Document:

Asset Sale Agreement

 EXHIBIT 10.1 
 ASSET PURCHASE AGREEMENT 
 DATED AS OF MARCH 1, 2006 
 BY AND BETWEEN 
 PROPEX FABRICS INC.

 AND 
 ALADDIN
MANUFACTURING CORPORATION 

 TABLE OF CONTENTS 
  

							
	 	  	 	  	Page
	 ARTICLE 1
	  	DEFINITIONS	  	1
				
		    	Section 1.1.	  	Defined Terms	  	1
		    	Section 1.2.	  	Construction	  	7
			
	 ARTICLE 2
	  	PURCHASE AND SALE OF ASSETS	  	8
				
		    	Section 2.1.	  	Acquired Assets	  	8
		    	Section 2.2.	  	Excluded Assets	  	9
		    	Section 2.3.	  	Assumed Liabilities	  	9
		    	Section 2.4.	  	Consideration	  	10
		    	Section 2.5.	  	Purchase Price Adjustment	  	10
		    	Section 2.6.	  	Exchange Cooperation	  	11
			
	 ARTICLE 3
	  	THE CLOSING	  	12
				
		    	Section 3.1.	  	Closing	  	12
		    	Section 3.2.	  	Deliveries by Seller	  	12
		    	Section 3.3.	  	Deliveries by Buyer	  	13
		    	Section 3.4.	  	Tax Allocation	  	13
			
	 ARTICLE 4
	  	REPRESENTATIONS AND WARRANTIES OF SELLER	  	14
				
		    	Section 4.1.	  	Organization; Good Standing; Qualification	  	14
		    	Section 4.2.	  	Authority of Seller; Binding Effect	  	14
		    	Section 4.3.	  	Consents and Approvals	  	14
		    	Section 4.4.	  	No Violations	  	15
		    	Section 4.5.	  	Title to Assets; Liens; Condition	  	15
		    	Section 4.6.	  	Assumed Contracts	  	15
		    	Section 4.7.	  	Intellectual Property	  	15
		    	Section 4.8.	  	Compliance with Laws	  	16
		    	Section 4.9.	  	Permits	  	16
		    	Section 4.10.	  	Employee Plans	  	16
		    	Section 4.11.	  	Taxes	  	18
		    	Section 4.12.	  	Real Property	  	18
		    	Section 4.13.	  	Environmental Matters	  	19
		    	Section 4.14.	  	Litigation	  	21
		    	Section 4.15.	  	Labor Matters	  	21
		    	Section 4.16.	  	Brokers	  	22
			
	 ARTICLE 5
	  	REPRESENTATIONS AND WARRANTIES OF BUYER	  	22
				
		    	Section 5.1.	  	Organization; Good Standing; Qualification	  	22
		    	Section 5.2.	  	Authority of Buyer; Binding Effect	  	22
		    	Section 5.3.	  	Consents and Approvals	  	22
		    	Section 5.4.	  	No Violations	  	23
		    	Section 5.5.	  	Availability of Funds	  	23
		    	Section 5.6.	  	Brokers	  	23
			
	 ARTICLE 6
	  	COVENANTS	  	23
				
		    	Section 6.1.	  	Conduct of Business by Seller Pending the Closing	  	23
		    	Section 6.2.	  	Access to Records and Properties	  	24
		    	Section 6.3.	  	Governmental Approvals	  	24
		    	Section 6.4.	  	Consents and Approvals; Equitable Assignment	  	24
		    	Section 6.5.	  	Public Announcements	  	25

  

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 TABLE OF CONTENTS 
 (continued) 
  

							
	 	    	 	  	 	  	Page
		    	Section 6.6.	  	Notice of Breach Disclosure	  	25
		    	Section 6.7.	  	Employee Matters	  	26
		    	Section 6.8.	  	Employee Benefit Plans	  	27
		    	Section 6.9.	  	Actions with respect to Retirement Plans	  	27
		    	Section 6.10.	  	Transfer Taxes	  	27
		    	Section 6.11.	  	Proration of Taxes and Certain Charges	  	27
		    	Section 6.12.	  	[Intentionally Deleted]	  	28
		    	Section 6.13.	  	Refitting Project	  	28
		    	Section 6.14.	  	Removal of Name and Signage	  	28
		    	Section 6.15.	  	Amendment and Supplement to Schedules	  	28
		    	Section 6.16.	  	Further Assurances	  	29
			
	ARTICLE 7	  	CONDITIONS TO CLOSING	  	29
				
		    	Section 7.1.	  	Conditions to Obligations of Seller and Buyer	  	29
		    	Section 7.2.	  	Conditions to Obligations of Seller	  	29
		    	Section 7.3.	  	Conditions to Obligations of Buyer	  	30
			
	ARTICLE 8	  	TERMINATION	  	31
				
		    	Section 8.1.	  	Termination	  	31
		    	Section 8.2.	  	Effect of Termination; Remedies	  	32
			
	ARTICLE 9	  	SURVIVAL OF REPRESENTATIONS; INDEMNIFICATIONS	  	32
				
		    	Section 9.1.	  	Survival of Representations	  	32
		    	Section 9.2.	  	Seller’s Agreement to Indemnify	  	32
		    	Section 9.3.	  	Buyer’s Agreement to Indemnify	  	32
		    	Section 9.4.	  	Limitations on Indemnification	  	33
		    	Section 9.5.	  	Third Party Indemnification	  	34
			
	ARTICLE 10	  	MISCELLANEOUS	  	34
				
		    	Section 10.1.	  	Warranties Exclusive	  	34
		    	Section 10.2.	  	Sole and Exclusive Remedy	  	35
		    	Section 10.3.	  	Waiver of Consequential Damages	  	35
		    	Section 10.4.	  	Waiver of Right to Trial by Jury	  	35
		    	Section 10.5.	  	Notices	  	35
		    	Section 10.6.	  	Entire Agreement; Amendment; Waiver	  	37
		    	Section 10.7.	  	Closing Date	  	37
		    	Section 10.8.	  	Severability	  	37
		    	Section 10.9.	  	Headings	  	37
		    	Section 10.10.	  	Payment of Fees and Expenses	  	37
		    	Section 10.11.	  	Assignments	  	37
		    	Section 10.12.	  	Binding Effect; No Third Party Beneficiary	  	38
		    	Section 10.13.	  	Governing Law	  	38
		    	Section 10.14.	  	Construction	  	38
		    	Section 10.15.	  	Counterparts	  	38
		    	Section 10.16.	  	Time is of the Essence	  	38
		    	Section 10.17.	  	Jurisdiction and Consent to Service	  	38

  

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 TABLE OF CONTENTS 
 (continued) 
  

							
	 	    	 	  	 	  	 Page

	 EXHIBITS
	  		  	
				
		    	Exhibit A	  	Form of Bill of Sale	  	
		    	Exhibit B	  	Form of Assignment and Assumption Agreement	  	
		    	Exhibit C	  	Form of Special Warranty Deed	  	
		    	Exhibit D	  	Form of Transition Services Agreement	  	
		    	Exhibit E	  	Form of IP Assignment Agreement	  	
		    	Exhibit F	  	Form of Acknowledgement	  	
			
	 SCHEDULES
	  		  	
				
		    	Schedule 1.1	  	Permitted Liens	  	
		    	Schedule 2.1(a)	  	Real Property	  	
		    	Schedule 2.1(b)	  	Machinery and Equipment	  	
		    	Schedule 2.1(e)	  	Assumed Contracts	  	
		    	Schedule 2.1(g)	  	Intellectual Property	  	
		    	Schedule 2.1(i)	  	Vehicles	  	
		    	Schedule 2.2(a)	  	Excluded Machinery and Equipment	  	
		    	Schedule 2.2(b)	  	Excluded Inventory	  	
		    	Schedule 2.2(e)	  	Excluded Books and Records	  	
		    	Schedule 2.2(f)	  	Excluded Software	  	
		    	Schedule 2.5(a)	  	Inventory Valuation Methodology	  	
		    	Schedule 3.4	  	Tax Allocation	  	
		    	Schedule 4.3	  	Required Consents and Approvals	  	
		    	Schedule 4.5	  	Existing Liens	  	
		    	Schedule 4.9	  	Permits	  	
		    	Schedule 4.10	  	Employee Plans	  	
		    	Schedule 4.11	  	Taxes	  	
		    	Schedule 4.13	  	Environmental Matters	  	
		    	Schedule 4.14	  	Litigation	  	
		    	Schedule 4.15(a)	  	Facility Employees	  	
		    	Schedule 4.15(b)	  	Employment Losses	  	
		    	Schedule 6.1(e)	  	Required Inventory Levels	  	
		    	Schedule 6.7	  	Retained Employees	  	
		    	Schedule 6.13	  	Refit Machinery and Equipment	  	

  

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 ASSET PURCHASE AGREEMENT 
 This Asset Purchase Agreement (this “Agreement”) is made and entered into as of the 1st day of March, 2006, by and between Propex Fabrics Inc., a Delaware corporation (“Seller”), and Aladdin Manufacturing Corporation, a Delaware
corporation (“Buyer”). 
 RECITALS 
 WHEREAS, Seller owns and operates a facility located at 1026 Lafayette Road, Roanoke, Alabama, dedicated to the manufacture of polypropylene synthetic fabrics (the “Facility”); and 
 WHEREAS, Buyer desires to acquire the Acquired Assets (as defined below) and to assume the Assumed Liabilities (as defined below), and Seller desires to
sell the Acquired Assets to Buyer and to have Buyer assume such Assumed Liabilities, all in the manner and subject to the terms and conditions set forth in this Agreement; 
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 ARTICLE 1 
 DEFINITIONS 
 Section 1.1. Defined Terms. As used herein, the following terms have the meanings set forth below: 
 “Acquired Assets” has the meaning set forth in Section 2.1. 
 “Affiliate” means, with respect to any Person, any other person who directly or indirectly controls, is controlled by or is under common
control with that Person. 
 “Agreement” has the meaning set forth in the Preamble. 
 “APS” means APS Staffing and Technical Services, Inc. 
 “Assignment and Assumption Agreement” has the meaning set forth in Section 3.2(c). 
 “Assumed Contracts” has the meaning set forth in Section 2.1(e). 
 “Assumed Liabilities” has
the meaning set forth in Section 2.3. 
 “Base Inventory Value” means $5,000,000. 
 “Bill of Sale” has the meaning set forth in Section 3.2(b). 
 “Business Day” means any day other than a Saturday, Sunday or a day on which commercial banks in Atlanta, Georgia are authorized or
obligated by applicable Law or executive order to close or are otherwise generally closed. 
  

