or other similar event, then, on the effective date thereof, the number of Shares purchasable hereunder shall be decreased in proportion to such decrease in outstanding shares, and the Exercise Price shall proportionately increased.

 

  

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5.1.3           Replacement of Securities upon Reorganization, etc. In case of any dividend or other distribution of its assets (or rights to acquire its assets) to holders of Shares, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options) or any reclassification or reorganization of the outstanding Shares other than a dividend or other change covered by Section 5.1.1 or 5.1.2 hereof or that solely affects the par value of such Shares, or in the case of any share reconstruction or merger or consolidation of the Company with or into another corporation (other than a consolidation or share reconstruction or merger in which the Company is the continuing corporation and that does not result in any reclassification or reorganization of the outstanding Shares), or in the case of any sale or conveyance to another corporation or entity of the property of the Company as an entirety or substantially as an entirety in connection with which the Company is dissolved, the Holder of this Purchase Warrant shall have the right thereafter (until the expiration of the right of exercise of this Purchase Warrant) to receive upon the exercise hereof, for the same aggregate Exercise Price payable hereunder immediately prior to such event, the kind and amount of shares of stock or other securities or property (including cash) receivable upon such dividend, distribution, reclassification, reorganization, share reconstruction or merger, or consolidation, or upon a dissolution following any such sale or transfer, by a Holder of the number of Shares of the Company obtainable upon exercise of this Purchase Warrant immediately prior to such event; and if any reclassification or other change or event also results in a change in Shares covered by Section 5.1.1 or 5.1.2, then such adjustment shall be made pursuant to Sections 5.1.1, 5.1.2 and this Section 5.1.3. The provisions of this Section 5.1.3 shall similarly apply to successive dividends, distributions, reclassifications, reorganizations, share reconstructions or mergers, or consolidations, sales or other transfers.

 

5.1.4           Changes in Form of Purchase Warrant. This form of Purchase Warrant need not be changed because of any change pursuant to this Section 5.1, and Purchase Warrants issued after such change may state the same Exercise Price and the same number of Shares as are stated in the Purchase Warrants initially issued pursuant to this Agreement. The acceptance by any Holder of the issuance of new Purchase Warrants reflecting a required or permissive change shall not be deemed to waive any rights to an adjustment occurring after the issuance date or the computation thereof.

 

5.2           Substitute Purchase Warrant. In case of any consolidation of the Company with, or share reconstruction or merger of the Company with or into, another corporation (other than a consolidation or share reconstruction or merger which does not result in any reclassification or change of the outstanding Shares), the corporation formed by such consolidation or share reconstruction or merger shall execute and deliver to the Holder a supplemental Purchase Warrant providing that the holder of each Purchase Warrant then outstanding or to be outstanding shall have the right thereafter (until the stated expiration of such Purchase Warrant) to receive, upon exercise of such Purchase Warrant, the kind and amount of shares of stock and other securities and property receivable upon such consolidation or share reconstruction or merger, by a holder of the number of Shares of the Company for which such Purchase Warrant might have been exercised immediately prior to such consolidation, share reconstruction or merger, sale or transfer. Such supplemental Purchase Warrant shall provide for adjustments which shall be identical to the adjustments provided for in this Section 5. The above provision of this Section shall similarly apply to successive consolidations or share reconstructions or mergers.

 

  

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5.3           Elimination of Fractional Interests. The Company shall not be required to issue certificates representing fractions of Shares upon the exercise of the Purchase Warrant, nor shall it be required to issue scrip or pay cash in lieu of any fractional interests, it being the intent of the parties that all fractional interests shall be eliminated by rounding any fraction up or down, as the case may be, to the nearest whole number of Shares or other securities, properties or rights.

 

6.           Reservation and Listing. The Company shall at all times reserve and keep available out of its authorized Shares, solely for the purpose of issuance upon exercise of the Purchase Warrants or substitute Purchase Warrant pursuant to Section 4 or 5, such number of Shares or other securities, properties or rights as shall be issuable upon the exercise thereof. The Company covenants and agrees that, upon exercise of the Purchase Warrants and payment of the Exercise Price therefor, in accordance with the terms hereby, all Shares and other securities issuable upon such exercise shall be duly and validly issued, fully paid and non-assessable and not subject to preemptive rights of any shareholder. As long as the Purchase Warrants shall be outstanding, the Company shall use its commercially reasonable efforts to cause all Shares issuable upon exercise of the Purchase Warrants to be listed (subject to official notice of issuance) on all securities exchanges (or, if applicable on the Nasdaq Global Market, Capital Market, OTC Bulletin Board or any successor trading market) on which the Company’s Class A Common Stock may then be listed and/or quoted.

