Document:

Exhibit 10.6

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT (this "Agreement"),
dated as of May 16, 2018, between Forward Industries, Inc. (the "Company"),
and Michael Matte ("Executive").

 

RECITALS:

 

WHEREAS, the Company desires to employ Executive
pursuant to the terms and conditions and for the consideration set forth in
this Agreement, and Executive desires to be employed by the Company pursuant to
such terms and conditions and for such consideration.

 

In consideration of the mutual covenants herein
contained and other good and valuable consideration, the receipt of which the
parties hereby acknowledge, the parties agree as follows:

 

1.                 
EMPLOYMENT TERM; PRIOR AGREEMENT

 

The term of employment hereunder (the "Term")
shall commence on the date hereof and, unless earlier terminated in accordance
with the terms of this Agreement, three years thereafter.  The Executive
acknowledges that this Agreement replaces that certain Employment Agreement
dated June 25, 2018 between the Company and the Executive (the “Prior
Agreement”) and that the Employee has no rights or obligations arising from
the Prior Agreement.

 

2.                 
EMPLOYMENT DUTIES AND SERVICES

 

(a)              
The Company hereby employs
Executive as its chief financial officer, treasurer, and assistant secretary
for the term of this Agreement and any renewal(s) thereof, and Executive hereby
accepts such employment. Executive shall perform such duties and
responsibilities of a chief financial officer, treasurer and assistant
secretary nature for the Company or any subsidiary ("Subsidiary")
or affiliate ("Affiliate") of the Company as shall be
consistent with the provisions of the Company's By-laws in effect, which may be
amended from time to time, and as are customary for a chief financial officer,
treasurer and assistant secretary of companies of similar size and business as
the Company, subject to the direction of the Company's President (chief
executive officer) and the Board of Directors of the Company (the "Board").
Executive shall serve the Company faithfully and to the best of his ability and
shall devote his time and attention to the business and affairs of the Company,
subject to reasonable absences for vacation and illness in accordance with
Company policies. 

 

(b)             
Unless otherwise agreed in writing
by the Company and Executive, the performance of Executive's services during
the term of this Agreement shall be rendered at the principal executive offices
of the Company in West Palm Beach, Florida, subject to such travel in
furtherance of Executive's performance of his duties hereunder as the business
of the Company may require.

 

3.                 
COMPENSATION AND EXPENSE
REIMBURSEMENT

	
	 

 

 

 

(a)               
Salary. Executive shall be entitled to receive for all
services rendered by Executive in any and all capacities in connection with his
employment hereunder a salary (as it may be adjusted, "Salary")
at the rate of $225,000 per annum, payable in equal installments in accordance
with the prevailing practices of the Company (but not less frequently than
monthly).

 

(b)              
Bonus: Calculation and Payment.

 

(i)               
Executive shall be eligible to
receive a ("Bonus") with respect to each full fiscal year or
part thereof (subject to Section 4, 5, 6, and 7 hereof) in respect of his
employment hereunder, as set forth in this Section 3. The amount of Bonus, if
any, that Executive is eligible to earn in any fiscal year during the Term
hereof pursuant to this Section 3(b) shall be based on the terms of the bonus
plan and performance metrics that the Compensation Committee (the "Compensation
Committee") of the Board adopts, in its sole discretion from year to year.
Executive's Bonus may range in an amount equal to or between 0 and 25% of
Executive's Salary and may be awarded to Executive in a combination of cash,
restricted stock, restricted stock units and/or other equity, the combination
and vesting of which shall be determined by the Compensation Committee in its
sole discretion.

 

(ii)             
The Compensation Committee shall
have the authority to pay the Executive a discretionary bonus from time to time
based upon the Executive’s and the Company’s performance. 

 

(c)              
Expenses. Executive will be reimbursed for all reasonable and
necessary expenses incurred by Executive in carrying out the duties
contemplated under this Agreement, in accordance with Company practices and
procedures in effect from time to time, as such practices may be changed from
time to time by the Board.

 

(d)            
Benefits. Executive shall be entitled to participate in all
group health and other insurance programs and all other fringe benefits
(including vacation) and retirement plans (including any 40l(k) plan) or other
compensatory plans that the Company may hereafter elect to make available to
its executives generally on terms no less favorable than those provided to
other executives generally, provided Executive meets the qualifications
therefor. This Agreement shall not require the Company to establish any such
program or plan.

 

(e)             
Withholding. All payments required to be made by the Company
hereunder to Executive shall be subject to the withholding of authorized
deductions and such amounts relating to taxes and other governmental
assessments as the Company may reasonably determine it should withhold pursuant
to any applicable law, rule or regulation.

 

	
	
	
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(f)               
409A. The intent of the parties is that payments and
benefits under this Agreement comply with, or be exempt from, Internal Revenue
Code Section 409A and the regulations and guidance promulgated thereunder
(collectively "Code Section 409A") and, accordingly, to the
maximum extent permitted, this Agreement shall be interpreted to be in
compliance therewith.

 

(i)               
A termination of employment shall
not be deemed to have occurred for purposes of any provision of this Agreement
providing for the payment of any amounts or benefits upon or following a
termination of employment that are considered "nonqualified deferred
compensation" under Code Section 409A unless such termination is also a
"separation from service" within the meaning of Code Section 409A
and, for purposes of any such provision of this Agreement, references to a
"termination," "termination of employment" or like terms shall
mean "separation from service." If Executive is deemed on the date of
termination to be a "specified employee" within the meaning of that
term under Code Section 409A(a)(2)(B), then with regard to any payment that is
considered non­qualified deferred compensation under Code Section 409A payable
on account of a "separation from service," such payment or benefit
shall be made or provided at the date which is the earlier of (A) the
expiration of the six (6)-month period measured from the date of such
"separation from service" of Executive, and (B) thirty (30) days from
the date of Executive's death (the "Delay Period").

 

(ii)             
With regard to any provision
herein that provides for reimbursement of costs and expenses or in-kind
benefits, except as permitted by Code Section 409A, (i) the right to
reimbursement or in-kind benefits shall not be subject to liquidation or
exchange for another benefit, (ii) the amount of expenses eligible for
reimbursement, or in-kind benefits, provided during any taxable year shall not
affect the expenses eligible for reimbursement, or in-kind benefits to be
provided, in any other taxable year, provided that the foregoing clause (ii)
shall not be violated without regard to expenses reimbursed under any
arrangement covered by Internal Revenue Code Section 105(b) solely because such
expenses are subject to a limit related to the period the arrangement is in
effect and (iii) such payments shall be made on or before the last day of
Executive's taxable year following the taxable year in which the expense
occurred.

 

(iii)           
For purposes of Code Section 409A,
Executive's right to receive any installment payments pursuant to this
Agreement shall be treated as a right to receive a series of separate and
distinct payments. Whenever a payment under this Agreement specifies a payment
period with reference to a number of days (e.g., "within sixty (60)
days following the date of termination"), the actual date of payment
within the specified period shall be within the sole discretion of the
Company."

 

	
	
	
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4.                 
TERMINATION BY THE COMPANY FOR CAUSE

 

(a)               
The Board may, by written notice
given at any time during the Tern, or any renewal thereof, terminate the
employment of Executive for Cause, as determined by the Board. For purposes of this
Agreement, "Cause" shall mean Executive's:

 

(i)                willful misconduct in connection
with the performance of any of his duties or services hereunder, including
without limitation (1) misappropriation or improper diversion of funds, rights
or property of the Company or any Subsidiary or Affiliate, or (2) securing or
attempting to secure personally (including for the benefit of any family
member, or person sharing the same household, or any entity (corporate,
partnership, unincorporated association, proprietorship, limited liability
company, trust, or otherwise) in which Executive has any economic or beneficial
interest) any profit or benefit in connection with any transaction entered into
on behalf of the Company or any Subsidiary or Affiliate unless the transaction
benefiting the entity has been approved by the Board upon the basis of full
disclosure of such benefit, or (3) material breach of (x) any provision of this
Agreement or (y) the Company's Insider Trading Policy or Code of Business
Conduct and Ethics or other material policy or procedure of the Company or any
Subsidiary or Affiliate, as in effect from time to time, or (4) any other
action in violation of Executive's fiduciary duty owed to the Company or any
Subsidiary or Affiliate or Executive's acting in a manner adverse to the
interests of the Company or any Subsidiary or Affiliate and for his own
pecuniary benefit or that of a family member (or member of his household) or
any entity (as described in clause (i)(2) of Section 4(a) above) in which he or
any such person has an economic or beneficial interest; or (5) Executive's
failure to cooperate, if requested by the Board, with any investigation or
inquiry into his or the Company's or any Subsidiary's or Affiliate's business
practices, whether internal or external;

 

(ii)              
willful failure, neglect or
refusal to perform his duties or services under this Agreement, which failure,
neglect or refusal shall continue for a period of 30 days after written notice
thereof shall have been given to Executive by or on behalf of the Board; and/or

 

(iii)            
commission of, conviction of, or
nolo contendere or guilty plea in connection with, a felony or a crime of moral
turpitude.

 

(b)              
Termination for Cause under
paragraph (a) of this Section 4 shall be effective immediately upon the giving
of such notice. For purposes of this Agreement, an act or failure to act on
Executive's part shall be considered "willful" if it was done or
omitted to be done by him not in good faith.

 

(c)               
Upon termination of employment by
the Company for Cause, Executive shall be entitled to receive, and his sole
remedies under this Agreement shall be:

	
	
	
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(i)                
any earned and unpaid Salary
accrued through the date of termination for Cause, payable in a lump sum not
later than 15 days following Executive's termination of employment;

 

(ii)              
compensation for any unused
vacation days accrued in the fiscal year in which termination occurs through
the date of termination, payable as in clause (i) of this Section 4(c);

 

(iii)            
except for any Bonus compensation
(for which Executive shall not be eligible), any unpaid benefits accrued
through the day immediately prior to the date of termination that may be due
Executive under any employee benefit plans or programs of the Company, payable
in accordance with the terms of such plans or programs, together with any
documented, unreimbursed business expenses, payable in accordance with Company
policies; and

 

(iv)            
any stock options, grants of
common stock, restricted share grants or other benefits under any of the
Company's compensation plans may not be exercised or obtained on or after the
effective date of termination and shall be forfeited for no consideration.

 

(d)              
Termination of Executive's
employment under this Section 4 shall be in addition to and not exclusive of
any other rights and remedies that the Company has or may have relating to
Executive with respect to the facts and circumstances pertaining to such
termination.

 

5.                 
TERMINATION BY EXECUTIVE FOR GOOD
REASON OR TERMINATION WITHOUT CAUSE

 

(a)               
In the event Executive terminates
his employment under this Agreement for Good Reason (as hereinafter defined),
or in the event Executive's employment is terminated without Cause, which
termination shall be effective as of the date specified by the Company in
written notice delivered to Executive not fewer than 15 days prior to the date
of termination) other than due to death or Disability (as hereinafter defined),
Executive shall be entitled to receive, and his sole remedies under this
Agreement shall be:

 

(i)               
any earned and unpaid Salary
accrued through the date of termination, payable in a lump sum not later than
15 days following Executive's termination of employment;

 

(ii)             
Salary, at the annualized rate in
effect on the date of termination of Executive's employment (or, in the event a
reduction in Salary is a basis for termination for Good Reason, then the Salary
in effect immediately prior to such reduction), equal to the amount of Salary
payable for a period of six months following such termination, payable in a
lump sum not later 
than 15 days following the date the
Release in Exhibit I becomes fully effective and nonrevocable by its terns;

	
	
	
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(iii)           
compensation for any unused
vacation days accrued in the fiscal year in which termination occurs through
the date of termination, payable as in clause (i) of this Section 5(a);

 

(iv)           
any unpaid benefits accrued
through the day immediately prior to the date of termination that may be due
Executive under any employee benefit plans or programs of the Company, payable
in accordance with the terms of such plans or programs, together with any
documented, unreimbursed business expenses, payable in accordance with Company
policies; and

 

(v)             
provided that the Release in
Exhibit I becomes fully effective and nonrevocable by its terms, any stock options,
grants of Common Stock, restricted share grants or other benefits under any of
the Company's compensation plans that were vested as of 5:00 PM on the date
immediately prior to the date of termination, which may be exercised (in the
case of options) or delivered (in the case of restricted stock) in accordance
with the terms of such plans and any applicable plan agreements with Executive.