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 “Buyer” has the meaning set forth in the Preamble. 
 “Buyer Indemnitees” has the meaning set forth in Section 9.2. 
 “Claim” has the meaning set forth in Section 9.5. 
 “Closing” has the meaning set forth in Section 3.1. 
 “Closing Date”
has the meaning set forth in Section 3.1. 
 “Closing Date Inventory Statement” has the meaning set forth in
Section 2.5(a). 
 “Closing Date Inventory Value” has the meaning set forth in Section 2.5(a). 
 “Closing Consideration” has the meaning set forth in Section 2.4. 
 “COBRA” has the meaning set forth in Section 6.8. 
 “Code” means the Internal Revenue Code of 1986, as amended. 
 “Commonly Controlled
Entity” has the meaning set forth in Section 414(b), (c), (m) and (o) of the Code and Section 4001 of ERISA. 
 “Computer Equipment” has the meaning set forth in Section 2.1(f). 
 “Consideration” has the
meaning set forth in Section 2.4. 
 “Contract” means any contract, agreement, indenture, note, bond, loan, instrument,
lease, sublease, license, sublicense, commitment or other arrangement or agreement, whether oral or written. 
 “Damages”
has the meaning set forth in Section 9.2. 
 “Delayed Consents” has the meaning set forth in Section 6.4(b).

 “Employee Plan” means, collectively, each pension, retirement, profit-sharing, 401(k), savings, employee stock ownership,
stock option, share purchase, stock appreciation rights, restricted stock, phantom stock, stock bonus, retention, severance pay, termination pay, change in control, vacation, holiday, sick pay, supplemental unemployment, salary continuation, bonus,
incentive, deferred compensation, executive compensation, medical, vision, dental, life insurance, accident, disability, fringe benefit, flexible spending account, cafeteria, or other similar plan, fund, policy, benefit, program, or agreement for
the benefit of any current or former officer, employee, director, retiree, or independent contractor or any spouse, dependent or beneficiary thereof whether or not such Employee Plan is or is intended to be (A) arrived at through collective
bargaining or otherwise, (B) funded or unfunded, (C) covered or qualified under the Internal Revenue Code, ERISA or other applicable law, (D) set forth in an employment agreement or consulting agreement and (E) written or oral.

  

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 “Environmental Laws” means any Laws relating to pollution, preservation or protection of
the environment or human health and safety, including Laws relating to the manufacturing, processing, distribution, use, treatment, storage, Release, disposal, handling or transportation of Hazardous Substances. 
 “Environmental Liabilities” means any direct, indirect, pending or threatened indebtedness, liability, claim, loss, damage, fine,
penalty, cost, expense, deficiency or responsibility, whether known or unknown, arising under or relating to any Environmental Law or any Release of Hazardous Substances, whether based on negligence, strict liability or otherwise, including costs
and liabilities for investigation, removal, remediation, restoration, abatement, monitoring, personal injury, property damage, natural resource damages, court costs, and reasonable attorneys’ fees. 
 “Environmental Permits” has the meaning set forth in Section 4.13(a). 
 “ERISA” means the Employment Retirement Income Security Act of 1974, as amended. 
 “ERISA Affiliate” of any entity means any other entity which, together with the Seller, would be treated as a single employer under Code
Section 414 or ERISA Section 4001(b). 
 “Excluded Assets” has the meaning set forth in Section 2.2.

 “Excluded Books and Records” has the meaning set forth in Section 2.2(e). 
 “Excluded Inventory” has the meaning set forth in Section 2.2(b). 
 “Excluded Liabilities” has the meaning set forth in Section 2.3. 
 “Excluded Machinery and Equipment” has the meaning set forth in Section 2.2(a). 
 “Excluded Software” has the meaning set forth in Section 2.2(f). 
 “Facility” has the meaning set forth in the Recitals. 
 “Facility Employees” means all employees of the Facility (whether employed directly by Seller or through Seller’s agreement with APS). 
 “GAAP” means generally accepted accounting principles as employed in the United States of America, applied consistently with prior
periods and with Seller’s historical practices and methods. 
 “Governmental Authority” means any United States,
foreign, international, supranational, national, provincial, regional, federal, state, municipal or local government, any instrumentality, subdivision, court, administrative or regulatory agency or commission or other authority thereof, or any
quasi-governmental or private body exercising any regulatory, taxing, importing or other governmental or quasi-governmental authority. 
  

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 “Governmental Requirements” has the meaning set forth in Section 4.3. 

“Hazardous Substances” means (A) any dangerous or toxic substance, regulated substance, hazardous or extremely hazardous
substance, or otherwise hazardous material or waste regulated under applicable Environmental Laws and (B) any chemicals, pollutants, contaminants, petroleum or petroleum products, oil, asbestos-containing materials and polychlorinated
biphenyls. 
 “HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. 
 “Indemnified Party” has the meaning set forth in Section 9.4(a). 
 “Indemnifying Party” has the meaning set forth in Section 9.4(a). 
 “Indemnity Period” has the meaning set forth in Section 9.1. 
 “Independent Accountants” has the meaning set forth in Section 2.5(c). 
 “Intellectual Property” has the meaning set forth in Section 2.1(g). 
 “Inventory” has the meaning set forth in Section 2.1(c). 
 “IP Assignment Agreement” has the meaning set forth in Section 3.2(f). 
 “Knowledge of Buyer” means the knowledge, after due inquiry, of Joe W. Yarbrough, Jeffrey S. Lorberbaum or Frank H. Boykin. 

“Knowledge of Seller” means the knowledge, after due inquiry, of Edmund A. Stanczak, Philip D. Barnes, Ken C. Rogers, Raylene Morris
Carter, Ken Dirks or Roy Rigney; provided, however, that with respect to Section 4.10, “Knowledge of Seller” means the knowledge of the foregoing individuals, without any inquiry whatsoever (whether written, oral or otherwise),
including without limitation, any inquiry, questions of or investigation with respect to BP Amoco Chemical Holding Company or any of its direct or indirect parent entities or Affiliates other than reviewing the information set forth in the
representations and warranties set forth in the Stock Purchase Agreement by and between AFFC Acquisition Co. and BP Amoco Chemical Holding Company, dated October 4, 2004, and the corresponding disclosure schedules thereto, copies of which have
been provided to Buyer. 
 “Labor Claims” means claims, investigations, charges, citations, hearings, consent decrees, or
litigation concerning: wages, compensation, bonuses, commissions, awards, or payroll deductions; equal employment or human rights violations regarding race, color, religion, sex, national origin, age, handicap, veteran’s status, marital status,
disability, or any other recognized class, status, or attribute under any federal, state, local or foreign equal employment Law prohibiting discrimination; representation petitions or unfair labor practices; grievances or arbitrations pursuant to
current or expired collective bargaining agreements; occupational safety and health; workers’ compensation; wrongful termination, negligent hiring, invasion of privacy or defamation; immigration or any other claim based on the employment
relationship or termination of the employment relationship. 
  

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 “Law” means any federal, state or local statute, law (including common law), code,
ordinance, rule, administrative interpretation, regulation, requirement or Order. 
 “Lien” means any lien (statutory or
other), claim, charge, security interest, mortgage, deed of trust, pledge, hypothecation, conditional sale or other title retention agreement, right of first refusal, option to purchase, preference, priority or other security agreement or
preferential arrangement of any kind or nature, and, with respect to real property, any easement, charge, encroachment, covenant, restriction, right of way, defect in title or other encumbrance of any kind. 
 “Litigation” means any suit, action, proceeding, arbitration, cause of action, charge, claim, complaint, criminal prosecution,
grievance, inquiry, hearing or investigation by any Person alleging potential liability relating to or affecting Seller, the Acquired Assets, any Employee Plan or the transactions contemplated by this Agreement. 
 “Machinery and Equipment” has the meaning set forth in Section 2.1(b). 
 “Material Adverse Effect” means any change, event, violation, inaccuracy or circumstance with respect to the Facility or the Acquired
Assets, the effect of which is both material and adverse to the condition or operations of the Facility or the Acquired Assets. 
 “Mohawk Plan” has the meaning set forth in Section 6.8. 
 “Notice of Disagreement” has the
meaning set forth in Section 2.5(b). 
 “Offsite Migration” means the migration of Hazardous Substances onto or under
the Real Property that was originally discharged, dumped, released, spilled, leaked, buried or disposed of on or from land neighboring such parcel. 
 “Order” means any decree, injunction, judgment, order, ruling, writ, quasi-judicial decision or award or administrative decision or award of any federal, state, local, foreign or other court, arbitrator, mediator, tribunal,
administrative agency or Governmental Authority to which any Person is a party or that is or may be binding on any Person or its securities, assets or business. 
 “Permitted Exceptions” means the Liens identified on Schedule 1.1. 
 “Permitted
Liens” means, (a) with respect to or upon the Real Property, the Permitted Exceptions and (b) with respect to or upon any Acquired Assets other than the Real Property, any (i) Liens imposed by Law, such as carriers’,
warehouseman’s, mechanics’, materialmen’s, landlords’, laborers’ suppliers’ and vendors’ liens, incurred in good faith in the ordinary course of business and securing obligations which are not yet due or which are
being contested in good faith by appropriate proceedings, (ii) Liens for Taxes not yet due and payable or which are being contested in good faith by appropriate proceedings, and (iii) extensions, renewals and 
  

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 replacements of Liens referred to in (i) and (ii) of this sentence; provided that any such extension, renewal
or replacement Lien shall be limited to the property or assets covered by the Lien extended, renewed or replaced and that the obligations secured by any such extension, renewal or replacement Lien shall be in an amount not greater than the amount of
the obligations secured by the original Lien extended, renewed or replaced, none of which, individually or in the aggregate, have a material adverse effect upon the value of the property subject thereto or the use to which such property is presently
put. 
 “Permits” means all permits, licenses, franchises, certificates of occupancy, variances, exemptions, orders and
other authorizations, consents, waivers, registrations and approvals, issued or issuable by any Governmental Authority that are required for the operation of the Facility as presently operated. 
 “Person” means any natural person, firm, partnership, joint venture, limited liability company, association, corporation, trust,
business trust, unincorporated organization, Governmental Authority or other entity. 
 “Personal Property Taxes” means ad
valorem taxes imposed upon the Acquired Assets other than the Real Property. 
 “Pre-Closing Environmental Liabilities”
means (a) Environmental Liabilities related to the Real Property or the Acquired Assets, including Environmental Liabilities asserted by third parties or Governmental Authorities related to Releases of Hazardous Substances at, on, under, in, or
from the Real Property or the Acquired Assets, to the extent caused or occurring prior to the Closing Date and (b) Environmental Liabilities to the extent arising from or related to the operation of the Facility prior to the Closing Date.