 

7.           Certain Notice Requirements.

 

7.1           Holder's Right to Receive Notice. Nothing herein shall be construed as conferring upon the Holders the right to vote or consent or to receive notice as a shareholder for the election of directors or any other matter, or as having any rights whatsoever as a shareholder of the Company. If, however, at any time prior to the expiration of the Purchase Warrants and their exercise, any of the events described in Section 7.2 shall occur, then, in one or more of said events, the Company shall give written notice of such event at least fifteen days prior to the date fixed as a record date or the date of closing the transfer books for the determination of the stockholders entitled to such dividend, distribution, conversion or exchange of securities or subscription rights, or entitled to vote on such proposed dissolution, liquidation, winding up, sale or other event. Such notice shall specify such record date or the date of the closing of the transfer books, as the case may be. Notwithstanding the foregoing, the Company shall deliver to each Holder a copy of each notice given to the other stockholders of the Company at the same time and in the same manner that such notice is given to the stockholders.

 

7.2           Events Requiring Notice. The Company shall be required to give the notice described in this Section 7 upon one or more of the following events: (i) if the Company shall take a record of the holders of its Shares for the purpose of entitling them to receive a dividend or distribution, (ii) the Company shall offer to all the holders of its Shares any additional shares of capital stock of the Company or securities convertible into or exchangeable for shares of capital stock of the Company, or any option, right or warrant to subscribe therefore, (iii) any capital reorganization of the Company, any reclassification or recapitalization of the capital stock of the Company or any consolidation or merger of Company with or into, or any sale, transfer or other disposition of all or substantially all the property, assets or business of Company to, another corporation shall be proposed or (iv) a dissolution, liquidation or winding up of the Company.

 

  

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7.3           Notice of Change in Exercise Price. The Company shall, promptly after an event requiring a change in the Exercise Price pursuant to Section 5 hereof, send notice to the Holders of such event and change (“Price Notice”). The Price Notice shall describe the event causing the change and the method of calculating same and shall be certified as being true and accurate by the Company's Chief Financial Officer.

 

7.4           Transmittal of Notices. All notices, requests, consents and other communications hereunder will be in writing and will be mailed (a) if delivered from within the domestic United States, by first-class registered or certified airmail, or nationally recognized overnight express courier, postage prepaid, or (b) if delivered from outside the United States, by International Federal Express. All notices, requests, consents and other communications hereunder will be deemed given (i) if delivered by first-class registered or certified mail domestic, three business days after so mailed, (ii) if delivered by nationally recognized overnight carrier, one business day after so mailed and (iii) if delivered by International Federal Express, two business days after so mailed, and will be delivered and addressed (x) if to the registered Holder of the Purchase Warrant, to the address of such Holder as shown on the books of the Company, or (y) if to the Company, to the following address or to such other address as the Company may designate by notice to the Holder:

 

 

Digital Cinema Destinations Corp.

250 E Broad Street

Westfield, NJ 07090

Attn:  A. Dale Mayo, Chairman and CEO

Fax No.:

 

With a copy to:

 

Eaton & Van Winkle LLP

3 Park Avenue 16th Floor

New York, NY 10016

Attn:  Joseph L. Cannella, Esq.Fax No.: (212) 779-9928

8.           Miscellaneous.

 

8.1           No Impairment.  The Company shall not by any action, including, without limitation, amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Purchase Warrant. The Company will take all such action as shall be necessary or appropriate in order that Company may validly and legally issue fully paid and non-assessable shares of Shares upon the exercise of this Purchase Warrant.  The Company will use commercially reasonable efforts to obtain all authorizations, exemptions or consents from any governmental authority having jurisdiction thereof as may be necessary to enable the Company to perform its obligations under this Purchase Warrant.

 

  

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8.2           Amendments. This Purchase Warrant may not be amended, changed or modified in any fashion except by written instrument signed by both the Holder and the Company.

 

8.3           Headings. The headings contained herein are for the sole purpose of convenience of reference, and shall not in any way limit or affect the meaning or interpretation of any of the terms or provisions of this Purchase Warrant.