 

(b)             
Termination by Executive for Good
Reason shall be effected by his giving prior written notice to the Company, in
which case this Agreement shall terminate on the date specified in such notice;
provided,
however, that the circumstances or event asserted as
the basis for termination for Good Reason must have occurred no later than
twenty (20) days before such notice, and 
provided,
that such
notice shall specify (i) in reasonable detail the circumstances or event
asserted as the basis for termination for Good Reason, and (ii) a date of
termination that shall be at least thirty (30) days after the date of delivery
of such notice; and 
provided,
further, that the Company shall
have the right during such thirty (30) day period to remedy the circumstances
or event giving rise to the notice of termination for Good Reason prior to the
date specified in such notice , in which case no right of termination or other
right shall exist.

 

(c)              
For purposes of this Agreement,
the term "Good Reason" shall mean:

 

(i)                
the assignment to Executive
without his consent of duties materially inconsistent with Executive's position
as contemplated by Section 2 of this Agreement:

 

(ii)              
a decrease in annual Salary rate,
other than an across the board decrease in salary applicable to all senior
executives of the Company of not more than 10%;

 

(iii)            
relocation of the Executive's
principal place of business more than 30 
miles from
West Palm Beach, Florida;

	
	
	
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(iv)            
any failure by the Company to
perform any material obligation under, or its breach of a material provision
of, this Agreement; or

 

(v)              
failure of a Successor to
expressly assume and agree to perform this Agreement in the same manner and to
the same extent as the Company would have had there been no Successor.

 

6.                 
TERMINATION FOR DEATH OR
DISABILITY

 

(a)               
Executive's employment shall
terminate immediately upon his death or Disability (as hereinafter defined).
Upon such termination, Executive, his estate, or his beneficiaries, as the case
may be, shall be entitled to receive, and their sole remedies under this
Agreement shall be:

 

(i)                
subject to Section 6(b), any
earned and unpaid Salary accrued through the date of termination, payable in a
lump sum not later than 15 days following Executive's termination of
employment;

 

(ii)              
subject to Section 6(b),
compensation for any unused vacation days accrued in the fiscal year in which
termination occurs through the date of termination, payable as in clause (i) of
this Section 6(a);

 

(iii)            
any unpaid benefits accrued
through the date of termination that may be due Executive under any employee
benefit plans or programs of the Company, payable in accordance with the terms
of such plans or programs, together with any documented, unreimbursed business
expenses, payable in accordance with Company policies; and

 

(iv)            
provided that the Release in
Exhibit I becomes fully effective and nonrevocable by its terms (which may be
executed upon Executive's death or Disability by his executor or estate, as
applicable) , any stock options, grants of Common Stock, restricted share
grants or other benefits under any of the Company's compensation plans that
were vested as of 5:00 PM on the date immediately prior to the date of
termination, which may be exercised (in the case of options) or delivered (in
the case of restricted stock) in accordance with the terms of such plans and
any applicable plan agreements with Executive.

 

(b)             For purposes of this Agreement,
the term "Disability" shall mean any disability, illness, or
other incapacity that prevents Executive from performing services as
contemplated by Section 2, for 60 or more consecutive days, or for 90 days in
any consecutive 12-month period. In such event, the Company shall have the right
to terminate this Agreement upon 10 days' prior written notice to Executive.
During the period of any such disability, illness, or incapacity, (i) the
obligation of the 
Company to pay Salary to Executive
pursuant to Section 3 shall be reduced to the extent of any amount received by
Executive pursuant to any disability insurance policy maintained and paid for
by the Company, and (ii) no bonus compensation or other employee benefits shall
accrue or be earned or count toward proration. Termination under this Section
shall not prejudice any rights of Executive under disability policies being
maintained by the Company for Executive under the terms of this Agreement, if
any.

	
	
	
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7.                 
TERMINATION UPON EXPIRATION OF THE
TERM

 

(a)               
Executive's employment shall
terminate upon the expiration of the Term. Upon such termination, Executive
shall be entitled to receive, and his sole remedies under this Agreement shall
be:

 

(i)               
any earned and unpaid Salary
accrued through the date of termination, payable in a lump sum not later than
15 days following Executive's termination of employment;

 

(ii)             
compensation for any unused
vacation days accrued in the fiscal year in which termination occurs through
the date of termination, payable as in clause (i) of this Section 7(a);

 

(iii)           
any unpaid benefits accrued
through the date of termination that may be due Executive under any employee
benefit plans or programs of the Company, payable in accordance with the terms
of such plans or programs, together with any documented, unreimbursed business
expenses, payable in accordance with Company policies; and

 

(iv)           
provided that the Release in
Exhibit I becomes fully effective and nonrevocable by its terms, any stock
options, grants of Common Stock, restricted share grants or other benefits
under any of the Company's compensation plans that were vested as of 5:00 PM on
the date immediately prior to the date of termination, which may be exercised
(in the case of options) or delivered (in the case of restricted stock) in
accordance with the terms of such plans and any applicable plan agreements with
Executive.

 

8.                 
OBLIGATIONS UPON TERMINATION, ETC.

 

(a)              
Upon the termination of employment
for any reason hereunder, all provisions of this Agreement shall terminate
except for Sections 8, 9, 10 and 11 of this Agreement and the provisions contained
in Exhibit I hereto, the terms of which shall survive such termination, and the
Company shall have no further obligation to Executive hereunder, except as
herein and therein expressly provided. The Company shall comply with the terms
of settlement of all deferred compensation arrangements to which Executive is a
party in accordance with his duly executed 
deferral
election forms and plan provisions.

	
	
	
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(b)              In the event of a termination of
employment by Executive on his own initiative during the Term or any renewal
thereof by delivery of written notice of such resignation ten business days in
advance, other than due to Disability or termination for Good Reason, Executive
shall have the same entitlements as provided in Section 4, Termination by the
Company for Cause.

 

(c)              In the event of a termination of
employment, payment made and performance by the Company in accordance with the
provisions of Section 4, 5, 6, or 7 as the case may be, and this Section 8
shall operate to fully discharge and release the Company and its Subsidiaries,
Affiliates, and their respective directors, officers, employees, shareholders,
successors, assigns, agents, and representatives (all of the foregoing
collectively , the "releasees") from any further obligation or
liability with respect to Executive's rights under this Agreement. Other than
payment and performance as aforesaid, none of the releasees shall have any
further obligation or liability to Executive or any other person under this
Agreement arising out of termination of Executive's employment under this
Agreement except as expressly set forth in Exhibit I hereto. The Company's
payment of any severance or other amounts pursuant to Section 4, 5, 6, 7, or 8
shall be subject to delivery by Executive to the Company of a release in form and
substance satisfactory to the Company releasing any and all claims Executive,
his estate, representatives, and assigns may have against the Company and any
other releasee arising out of this Agreement, as substantially set forth in
Exhibit I hereto.

 

9.                 
COVENANTS

 

(a)               
Executive agrees that during the
Term, any renewal thereof, and for one full year after expiration or
termination of the Term or any renewal thereof (except in the case of clause
(a), as to which Executive's covenant shall not be limited in time), he shall
not, without the express prior written consent of the Company, directly or
indirectly, either individually or as an employee, officer, director, agent,
partner, shareholder, consultant, option holder, joint venturer, contractor,
nominee, lender of money, guarantor, investor, owner, or in any other capacity:

 

(i)                
except as required in the course
of performing his duties hereunder, disclose, copy, divulge, furnish,
distribute or make available in any medium whatsoever to any firm, company,
corporation, organization, or other entity or person (including but not limited
to actual or potential customers or competitors or government officials), or
otherwise misappropriate trade secrets, intellectual property, or other
confidential or non-public information of or concerning the Company, its
Subsidiaries or Affiliates or the business of any of the foregoing, including
without limitation, customer lists, product designs and product know-how,
launch information or plans pertaining to Company, its Subsidiaries or Affiliates
or customer products, arrangements for supplying customers, methods of 
operation and organization, sources of supply and
arrangements with vendors, product development, business plans and strategies;
provided,
however, Executive may make disclosures as and to the extent required by
applicable law or compelled upon court or administrative order, 
provided,
further,
however, that in the event that Executive is so required
or compelled, he shall notify the Company not fewer than ten (10) business days
in advance of such disclosure in order to afford it the reasonable opportunity
to obtain a protective order or other remedy to limit the scope of such
disclosure (it being understood and agreed that, if such disclosure is required
by applicable law, Executive shall upon the Company's request furnish the
source and precedents with respect to such requirement). For purposes of this
Section 9, information shall not be deemed confidential if it is within the
public domain or becomes publicly known other than through disclosure by
Executive in violation of this provision;

	
	
	
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(ii)             
own (or have any financial
interest in, actual, contingent or otherwise), control, manage, operate,
participate, engage in, invest in or otherwise have any interest in, or
otherwise be connected with, in any manner, any firm, company, corporation,
organization, business, enterprise, venture or other entity, association or
person that is engaged in the business actually engaged in by the Company, its
Subsidiaries or Affiliates during the Term or any renewal thereof, including
without limitation the Company Business (as hereinafter defined); or

 

(iii)           
solicit, employ or retain or
arrange, encourage, facilitate or assist to have any other firm, company,
corporation, organization, business, enterprise, venture or other entity,
association or person solicit, employ, retain, or otherwise participate in the employment
or retention of, any person who is then, or who has been, within the preceding
six (6) months, an employee, consultant, sales representative, technician or
engineer of the Company, its Subsidiaries, Affiliates, or joint venture
counterparties.

 

(iv)           
own (or have any financial
interest in, actual, contingent, future, or otherwise), control, manage,
operate, participate, engage in, invest in or otherwise have any interest in or
through, or otherwise be connected with, in any manner, any firm, company, corporation,
organization, associate, business, enterprise, venture or other entity,
association or person that does or proposes to do any one or more of the
following as it relates to of the Company Business (as hereinafter defined):
(a)(i) engage in, do, or solicit business with, or (ii) interfere with or
affect the Company's (or any Subsidiary's or Affiliate's) business
opportunities with, any of the customers with whom the Company (or any
Subsidiary or Affiliate) has done business with during the most recent two
years, or (b)(i) engage in, do, or solicit business with, or (ii) interfere
with or affect the Company's (or any Subsidiary's or Affiliate's) business
opportunities with, any of the vendors with whom the Company (or any Subsidiary
or Affiliate) has 
done business with during the most
recent two years. The term "Company Business" shall mean the business
of designing, manufacturing, procuring the supply or manufacture of, sourcing,
selling, re-selling, and/or distributing (at wholesale, retail, or otherwise)
of carrying, protective, or portable cases or cover plates and related carry
case or other accessories supplied to the cellular telephone, portable medical
equipment, laptop computer, tablet, photography, firearms, aeronautic, code
reader, video or audio industries. Nothing in this Section 9 shall be deemed to
prohibit Executive from the acquisition or holding of, solely as a passive
stockholder, not more than one percent (1%) of the shares or other securities
of a publicly-owned corporation if such securities are traded on a national
securities exchange.

	
	
	
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(b)             
Executives agree that Executive
will not, directly or indirectly, make disparaging remarks about the Company,
any of its Subsidiaries or Affiliates, or their owners, officers, directors or
employees, in their individual and representative capacities, or the Company
Business. Executive will not, directly or indirectly, issue or cooperate with
issuance of any article, memorandum, release, interview, publicity, or
statement, whether oral or written of any kind, to the public, the press or the
media, which in any way concerns in a disparaging, offensive, or prejudicial
manner the Company or any Subsidiary or Affiliate. "Disparaging
remarks" when used in this Agreement shall mean the publication of matter
that is untrue or adversely affects the subject's reputation, image or good
will. This Section will not be construed to prevent Executive from complying
with any lawfully served and binding subpoena, 
provided
however,
that Executive forwards a copy of said subpoena(s) to the Company within
seventy-two (72) hours of receipt of the same, unless expressly prohibited by
law from doing so.

 

(c)             
Upon the expiration or termination
of this Agreement for any reason, Executive shall promptly deliver to the
Company all documents, papers and records in his possession relating to the
business or affairs of the Company or any Subsidiary or Affiliate and that he
obtained or received in his capacity as an employee or officer of the Company
or any Subsidiary or Affiliate and any other Company, Subsidiary or Affiliate
property or equipment in his possession or control.