 “Post-Closing Environmental Liabilities” means all Environmental Liabilities other than the Pre-Closing Environmental
Liabilities. 
 “Purchase Price Adjustment” has the meaning set forth in Section 2.5(d). 
 “Qualifying Claim” has the meaning set forth in Section 9.4(a)(i).  
 “Real Property” means the real property owned by Seller and located at 1026 Lafayette Road, Roanoke, Alabama, less the parcel referred
to as the “ANCI property”, a legal description of which is attached hereto as Schedule 2.1(a). 
 “Real Property
Taxes” means all Taxes imposed upon the Real Property. 
 “Refit Machinery and Equipment” has the meaning set forth
in Section 6.13. 
 “Refitting Project” has the meaning set forth in Section 6.13. 
 “Release” means any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping or
disposing into the environment of any Hazardous Substances, including the abandonment or discarding of barrels, containers and other closed receptacles containing any Hazardous Substances. 
  

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 “Representative” means, with respect to any Person, such Person’s officers,
directors, employees, agents and representatives and financing sources (including any investment banker, financial advisor, accountant, legal counsel, agent, representative or expert retained by or acting on behalf of such Person). 
 “Seller” has the meaning set forth in the Preamble. 
 “Seller Indemnitees” has the meaning set forth in Section 9.3. 
 “Special
Warranty Deed” has the meaning set forth in Section 3.2(d). 
 “Successor Liability Taxes” has the meaning set
forth in Section 4.11(a). 
 “Supplies” has the meaning set forth in Section 2.1(d). 
 “Taxes” means any federal, state, county, local, or foreign tax, charge, fee, levy, impost, duty, or other assessment, including income,
gross receipts, excise, employment, sales, use, transfer, recording, license, payroll, franchise, severance, documentary, stamp, occupation, windfall profits, highway use, commercial rent, customs duty, capital stock, paid-up capital, profits,
withholding, Social Security, single business, unemployment, disability, real property, personal property, registration, ad valorem, value added, alternative or add-on minimum, estimated, or other tax or governmental fee of any kind whatsoever,
imposed or required to be withheld by any Governmental Authority, including any estimated payments related thereto, any interest, penalties, and additions imposed thereon or with respect thereto, and including liability for taxes of another Person
under Treas. Reg. Section 1.1502-6 or similar provision of state, local or foreign law, or as a transferee or successor, by contract or otherwise. 
 “Tax Returns” means all federal, state, local, and foreign tax returns, declarations, statements, reports, schedules, forms and information returns and any amended Tax Returns filed with or submitted
to, or required to be filed with or submitted to any Governmental Authority relating to Taxes. 
 “Termination Date” has the
meaning set forth in Section 8.1(b)(i). 
 “Transfer Taxes” has the meaning set forth in Section 6.10. 

“Transition Services Agreement” has the meaning set forth in Section 3.2(e). 
 “Vehicles” has the meaning set forth in Section 2.1(i). 
 “WARN” means the Worker Adjustment and Retraining Notification Act. 
 Section 1.2. Construction. Whenever the context requires, the gender of all words used in this Agreement includes the masculine, feminine, and neuter, and words used in the 
  

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 singular shall include the plural, and vise versa. Unless the context otherwise requires, (a) all references to
Articles and Sections refer to the applicable articles and sections of this Agreement, (b) all references to Exhibits and Schedules refer to the applicable exhibits and schedules attached hereto, each of which is incorporated herein for all
purposes, (c) the terms “include” and “including” mean include or including without limitation, (d) a reference to an agreement or instrument is to the agreement or instrument as amended or modified through the date as
of which the reference is made and (e) a reference to a party or the parties refers to a party or the parties to this Agreement. In the event of a conflict between the terms and provisions contained in the main body of this Agreement and any of
the terms or provisions contained in the Exhibits or Schedules attached hereto, the terms and provisions in the main body of this Agreement shall control. 
 ARTICLE 2 
 PURCHASE AND SALE OF ASSETS 
 Section 2.1. Acquired Assets. On the terms and subject to the conditions set forth in this Agreement, at the Closing, Seller shall sell, assign, transfer, convey
and deliver, or cause to be sold, assigned, transferred, conveyed and delivered, to Buyer, free and clear of all Liens other than Permitted Liens, and Buyer shall purchase and accept from Seller, all of Seller’s rights, title and interests in
and to the assets, properties and rights located at the Facility, excluding the Excluded Assets (the “Acquired Assets”). The Acquired Assets shall include the following assets, properties, rights and claims (other than the Excluded
Assets): 
  

	 	(a)	the Real Property and, to the extent assignable, rights of Seller to any warranties, express or implied, received from manufacturers and sellers of any improvements on the Real
Property; 

  

	 	(b)	all (i) equipment, machinery, tooling, dies, furniture and other tangible personal property owned by Seller that is located at the Facility, including the items described on
Schedule 2.1(b), (ii) Refit Machinery and Equipment (the items described in (i) and (ii) of this sentence are hereinafter referred to collectively as the “Machinery and Equipment”), and (iii) to the extent
assignable, rights of Seller to any warranties, express or implied, and licenses received from manufacturers and sellers of the Machinery and Equipment with respect thereto; 

  

	 	(c)	all (i) inventories of raw materials, consumable items, work in progress and finished goods located on the Closing Date at the Facility, excluding the Excluded Inventory (the
“Inventory”), and (ii) to the extent assignable, rights of Seller to any warranties, express or implied, received from manufacturers and sellers of the raw materials Inventory with respect thereto; 

  

	 	(d)	all (i) supplies, spare parts, replacement and component parts and other materials and tangible items located on the Closing Date at the Facility other than any such items
included in the Excluded Machinery and Equipment (the “Supplies”) and (ii) to the extent assignable, rights of Seller to any warranties, express or implied, received from manufacturers and sellers of the supplies, spare parts,
replacement and component parts included in the Supplies with respect thereto; 

  

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	 	(e)	to the extent assignable or transferable, the Contracts identified on Schedule 2.1(e) (the “Assumed Contracts”); 

  

	 	(f)	the computer equipment, hardware and software located at the Facility, excluding the Excluded Software (the “Computer Equipment”); 

  

	 	(g)	the intellectual property described on Schedule 2.1(g) (the “Intellectual Property”); 

  

	 	(h)	to the extent assignable or transferable, and upon satisfaction of all assignment or transfer requirements, all Permits; and 

  

	 	(i)	the titled vehicles, forklifts and trailers described on Schedule 2.1(i) (the “Vehicles”). 

 Section 2.2. Excluded Assets. Notwithstanding anything to the contrary in this Agreement, the Acquired Assets shall not include any of Seller’s rights, title or interests in the following (collectively,
the “Excluded Assets”): 
 (a) the Machinery and Equipment identified on Schedule 2.2(a), which is to be removed from the
Facility in connection with the Refitting Project, together with all spare parts, tools and supplies associated exclusively with such Machinery and Equipment (the “Excluded Machinery and Equipment”); 
 (b) the work in process and finished goods inventories identified on Schedule 2.2(b) (the “Excluded Inventory”); 
 (c) all causes of action and third-party indemnities, policies of insurance, fidelity, surety or similar bonds and the coverages afforded thereby;

 (d) Seller’s customer lists and all contact information associated with such customers. 
 (e) the books and records described on Schedule 2.2(e) (the “Excluded Books and Records”); 
 (f) the software identified on Schedule 2.2(f) (the “Excluded Software”); and 
 (g) all assets of Seller (other than the Refit Machinery and Equipment) that are not located at the Facility. 
 Section 2.3. Assumed Liabilities. Notwithstanding any provisions of this Agreement to the contrary, except for the Assumed Liabilities, Buyer shall not assume or
otherwise be liable for any liabilities, obligations or commitments of Seller, including the Pre-Closing 
  

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 Environmental Liabilities, any and all liabilities for Taxes for any period (or portion thereof) ending prior to the
Closing Date, or any and all liabilities arising from or related to Seller’s Employee Plans (the “Excluded Liabilities”). Buyer shall assume, be liable and responsible for and accept assignment from Seller and thereafter pay,
perform or discharge all of the following liabilities, obligations and commitments (the “Assumed Liabilities”): 
 (a) any
and all liabilities arising on or after the Closing Date under the Assumed Contracts, excluding any liabilities arising from or relating to any breach or violation of, or default under, such Assumed Contracts by Seller; 
 (b) any and all liabilities arising on or after the Closing Date with respect to or arising under the Acquired Assets, including the Post-Closing
Environmental Liabilities; and 
 (c) any and all liabilities with respect to WARN contemplated to be assumed by Buyer pursuant to
Section 6.7(b) arising in connection with the transactions contemplated hereby. 
 Section 2.4. Consideration. The consideration for the Acquired
Assets shall be (a) $65,500,000 plus the Base Inventory Value (the “Closing Consideration”), plus or minus (b) the Purchase Price Adjustment, plus (c) the assumption of the Assumed Liabilities. The
payment of the Closing Consideration and the Purchase Price Adjustment and the assumption of the Assumed Liabilities are referred to in this Agreement collectively as the “Consideration.” The Closing Consideration shall be paid at
the Closing to Seller by wire transfer of immediately available funds to such bank account(s) designated in writing by Seller at least two (2) Business Days prior to the Closing. 
 Section 2.5. Purchase Price Adjustment. 
 (a) On the Closing Date, Buyer and Seller shall jointly
perform a physical count of the Inventory and Supplies. Within thirty (30) days thereafter, Seller shall prepare and deliver to Buyer a statement setting forth the results of such physical count (the “Closing Date Inventory
Statement”), which Closing Date Inventory Statement shall specify Seller’s calculation of the aggregate Inventory and Supplies value as of the Closing Date (the “Closing Date Inventory Value”). The Closing Date
Inventory Statement shall be prepared in accordance with GAAP and the inventory valuation methodology attached as Schedule 2.5(a). 
 (b) If
Buyer disagrees with the Closing Date Inventory Statement, Buyer may, within ten (10) days after receipt of the Closing Date Inventory Statement, deliver a notice to Seller disagreeing with such statement (a “Notice of
Disagreement”). A Notice of Disagreement may only be delivered with respect to a dispute regarding the number of units of Inventory and Supplies and not as to the per-unit value of Inventory and Supplies. Any Notice of Disagreement shall
specify those items and amounts as to which Buyer disagrees or as to which Buyer requires additional information to assess its position and its proposed computations. Buyer shall be deemed to have agreed with the Closing Date Inventory Statement if
a Notice of Disagreement is not duly delivered in accordance with this Section 2.5(b). 
  