 

8.4.           Entire Agreement. This Purchase Warrant (together with the other agreements and documents being delivered pursuant to or in connection with this Purchase Warrant) constitutes the entire agreement of the parties hereto with respect to the subject matter hereof, and supersedes all prior agreements and understandings of the parties, oral and written, with respect to the subject matter hereof.

 

8.5           Binding Effect. This Purchase Warrant shall inure solely to the benefit of and shall be binding upon, the Holder and the Company and their permitted assignees, respective successors, legal representative and assigns, and no other person shall have or be construed to have any legal or equitable right, remedy or claim under or in respect of or by virtue of this Purchase Warrant or any provisions herein contained.

 

8.6           Governing Law; Submission to Jurisdiction. This Purchase Warrant shall be governed by and construed and enforced in accordance with the laws of the State of New York, without giving effect to conflict of laws principles thereof. The Company hereby agrees that any action, proceeding or claim against it arising out of, or relating in any way to this Purchase Warrant shall be brought and enforced in the New York Supreme Court, County of New York, or in the United States District Court for the Southern District of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive. The Company hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum. Any process or summons to be served upon the Company may be served by transmitting a copy thereof by registered or certified mail, return receipt requested, postage prepaid, addressed to it at the address set forth in Section 7 hereof. Such mailing shall be deemed personal service and shall be legal and binding upon the Company in any action, proceeding or claim. The Company and the Holder agree that the prevailing party(ies) in any such action shall be entitled to recover from the other party(ies) all of its reasonable attorneys' fees and expenses relating to such action or proceeding and/or incurred in connection with the preparation therefore.

 

8.7           Waiver, etc. The failure of the Company or Holder to at any time enforce any of the provisions of this Purchase Warrant shall not be deemed or construed to be a waiver of any such provision, nor to in any way affect the validity of this Purchase Warrant or any provision hereof or the right of the Company or Holder to thereafter enforce each and every provision of this Purchase Warrant. No waiver of any breach, non-compliance or non-fulfillment of any of the provisions of this Purchase Warrant shall be effective unless set forth in a written instrument executed by the party or parties against whom or which enforcement of such waiver is sought; and no waiver of any such breach, non-compliance or non-fulfillment shall be construed or deemed to be a waiver of any other or subsequent breach, non-compliance or non-fulfillment.

 

8.8           Execution in Counterparts. This Purchase Warrant may be executed in one or more counterparts, and by the different parties hereto in separate counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement, and shall become effective when one or more counterparts has been signed by each of the parties hereto and delivered to each of the other parties hereto. Such counterparts may be delivered by facsimile transmission or other electronic transmission.

 

 [Remainder of page deliberately left blank.]

 

  

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IN WITNESS WHEREOF, the Company has caused this Purchase Warrant to be signed by its duly authorized officer as of the 10th day of December, 2012.

 

DIGITAL CINEMA DESTINATIONS CORP.

 

By:  _________________________________

Name:

Title:

 

  

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Form to be used to exercise Purchase Warrant:

 

Date: _________, 20__

 

The undersigned hereby elects irrevocably to exercise the Purchase Warrant for [___] Shares of Digital Cinema Destinations Corp. and hereby makes payment of $[_________] (at the rate of $[___________] per Share) in payment of the Exercise Price pursuant thereto. Please issue the Shares as to which this Purchase Warrant is exercised in accordance with the instructions given below and, if applicable, a new Purchase Warrant representing the number of Shares for which this Purchase Warrant has not been exercised.

 

Signature

 

  

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INSTRUCTIONS FOR REGISTRATION OF SECURITIES

 

Name:

 

(Print in Block Letters)

 

Address:

 

NOTICE: The signature to this form must correspond with the name as written upon the face of the Purchase Warrant without alteration or enlargement or any change whatsoever.

 

  

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Form to be used to assign Purchase Warrant:

 

ASSIGNMENT

 

(To be executed by the registered Holder to effect a transfer of the within Purchase Warrant):

 

FOR VALUE RECEIVED, [_____________] does hereby sell, assign and transfer unto [_____________] the right to purchase [_____] Shares of Digital Cinema Destinations Corp. (“Company”) evidenced by the Purchase Warrant and does hereby authorize the Company to transfer such right on the books of the Company.

 

Dated:           ___________, 20__

 

Signature

 

NOTICE: The signature to this form must correspond with the name as written upon the face of the within Purchase Warrant without alteration or enlargement or any change whatsoever.

 

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