 

(d)             Executive agrees that Executive
will cooperate with the Company, its Subsidiaries and Affiliates, and each of
their respective attorneys or other legal representatives ("Company
attorneys") in connection with any claim, litigation, or judicial or
arbitral proceeding which is now pending or may hereinafter be brought against
the Company or any of its Subsidiaries or Affiliates by any third party. Executive's
duty of cooperation shall include, but not be limited to (i) meeting with
Company attorneys by telephone or in person, at mutually convenient times and
places, in order to stat e truthfully Executive's knowledge of matters at issue
and recollection of events; (ii) appearance by Executive as a witness at
depositions or trials, without necessity of a subpoena, in order to state
truthfully Executive's knowledge of matters at issues; and (iii) signing, upon
the request of 
Company attorneys, declaration or
affidavits that truthfully state matters of which Executive has knowledge. The
Company shall reimburse Executive for Executive's actual and reasonable travel
expenses which have been approved by the Company in writing in advance of
Executive incurring them that Executive may incur in complying with Executive's
obligations pursuant to this Section.

	
	
	
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(e)               
In the event Executive shall
violate or be in violation of any provision of this Section 9 (which provisions
Executive hereby acknowledges are reasonable and equitable), in addition to the
Company's right to exercise any and all remedies, legal and equitable, which it
may have under applicable laws, Executive shall not be entitled to any, and
hereby waives any and all rights to, each and every, termination payment or
benefit under this Agreement.

 

(f)               
Nothing contained in this
Agreement shall be construed to prevent the Executive from reporting any act or
failure to act to the Securities and Exchange Commission or other governmental
body or prevent the Employee from obtaining a fee as a “whistleblower” under
Rule 21F-17(a) under the Securities and Exchange Act of 1934 or other rules or
regulations implemented under the Dodd-Frank Wall Street Reform Act and
Consumer Protection Act.

 

10.             
SEPARABILITY

 

Executive acknowledges and agrees that the provisions
of Section 9 hereof constitute independent and separable covenants, for which
Executive is receiving consideration, which shall survive the termination of
employment, and which shall be enforceable by the Company notwithstanding any rights
or remedies the Company may have under any other provision hereof.

 

11.             
SPECIFIC PERFORMANCE

 

(a)               
Executive acknowledges and agrees
that:

 

(i)                
the services to be rendered and
covenants to be performed under this Agreement are of a special and unique
character and that the Company and any Subsidiary or Affiliate would be
irreparably harmed if such services were lost to it or if Executive breached
its obligations and covenants hereunder;

 

(ii)              
the Company and its Subsidiaries
and Affiliates are relying on Executive's performance of the covenants
contained herein, including, without limitation, those contained in Section 10
above, as a material inducement for its entering into this Agreement;

 

(iii)            
the Company and its Subsidiaries
and Affiliates may be damaged if the provisions hereof are not specifically
enforced; and

 

(iv)            
the award of monetary damages may
not adequately protect the Company 
and its
Subsidiaries and Affiliates in the event of a breach hereof by Executive.

	
	
	
	12

	
	
	 

 

 

 

(b)              
By virtue thereof, Executive
agrees and consents that if Executive breaches any of the provisions of this
Agreement , the Company and its Subsidiaries and Affiliates, in addition to any
other rights and remedies available under this Agreement or under applicable
laws, shall (without any bond or other security being required and without the
necessity of proving monetary damages) be entitled to a temporary and/or
permanent injunction to be issued by a court of competent jurisdiction
restraining Executive from committing or continuing any violation of this
Agreement, or any other appropriate decree of specific performance. Such
remedies shall not be exclusive and shall be in addition to any other remedy
that the Company and its Subsidiaries and Affiliates may have.

 

12.             
MISCELLANEOUS

 

(a)               
Entire Agreement; Amendment. This Agreement constitutes the entire employment
agreement between the parties and may not be modified, amended or terminated
(other than pursuant to the terms hereof) except by a written instrument
executed by the parties hereto. All other agreements, written or oral, between
the parties pertaining to the employment or remuneration of Executive not
specifically contemplated hereby or incorporated or merged herein are hereby
terminated and shall be of no further force or effect.

 

(b)              
Assignment; Successors. This Agreement is not assignable by Executive and
any purported assignment by Executive of Executive's rights and/or obligations
under this Agreement shall be null and void. Except as provided below, this
Agreement may be assigned by the Company at any time, upon delivery of written
notice to Executive, to any successor to the business of the Company, or to any
Subsidiary or Affiliate. In the event that another corporation or other
business entity becomes a Successor of the Company, then this Agreement may not
be assigned to such Successor unless the Successor shall assume and agree to
perform this Agreement in the same manner and to the same extent as the Company
would be required to perform if there had been no Successor. The term
"Successor" as used herein shall mean any corporation or other
business entity that succeeds to substantially all of the assets or conducts
the business of the Company, whether directly or indirectly, by purchase,
merger, consolidation or otherwise. This Agreement shall be binding upon and inure
to the benefit of the parties and their respective heirs, executors,
administrators, personal representatives, successors and permitted assigns.

 

(c)              Waivers, etc. No waiver of any breach or default hereunder shall
be considered valid unless in writing, and no such waiver shall be deemed a
waiver of any subsequent breach or default of the same or similar nature. The
failure of any party to insist upon strict adherence to any term of this
Agreement on any occasion shall not operate or be construed as a waiver of the
right to insist upon strict adherence to that term or any other term of this
Agreement on that or any 
other occasion.

	
	
	
	13

	
	
	 

 

 

 

(d)              
Provisions Overly Broad. In the event that any term or provision of this
Agreement shall be deemed by a court of competent jurisdiction to be overly
broad in scope, duration or area of applicability, the court considering the
same shall have the power and hereby is authorized and directed to modify such
term or provision to limit such scope, duration or area, or all of them, so
that such term or provision is no longer overly broad and to enforce the same
as so limited. Subject to the foregoing sentence, in the event that any
provision of this Agreement shall be held to be invalid or unenforceable for
any reason, such invalidity or unenforceability shall attach only to such
provision and shall not affect or render invalid or unenforceable any other
provision of this Agreement.

 

(e)              Notices. Any notice permitted or required hereunder shall be
in writing and shall be deemed to have been given on the date of delivery or,
if mailed by certified mail, postage prepaid, return receipt requested,
documented overnight courier, or by facsimile transmission, on the date mailed
or transmitted.

 

(i)                
If to Executive to:

 

his address on file with the Company.

 

(ii)              
If to the Company to:

 

477 S. Rosemary Ave. Suite 219

West Palm Beach, FL. 33401

Attention: Chief Executive Officer

 

(f)               
Law Governing. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York governing contracts made and
to be performed in New York without regard to conflict of law principles
thereof.

 

(g)              
Survival. All obligations of the Company to Executive and
Executive to the Company shall terminate upon the termination of this
Agreement, except as expressly provided herein. The provisions of Sections 8,
9, 10 and 1J shall survive termination of this Agreement.

 

(h)              
Counterparts. This Agreement may be executed in counterparts, each
of which shall be deemed an original, and each party may become a party hereto
by executing a counterpart hereof. This Agreement and any counterpart so
executed shall be deemed to be one and the same instrument. It shall not be
necessary in making proof of this Agreement or any counterpart hereof to
produce or account for any of the other counterparts. Facsimile or electronic
copies of this Agreement shall be of the same force and effect as the original.

 

(i)                
Approval. This Agreement is subject to prior review and
approval of the 
Compensation Committee of the
Company's Board of Directors.

	
	
	
	14

	
	
	 

 

 

 

(j)                
Headings. The headings in this Agreement are for convenience
of reference only.

 

(k)             Representation. Executive represents and warrants to the Company,
and Executive acknowledges that the Company has relied on such representations
and warranties in offering to employ Executive, that neither Executive's duties
as an employee of the Company nor his performance of this Agreement will breach
any other agreement to which Executive is a party, including without
limitation, any agreement limiting the use or disclosure of any information
acquired by Executive prior to his employment by the Company. In addition,
Executive represents and warrants and acknowledges that the Company has relied
on such representations and warranties in employing Executive, that he has not
entered into, and will not enter into, any agreement, either oral or written,
in conflict herewith. If it is determined that Executive is in breach or has
breached any of the representations set forth herein, the Company shall have
the right to terminate Executive's employment for Cause.

 

13.             

Indemnification and
Liability Insurance. 
The Company shall indemnify and cover Executive under the Company’s directors’
and officers’ liability insurance during the Term in the same amount and to the
same extent as the Company indemnifies and covers its other officers and
directors.

 

	
	
	
	15

	
	
	 

 

 

 

 

IN WITNESS WHEREOF, the parties have executed this
Agreement dated as of May 16, 2018, intending it to be effective on and as
of the date hereof.

 

 

	
		EXECUTIVE	
		
		FORWARD
INDUSTRIES, INC.

	 	
		
		 

		
	 	
		
		 

		
	 	
		
		 

		
	/s/ 
		Michael Matte       	
		
		By:  
		
		
		/s/ Terry Wise                 

	
		Michael Matte	
		
		
		        Terry Wise 

	 	
		
		
		        Chief Executive Officer 

 

 

 

 

 

 

 

 

	
	
	
	16

	
	
	 

 

 

EXHIBIT I

 

1.                 
Release. This Release of Claims (the "Release")
is entered into by you as a condition precedent to receiving the severance and
severance related benefits provided in the Employment Agreement to which this
Exhibit I relates (the "Employment Agreement"). In exchange
for the receipt of the severance and severance related benefits, you for
yourself, your heirs and assigns and anyone else acting on your behalf, hereby
voluntarily, knowingly and irrevocably and forever discharge the Company, each
of its subsidiaries and affiliates, and their respective predecessors and
successor s, as well as each of their respective present, former, and future
officers, directors, shareholders, employees, and agents, in both their
individual and representative capacities, and each of their heirs and assigns
(the "Releasees") from all actions, claims , demands, causes
of actions, obligations, damages, liabilities, expenses and controversies of
any nature whatsoever, whether known or not now known or suspected , which you
had, have or may have against the Releasees from the beginning of time up to
and including the date you sign this Release (the "Waived Claims").
The Waived Claims that you forever and irrevocably give up and release when the
Release becomes effective include, but are not limited to, all claims related
to (i) your employment at each of the Company and its subsidiaries or
affiliates or the termination of such employment, (ii) statements, acts or
omissions by the Releasees, (iii) any express or implied agreement between you
and the Releasees, (iv) wrongful discharge, defamation, slander, breach of
express or implied contract, negligent and/or intentional misrepresentation or
infliction of emotional distress, breach of an implied covenant of good faith
and fair dealing, claims of intentional or negligent interference with
economic, employment, or contractual rights or promissory estoppel, (v) any
federal, state, or local law or regulation prohibiting discrimination in
employment or otherwise regulating employment, including but not limited to,
the Age Discrimination in Employment Act of 1967, as amended  (ADEA), the Older
Worker Benefit Protections Act, the Equal Pay Act of  1963, Title VII of the
Civil Rights  Acts of 1964,  as amended, the Civil Rights Act of 199 1, the
Family Medical Leave Act of 1993 (FMLA), the America ns with Disabilities Act
of 1990 (ADA), the Worker Adjustment and Retraining Notification Act, the Fair
Labor Standards Act of 1938, as amended, the Employee Retirement Income
Security Act of 1974 (ERISA), as amended, 42 U.S.C. Section s 1981 through
1988, the Consolidated Omnibus Reconciliation Act of 1986 (COBRA), the New York
State Human Rights Law and the New York City Human Rights Act, the Florida
Civil Rights Act, the Florida Whistleblower Protection Act, the Florida Workers
Compensation Retaliation provision, the Florida Minimum Wage Act, the Florida
Fair Housing Act and Article X, Section 24 of the Florida Constitution, (vi)
any claim for wages, commissions, bonuses, incentive compensation, vacation
pay, employee benefits, expenses or allowances of any kind, or any other
payment or compensation. You are not waiving any claims with respect to your
rights to enforce Section [5][6][7] of the Employment Agreement. You are not
waiving or releasing any rights or claims that may arise after the date that
you sign this Release. 