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 (c) If a Notice of Disagreement is duly delivered pursuant to Section 2.5(b), Buyer and Seller
shall, during the ten (10) days following such delivery, negotiate reasonably and in good faith to reach agreement on the items or amounts disputed by Buyer in such Notice of Disagreement. If, during such ten (10) day period, Buyer and
Seller are unable to reach such agreement, they shall promptly thereafter cause PriceWaterhouseCoopers or any other nationally recognized accounting firm mutually acceptable to Buyer and Seller (the “Independent Accountants”) to
review this Agreement and the Closing Date Inventory Statement and the disputed items and amounts for the purpose of calculating the Closing Date Inventory Value. In making such calculation, the Independent Accountants shall consider only those
items and amounts in the Closing Date Inventory Statement with which Buyer has disagreed in the Notice of Disagreement delivered pursuant to Section 2.5(b). Such Independent Accountants shall have access to all information delivered and
prepared during the due diligence process and shall deliver to Buyer and Seller, no later than thirty (30) days following the engagement of such Independent Accountants, a report setting forth its calculation of the Closing Date Inventory
Value. Such report, including the calculation of Closing Date Inventory Value set forth therein, shall be final and binding upon Buyer and Seller. The cost of such Independent Accountants’ review and report shall be borne equally by Buyer and
Seller. 
 (d) Within ten (10) days after the Closing Date Inventory Value has been finally determined, either by the passage of ten
(10) days following delivery of the Closing Date Inventory Statement without the delivery of a Notice of Disagreement or following resolution of such Notice of Disagreement in accordance with Section 2.5(c), Buyer or Seller, as the case
may be, shall make the following payments to each other in immediately available funds (the “Purchase Price Adjustment”): 
 (i) if the Closing Date Inventory Value exceeds the Base Inventory Value, then Buyer shall pay the amount of such excess to Seller; and 
 (ii) if the Base Inventory Value exceeds the Closing Date Inventory Value, then Seller shall pay the amount of such excess to Buyer.

 Section 2.6. Exchange Cooperation. It is the intent of Seller to utilize this transaction as part of a tax deferred exchange as provided in Code
Section 1031 and the Treasury Regulations promulgated thereunder. Buyer hereby acknowledges it is the intent of the Seller to effect an Code Section 1031 tax deferred exchange which will not delay the Closing or cause additional expense to
the Buyer. The Seller’s rights, but not its obligations, under this Agreement may be assigned to Investment Property Exchange Services, Inc., a Qualified Intermediary, for the purpose of completing such an exchange. Buyer agrees to cooperate
with the Seller and Investment Property Exchange Services, Inc. in a manner necessary to complete the exchange. Specifically, and not by way of limitation, upon receipt of notice from Seller of its assignment to the above referenced Qualified
Intermediary, Buyer will execute an acknowledgement of such assignment in the form attached hereto as Exhibit F. 
  

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 ARTICLE 3 
 THE CLOSING 
 Section 3.1. Closing. The closing of the transactions contemplated by this Agreement (the
“Closing”) shall take place at the offices of Alston & Bird LLP, 1201 West Peachtree Street, Atlanta, Georgia 30309, at 10:00 a.m. (EST) on the second Business Day following the satisfaction or waiver of the conditions set
forth in Article 7 (other than those conditions that by their nature are to be fulfilled only at the Closing, but subject to the fulfillment or waiver of such conditions), but not later than the Termination Date, or at such other time and place as
the parties may mutually agree (such date, the “Closing Date”). The Closing shall be effective as of 12:01 a.m. on the Closing Date. 
 Section 3.2. Deliveries by Seller. At the Closing, Seller shall deliver or cause to be delivered to Buyer the following: 
 (a) the officer’s certificates contemplated by Sections 7.3(a) and 7.3(b); 
 (b) a duly executed bill of sale, substantially
in the form of Exhibit A to this Agreement (the “Bill of Sale”); 
 (c) a duly executed counterpart of an assignment and
assumption agreement, substantially in the form of Exhibit B to this Agreement (the “Assignment and Assumption Agreement”); 
 (d) a recordable special warranty deed conveying marketable title to the Real Property free and clear of all Liens other than Permitted Liens, in the form of Exhibit C to this Agreement (the “Special Warranty Deed”);

 (e) a duly executed counterpart of a transition services agreement, substantially in the form of Exhibit D to this Agreement (the
“Transition Services Agreement”); 
 (f) a duly executed intellectual property assignment agreement, substantially in the
form of Exhibit E to this agreement (the “IP Assignment Agreement”); 
 (g) an ALTA Statement of Title Affidavit, executed
by Seller and in form and substance reasonably acceptable to a title company selected by Buyer and sufficient to allow such title company to delete the standard exceptions from the owner’s title insurance policy to be issued to Buyer;

 (h) a “Gap Undertaking” in order to induce the title company to insure over any encumbrances or title defects created by or
through Seller prior to recording the Special Warranty Deed; 
 (i) endorsed certificates of title to the Vehicles or such other documents or
instruments of conveyance as are necessary to transfer legal title to such Vehicles to Buyer; 
  

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 (j) the evidence required by Section 6.1(d) that all Liens, other than Permitted Liens, have been
terminated or released; 
 (k) all other instruments of conveyance and transfer as are necessary to convey the Acquired Assets and transfer
the Assumed Liabilities to Buyer; 
 (l) tax clearance letters from the applicable Governmental Authority in the States of Georgia, Alabama
and Delaware; 
 (m) good standing certificates from the Secretary of State of the States of Georgia, Alabama and Delaware; and 

(n) a certificate of the Secretary or Assistant Secretary of Seller containing a true and correct copy of the resolutions duly adopted by the board of
directors of Seller approving and authorizing each of this Agreement and the documents contemplated hereby to which Seller is a party and each of the transactions contemplated hereby and thereby and certifying that such resolutions have not been
rescinded, revoked, modified, or otherwise affected and remain in full force and effect. 
 Section 3.3. Deliveries by Buyer. At the Closing, Buyer
shall deliver or cause to be delivered to Seller the following: 
 (a) the Closing Consideration, payable in the manner described in
Section 2.4; 
 (b) the officer’s certificates contemplated by Sections 7.2(a) and 7.2(b); 
 (c) a duly executed counterpart of the Assignment and Assumption Agreement; 
 (d) a duly executed counterpart of the Transition Services Agreement; 
 (e) all other instruments or agreements as are necessary to assume the Assumed Liabilities from Seller; 
 (f) good standing certificates from the Secretary of State of the States of Alabama and Delaware; and 
 (g) a certificate of the
Secretary or Assistant Secretary of Buyer containing a true and correct copy of the resolutions duly adopted by the board of directors of Buyer approving and authorizing each of this Agreement and the documents contemplated hereby to which Buyer is
a party and each of the transactions contemplated hereby and thereby and certifying that such resolutions have not been rescinded, revoked, modified, or otherwise affected and remain in full force and effect. 
 Section 3.4. Tax Allocation. Buyer and Seller agree to the allocation of the Closing Consideration set forth on Schedule 3.4. Schedule 3.4 specifies the asset
class or classes in which Inventory and Supplies are included, and Buyer and Seller agree to allocate the Purchase 
  

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 Price Adjustment in a manner that increases or decreases, as applicable, the consideration allocated to the asset class
or classes in which the Inventory and Supplies are included. Except as required by applicable Law, Buyer and Seller each agree (a) to use such allocation in filing all required forms under Section 1060 of the Code and all other Tax
Returns, and (b) to not take any position inconsistent with such allocation. 
 ARTICLE 4 
 REPRESENTATIONS AND WARRANTIES OF SELLER 
 Seller hereby represents and warrants to Buyer as follows: 
 Section 4.1. Organization; Good Standing; Qualification. Seller is a corporation
duly organized, validly existing and in good standing under the Laws of the State of Delaware and has the requisite corporate power and authority to own or lease and to operate all of its properties and assets and to carry on its business as it is
now being conducted and as presently proposed to be conducted. Seller is duly qualified or licensed to do business and is in good standing under the Laws of each jurisdiction in which the conduct of its business or the character or location of the
properties and assets owned, leased or operated by it requires such qualification, except where the failure to be so qualified would not reasonably be expected to have a Material Adverse Effect. 
 Section 4.2. Authority of Seller; Binding Effect. 
 (a) Seller has the requisite power and authority to execute and deliver this Agreement and the other documents and instruments to be executed and delivered by Seller pursuant hereto and to perform its obligations hereunder and thereunder.
The execution and delivery by Seller of this Agreement and the other documents and instruments to be executed and delivered by Seller pursuant hereto and the performance of Seller’s obligations hereunder and thereunder, including the
consummation of the transactions contemplated by this Agreement, have been duly authorized by all necessary corporate or other action on the part of Seller. 
 (b) This Agreement has been duly executed and delivered by Seller and constitutes, and when executed and delivered each of the other documents and instruments to be executed and delivered by Seller pursuant hereto
will constitute, a valid and binding agreement of Seller enforceable against Seller in accordance with its terms, subject to (i) applicable bankruptcy, insolvency, reorganization, moratorium and other similar Laws of general application to
creditors, (ii) general principles of equity and (iii) the power of a court to deny enforcement of remedies generally based on public policy. 
 Section 4.3. Consents and Approvals. Other than as set forth on Schedule 4.3, no consent, approval, authorization or permit of, or filing with or notification to, any Governmental Authority or other Person is required for or in
connection with the execution and delivery of this Agreement by Seller or for or in connection with the consummation of the transactions and performance of the terms and conditions contemplated hereby by Seller, except for: (a) the filing of a
Notification and Report Form under the HSR Act and the expiration or earlier termination of the applicable waiting period thereunder (the “Governmental Requirements”), (b) any consents, 
  

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 approvals or authorizations, filing with or notification to, any Governmental Authority or other Person required for the
transfer or assignment of the Permits, and (c) such other consents, approvals, authorizations, declarations, filings and registrations the lack of which would not have a Material Adverse Effect. 
 Section 4.4. No Violations. Assuming that the Governmental Requirements will be satisfied, made or obtained and will remain in full force and effect, neither the
execution, delivery and performance of this Agreement by Seller, the consummation by Seller of the transactions contemplated by this Agreement or the compliance by Seller with any of the provisions of this Agreement, will (a) violate any
provision of the certificate of incorporation, bylaws or any other organizational document of Seller, (b) violate, conflict with, or result in the breach of or a default under or, to the Knowledge of Seller, constitute an event creating rights
of acceleration, termination or cancellation under, any Assumed Contract, (c) violate any Order, writ, injunction, decree, statute, rule or regulation or other Law applicable to Seller or (d) to the Knowledge of Seller, result in the
creation or imposition of any Lien other than Permitted Liens on any of the Acquired Assets, except in case of items (c) and (d) for such violations, conflicts, breaches, defaults, accelerations, terminations, cancellations or Liens that
would not reasonably be expected to have a Material Adverse Effect. 
 Section 4.5. Title to Assets; Liens; Condition. 
 (a) Other than the Liens identified on Schedule 4.5, Seller has good and marketable title to all of the Acquired Assets (other than the Real Property,
which is covered exclusively by Section 4.12), free and clear of any and all Liens other than Permitted Liens. At the Closing, Buyer will acquire all of Seller’s right, title and interest in, to and under all of the Acquired Assets (or in
the case of any leased or licensed Acquired Asset, Seller’s rights under such leases or licenses), in each case free and clear of any and all Liens other than Permitted Liens. 
 (b) Buyer has had the opportunity to inspect the Acquired Assets and confirms as of the date hereof that the Acquired Assets are in good and serviceable
condition, reasonable wear and tear and normal depreciation excepted. As of the Closing, the Acquired Assets will be in the same or similar condition to the condition of the Acquired Assets at the time of Buyer’s inspection, reasonable wear and
tear and normal depreciation excepted. 
 Section 4.6. Assumed Contracts. Each of the Assumed Contracts is in full force and effect and there are no
defaults (or events that, with notice or lapse of time or both, would constitute a default) by Seller or, to the Knowledge of Seller, any other party, under any of the Assumed Contracts. 
 Section 4.7. Intellectual Property. 
 (a) Seller owns and has the right to use, or, in the case of
licensed rights, has valid rights to use, the Intellectual Property, free and clear of all Liens other than Permitted Liens and the Liens identified on Schedule 4.5. 
  

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 (b) There are no licenses, sublicenses or other agreements pursuant to which Seller has authorized any
other Person to use the Intellectual Property. 
 (c) There are no existing or, to the Knowledge of Seller, threatened claims or proceedings
by any Person relating to the use by Seller of the Intellectual Property or challenging its ownership of the same. 
 (d) Seller has not
received any written notice that (i) Seller’s use of the Intellectual Property infringes upon or conflicts with any rights claimed therein by any other Person or (ii) the manufacturing operations, process or machinery employed by
Seller violates or infringes upon any claims of any United States or foreign patent or patent application owned or held by another Person. 
 Section 4.8.
Compliance with Laws. Except as would not reasonably be expected to have a Material Adverse Effect and other than with respect to Environmental Laws, which are covered exclusively by Section 4.13, (a) the operation of the Facility
has been conducted in accordance with all applicable Laws and (b) Seller has not received any written or, to the Knowledge of Seller, oral notification from any Governmental Authority of any actual or alleged present or past failure by Seller
to comply with any such Laws during the past two (2) years. 
 Section 4.9. Permits. Schedule 4.9 sets forth a true, complete and correct list of
all material Permits held by Seller as of the date hereof in connection with the Facility. Other than with respect to Permits arising under Environmental Laws, which are covered exclusively by Section 4.13, all of such Permits are valid and
effective and no suspension or cancellation of any such Permit is pending (other than pursuant to their terms) or, to the Knowledge of Seller, threatened. 
 Section 4.10. Employee Plans. 
  

	 	(a)	Schedule 4.10 contains a true and complete list of each Employee Plan currently maintained, sponsored in whole or in part, or contributed to by the Seller or its subsidiaries or, to
the Knowledge of Seller, under which the Seller has any current obligation or liability, contingent or otherwise for the benefit of the Facility Employees. Seller has made available to Buyer true and complete copies of (i) the Employee Plans
listed on Schedule 4.10 that are in the possession of the Seller, and (ii) with respect to each of the Employee Plans, any funding arrangements, the most recent determination letters or opinion letters issued by the Internal Revenue Service,
the most recent annual reports or returns, and the most recent summary plan descriptions and any material modifications thereto, in each case, to the extent requested by Buyer in writing and in the possession of the Seller. 

 

	 	(b)	The Employee Plans materially comply with and have been administered in material compliance with ERISA, the Code, and all other statutes, rules and regulations, agreements and
instruments by which they are governed. Except as 

  

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	 	  	set forth on Schedule 4.10, each Employee Plan that is intended to be qualified under Section 401(a) of the Code has obtained or applied for a favorable determination letter
issued by the Internal Revenue Service. 

 (c) Other than routine claims for benefits, no Litigation involving any Employee
Plan is pending, or to the Knowledge of Seller, threatened. Except as would not be material and except as set forth on Schedule 4.10, Seller has not, since December 1, 2004 or, to the Knowledge of Seller, on or before December 1, 2004,
received any written notice of any pending investigation or pending enforcement action by the Pension Benefit Guarantee Corporation, the Department of Labor, the Internal Revenue Service or any other Governmental Agency with respect to any of the
Employee Plans. Except as set forth on Schedule 4.10, no Lien under ERISA Section 302(f) or Code Section 412(n) exists as of the date hereof and will not exist at Closing with respect to the Employee Plans and, to the Knowledge of Seller,
there are no facts that give rise to any such Lien. 
 (d) Except as set forth on Schedule 4.10, Seller and its ERISA Affiliates do not and
have not, since December 1, 2004 or, to the Knowledge of Seller, during the period beginning six (6) years prior to the date hereof and ending December 1, 2004, sponsored, maintained, contributed to, been obligated under ERISA or
otherwise to contribute to, or withdrawn from (i) a “defined benefit plan” (as defined in ERISA Section 3(35) and Code Section 414(j) and subject to the minimum funding standards of Code Section 412), (ii) a
“multi-employer plan” (as defined in ERISA Sections 3(37) and 4001(a)(3)) or (iii) a “multiple employer plan” (meaning a plan sponsored by more than one employer within the meaning of ERISA Sections 4063 or 4064 or Code
Section 413(c)). Except as set forth on Schedule 4.10 and except as would not reasonably be expected to have a Material Adverse Effect, Seller and its ERISA Affiliates have not, since December 1, 2004 or, to the Knowledge of Seller, on or
before December 1, 2004, incurred any liability under Title IV of ERISA. 
 (e) Except as set forth on Schedule 4.10 and except as would
not be material, all contributions that have become due since December 1, 2004 or, to the Knowledge of Seller, with respect to contributions that have become due on or before December 1, 2004, under each “defined benefit plan”
(as defined in ERISA Section 3(35) and Code Section 414(j) and subject to the minimum funding standards of Code Section 412) sponsored by the Seller or any of its ERISA Affiliates (“Defined Benefit Plan”) have been made.
Except as set forth on Schedule 4.10, no Defined Benefit Plan has incurred an “accumulated funding deficiency” as defined in Code Section 412 and Section 302 of ERISA, whether or not waived, since December 1, 2004 or, to the
Knowledge of Seller, on or before December 1, 2004. Except as set forth on Schedule 4.10, as of the date hereof, no Defined Benefit Plan has any “unfunded current liability,” as that term is defined in Section 302(d)(8)(A) of
ERISA or a “liquidity shortfall,” as defined in Code Section 412, and except as set forth on Schedule 4.10, the fair market value of the assets of any such plan exceeds the present value of all benefits (whether vested or not) accrued
to date by all present and former participants in such Defined Benefit Plan determined on a plan termination basis as of the date hereof. Except as set forth on Schedule 4.10, no tax has been imposed under Code Section 4971 with respect to any
Defined Benefit Plan since December 1, 2004 or, to the Knowledge of Seller, on or before December 1, 2004. Except as set forth on Schedule 4.10, neither Seller nor its ERISA Affiliates has become subject to a requirement to provide
security to a Defined Benefit Plan pursuant to Code Section 401(a)(29) since December 1, 2004 or, to the Knowledge of Seller, on or before December 1, 2004. 
  

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 (f) Except as set forth on Schedule 4.10, neither Seller nor its ERISA Affiliates have incurred any
liability since December 1, 2004 or, to the Knowledge of Seller, on or before December 1, 2004, for any tax, excise tax, penalty or fee with respect to any Employee Plan, including, but not limited to taxes arising under Section 4977,
4978, 4979, 4980 or 4980B of the Code, that could reasonably be expected to give rise to any Lien on the Acquired Assets, and no such Lien has arisen since December 1, 2004 or, to the Knowledge of Seller, on or before December 1, 2004.

 (g) Since the date of the most recent actuarial valuation, there has been (i) no material change in the financial position of any
Defined Benefit Plan, (ii) no change in the actuarial assumptions with respect to any Defined Benefit Plan, and (iii) no increase in benefits under any Defined Benefit Plan as a result of plan amendments or changes in applicable law which
is reasonably likely to, individually, or in the aggregate, materially adversely affect the funding status of any Defined Benefit Plan. 
 Section 4.11.
Taxes. All Tax Returns for Taxes with respect to which Buyer could be liable, if any, (“Successor Liability Taxes”) have been timely filed by Seller or requests for extensions have been timely filed, granted, and have not
expired for periods ended on or before Closing, and all Tax Returns filed are complete and accurate. All Successor Liability Taxes that are due and owing with respect to periods (or portions thereof) ending on or prior to the Closing Date have been
paid, whether or not such Taxes are shown on filed Tax Returns. There are no Liens on any of the Acquired Assets resulting from any failure (or alleged failure) to pay any Tax. Attached to Schedule 4.11 are true and correct copies of all Real
Property Tax and Personal Property Tax bills of Seller for the year 2005 which have been received by Seller prior to the date hereof, relating to the Acquired Assets. 
 Section 4.12. Real Property. 
 (a) Seller has good and marketable fee simple title to the Real
Property, free and clear of all Liens, other than Permitted Liens and those listed on Schedule 4.5. 
 (b) All improvements on the Real
Property conform to all applicable state and local Laws or use restrictions in all material respects, and the property is zoned for the various purposes for which the Real Property and improvements thereon are presently being used. 
 (c) Seller has received no written notice of any pending or threatened condemnations, planned public improvements, annexation, special assessments,
zoning or subdivision changes, or other material adverse claims affecting the Real Property. 
 (d) There is no private restrictive covenant
or governmental use restriction (including zoning) on all or any portion of the Real Property which prohibits the current use of the Real Property in any material respect. 
  

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 (e) All licenses, permits and approvals (other than Permits arising under Environmental Laws, which are
covered exclusively by Section 4.13), that are required for and material to the occupancy and operation of the Real Property (with appurtenant parking uses) as presently being used have been obtained and are in full force and effect and Seller
has received no written notices of material violations in connection with such items. 
 (f) Seller does not have in its possession any
studies or reports which indicate any material defects in the design or construction of any of the improvements on the Real Property. 
 (g)
No Person or entity, other than Buyer, has any right, option, right of first refusal or any other Contract, whether oral or written, with respect to the purchase, assignment or transfer of all or any portion of the Real Property. 
 (h) Seller has not received any notice of any contemplated or actual reassessment of the Real Property or any portion thereof for general real estate Tax
purposes. As of the date hereof, all due and payable Taxes, water charges and sewer charges affecting the Real Property or any portion thereof, have been paid. 
 Section 4.13. Environmental Matters. 
 (a) Except as set forth in Schedule 4.13 hereto, 
 (i) Seller, with respect to the operation of the Facility and each Acquired Asset is, and has been at all times, in material compliance
with all applicable Environmental Laws. Seller, with respect to the operation of the Facility and each Acquired Asset, and except as would not reasonably be expected to have a Material Adverse Effect, (A) has not been notified in writing that
it is potentially liable under any applicable Environmental Law, (B) has not received any written requests for information or other written correspondence concerning the Facility under any applicable Environmental Law, and (C) does not
have any reason to believe that it is considered potentially liable under any applicable Environmental Law; 
 (ii) Seller has
accurately prepared and timely filed with the appropriate jurisdictions all reports and filings required pursuant to applicable Environmental Laws relating to or affecting the Facility or the Acquired Assets, except as would not reasonably be
expected to have a Material Adverse Effect; 
 (iii) Seller has not entered into or received, nor is Seller in default under,
any Order pursuant to any Environmental Law with respect to the Facility or any Acquired Asset; 
 (iv) Seller has obtained
all Permits necessary to own and operate the Facility and the Acquired Assets in material compliance with applicable Environmental Laws (“Environmental Permits”), and Schedule 4.13 contains a complete list and description of
each such Environmental Permit. Except as 
  

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 described in Schedule 4.13, Seller is in material compliance with each such Environmental Permit
(and, to the Knowledge of Seller, any information provided on the applications therefore continues to be accurate in all material respects) and no such Environmental Permit materially restricts Seller from operating any Acquired Asset covered by
such Environmental Permit in the manner currently being conducted; and 
 (v) Seller has not been, and currently Seller is
not, a “generator” of “hazardous waste” (as those terms are defined by the Resource Conservation and Recovery Act of 1976 and the regulations promulgated thereunder) with respect to the Facility or any Acquired Asset. 