 

2.                 
Termination and Severance
Benefits. The Release does not affect
your vested rights and eligibility for benefits under the Company 40l(k) Plan,
or any other employee benefit plan covered by ERISA (other than a severance
plan). Eligibility for benefits under these 
plans is
determined by the applicable plan documents. The Release does not affect your
right to reimbursement of expenses incurred but not reimbursed prior to the
date you sign the Release, subject to the Company's expense reimbursement
policies. In particular, this Release shall not affect your right to the
payment provided in Section [5][6][7] of the Employment Agreement.

	
	A-I

	
	
	 

 

 

 

3.                 
No suit. This Release does not impair any rights you have to
file a charge of discrimination with a federal or state administrative agency;
provided, however, that you acknowledge and agree that neither you nor your
heirs, executors, administrators, successors or assigns will be entitled to any
personal recovery in any proceeding of any nature whatsoever against the
Releasees arising out of any of the matters released in Section 1. You
represent and warrant that as of the date hereof, you nor anyone acting on your
behalf has made or filed, commenced, maintained, prosecuted or participated in
any action, suit, charge, grievance, complaint or proceeding of any kind
against the Company, any subsidiary or affiliate thereof, and/or Releasees in
any federal, state or local court, agency or investigative body.

 

4.                 
Representations. You acknowledge and agree that:

 

(a)               
You have read and fully understand
the legal effect and binding nature of the promises and obligations contained
in this Release;

 

(b)              
You are executing this Release
freely and voluntarily;

 

(c)               
You have been advised to consult
with legal counsel, at your own expense, before signing this Release;

 

(d)              
You are receiving benefits as a
condition to signing this Release and it becoming effective that you would not
otherwise be entitled to receive but for this Release becoming effective;

 

(e)               
You have not, during the term of
your employment under the Employment Agreement or thereafter performed any act,
or directed any other person or entity to perform any act on your or their
behalf, the intended or proximate result of which would constitute a violation
of the covenants to be performed by you referred to or set forth in the
Employment Agreement, nor are there any agreements, arrangements, or
understandings, written or oral, that would, if performed or acted upon,
constitute such a violation.

 

(f)               
There are no promises or
representations that have been made to you to sign this Release except those
that are included in the Employment Agreement and this Release;

 

(g)              
You have 21 days to consider this
Release, although you may sign it sooner, and once you sign this Release, you
have 7 days to revoke your consent to this Release. Any such revocation shall
be made in writing by hand delivery, email, or 
overnight
courier so as to be received by the Company prior to (or if by overnight
courier, on or prior to) the 8th day following your execution of this Release;
and if no such revocation occurs, this Release s hall become fully effective on
the 8th day following your execution of this Release. In the event that you do
not sign within such 21-day period or you revoke your consent as permitted
above, this Release shall be null and void.

	
	A-II

	
	
	 

 

 

 

5.                 
Employment Agreement. You further acknowledge and agree that the
following provisions of the Employment Agreement are incorporated by reference
into this Release as if fully set forth herein: 9 (Covenants), 10
(Separability), 11 (Specific Performance) and 12 (Miscellaneous). You hereby
reaffirm such sections and acknowledge and agree that such sections shall
survive the termination of your employment for whatever reason and continue as set
forth in the Employment Agreement.

 

6.                 
No Admission. This Release is not an admission of any liability or
wrongdoing by you, the Company and/or any Releasee.

 

7.                 
No Reinstatement. By entering into this Agreement, you acknowledge
that you (i) waive any claim to reinstatement and/or future employment with the
Company or any subsidiary or affiliate and (ii) are not and shall not be
entitled to any payments, benefits or other obligations from the Company or any
subsidiary or affiliate thereof whatsoever (except as expressly set forth
herein).

 

 

 

 

 

	
	A-III

	
	
	 

 

 

Your signature below
acknowledges that you knowingly and voluntarily agree to all of the terms and
conditions contained in this Release.

 

 

	
		MICHAEL MATTE	
		
		FORWARD INDUSTRIES)
INC.

	 	
		
		 

		
	 	
		
		 

		
	 	
		
		 

		
	
		/s/
Michael Matte        	
		
		By:
		
		                                                    
		

	
		Michael Matte	
		
		
		        [Name] 

	 	
		
		
		        [Position]EX-4.2

 Exhibit 4.2 

SECOND SUPPLEMENTAL INDENTURE 

Dated as of May 18, 2018 
 by
and among 
 MOHAWK CAPITAL FINANCE S.A., 

as Issuer, 
 MOHAWK INDUSTRIES,
INC., 
 as Guarantor, 
 U.S.
BANK NATIONAL ASSOCIATION, 
 as Trustee, Registrar and Transfer Agent, 

and 
 ELAVON FINANCIAL SERVICES
DAC, UK BRANCH, 
 as Paying Agent and Calculation Agent 
  

 

€300,000,000 Floating Rate Notes due 2020 
  

 

 TABLE OF CONTENTS 
  

							
	ARTICLE I	 
	DEFINITIONS	 
			
	 SECTION 1.1.
	  	DEFINITIONS	  	 	2	 
	
	ARTICLE II	 
	ESTABLISHMENT OF SECURITIES	 
			
	 SECTION 2.1.
	  	TITLE OF SECURITIES	  	 	8	 
	 SECTION 2.2.
	  	AGGREGATE PRINCIPAL AMOUNT OF NOTES	  	 	8	 
	 SECTION 2.3.
	  	PAYMENT OF PRINCIPAL, INTEREST AND ADDITIONAL AMOUNTS ON THE NOTES	  	 	9	 
	 SECTION 2.4.
	  	DENOMINATIONS	  	 	12	 
	 SECTION 2.5.
	  	REDEMPTION	  	 	13	 
	 SECTION 2.6.
	  	OFFER TO REPURCHASE UPON CHANGE OF CONTROL TRIGGERING EVENT	  	 	14	 
	 SECTION 2.7.
	  	SINKING FUND	  	 	15	 
	 SECTION 2.8.
	  	PAYING AGENT, TRANSFER AGENT AND REGISTRAR; CERTAIN TAX PROVISIONS	  	 	15	 
	 SECTION 2.9.
	  	LIMITATION ON LIENS	  	 	15	 
	 SECTION 2.10.
	  	LIMITATION ON SALE AND LEASEBACK TRANSACTIONS	  	 	17	 
	 SECTION 2.11.
	  	EVENTS OF DEFAULT	  	 	17	 
	 SECTION 2.12.
	  	MODIFICATION OF THE INDENTURE	  	 	17	 
	 SECTION 2.13.
	  	DEFEASANCE AND DISCHARGE	  	 	18	 
	 SECTION 2.14.
	  	NOTICES	  	 	18	 
	
	ARTICLE III	 
	MISCELLANEOUS PROVISIONS	 
			
	 SECTION 3.1.
	  	RECITALS BY COMPANY	  	 	18	 
	 SECTION 3.2.
	  	APPLICATION TO NOTES ONLY	  	 	18	 
	 SECTION 3.3.
	  	BENEFITS	  	 	18	 
	 SECTION 3.4.
	  	EFFECTIVE DATE	  	 	19	 
	 SECTION 3.5.
	  	RATIFICATION	  	 	19	 
	 SECTION 3.6.
	  	COUNTERPARTS	  	 	19	 
	 SECTION 3.7.
	  	GOVERNING LAW	  	 	19	 

 THIS SECOND SUPPLEMENTAL INDENTURE (this “Second Supplemental Indenture”) is made as of
May 18, 2018, by and among MOHAWK CAPITAL FINANCE S.A., a company organized under the laws of Luxembourg, as Issuer (and referred to herein as the “Company”), MOHAWK INDUSTRIES, INC., a Delaware corporation, as Guarantor (and referred
to herein as the “Guarantor”), U.S. BANK NATIONAL ASSOCIATION, a national banking association, as trustee (the “Trustee”), Registrar and Transfer Agent (the “Transfer Agent”), and ELAVON FINANCIAL SERVICES DAC, UK
Branch, as Paying Agent and Calculation Agent. 
 WHEREAS, the Company, the Guarantor and the Trustee entered into that certain Senior
Indenture dated as of September 11, 2017 (the “Original Indenture”) which provides for the issuance by the Company from time to time of Securities, in one or more series as provided therein and for the guarantee thereof by the
Guarantor; 
 WHEREAS, the Company has determined to issue a series of Securities as provided herein; 

WHEREAS, Section 3.1 of the Original Indenture provides that certain terms and conditions for each series of Securities issued by the
Company thereunder may be set forth in an indenture supplemental to the Original Indenture; 
 WHEREAS, Section 12.1(9) of the Original
Indenture provides for the Company, the Guarantor and the Trustee to enter into an indenture supplemental to the Original Indenture to establish the form or terms of Securities of any series as provided by Sections 2.1 and 3.1 of the Original
Indenture; 
 WHEREAS, the Company, the Guarantor, the Trustee and the Paying Agent entered into that certain First Supplemental Indenture
dated as of September 11, 2017 pursuant to which the Company issued its €300,000,000 Floating Rate Notes due 2019; 
 WHEREAS, the
Company and the Guarantor have registered the Trustee and the Paying Agent to join them in the execution and delivery of this Second Supplemental Indenture in order to supplement the Original Indenture by establishing the forms and terms of a series
of securities to be known as the Company’s €300,000,000 Floating Rate Notes due 2020 (the Original Indenture, as supplemented by this Second Supplemental Indenture, the “Indenture”). 

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

 ARTICLE I 

DEFINITIONS 
 SECTION 1.1.
DEFINITIONS 
 For all purposes of this Second Supplemental Indenture, except as otherwise expressly provided for or unless the context
otherwise requires: 
 (a) Capitalized terms used but not defined herein shall have the respective meanings given them in the Original
Indenture; 
 (b) All references herein to Articles and Sections, unless otherwise specified, refer to the corresponding Articles and
Sections of this Second Supplemental Indenture; and 
 (c) The following terms shall have the indicated definitions and if the definition of
any of the following terms differs from its respective definition set forth in the Original Indenture, the definition set forth herein shall control: 

“Actual/360” has the meaning specified in Section 2.3(b). 

“Additional Amounts” has the meaning specified in Section 2.3(d). 

“Applicable EURIBOR Rate” means the rate determined in accordance with the following provisions: 

(a) Two prior Target Days on which dealings in deposits in Euros are transacted in the Euro-zone Interbank Market preceding
each Floating Rate Interest Reset Date (each such date, an “Interest Determination Date”), the Calculation Agent, as agent for the Company, will determine the Applicable EURIBOR Rate which shall be the rate for deposits in Euro having a
maturity of three months commencing on the first day of the applicable Floating Rate Interest Period that appears on the Reuters Screen EURIBOR01 Page as of 11:00 a.m., Brussels time, on such Interest Determination Date. “Reuters Screen
EURIBOR01 Page” means the display designated on page “EURIBOR01” on Reuters (or such other page as may replace the EURIBOR01 page on that service or any successor service for the purpose of displaying Euro-zone Interbank Offered Rates
for Euro-denominated deposits of major banks). If the Applicable EURIBOR Rate on such Interest Determination Date does not appear on the Reuters Screen EURIBOR01 Page, the Applicable EURIBOR Rate will be determined as described in (2) below.