(b) Except as set forth in Schedule 4.13 hereto, with respect to the Facility and the Acquired Assets, 
 (i) there is no Litigation pending or, to the Knowledge of Seller, threatened by any Governmental Authority, municipality, community,
citizen, or other entity, against Seller or against any Acquired Asset relating to environmental protection, compliance with Environmental Laws, or the Release of Hazardous Substances on, at, in, under or from the Real Property; 
 (ii) to the Knowledge of Seller, there has been no disposal, Release, burial, placement, migration, treatment, storage or Offsite
Migration of Hazardous Substances on, in, at or from any of the Real Property, except in material compliance with Environmental Laws; 
 (iii) to the Knowledge of Seller, all above-ground and underground storage tanks, sumps, oil/water separators, and septic systems now or previously located on the Real Property have been identified on
Schedule 4.13, together with a description of the materials stored therein and a statement as to whether such tanks are currently used by Seller, and, to the Knowledge of Seller, none of such tanks, sumps, oil/water separators and septic
systems is leaking or has leaked; 
 (iv) all waste containing any Hazardous Substances generated, used, handled, stored,
treated or disposed of (directly or indirectly) by Seller or at the Real Property during Seller’s ownership and operation of such Real Property has been generated, used, handled, stored, treated or disposed of (directly or, to the Knowledge of
Seller, indirectly) in material compliance with all applicable Environmental Laws; 
 (v) to the Knowledge of Seller,
(A) no Acquired Asset contains any asbestos-containing materials, (B) “PCBs” are not located on or in any Acquired Asset, and (C) the Real Property and its fixtures and improvements do not contain any lead-based paint;

  

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 (vi) no Lien (other than Permitted Liens) has arisen or is, to the Knowledge of Seller,
threatened on or against any of the Acquired Assets under or as a result of any Environmental Laws; and 
 (vii) Seller has
made available to Buyer any final reports in Seller’s possession or control resulting from any audits or other investigations that have been conducted as to environmental matters at any of the Real Property or any of the Acquired Assets by any
private party during or, to the Knowledge of Seller, prior to the period during which Seller owned, leased or operated such properties. A true and complete copy of each such item in Seller’s possession or control has been made available to
Buyer. 
 Section 4.14. Litigation. Except as listed and briefly described on Schedule 4.14, and other than with respect to Litigation arising
under Environmental Laws, there is no Litigation pending or, to the Knowledge of Seller, threatened against, or adversely affecting the Facility or any of the Acquired Assets, at law or in equity or admiralty, or before or by any Governmental
Authority, nor is Seller aware of any unasserted Litigation the assertion of which is probable. Other than with respect to any Order arising under Environmental Laws, Seller with respect to the Facility is not in default under any Order affecting
the Facility or the Acquired Assets. Seller is not a party to or bound by any Order that affects the Facility or the Acquired Assets. 
 Section 4.15.
Labor Matters. 
 (a) Schedule 4.15(a) contains a true and correct and complete list of all Facility Employees. Seller has made
available to Buyer a true and correct and complete list of any bonus received or to be received by any of them during or with respect to the twelve months ended December 31, 2005, their current remuneration, and a description of all perquisites
and fringe benefits they receive or are eligible to receive. Except as disclosed on Schedule 4.15(a), Seller has not received any written notice of intent to terminate employment from any person listed on Schedule 4.15(a). Seller, within the last
three (3) years, has not experienced any strike or organized work stoppage by Facility Employees. Other than identified on Schedule 4.15(a), Seller is not a party to nor does Seller have any obligation pursuant to any oral and legally binding
or written agreement, collective bargaining or otherwise, with any party regarding the rates of pay or working conditions of any of the Facility Employees, nor is Seller obligated under any Contract, Order or Law to recognize or bargain with any
labor organization or union on behalf of such employees. To the Knowledge of Seller, there are no efforts by any union, labor organization, or group of employees to unionize or to represent the employees of Seller for the purposes of collective
bargaining. Seller has not been charged or, to the Knowledge of Seller, threatened with the charge of any unfair labor practice relating to the Facility Employees within the last two (2) years. With respect to the Facility Employees, there are
no pending or, to the Knowledge of Seller, threatened Labor Claims. Except as identified on Schedule 4.15(a), there is no outstanding policy, practice, plan, agreement or arrangement of Seller entitling any Facility Employee to severance payments.

  

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 (b) Except as set forth on Schedule 4.15(b), none of the Facility Employees has suffered an
“employment loss” (as defined in WARN) within the ninety (90)-day period immediately prior to Closing. 
 Section 4.16. Brokers. No Person
is entitled to any brokerage, financial advisory, finder’s or similar fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of Seller for which Buyer will incur any
liability. 
 ARTICLE 5 
 REPRESENTATIONS AND WARRANTIES OF BUYER 
 Buyer represents and warrants to Seller as follows: 
 Section 5.1. Organization; Good Standing; Qualification. Buyer is a corporation duly organized, validly existing and in good standing under the Laws of the State
of Delaware and has the requisite corporate power and authority to own or lease and to operate all of its properties and assets and to carry on its business as it is now being conducted and as presently proposed to be conducted. 
 Section 5.2. Authority of Buyer; Binding Effect. 
 (a)
Buyer has the requisite power and authority to execute and deliver this Agreement and the other documents and instruments to be executed and delivered by Buyer pursuant hereto and to perform its obligations hereunder and thereunder. The execution
and delivery by Buyer of this Agreement and the other documents and instruments to be executed and delivered by Buyer pursuant hereto and the performance of its obligations hereunder and thereunder, including the consummation of the transactions
contemplated by this Agreement, have been duly authorized by all necessary corporate or other action on the part of Buyer. 
 (b) This
Agreement has been duly and validly executed and delivered by Buyer and constitutes, and each of the other documents and instruments to be executed by Buyer pursuant hereto upon Buyer’s execution and delivery will constitute, a valid and
binding obligation of Buyer, enforceable against Buyer in accordance with its terms, subject to (i) applicable bankruptcy, insolvency, reorganization, moratorium and other similar Laws of general application to creditors, (ii) general
principles of equity and (iii) the power of a court to deny enforcement of remedies generally based on public policy. 
 Section 5.3. Consents and
Approvals. No consent, approval, authorization or permit of, or filing with or notification to, any Governmental Authority or other Person is required for or in connection with the execution and delivery of this Agreement by Buyer or for or in
connection with the consummation of the transactions and performance of the terms and conditions contemplated hereby by Buyer, except for the Governmental Requirements and any consents, filings or notices that, if not obtained or made, will not have
a material adverse effect on Buyer’s business, operations or financial condition. 
  

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 Section 5.4. No Violations. Assuming that the Governmental Requirements will be satisfied, made or obtained and
will remain in full force and effect, neither the execution, delivery and performance of this Agreement by Buyer, the consummation by Buyer of the transactions contemplated by this Agreement or the compliance by Buyer with any of the provisions of
this Agreement, will (a) violate any provision of the certificate of incorporation, bylaws or other organizational documents of Buyer, (b) violate, conflict with or result in the breach of or default under (or with notice, lapse of time,
or both would result in such a breach or default) or, to the Knowledge of Buyer, constitute an event creating rights of acceleration, termination or cancellation under any Contract to which Buyer is party or by which Buyer’s properties or
assets may be bound, or (c) violate any order, writ, injunction, decree, statute, rule or regulation or other Law, applicable to Buyer, except in each case for violations, breaches, conflicts, defaults, accelerations, terminations or
cancellations that would not reasonably be expected to have a material adverse effect on Buyer’s business, operations or financial condition. 
 Section
5.5. Availability of Funds. Buyer currently has access to sufficient immediately available funds, in cash, and will have at the Closing sufficient immediately available funds, in cash, to pay the Closing Consideration and to pay any other
amounts payable pursuant to this Agreement and to effect the transactions contemplated hereby. 
 Section 5.6. Brokers. No Person is entitled to any
brokerage, financial advisory, finder’s or similar fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of Buyer for which Seller will incur any liability. 

ARTICLE 6 
 COVENANTS

 Section 6.1. Conduct of Business by Seller Pending the Closing. Except as otherwise contemplated by this Agreement, during the period from the
date hereof and continuing until the earlier of the termination of this Agreement in accordance with its terms or the Closing, the Seller shall: 
 (a) maintain the Acquired Assets in their present order and condition, reasonable wear and tear and use excepted; 
 (b) take all
steps, if any, reasonably necessary to maintain Seller’s rights in and to the Intellectual Property; 
 (c) comply in all material
respects with all Laws applicable to the operation of the Facility, except as set forth on Schedule 4.13 or otherwise disclosed to Seller on or prior to the date hereof; 
 (d) satisfy, terminate and discharge all Liens on the Acquired Assets that are not Permitted Liens and deliver evidence reasonably satisfactory to Buyer and its counsel of such satisfaction, termination and discharge
at or prior to Closing; and 
  

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 (e) maintain raw material and finished goods Inventories such that the levels of such Inventories at
Closing shall be at the target levels set forth on Schedule 6.1(e). 
 Section 6.2. Access to Records and Properties. 
 (a) From the date hereof until the Closing Date, Seller shall, subject to applicable Law, give Buyer and its Representatives reasonable access during
normal business hours to the offices, properties, officers, employees, accountants, auditors, counsel and other Representatives, books and records of Seller relating exclusively to the Facility and the Acquired Assets. Such access shall include
Buyer’s right, at its sole cost and expense, to conduct in relation to the Facility a Phase I Environmental Assessment generally conforming to ASTM E-1527-05 using a licensed and qualified consultant previously approved by Seller, provided that
such approval shall not be unreasonably withheld, conditioned or delayed by Seller; provided, however, that Buyer’s inspection of Seller’s properties shall not include the environmental sampling of any environmental media, including air,
soil, surface water or groundwater. 
 (b) From and after the Closing Date, Buyer shall give Seller and Seller’s Representatives
reasonable access during normal business hours to the non-privileged books and records pertaining to the Excluded Assets and Excluded Liabilities and, to the extent that Seller retains any liabilities, obligations or commitments with respect to such
items, the Acquired Assets. Buyer shall, and shall cause each of its Affiliates to, cooperate with Seller as may reasonably be requested by Seller for such purposes. 
 Section 6.3. Governmental Approvals. Following the execution of this Agreement, each party will (i) promptly, but no later than ten (10) days after the date hereof, file any Notification and Report
Forms and related materials that it may be required to file with the Federal Trade Commission and the Antitrust Division of the United States Department of Justice under the HSR Act with respect to the transactions contemplated by this Agreement,
(ii) promptly respond to any requests for additional information and documentary materials made by either such agency, and (iii) provide the other party such information as the other party may reasonably require to make such filings and
prepare such applications as may be required for the consummation of the transactions contemplated by this Agreement or which the parties reasonably consider to be necessary before Closing. Buyer and Seller shall each pay one half of the filing fees
required to be paid upon filing of the Notification and Report Forms under the HSR Act. 
 Section 6.4. Consents and Approvals; Equitable Assignment.