 (b) With respect to an Interest Determination Date for which the Applicable EURIBOR Rate does not appear on the Reuters
Screen EURIBOR01 Page as specified in (1) above, the Applicable EURIBOR Rate will be determined on the basis of the rates at which deposits in Euro are offered by four major banks in the Euro-zone Interbank Market selected by the Company (the
“Reference Banks”) at approximately 11:00 a.m., Brussels time, on such Interest Determination Date to prime banks in the Euro-zone Interbank Market having a maturity of three months, and in a principal amount equal to

  
 - 2 - 

 
an amount of not less than €1,000,000 that is representative for a single transaction in such market at such time. The Company shall request the principal Euro-zone office of each of such
Reference Banks to provide a quotation of its rate. If at least two such quotations are provided, the Applicable EURIBOR Rate on such Interest Determination Date will be the arithmetic mean (rounded upwards) of such quotations. If fewer than two
quotations are provided, the Applicable EURIBOR Rate on such Interest Determination Date will be the arithmetic mean (rounded upwards) of the rates quoted by three major banks in the Euro-zone selected by the Company at approximately
11:00 a.m., Brussels time, on such Interest Determination Date for loans in Euro to leading European banks, having a maturity of three months, and in a principal amount equal to an amount of not less than €1,000,000 that is representative
for a single transaction in such market at such time; provided, however, that if the banks so selected as aforesaid by the Company are not quoting as mentioned in this sentence, the relevant Floating Interest Rate for the Floating Rate
Interest Period commencing on the Floating Rate Interest Reset Date following such Interest Determination Date will be the Floating Interest Rate in effect on such Interest Determination Date (i.e., the same as the rate determined for the
immediately preceding Floating Rate Interest Reset Date). 
 “Attributable Debt” means, on the date of any determination,
the present value of the obligation of the lessee for Net Rental Payments during the remaining term of the lease included in a Sale and Leaseback Transaction, including any period for which such lease has been extended or may, at the option of the
lessor, be extended. Such present value shall be calculated using a discount rate equal to the interest rate set forth or implicit in the terms of such lease or, if not practicable to determine such rate, the weighted average interest rate per annum
borne by the Notes on such date of determination, in either case compounded semi-annually. 
 “Business Day” means any day,
other than a Saturday or Sunday, (a) which is not a day on which banking institutions in the City of New York or London are authorized or required by law or executive order to close and (b) on which the Trans-European Automated Real-time
Gross Settlement Express Transfer system, or any successor thereto, operates. 
 “Calculation Agent” shall mean Elavon
Financial Services DAC, UK Branch, or any successor thereto as provided in Section 2.3 hereof. 
 “Change of Control”
means the occurrence of any one of the following: (1) the direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or
substantially all of (a) the Company and its Subsidiaries’ assets, taken as a whole or (b) the Guarantor and its Subsidiaries’ assets, taken as a whole, in each case, to any person other than to the Guarantor or one of the
Guarantor’s Subsidiaries; (2) the consummation of any transaction (including without limitation, any merger or consolidation) the result of which is that any “person” (other than the Guarantor or one of the Guarantor’s
Subsidiaries) becomes the “beneficial owner” (as such terms are defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than
50% of the Voting Stock of the Company, the Guarantor or any parent company (as defined below) or other Voting Stock into which the Voting Stock of the Company, the Guarantor or of any parent company is reclassified, consolidated, exchanged or
changed, measured by voting power rather than number of shares; (3) the Company, the Guarantor or any parent company consolidates 

  
 - 3 - 

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

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

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

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

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

“Clearstream” means Clearstream Banking, société anonyme Luxembourg. 

“Consolidated Net Tangible Assets” means, on the date of any determination, the aggregate amount of assets, less applicable
reserves and other properly deductible items, after deducting from that net amount: 
 (a) all current liabilities, and 

(b) goodwill, trademarks, trade names, patents, unamortized debt-discount and other like intangibles, 

in each case as set forth on the most recently available consolidated balance sheet of the Guarantor and the Consolidated Subsidiaries, in accordance with
GAAP. 
 “Daily Interest Amount” has the meaning specified in Section 2.3(b). 

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

“EURIBOR Business Day” means any day that is not a Saturday nor a Sunday and that, in the City of New York and the City of
London, is not a day on which banking institutions are generally authorized or obligated by law to close, and is a day on which the Trans-European Automated Real-time Gross Settlement Express Transfer System, or any successor thereto, operates. 

  
 - 4 - 

 “Euros” or “€” means the currency of the
member states of the European Union. 
 “Euroclear” means Euroclear Bank, S.A./N.V., as operator of the Euroclear System.

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

“Floating Interest Rate” shall have the meaning set forth in Section 2.3(b) hereof. 

“Floating Rate Interest Payment Date” shall mean August 18th, November 18th, February 18th and May 18th of each year in which
the Notes are outstanding, commencing with August 18, 2018. 
 “Floating Rate Interest Period” means the period from
and including a Floating Rate Interest Reset Date to, but excluding, the next succeeding Floating Rate Interest Reset Date and, in the case of the last such period, from and including the Floating Rate Interest Reset Date immediately preceding the
Floating Rate Maturity Date or Floating Rate Principal Date, as the case may be, to but not including the Floating Rate Maturity Date or the Floating Rate Principal Payment Date, as the case may be. If the Floating Rate Principal Payment Date or
Floating Rate Maturity Date is not a EURIBOR Business Day, then the principal amount of the Notes, plus accrued and unpaid interest thereon, shall be paid on the next succeeding EURIBOR Business Day (unless the next EURIBOR Business Day is in the
next succeeding calendar month, in which case such Floating Rate Principal Payment Date or the Floating Rate Maturity Date shall be the immediately preceding EURIBOR Business Day). 

“Floating Rate Interest Reset Date” means May 18th, August 18th, November 18th and February 18th of each year during which
the Notes are outstanding, and will be set for the initial Floating Rate Interest Reset Date on May 18, 2018. 
 “Floating Rate
Maturity Date” means May 18, 2020. 
 “Floating Rate Principal Payment Date” has the meaning specified in
Section 2.3(b). 
 “Funded Debt” means (a) all Debt for money borrowed having a maturity of more than 12 months
from the date as of which the determination is made or having a maturity of 12 months or less but by its terms being renewable or extendible beyond 12 months from such date at the option of the borrower (excluding any amount thereof included in
current liabilities) and (b) all rental obligations payable more than 12 months from such date under leases that would be required to be capitalized in accordance with GAAP as in effect on the date of this Second Supplemental Indenture (such
rental obligations to be included as Funded Debt at the amount so capitalized). 
 “Government Obligations” means
securities that are (a) direct obligations of the Federal Republic of Germany for the payment of which its full faith and credit is pledged or (b) obligations of a person controlled or supervised by and acting as an agency or
instrumentality of the Federal Republic of Germany, the payment of which is unconditionally guaranteed as a full faith and credit obligation by the Federal Republic of Germany, which, in either case under clauses (a) or (b) are not
callable or redeemable at the option of the issuer thereof. 

  
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 “incur” means to, directly or indirectly, issue, assume, guaranty, incur, become
directly or indirectly liable with respect to (including as a result of an acquisition (by way of merger, consolidation or otherwise)), or otherwise become responsible for, contingently or otherwise. 

“Interest Determination Date” has the meaning specified in the definition of “Applicable EURIBOR Rate”. 

“Investment Grade” means a rating of Baa3 or better by Moody’s (or its equivalent under any successor rating category),
a rating of BBB- or better by Standard & Poor’s (or its equivalent under any successor rating category) and a rating of BBB- or better by Fitch (or its
equivalent under any successor rating category). 
 “Moody’s” means Moody’s Investors Service, Inc., and its
successors. 
 “Net Proceeds” means, with respect to a Sale and Leaseback Transaction, the aggregate amount of cash or cash
equivalents received by the Guarantor or a Consolidated Subsidiary, less the sum of all payments, fees, commissions and expenses incurred in connection with such Sale and Leaseback Transaction, and less the amount (estimated reasonably and in good
faith by the Guarantor) of income, franchise, sales and other applicable taxes required to be paid by the Guarantor or any Consolidated Subsidiary in connection with such Sale and Leaseback Transaction in the taxable year that such Sale and
Leaseback Transaction is consummated or in the immediately succeeding taxable year, the computation of which shall take into account the reduction in tax liability resulting from any available operating losses and net operating loss carryovers, tax
credits and tax credit carryforwards, and similar tax attributes. 
 “Net Rental Payments” means the total amount of rent
payable by the lessee after excluding amounts required to be paid on account of maintenance and repairs, insurance, taxes, assessments, water rates and similar charges. 

“Notes” has the meaning specified in Section 2.1. 

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

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

  
 - 6 - 

 “Rating Agency” means: 

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

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

“Relevant Jurisdiction” means Luxembourg, the United States or any jurisdiction in which the Company is organized or
otherwise a resident for tax purposes or through which payments are made or deemed made in respect of the Notes to be redeemed or, in the event that the Company appoints additional Paying Agents, the jurisdiction of any such additional Paying Agents
or, in each case, any political subdivision thereof or any authority or agency therein or thereof having power to tax. 
 “Sale and
Leaseback Transaction” means any arrangement whereby the Guarantor or any of its Subsidiaries has sold or transferred, or will sell or transfer, property and has or will take back a lease pursuant to which the rental payments are calculated
to amortize the purchase price of the property substantially over the useful life of such property. 
 “Substitute Rating
Agency” means a “nationally recognized statistical rating organization” within the meaning of Section 3(a)(62) under the Exchange Act, selected by the Guarantor (as certified by a resolution of the Guarantor’s board of
directors and reasonably acceptable to the Trustee) as a replacement agency for any or all of Moody’s, S&P or Fitch, as the case may be. 

  
 - 7 - 

 “S&P” means Standard & Poor’s Financial Services LLC, and its
successors. 
 “Target Day” means a day on which the Trans-European Automated Real-time Gross Settlement Express Transfer
System is operating. 
 “Trigger Period” has the meaning assigned to such term in the definition of Rating Event. 

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

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

ARTICLE II 

ESTABLISHMENT OF SECURITIES 

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

There is hereby established a series of Securities designated the “Floating Rate Notes due 2020” (the “Notes”). 

SECTION 2.2. AGGREGATE PRINCIPAL AMOUNT OF NOTES 

There are initially to be authenticated and delivered €300,000,000 principal amount of the Notes. Such principal amount of the Notes may
be increased from time to time pursuant to Section 3.1 of the Indenture. 
 All Notes of this series need not be issued at the same
time and such series may be reopened at any time, without notice to or the consent of any Holder, for issuances of additional Notes of such series. Any such additional Notes will rank equally with such series of Notes in all respects (other than the
public offering price of such additional notes, the payment of interest accruing prior to the issue date of such additional Notes and/or the first payment of interest following the issue date of such additional Notes) as the series of Notes
initially issued hereunder. Any such additional Notes, together with the series of Notes initially issued hereunder, may be consolidated to form a single series of Securities under the Indenture and have the same terms as to status, redemption or
otherwise as the Notes initially issued hereunder; provided, however, that if such additional Notes are not fungible for U.S. federal income tax purposes with the Notes issued hereby, such additional Notes shall be issued under a
separate CUSIP, ISIN and/or any other identifying number. 

  
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 Nothing contained in this Section 2.2 or elsewhere in this Second Supplemental Indenture, or
in the Notes, is intended to or shall limit execution by the Company or Guarantor or authentication or delivery by the Trustee of Notes under the circumstances contemplated by Sections 3.4, 3.7, 3.8 and 12.5 of the Indenture. 

The Notes shall be issued in registered form without coupons and shall be in substantially the form of Exhibit A
attached hereto. The form of the Trustee’s certificate of authentication for the Notes shall be in substantially the form set forth in the form of Note attached hereto. The Notes shall be dated the date of authentication thereof. The Notes will
initially be represented by one or more fully registered Global Securities. Each such Global Security will be deposited with, or on behalf of, a common safekeeper, and registered in the name of the nominee of the common safekeeper for the accounts
of Clearstream and Euroclear. The Notes shall not be issuable in definitive form except under the limited circumstances specified in Section 3.7 of the Indenture. The Company will hold at its registered office a register of the Notes in which
Clearstream and Euroclear will be recorded as holder. 
 SECTION 2.3. PAYMENT OF PRINCIPAL, INTEREST AND ADDITIONAL AMOUNTS ON THE NOTES 

(a) The Notes will mature, and all then outstanding principal thereof shall be due and payable, on the Floating Rate Maturity Date. 

(b) The Notes shall bear interest on the aggregate unpaid principal amount thereof at a rate per annum in effect for each day of a Floating
Rate Interest Period equal to the Applicable EURIBOR Rate from time to time in effect for each applicable Floating Rate Interest Period plus thirty (30) basis points (0.30%) (the “Floating Interest Rate”); provided,
however, that the minimum interest rate for the Notes shall be no less than 0.00% per annum. Accrued but unpaid interest on the Notes shall be payable on each Floating Rate Interest Payment Date. The Notes will bear interest at the applicable
Floating Interest Rate until the principal on the Notes is paid or made available for payment (the “Floating Rate Principal Payment Date”). If any Floating Rate Interest Reset Date (other than the initial Floating Rate Interest Reset Date
occurring on May 18, 2018) and Floating Rate Interest Payment Date would otherwise be a day that is not a EURIBOR Business Day, such Floating Rate Interest Reset Date or Floating Rate Interest Payment Date, as applicable, shall be the next
succeeding EURIBOR Business Day, unless the next succeeding EURIBOR Business Day is in the next succeeding calendar month, in which case such Floating Rate Interest Reset Date and Floating Rate Interest Payment Date shall be the immediately
preceding EURIBOR Business Day. The amount of interest for each day that the Notes are outstanding (the “Daily Interest Amount”) will be calculated by dividing the Floating Interest Rate then in effect for such day by 360 and multiplying
the result by the principal amount of the Notes (known as the “Actual/360” day count). The amount of interest to be paid on the Notes for any Floating Rate Interest Period will be calculated by adding the Daily Interest Amounts for each
day in such Floating Rate Interest Period. The Floating Interest Rate from time to time in effect for the Notes and amount of interest to be paid on the Notes for each Floating Rate Interest Period will be determined by the Calculation Agent. The
Calculation Agent will, upon the request of any Holder of the Notes, provide the Floating Interest Rate at the time of the last Floating Rate Interest Payment Date with respect to the Notes. All calculations made by the Calculation Agent shall, in
the absence of manifest error, be conclusive for all purposes and 

  
 - 9 - 

 
binding on the Company and the Holders of the Notes. So long as the Applicable EURIBOR Rate is required to be determined with respect to the Notes, there will at all times be a Calculation Agent.
In the event that any then acting Calculation Agent shall be unable or unwilling to act, or that such Calculation Agent shall fail duly to establish the Applicable EURIBOR Rate for any Floating Rate Interest Period, or that the Company proposes to
remove such Calculation Agent, the Company shall appoint itself or another Person which is a bank, trust company, investment banking firm or other financial institution to act as the Calculation Agent. Interest on the Notes will accrue from and
including the most recent date to which interest has been paid or, if no interest has been paid, from and including the date of issuance of the Notes. 

(c) All payments of interest and principal, including payments made upon any redemption of the Notes, shall be payable in Euros. The Company
will make interest payments to the person in whose name the Notes are registered at the close of business on the EURIBOR Business Day preceding the respective Floating Rate Interest Payment Date. Payment of interest, subject to such surrender where
applicable, (i) may be made at the Company’s option by wire transfer or by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register and (ii) in the case of any Global Security,
must be made by wire transfer at such place and to such account at a banking institution as may be designated in writing to the Trustee at least sixteen (16) days prior to the date for payment by the Person entitled thereto. So long as the
beneficial owner of the Notes is a common safekeeper of Euroclear and Clearstream or their nominee, payment of principal and interest shall be made in accordance with the requirements of Euroclear and Clearstream. If, on or after May 18, 2018,
the Euro is unavailable to the Company (or the Guarantor, in the case of payments under the guaranty hereunder) due to the imposition of exchange controls or other circumstances beyond the Company’s (or the Guarantor’s, in the case of
payments under the guaranty hereunder) control or if the Euro is no longer being used by the then-member states of the European Monetary Union that have adopted the Euro as their currency or for the settlement of transactions by public institutions
of or within the international banking community, then all payments in respect of the Notes will be made in U.S. Dollars until the Euro is again available to the Company (or the Guarantor, as applicable) or so used. In such circumstances, the amount
payable on any date in Euros will be converted into U.S. Dollars at the rate mandated by the U.S. Federal Reserve Board as of the close of business on the second business day prior to the relevant payment date or, in the event the U.S. Federal
Reserve Board has not mandated a rate of conversion, on the basis of the then most recent U.S. Dollar/Euro exchange rate published in The Wall Street Journal on or most recently prior to the second business day prior to the relevant payment date.
Any payment in respect of the Notes so made in U.S. Dollars will not constitute an Event of Default under the Notes or the Indenture. Neither the Trustee, the Paying Agent, nor the Calculation Agent shall have any responsibility for any calculation
or conversion in connection with the foregoing. 
 (d) The Company will, subject to the exceptions and limitations set forth below, pay to a
holder of beneficial interests in any Note, as additional interest, such additional amounts (the “Additional Amounts”) as may be necessary so that every net payment by the Company or a Paying Agent of the principal of and interest on such
Note and any other amounts payable on such Note after withholding or deduction for or on account of any present or future tax, assessment or governmental charge imposed or levied by the Relevant Jurisdiction will not be less than the amount provided
for in such Note to be then due and payable under the Notes. The obligation to pay Additional Amounts shall not apply: 

  
 - 10 - 

 (i) to any present or future tax, assessment or other governmental charge that
would not have been so imposed but for: 
 (A) the existence of any present or former connection between the Holder or the
holder of beneficial interests in the Notes for whose benefit such Holder holds such Notes (or between a fiduciary, settlor, beneficiary, member or shareholder of the Holder, if the Holder is an estate, a trust, a partnership, a limited liability
company or a corporation) and the Relevant Jurisdiction and its possessions, including, without limitation, the holder of beneficial interests in the Notes (or such fiduciary, settlor, beneficiary, member or shareholder) being or having been a
citizen or resident of the Relevant Jurisdiction or being or having been engaged in a trade or business or present in the Relevant Jurisdiction or having, or having had, a permanent establishment in the Relevant Jurisdiction, or 

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

(ii) to any estate, inheritance, gift, sales, transfer, capital gains, excise or personal property tax or any similar tax,
assessment or governmental charge; 
 (iii) to any tax, assessment or other governmental charge that is payable otherwise
than by withholding or deduction from payments on or in respect of any Note; 
 (iv) to any tax, assessment or other
governmental charge that would not have been imposed but for the failure to comply with certification, information or other reporting requirements concerning the nationality, residence or identity of the beneficial owner of any Notes, if compliance
is required by statute or by regulation of the Relevant Jurisdiction as a precondition to relief or exemption from the tax, assessment or other governmental charge; 

(v) to any tax, assessment or other governmental charge imposed by reason of the beneficial owner’s past or present status
as the actual or constructive owner of 10% or more of the total combined voting power of all classes of stock of the Company entitled to vote or as the Company’s direct or indirect Subsidiary; 

(vi) to any withholding or deduction that is imposed on a payment to an individual and that is required to be made pursuant to
the Luxembourg law dated December 23, 2005; 
 (vii) to any tax, assessment or other governmental charge imposed under
sections 1471 through 1474 of the Code as of the original issue date of the Notes (or any amended or successor provisions), any current or future regulations or official interpretations thereof, any agreement entered into pursuant to section 1471(b)
of the Code or any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement entered into in connection with the implementation of such sections of the Code; 

  
 - 11 - 

 (viii) to any tax, assessment or other governmental charge that would not have
been imposed but for the Holder (or the beneficial owner for whose benefit such Holder holds such note), or a fiduciary, settlor, beneficiary, member or shareholder of the Holder if the Holder is an estate, trust, partnership or corporation, or a
person holding a power over an estate or trust administered by a fiduciary holder, being or having been a “personal holding company,” a “passive foreign investment company” or a “controlled foreign corporation,” each as
defined under the Code, that has accumulated earnings to avoid United States federal income tax; 
 (ix) to any tax,
assessment or other governmental charge that would not have been imposed or withheld but for the beneficial owner being a bank (i) receiving payments on an extension of credit made pursuant to a loan agreement entered into in the ordinary
course of its trade or business, (ii) purchasing the Notes in the ordinary course of its lending business or (iii) that is neither (A) buying the Notes for investment purposes only nor (B) buying the Notes for resale to a
third-party that either is not a bank or holding the Notes for investment purposes only; 
 (x) to any tax, assessment or
other governmental charge that would not have been imposed but for a change in law, regulation or administrative or judicial interpretation that becomes effective more than 30 days after the payment becomes due or is duly provided for, whichever
occurs later; 
 (xi) to any tax, assessment or other governmental charge required to be withheld by any paying agent from
any payment of principal of or interest on any note, if such payment can be made without such withholding by at least one other paying agent; or 

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

Additional Amounts also will not be paid with respect to any payment on a Note to a holder of beneficial interests in such Note who is a fiduciary, a
partnership, a limited liability company, or anyone other than the sole beneficial owner of that payment to the extent that payment would be required by the laws of the Relevant Jurisdiction to be included in the income, for tax purposes, of a
beneficiary or settlor with respect to the fiduciary, a member of that partnership, an interest holder of that limited liability company, or a holder of beneficial interests in the Notes who would not have been entitled to the Additional Amounts had
that beneficiary, settlor, member or interest holder been the beneficial owner. 
 SECTION 2.4. DENOMINATIONS 

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

  
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 SECTION 2.5. REDEMPTION 

(a) Optional Redemption. Except to the extent and under the circumstances set forth in paragraph (b) below, the Company may not
redeem the Notes in whole or in part prior to the Floating Rate Maturity Date. 
 (b) Redemption for Tax Reasons. The Company may
redeem the Notes as a whole but not in part, at the Company’s option at any time prior to the Floating Rate Maturity Date, upon the giving of a notice of tax redemption to the Holders of Notes, if the Company determines that, as a result of:
(i) any change in or amendment to the laws, or any regulations or rulings promulgated under the laws of the Relevant Jurisdiction affecting taxation, or (ii) any change in official position regarding the application or interpretation of
the laws, regulations or rulings referred to in the foregoing clause (i), in the case of each of clauses (i) and (ii), which change or amendment becomes effective or, in the case of a change in official position, is announced on or after the
original issue date of the Notes, the Company is or will become obligated to pay Additional Amounts with respect to the Notes provided the Company, in its reasonable business judgment, reasonably determines that such obligation cannot be
avoided by the Company taking reasonable measures available to the Company. 
 The Redemption Price for tax redemptions under this
Section 2.5(b) will be equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest to the date fixed for redemption. The Redemption Date and the applicable Redemption Price will be specified in the
notice of tax redemption, which will be given by the Company by first-class mail, to each registered Holder of the Notes to be redeemed at its current address appearing in the Security Register, with a copy to the Trustee, not earlier than 90 days
prior to, and not later than 90 days after, the earliest date on which the Company would be obligated to pay Additional Amounts if a payment in respect of the Notes were actually due on such date and, at the time such notice of tax redemption is
given, such obligation to pay such Additional Amounts remains in effect. Prior to giving the notice of a tax redemption, the Company will deliver to the Trustee, with a copy to the Paying Agent, a certificate signed by a duly authorized Officer of
the Company, which the Trustee and Paying Agent may rely upon conclusively, stating that (i) the Company is entitled to effect the tax redemption and setting forth a statement of facts showing that the conditions precedent to the Company’s
right to so redeem have occurred; and (ii) the Company has received an opinion of independent legal counsel of recognized standing to the same effect based on the statement of facts. 

(c) Redemption Generally. The Redemption Prices of Notes to be redeemed will be calculated on the “Actual/360 Day” count.
Except as otherwise provided in the foregoing clause (b), notice of redemption of the Notes will be given as provided in Section 4.4 of the Indenture or otherwise transmitted in accordance with applicable procedures of Euroclear and
Clearstream. 
 Unless the Company defaults in the payment of the Redemption Price, on and after the applicable Redemption Date, interest
will cease to accrue on the Notes or portions of the Notes called for redemption. The Company will deposit with the Paying Agent funds sufficient to pay the Redemption Price of, and accrued and unpaid interest on, such Notes to be redeemed on the
applicable Redemption Date in accordance with Section 4.5 of the Original Indenture. 

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

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

Within 30 days following the date upon which a Change of Control Triggering Event occurs, or at the Company’s option, prior to any Change
of Control but after the public announcement of the pending Change of Control, the Company shall send, by first-class mail, a notice to each Holder of Notes at its registered address, with a copy to the Trustee, which notice will govern the terms of
the Change of Control Offer. Such notice will state, among other things, the repurchase date, which shall be no earlier than 30 days nor later than 60 days from the date such notice is mailed, other than as may be required by law (the
“Change of Control Payment Date”). The notice, if mailed prior to the date of consummation of the Change of Control, shall state that the Change of Control Offer is conditioned on the Change of Control Triggering Event occurring on
or prior to the Change of Control Payment Date. Holders of Notes electing to have Notes repurchased pursuant to a Change of Control Offer shall be required to surrender their Notes, with the form entitled “Option of Holder to Elect
Purchase” on the reverse of the Note completed, to the Paying Agent at the address specified in the notice, or to transfer their Notes to the Paying Agent by book-entry transfer pursuant to the applicable procedures of the Paying Agent, prior
to the close of business on the third Business Day prior to the Change of Control Payment Date. 
 The Company shall not be required to make
a Change of Control Offer with respect to the Notes if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for such an offer if it had been made by the Company, and such third party
purchases all Notes properly tendered and not withdrawn under its offer. In addition, the Company shall not repurchase any Notes if there has occurred and is continuing on the Change of Control Payment Date an Event of Default, other than an Event
of Default resulting from failure to pay the Change of Control Payment. 
 The Company shall comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with the repurchase of Notes as a result of a Change of
Control Triggering Event. To the extent that the provisions of any such securities laws or regulations conflict with the Change of Control Offer provisions of the Notes, the Company shall comply with those securities laws and regulations and shall
not be deemed to have breached the Company’s obligations under the Change of Control Offer provisions of the Notes by virtue of any such conflict. 