  

	 	(a)	Seller will use commercially reasonable efforts to obtain any and all governmental or any third party consents or approvals (other than those referenced in Section 6.3) that
are required in connection with the sale, assignment, transfer, conveyance or delivery, or attempted sale, assignment, transfer, conveyance or delivery to Buyer, as contemplated hereunder, of the Acquired Assets. 

  

	 	(b)	Notwithstanding anything to the contrary contained in this Agreement, to the extent that the sale, assignment, transfer, conveyance or delivery, or attempted

  

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	 	  	sale, assignment, transfer, conveyance or delivery to Buyer, as contemplated hereunder, of any Acquired Asset is prohibited by its terms or by any applicable Laws or would require
any governmental or any third party consents or approvals, and such consents or approvals shall not have been obtained prior to the Closing (such consents and approvals, collectively, “Delayed Consents”), this Agreement shall not
constitute a sale, assignment, transfer, conveyance or delivery, or any attempted sale, assignment, transfer, conveyance or delivery, thereof. Following the Closing, the parties shall use commercially reasonable efforts and shall cooperate with each
other to obtain promptly the Delayed Consents; provided that all reasonable out-of-pocket expenses incurred in connection with obtaining such Delayed Consents shall be borne equally by Buyer and Seller pending receipt of the Delayed Consents.
Pending receipt of such Delayed Consents following Closing, or if such Delayed Consents are not obtained, the parties hereto shall cooperate with each other in any reasonable and lawful arrangements, effectively transferring to Buyer, from and after
the Closing, the rights and benefits of, and entitlements to exercise the Seller’s rights under, and effectively causing the Buyer to assume all Assumed Liabilities with respect to, such Acquired Asset and operations of the Facility as if such
assets and operations had been transferred by Seller to Buyer at the Closing and any liabilities associated with the arrangements specifically established by Buyer and Seller pursuant to this Section 6.4. Once any Delayed Consent is obtained,
Seller shall assign, transfer, convey and deliver, or cause to be assigned, transferred, conveyed and delivered, such Acquired Asset to Buyer at the expense of Buyer and Seller, with Buyer and Seller jointly and equally responsible for all
reasonable out-of-pocket costs associated with such transfer; provided that no additional consideration shall be paid by Buyer to Seller for such relevant Acquired Asset. 

 Section 6.5. Public Announcements. It is contemplated that immediately following the execution of this Agreement, each of Seller and Buyer will (a) consult with one another regarding the language of any
press release or press releases disclosing such action and (b) consult with the other party regarding and file any disclosures relating to the execution of this Agreement that are required under the Securities Exchange Act of 1934, as amended,
the regulations promulgated thereunder, and the rules and regulations of any exchange on which the securities of Seller, Buyer or their respective Affiliates are traded. Thereafter, prior to the Closing, except as otherwise agreed to by the parties,
no party shall issue any report, statement or press release or otherwise make any public statements with respect to this Agreement or the transactions contemplated hereby, except as required by applicable Law, in which case Seller and Buyer will
consult with each other prior to the issuance of such a report, statement or press release. 
 Section 6.6. Notice of Breach Disclosure. Seller shall
promptly notify Buyer, and Buyer shall promptly notify Seller, of (a) any event, condition or circumstance of which Seller or Buyer, as the case may be, becomes aware after the date hereof and prior to the Closing Date that would constitute a
violation or breach of this Agreement (or a breach of any representation or warranty contained in this Agreement) or, if the same were to continue to exist as of the Closing Date, would constitute the nonsatisfaction of any of the conditions set
forth in Article 7, as the 
  

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 case may be or (b) any event, occurrence, transaction, or other item of which Buyer or Seller, as the case may be,
becomes aware which would have been required to have been disclosed on any schedule attached hereto had such event, occurrence, transaction or item existed as of the date hereof. 
 Section 6.7. Employee Matters. 
 (a) Effective as of the Closing, Seller shall (i) terminate all
of the Facility Employees who are direct employees of Seller, other than those Facility Employees identified on Schedule 6.7, and (ii) cause APS to terminate each of the Facility Employees who are APS employees other than those Facility
Employees who are identified on Schedule 6.7. Buyer may offer employment to any Facility Employees (other than those identified on Schedule 6.7) on terms and conditions determined by Buyer at Buyer’s sole discretion. Seller shall reasonably
cooperate (including providing introductions where necessary) with Buyer to enable Buyer to contact Facility Employees of Seller and of APS during normal business hours and after prior notice to Seller, and to offer employment to Facility Employees
of Seller and APS. Buyer will have full access to the personnel records (including performance appraisals, disciplinary actions and grievances) of Seller and APS for the purpose of preparing for and conducting employment interviews with the
employees that Buyer desires to interview, subject to Seller’s compliance with any requirement of law regarding such disclosure and subject to the Seller obtaining an executed release from the Facility Employee authorizing such disclosure.

 (b) Buyer agrees to hire and maintain the employment, for a period of at least one hundred eighty one (181) days following Closing,
of an adequate number of Facility Employees at an adequate job and rate of pay (including commission structure) to prevent triggering any notice obligation under WARN. Buyer shall have sole responsibility for any obligations or liabilities of Buyer
and Seller under WARN with respect to the Facility Employees, and shall indemnify, defend and hold harmless Seller with respect to any such obligations and liabilities, except to the extent that such obligations or liabilities arise from a breach by
Seller of its representations and warranties in Section 4.15. 
 (c) Seller shall be responsible for payment and settlement of all
obligations required or committed to the Facility Employees (or any persons previously employed at the Facility), including without limitation severance costs, accrued salaries, wages, payroll taxes, retirement, vacation pay, and any other
obligations and expenses of any kind arising out of the employment by, or termination from the employment of, Seller of the Facility Employees (or any persons previously employed at the Facility) prior to Closing. Seller shall be responsible for the
costs and expenses of workers’ compensation claims of the Facility Employees (or any persons previously employed at the Facility) for injuries sustained prior to Closing and for costs and expenses incurred in respect of employee health and
medical benefits by the Facility Employees (or any persons previously employed at the Facility) prior to Closing whether or not reported to Seller or any insurer prior to Closing. Buyer shall be responsible for all obligations and costs, if any,
required to be paid to Facility Employees arising out of their employment by Buyer or an affiliate of Buyer or the termination thereof or the hiring practices of Buyer or any affiliate thereof. Buyer shall be responsible for all such costs and
expenses of workers’ compensation claims of any Facility Employees hired by Buyer for injuries sustained after Closing as well as all costs and expenses incurred in respect of employee health and medical benefits of any Employees hired by Buyer
after Closing. 
  

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 Section 6.8. Employee Benefit Plans. Provided that same can be lawfully accomplished within the context of
Buyer’s existing benefits plans without modification of the benefits provided to Buyer’s existing employees prior to Closing, any Facility Employee who is employed by Buyer after Closing (i) will receive employee benefits similar to
those then provided to similarly situated employees of Buyer, (ii) will be given credit for all service with Seller for benefit accrual and participation purposes under Buyer’s vacation policy, and (ii) will be given credit for all
service with Seller for the purpose of determining eligibility and vesting with respect to all employee benefits to be provided as set forth in (i) of this Section 6.8 above, including the Mohawk Carpet Corporation Retirement Savings Plans
(the “Mohawk Plans”). Eligibility to participate in any plan of Buyer will be based on the rules of Buyer plan in which such Facility Employees participate after being employed by Buyer. Seller and Buyer agree that Buyer is not
acquiring or succeeding to any obligations with respect to Seller’s benefit plans or other plans in which Facility Employees participate and that Buyer is not intended to be a successor employer to Seller for any purposes, including with
respect to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, and ERISA Sections 601 through 608 (“COBRA”). Seller agrees that it will comply with COBRA with respect to all Facility Employees as required by law.
Seller will provide the certification described in Sections 9801 et seq. of the Code to the extent required by law for all Facility Employees or former employees as of the Closing Date. 
 Section 6.9. Actions with respect to Retirement Plans. Those Facility Employees who are offered employment by Buyer at Closing and who are eligible to participate in the Mohawk Plans shall receive the same
contributions from Buyer, if any, as are available to Buyer’s similarly situated employees, based upon their individual contributions to the Mohawk Plans. At or prior to Closing, Seller shall fund each eligible participating Facility
Employee’s 401(k) account in the Seller’s 401(k) plan with a pro rata share of Seller’s semi-monthly matching contribution through the Closing Date to the extent such amount has not already been funded. At or prior to Closing, Seller
shall cause the 401(k) account balances under Seller’s 401(k) plan related to any Facility Employees who are offered employment by Buyer at Closing to become fully and 100% vested to the extent such accounts are not already fully vested.