  
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 SECTION 2.7. SINKING FUND 

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

SECTION 2.8. PAYING AGENT, TRANSFER AGENT AND REGISTRAR; CERTAIN TAX PROVISIONS 

(a) Elavon Financial Services DAC, UK Branch, shall initially serve as Paying Agent and Calculation Agent with respect to the Notes, with the
Place of Payment and calculation agent services for all Notes initially being the following office of the initial Paying Agent and Calculation Agent: Fifth Floor, 125 Old Broad Street, London EC2N 1AR, United Kingdom. The Trustee shall
initially serve as Transfer Agent and Registrar with respect to the Notes, and the Notes may be registered for transfer or exchange at the office of the Trustee at Two Midtown Plaza, 1349 West Peachtree Street, Suite 1050, Atlanta, GA 30309. The
Company reserves the right at any time to vary or terminate the appointment of any Paying Agent, Calculation Agent, Transfer Agent or Registrar for the Notes, to appoint additional or other Paying Agents, Calculation Agents, Transfer Agents or
Registrars for the Notes and to approve any change in the office through which any Paying Agent, Calculation Agent, Transfer Agent or Registrar for the Notes acts. The Company will cause to be kept at the office of the Registrar outside of the
United Kingdom a register in which, subject to such reasonable regulations as the Company may prescribe, the Company will provide for the registration of the Notes and registration of transfer of the Notes. 

(b) [Reserved]. 
 SECTION 2.9. LIMITATION ON
LIENS 
 (a) The Guarantor shall not, and shall not permit any Consolidated Subsidiary to, incur any Debt secured by a Lien on any Principal
Property or on any shares of capital stock of any Consolidated Subsidiary (in each case, whether now owned or hereafter acquired) without making effective provision that the Notes shall be secured equally and ratably with (or prior to) such secured
Debt, unless, after giving effect to the incurrence of such Debt and any simultaneous permanent repayment of any secured Debt, the aggregate amount of all Debt secured by a Lien on any Principal Property or on any shares of capital stock of any
Consolidated Subsidiary, together with all Attributable Debt of the Guarantor and its Consolidated Subsidiaries in respect of Sale and Leaseback Transactions involving Principal Properties, would not exceed 10% of the Consolidated Net Tangible
Assets of the Guarantor and the Consolidated Subsidiaries. The aggregate amount of all secured Debt referred to in the preceding sentence shall exclude any then existing secured Debt that has been secured equally and ratably with the Notes. 

(b) The restriction set forth in paragraph (a) above shall not apply to, and there shall be excluded from secured Debt in any computation
under the restriction in (a) above or under the restriction in Section 2.10(a)(1), Debt secured by: 
 (1) Liens on
any property existing at the time of acquisition thereof (including by way of merger or consolidation); provided that (A) any such Lien was (i) in existence prior to the date of such acquisition, (ii) was not incurred in
anticipation thereof and (iii) does not extend to any other property, and (B) the principal amount of Debt secured by each such Lien does not exceed the cost to the Guarantor or such Consolidated Subsidiary of the property subject to the
Lien, as determined in accordance with GAAP; 

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

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

(5) Liens on property to secure all or part of the cost of acquiring, substantially repairing or altering, constructing,
developing or substantially improving the property, or to secure Debt incurred for any such purpose; provided that (A) any such Lien relates solely to the property subject to the Lien and (B) the principal amount of Debt secured by
each such Lien (i) was incurred concurrently with, or within 18 months of, such acquisition, repair, alteration, construction, development or improvement and (ii) does not exceed the cost to the Guarantor or such Consolidated Subsidiary of
the property subject to the Lien, as determined in accordance with GAAP; and 
 (6) any extension, renewal or replacement of
any Lien referred to above; provided that (A) such extension, renewal or replacement Lien (i) will be limited to the same property that secured the Lien so extended, renewed or replaced and (ii) will not exceed the principal
amount of Debt so secured at the time of such extension, renewal or replacement and (B) such principal amount of Debt so secured shall continue to be included in the computation in paragraph (a) of this Section 2.9 and in
Section 2.10(a)(1) to the extent so included at the time of such extension, renewal or replacement. 
 For purposes of this
Section 2.9, an “acquisition” of property (including real, personal or intangible property or shares of capital stock or Debt) shall include any transaction or series of transactions by which the Guarantor or a Consolidated Subsidiary
acquires, directly or indirectly, an interest, or an additional interest (to the extent thereof), in such property, including an acquisition through merger or consolidation with, or an acquisition of an interest in, a Person owning an interest in
such property. 
 This Section 2.9 has been included in this Second Supplemental Indenture expressly and solely for the benefit of the
Notes. 

  
 - 16 - 

 SECTION 2.10. LIMITATION ON SALE AND LEASEBACK TRANSACTIONS 

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

(i) the Net Proceeds of the Sale and Leaseback Transaction; and 

(ii) the fair market value of the Principal Property so leased at the time of such transaction; 

(b) The restriction set forth in paragraph (a) above shall not apply to any Sale and Leaseback Transaction, and there shall be excluded
from Attributable Debt in any computation described in this Section 2.10 or in Section 2.9(a) with respect to any such transaction: 

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

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

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

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

SECTION 2.11. EVENTS OF DEFAULT 
 The Events
of Default for the Notes and any remedies thereto are as specified in Section 8.1 of the Original Indenture. 
 SECTION 2.12. MODIFICATION OF THE
INDENTURE 
 Article XII of the Original Indenture governs the modification of the Original Indenture and any supplements thereto. 

  
 - 17 - 

 SECTION 2.13. DEFEASANCE AND DISCHARGE 

The provisions of Article X of the Original Indenture shall be applicable to the Notes; provided that (i) “other
obligations” as contemplated by Section 10.4(a)(i) of the Original Indenture shall mean Government Obligations and (ii) that “Holders” as contemplated by Section 10.4(a)(ii) and Section 10.4(a)(iii) of the Original
Indenture shall be replaced with “beneficial owners”. The provisions of Section 10.3 of the Original Indenture shall apply to the covenants set forth in Sections 2.9 and 2.10 of this Second Supplemental Indenture and to those
covenants specified in Section 10.3 of the Original Indenture. 
 SECTION 2.14. NOTICES 

Notices to Holders will be mailed to the registered Holders, subject to the provisions herein and in the Indenture. Any notice shall be deemed
to have been given on the date of mailing. Notwithstanding the foregoing, so long as the Notes are represented by a Global Security deposited with a nominee of a common safekeeper for Euroclear or Clearstream, notices to Holders may be given by
delivery to Euroclear and Clearstream, and such notices shall be deemed to be given on the date of delivery to Euroclear and Clearstream. The Trustee will only mail notices to the registered Holder. The Trustee will mail notices as directed by the
Company in writing by first-class mail, postage prepaid, to each registered Holder’s last known address as it appears in the security register that the Trustee maintains. 

ARTICLE III 

MISCELLANEOUS PROVISIONS 

SECTION 3.1. RECITALS BY COMPANY 
 The
recitals in this Second Supplemental Indenture are made by the Company only and not by the Trustee, Registrar, Transfer Agent, Paying Agent or Calculation Agent and all of the provisions contained in the Indenture and the Paying Agency Agreement in
respect of the rights, privileges, immunities, powers and duties of the Trustee, Registrar, Transfer Agent, Paying Agent and Calculation Agent shall be applicable in respect of the Notes and of this Second Supplemental Indenture as fully and with
like effect as if set forth herein in full. 
 SECTION 3.2. APPLICATION TO NOTES ONLY 

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

SECTION 3.3. BENEFITS 
 Nothing contained in
this Second Supplemental Indenture shall or shall be construed to confer upon any person other than a Holder of the Notes, the Company, the Guarantor, the Trustee, the Registrar, the Transfer Agent, the Paying Agent, and the Calculation Agent any
right or interest to avail itself of any benefit under any provision of the Indenture, the Notes or this Second Supplemental Indenture. 

  
 - 18 - 

 SECTION 3.4. EFFECTIVE DATE 

This Second Supplemental Indenture shall be effective as of the date first above written upon the execution and delivery hereof by each of the
parties hereto. 
 SECTION 3.5. RATIFICATION 

As supplemented hereby, the Indenture is in all respects ratified and confirmed and all the terms, provisions and conditions thereof remain in
full force and effect. 
 SECTION 3.6. COUNTERPARTS 

This Second Supplemental Indenture may be executed in multiple counterparts, each of which shall be deemed to be an original, and such
counterparts shall together constitute but one and the same instrument. 
 SECTION 3.7. GOVERNING LAW 

THIS SECOND SUPPLEMENTAL INDENTURE AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, AS
APPLIED TO CONTRACTS MADE AND PERFORMED WITHIN THE STATE OF NEW YORK, INCLUDING, WITHOUT LIMITATION, SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW
AND RULE 327(b) OF THE NEW YORK CIVIL PRACTICE LAWS AND RULES. 
 FOR THE AVOIDANCE OF DOUBT, THE APPLICATION OF ARTICLES 85 TO 94-8 OF LUXEMBOURG LAW DATED 10TH AUGUST, 1915 ON COMMERCIAL COMPANIES, AS AMENDED, SHALL BE EXCLUDED IN RELATION TO THE ISSUANCE OF THE NOTES. 

[Signatures on Next Page] 

  
 - 19 - 

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

			
	MOHAWK CAPITAL FINANCE S.A., a company organized under the laws of Luxembourg
		
	By:	 	 /s/ Chris Rosselli

	Name:	 	Chris Rosselli
	Title:	 	Class A Director
		
	By:	 	 /s/ John Kleynhans

	Name:	 	John Kleynhans
	Title:	 	Class B Director
	
	 MOHAWK INDUSTRIES, INC.,
 a Delaware
corporation

		
	By:	 	 /s/ Shailesh Bettadapur

	Name:	 	Shailesh Bettadapur
	Title:	 	Vice President and Treasurer
	
	U.S. BANK NATIONAL ASSOCIATION, as Trustee, Transfer Agent and Registrar
		
	By:	 	 /s/ George Hogan

	Name:	 	George Hogan
	Title:	 	Vice President

 [Signature Page to Mohawk Capital Finance S.A. Second Supplemental Indenture to Floating Rate Notes due
2020] 

 
			
	 ELAVON FINANCIAL SERVICES DAC, UK

BRANCH, as Paying Agent and Calculation Agent

		
	By:	 	 /s/ Michael Leong

	Name:	 	Michael Leong
	Title:	 	Authorised Signatory
		
	By:	 	 /s/ Chris Hobbs

	Name:	 	Chris Hobbs
	Title:	 	Authorised Signatory

 [Signature Page to Mohawk Capital Finance S.A. Second Supplemental Indenture to Floating Rate Notes due
2020] 
  

 EXHIBIT A 

FORM OF 
 FLOATING RATE NOTE DUE
2020 
 [THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A COMMON SAFEKEEPER
OR A NOMINEE OF A COMMON SAFEKEEPER. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE COMMON SAFEKEEPER OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND MAY NOT BE
TRANSFERRED EXCEPT AS A WHOLE BY THE COMMON SAFEKEEPER TO A NOMINEE OF THE COMMON SAFEKEEPER OR BY A NOMINEE OF THE COMMON SAFEKEEPER TO THE COMMON SAFEKEEPER OR ANOTHER NOMINEE OF THE COMMON
SAFEKEEPER.]* 
 [UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR BANK,
S.A./N.V., AS OPERATOR OF THE EUROCLEAR SYSTEM (“EUROCLEAR”), AND CLEARSTREAM BANKING, SOCIÉTÉ ANONYME (“CLEARSTREAM” AND, TOGETHER WITH EUROCLEAR, “EUROCLEAR /CLEARSTREAM”), TO THE COMPANY (AS DEFINED
BELOW) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CLEARSTREAM NOMINEES LTD., AS NOMINEE OF A COMMON SAFEKEEPER (THE “COMMON SAFEKEEPER”) FOR EUROCLEAR/CLEARSTREAM
(AND ANY PAYMENT IS MADE TO CLEARSTREAM NOMINEES LTD. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE COMMON SAFEKEEPER), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CLEARSTREAM NOMINEES LTD., HAS AN INTEREST HEREIN.]* 
  

 

	* 	Insert in Global Securities 

  
 A-1 

   

MOHAWK CAPITAL FINANCE S.A. 
  

 

€________________ 
 FLOATING
RATE NOTE DUE 2020 
 No. R-[•] 

ISIN No. ____________ 
 COMMON CODE:
____________ 
 CUSIP No.: ____________ 

Mohawk Capital Finance S.A., a company organized under the laws of Luxembourg (herein called the “Company”, which term
includes any successor Person under the Indenture hereinafter referred to), for value received, hereby certifies that Clearstream Nominees Ltd. is entered in the Security Register as a registered holder of or registered assigns (the
“Holder”) of the €300,000,000 Floating Rate Note Due 2020, and promises to pay to Clearstream Nominees Ltd., the principal sum of
                         EUROS
(€                ) on May 18, 2020, and to pay interest thereon on each Floating Rate Interest Payment Date at a rate per annum equal to the Applicable
EURIBOR Rate from time to time in effect for each applicable Floating Rate Interest Period plus thirty (30) basis points (0.30%) until the principal hereof is paid or made available for payment. Notwithstanding the foregoing, the minimum
interest rate for this note shall at all times be no less than 0.00% per annum. The interest so payable, and punctually paid or duly provided for, on any Floating Rate Interest Payment Date will, as provided in such Indenture, be paid to the Person
in whose name this Note (or one or more Predecessor Securities) is registered at the close of business of the day that is one EURIBOR Business Day prior to the Floating Rate Interest Payment Date (each, a “Regular Record Date”);
provided that the interest payable at the Floating Rate Maturity Date will be paid to the Person to whom principal is payable. Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on
such Regular Record Date and may either be paid to the Person in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by
the Trustee, notice whereof shall be given to Holders of the Notes not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange or
automated quotation system on which the Notes may be listed or traded, and upon such notice as may be required by such exchange or automated quotation system, all as more fully provided in the Indenture. 

Payments of interest on the Notes will include interest accrued to but excluding the respective Floating Rate Interest Payment Dates. Interest
on the Notes will be calculated on the Actual/360 Day count. If any Floating Rate Interest Payment Date or the Floating Rate Maturity Date falls on a day that is not a EURIBOR Business Day, the payment of the interest and

  
 A-2 

 
principal payable on such date will be made on the next EURIBOR Business Day (unless the next EURIBOR Business Day is in the next succeeding calendar month, in which case such Floating Rate
Interest Payment Date or the Floating Rate Maturity Date shall be the immediately preceding EURIBOR Business Day). 
 Payments of interest
and principal, including payments made upon any redemption of the Notes, will be made in Euros. If the Euro is unavailable to the Company due to the imposition of exchange controls or other circumstances beyond the Company’s control or if the
Euro is no longer being used by the then-member states of the European Monetary Union that have adopted the Euro as their currency or for the settlement of transactions by public institutions of or within the international banking community, then
all payments in respect of the Notes will be made in U.S. Dollars until the Euro is again available to the Company or so used. In such circumstances, the amount payable on any date in Euros will be converted into U.S. Dollars on the basis of the
most recently available market exchange rate for Euros. Any payment in respect of the Notes so made in U.S. Dollars will not constitute an Event of Default under the Notes or the Indenture. In such circumstances, the amount payable on any date in
Euros will be converted into U.S. Dollars on the basis of the most recently available market exchange rate for Euros. Neither the Trustee, the Paying Agent, nor the Calculation Agent shall have any responsibility for any calculation or conversion in
connection with the foregoing. Payment of interest, subject to such surrender where applicable, (i) may be made at the Company’s option by wire transfer or by check mailed to the address of the Person entitled thereto as such address shall
appear in the Security Register and (ii) in the case of any Global Security, must be made by wire transfer at such place and to such account at a banking institution as may be designated in writing to the Trustee at least sixteen (16) days
prior to the date for payment by the Person entitled thereto. 
 Reference is hereby made to the further provisions of this Note set forth
on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the
certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

This Note shall not be valid unless effectuated by the entity acting as the common safekeeper for Euroclear Bank SA/NV and Clearstream Banking
SA. 
 [Signatures on Next Page] 

  
 A-3 

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

 

							
	 Dated: _________________
	 		 	 MOHAWK CAPITAL FINANCE S.A.

				
		 		 	By:	 	  

		 		 		 	Name:
		 		 		 	Title:
				
		 		 	By:	 	  

		 		 		 	Name:
		 		 		 	Title:

 [Notation of Guarantee and Trustee’s Certificate of Authentication Follow] 

  
 A-4 

 NOTATION OF GUARANTEE 

Mohawk Industries, Inc., a Delaware corporation (the “Guarantor”, which term includes any successor thereto under the Indenture (the
“Indenture”) referred to in the security on which this notation is endorsed (the “Security”)), has unconditionally guaranteed, pursuant to the terms of the Guarantee contained in Article XI of the Indenture, the due and punctual
payment of the principal of and any premium and interest on this Security, when and as the same shall become due and payable in accordance with the terms of this Security and the Indenture. 

The obligations of the Guarantor to the Holders of the Securities and to the Trustee pursuant to the Guarantee and the Indenture are expressly
set forth in Article XI of the Indenture and the Security. Reference is hereby made to such Article and Indenture for the precise terms of the Guarantee. 

The Guarantee shall not be valid or obligatory for any purpose until the certificate of authentication on the Security upon which this
notation of the Guarantee is endorsed shall have been executed by the Trustee under the Indenture by the manual signature of one of its authorized signatories. 

 

			
	MOHAWK INDUSTRIES, INC.
		
	By:	 	  

		 	Name:
		 	Title:

  
 A-5 

 CERTIFICATE OF AUTHENTICATION 

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

 

							
		 		 	 U.S. BANK NATIONAL ASSOCIATION,
 as
Trustee

				
	Dated: ____________________	 		 	By:	 	 
		 		 		 	Authorized Signatory

  
 A-6 

 
			
	CERTIFICATE OF EFFECTUATION
	
	CLEARSTREAM BANKING, SOCIETE
	ANONYME, LUXEMBOURG,
	as common safekeeper
		
	By:	 	  

		 	Authorized Signatory

  
 A-7 

 REVERSE OF FLOATING RATE NOTE DUE 2020 

This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to
be issued in one or more series under that certain Senior Indenture dated as of September 11, 2017, by and among the Company, as Issuer, Mohawk Industries, Inc., a Delaware corporation, as Guarantor (herein called the
“Guarantor”), and U.S. Bank National Association, as Trustee (herein called the “Trustee”, which term includes any successor trustee under the Indenture (as defined below)) (the “Original
Indenture”), as supplemented by a Second Supplemental Indenture dated as of May 18, 2018 (the “Second Supplemental Indenture”; and the Original Indenture, as supplemented by the Second Supplemental
Indenture, and as further amended or supplemented from time to time, herein called the “Indenture”, which term shall have the meaning assigned to it in such instrument), among the Company, the Guarantor, the Trustee, Registrar,
Transfer Agent and Elavon Financial Services DAC, UK Branch, as initial Paying Agent and Calculation Agent, and reference is hereby made to the Indenture for a statement of the respective rights, limitations of rights, duties and immunities
thereunder of the Company, the Guarantor, the Trustee, the Registrar, the Transfer Agent, the Paying Agent and the Calculation Agent and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and
delivered. This Security is one of the series designated on the face hereof (the “Notes”) which is unlimited in aggregate principal amount. 

Elavon Financial Services DAC, UK Branch, shall initially serve as Paying Agent and Calculation Agent with respect to the Notes, with the
Place of Payment and calculation agent services for all Notes initially being the following office of the initial Paying Agent and Calculation Agent: Fifth Floor, 125 Old Broad Street, London EC2N 1AR, United Kingdom. The Trustee shall initially
serve as Transfer Agent and Registrar with respect to the Notes, and the Notes may be registered for transfer or exchange at the office of the Registrar at Two Midtown Plaza, 1349 West Peachtree Street, Suite 1050, Atlanta, GA 30309. The Company
reserves the right at any time to vary or terminate the appointment of any Paying Agent, Calculation Agent, Transfer Agent or Registrar for the Notes, to appoint additional or other Paying Agents, Calculation Agents, Transfer Agents or Registrars
for the Notes and to approve any change in the office through which any Paying Agent, Calculation Agent, Transfer Agent or Registrar for the Notes acts. 

The Notes are subject to redemption for tax reasons as described in Section 2.5(b) of the Second Supplemental Indenture. Except to the
extent specified in Section 2.5(b) of the Second Supplemental Indenture, the Company may not redeem the Notes. 
 Additional Amounts
will be paid in respect of any payments of interest or principal so that the amount a beneficial owner receives after the imposition of withholding tax by the Relevant Jurisdiction will not be less than the amount that the beneficial owner would
have received if no withholding tax had been applicable, subject to the exceptions described in Section 2.3(d) of the Second Supplemental Indenture. 

  
 A-8 

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

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

 As provided in and subject to the provisions of the Indenture, the Holder of this Note shall not have the right to institute, or to order
or direct the Trustee to institute, any proceeding, judicial or otherwise, with respect to the Indenture, or for the appointment of a receiver or trustee, or for any other remedy thereunder, unless such Holder shall have previously given the Trustee
written notice of a continuing Event of Default with respect to the Notes, the Holders of not less than 25% in aggregate principal amount of the Notes at the time Outstanding shall have made written request to the Trustee to institute proceedings in
respect of such Event of Default and offered the Trustee security or indemnity reasonably satisfactory to it against the costs, expenses and liabilities to be incurred or reasonably probable to be incurred in compliance with such request, the
Trustee for 60 days after its receipt of such notice, request and offer of indemnity has failed to institute any such proceeding and no direction inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of a majority in aggregate principal amount of the Outstanding Notes. The foregoing shall not apply to any suit instituted by the Holder of this Note for the enforcement of any payment
of principal hereof or premium, if any, or interest hereon on or after the respective due dates expressed or provided for herein. 
 The
payment by the Company of the principal of, premium, if any, and interest on the Notes, when and as the same become due and payable, whether at maturity, upon redemption or repurchase, by declaration of acceleration or otherwise, including any
Additional Amounts required to be paid, is unconditionally and irrevocably guaranteed by the Guarantor. 

  
 A-9 

 No reference herein to the Indenture and no provision of the Notes or of the Indenture shall
alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of, premium, if any, and interest on the Notes at the times, place and rate, and in the coin or currency, herein prescribed. 

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note is registrable in the Security
Register, upon surrender of this Note for registration of transfer at the office or agency of the Company in a Place of Payment for this Note, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company
and the Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Notes and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the
designated transferee or transferees. 
 The Notes are issuable only in registered form without coupons in denominations of €100,000
and integral multiples of €100,000 in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, the Notes are exchangeable for a like aggregate principal amount of Notes having the same Stated Maturity
and of like tenor of any authorized denominations as requested by the Holder upon surrender of the Note or Notes to be exchanged at the office or agency of the Company. 

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

  
 A-10 

 ABBREVIATIONS 

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

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

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

  
 A-11 

 To assign this Note, fill in the following form: 

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

 
  

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

 
  
  

 
  

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

 
  
  

 
  

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

 

                       
                                         
                         

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

  
 A-12 

 OPTION OF HOLDER TO ELECT PURCHASE 

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

 

					
	Date: ______________	 	Your Signature:	  	  

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

  

			
	Signature Guarantee:	  	  

		  	(Signature must be guaranteed)

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

  
 A-13

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