 Section 6.10. Transfer Taxes. All Taxes including all state and local Taxes in connection with the transfer of the Acquired Assets, and all
recording and filing fees (collectively, “Transfer Taxes”), that may be imposed by reason of the sale, transfer, assignment and delivery of the Acquired Assets shall be borne by Buyer. Seller shall cooperate to (a) determine
the amount of Transfer Taxes payable in connection with the contemplated transactions and (b) provide all requisite exemption certificates. 
 Section
6.11. Proration of Taxes and Certain Charges. 
 (a) Except as otherwise expressly provided in this Agreement, all Real Property Taxes,
Personal Property Taxes or similar ad valorem obligations levied with respect to the Acquired Assets for any taxable period that includes the day before the Closing Date and 
  

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 ends after the Closing Date, whether imposed or assessed before or after the Closing Date, shall be prorated on a per
diem basis between Seller and Buyer as of 12:01 A.M. on the Closing Date. If any Taxes subject to proration are paid by Buyer, on the one hand, or Seller, on the other hand, the proportionate amount of such Taxes paid (or in the event a refund of
any portion of such Taxes previously paid is received, such refund) shall be paid promptly by (or to) the other after the payment of such Taxes (or promptly following the receipt of any such refund). 
 (b) Except as otherwise expressly provided in this Agreement, all installments of special assessments or other charges on or with respect to the Acquired
Assets payable by Seller for any period in which the Closing Date shall occur, including base rent, common area maintenance, royalties, all municipal, utility or authority charges for water, sewer, electric or gas charges, garbage or waste removal,
and cost of fuel, shall be apportioned as of the Closing Date and each party shall pay its proportionate share promptly upon the receipt of any bill, statement or other charge with respect thereto. If such charges or rates are assessed either based
upon time or for a specified period, such charges or rates shall be prorated as of 12:01 A.M. on the Closing Date. If such charges or rates are assessed based upon usage of utility or similar services, such charges shall be prorated based upon meter
readings taken on the Closing Date. 
 (c) Except as otherwise expressly provided in this Agreement, all amounts due pursuant to the terms of
the Assumed Contracts, for any period in which the Closing Date shall occur shall be prorated as of 12:01 A.M. on the Closing Date. 
 Section 6.12.
[Intentionally Deleted] 
 Section 6.13. Refitting Project. Following the date hereof, Seller shall (i) remove from the Facility each of
the items of Excluded Machinery and Equipment and (ii) install the items of Machinery and Equipment identified on Schedule 6.13 (the items listed on Schedule 6.13 being referred to as the “Refit Machinery and Equipment”). The
items of Machinery and Equipment at the Facility after giving effect to the removal of the Excluded Machinery and Equipment and the installation of the Refit Machinery and Equipment are identified on Schedule 2.1(b). The process of removing the
Excluded Machinery and Equipment and installing the Refit Machinery and Equipment is hereinafter referred to as the “Refitting Project.” 
 Section 6.14. Removal of Name and Signage. As soon as practical following the Closing Date, but in no event later than sixty (60) days following the Closing Date, Buyer shall, at its sole cost and expense, remove or cover all
Seller names and logos from the Acquired Assets, including all signage at the Facility and all labels or identifying marks on packaging; provided, however that Buyer shall not be obligated to remove or cover such logos on packaging of existing
Inventories held solely for Buyer’s internal use if such Inventories are expended within one hundred eighty (180) days following Closing. In no event shall Buyer transmit any correspondence or deliver any goods to customers or other third
parties containing Seller’s names or logos. 
 Section 6.15. Amendment and Supplement to Schedules. Seller shall, from time to time prior to the
Closing by written notice to Buyer, amend or supplement any Schedule to this Agreement to correct any matter that would constitute a breach of any representation, warranty or 
  

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 covenant of Seller contained in this Agreement. If any amendment or supplement to a Schedule is delivered to Buyer later
than the sixth (6th) Business Day prior to the projected Closing Date, Buyer may delay the Closing Date by a
period of up to six (6) Business Days in order to consider the effect of any such amendment or supplement. Unless the items disclosed by such supplement or amendment constitute a Material Adverse Effect, no such supplement or amendment will
affect Buyer’s obligations to consummate the transactions contemplated by this Agreement, but if the Closing occurs, no such supplement or amendment shall be deemed to have amended or modified the representations or warranties in Article 4 for
purposes of any indemnification claim by Buyer based on the breach of such representations or warranties. 
 Section 6.16. Further Assurances. From
time to time from and after the date of this Agreement, including, without limitation, following the Closing, Buyer and Seller shall each execute, acknowledge and deliver such additional documents or instruments and take such other action as Buyer
or Seller, as the case may be, may reasonably request to more effectively accomplish the transactions contemplated by this Agreement. 
 ARTICLE 7 
 CONDITIONS TO CLOSING 
 Section 7.1. Conditions to Obligations of Seller and Buyer. The respective obligations of each party to effect the transactions contemplated by this Agreement shall be subject to the satisfaction (or waiver by the parties) at or
prior to the Closing Date of the following conditions: 
 (a) any applicable waiting period under the HSR Act shall have expired or been
terminated and all necessary approvals under applicable antitrust or competition Laws shall have been obtained; 
 (b) no statute, rule,
regulation, executive order, decree, decision, ruling or preliminary or permanent injunction shall have been enacted, entered, promulgated, or enforced by any U.S. federal or state court that prohibits, restrains, enjoins, or restricts the
consummation of the transactions contemplated by this Agreement that has not been withdrawn or terminated; and 
 (c) no legal action or
proceeding shall have been instituted against Seller or against Buyer arising by reason of the transactions contemplated by this Agreement, which is reasonably likely to (i) restrain, prohibit or invalidate the consummation of the transactions
contemplated by this Agreement, or (ii) have a Material Adverse Effect. 
 Section 7.2. Conditions to Obligations of Seller. The obligation of
Seller to effect the transactions contemplated by this Agreement shall be subject to the satisfaction (or waiver by Seller) at or prior to the Closing Date of the following conditions: 
 (a) the representations and warranties of Buyer contained in this Agreement shall have been true and correct in all material respects (or, with respect to
any representations and warranties that are qualified by material adverse effect, materiality or words of similar import 
  

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 contained in such representations or warranties, in all respects) on and as of the date hereof and as of the Closing as
if made as of the Closing (except that the representations and warranties that are made as of a specific date need be true and correct only as of such date), and Seller shall have received a certificate from Buyer signed by an officer thereof with
respect to the foregoing; 
 (b) the covenants and agreements of Buyer to be complied with or performed at or prior to the Closing shall have
been duly complied with or performed in all material respects. Seller shall have received a certificate from Buyer signed by an officer thereof with respect to the foregoing; and 
 (c) Buyer shall have delivered all documents required to be delivered by Buyer pursuant to Section 3.3. 
 Section 7.3. Conditions to Obligations of Buyer. The obligation of Buyer to effect the transactions contemplated by this Agreement shall be subject to the
satisfaction (or waiver by Buyer) at or prior to the Closing Date of the following conditions: 
 (a) the representations and warranties of
Seller contained in this Agreement shall have been true and correct in all material respects (or, with respect to any representations and warranties that are qualified by Material Adverse Effect, materiality or words of similar import contained in
such representations or warranties, in all respects) on and as of the date hereof and as of the Closing as if made as of the Closing (except that the representations and warranties that are made as of a specific date need be true and correct only as
of such date), and Buyer shall have received a certificate from Seller signed by an officer thereof with respect to the foregoing; 
 (b) the
covenants and agreements of Seller to be complied with or performed at or prior to the Closing shall have been duly complied with or performed in all material respects. Buyer shall have received a certificate from Seller signed by an officer thereof
with respect to the foregoing; 
 (c) Seller shall have delivered all documents required to be delivered by Seller pursuant to
Section 3.2; 
 (d) no Material Adverse Effect shall have occurred; 
 (e) the Refitting Project shall have been completed; and 
 (f) if the Closing shall not have occurred prior to April 15, 2006, Seller shall have made any quarterly contribution with respect to the Propex Fabrics Inc. Cash Value Retirement Plan and the Propex Fabrics Inc.
Cash Balance Retirement Plan to the extent required by Law to be made no later than April 15, 2006, and shall have provided evidence reasonably satisfactory to Buyer that such contribution has been made. 
  

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 ARTICLE 8 
 TERMINATION 
 Section 8.1. Termination. This Agreement may be terminated at any time prior to the Closing
Date: 
  

	 	(a)	by written agreement of Seller and Buyer; 

  

	 	(b)	by either Seller or Buyer, upon written notice to the other: 

 (i) if the Closing shall not have occurred on or before May 31, 2006 (unless there has been a “second request” under the HSR Act, in which case July 31, 2006) (as applicable, the
“Termination Date”); provided, however, that the right to terminate this Agreement under this Section 8.1(b)(i) shall not be available to any party whose failure to fulfill any obligation under this Agreement shall have been a
primary cause of the failure of the Closing to occur prior to such date; or 
 (ii) if there be any Law or regulation that
makes consummation of the transactions contemplated by this Agreement illegal or otherwise prohibited, or if any judgment, injunction, order or decree permanently restraining, prohibiting or enjoining Buyer or Seller from consummating the
transactions contemplated by this Agreement is entered and such judgment, injunction, order or decree shall become final; 
 (c) by Buyer,
upon written notice to Seller, if there shall have been a breach by Seller of any of its representations, warranties, covenants or agreements contained in this Agreement, which breach would result in the failure to satisfy one or more of the
conditions set forth in Section 7.3, and such breach shall be incapable of being cured prior to the Termination Date or, if capable of being cured prior to the Termination Date, (x) shall not have been cured within twenty (20) days
after written notice thereof shall have been received by Seller and (y) Seller shall not have provided Buyer with adequate assurances of Seller’s ability to remedy such breach on or prior to such twentieth (20th) day; provided, however, that Buyer shall not have the right to terminate this Agreement under this Section 8.1(c)
if Buyer is in material breach of any of its representations or warranties contained in this Agreement or has failed in any material respect to perform any of its obligations under this Agreement; or 
 (d) by Seller, upon written notice to Buyer, if there shall have been a breach by Buyer of any of its representations, warranties, covenants or
agreements contained in this Agreement, which breach would result in the failure to satisfy one or more of the conditions set forth in Section 7.2, and such breach shall be incapable of being cured prior to the Termination Date or, if capable
of being cured prior to the Termination Date, (x) shall not have been cured within twenty (20) days after written notice thereof shall have been received by Buyer and (y) Buyer shall not have provided Seller with adequate assurances
of Buyer’s ability to remedy such breach on or prior to such twentieth (20th) day; provided, however, that
Seller shall not have the right to terminate this Agreement under this Section 8.1(d)(i) if Seller is in material breach of any of its representations or warranties contained in this Agreement or has failed in any material respect to perform
any of its obligations under this Agreement. 
  

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 Section 8.2. Effect of Termination; Remedies. In the event of termination of this Agreement pursuant to
Section 8.1, this Agreement shall become null and void and have no effect and no party hereto shall have any liability to the other party hereto or its Affiliates, Representatives or shareholders, except (i) that the obligations of the
parties to this Agreement contained in this Section 8.2 and Article 10 shall continue in full force and effect, and (ii) that nothing in this Agreement will relieve any party from liability for any willful breach of any representation,
warranty, covenant or agreement set forth in this Agreement prior to such termination. The parties acknowledge and agree that any claim for such a breach must be brought within thirty (30) days after this Agreement is validly terminated.

 ARTICLE 9 
 SURVIVAL
OF REPRESENTATIONS; INDEMNIFICATIONS 
 Section 9.1. Survival of Representations. The representations, warranties and covenants contained in this
Agreement shall survive until, and shall terminate on, the second (2nd) anniversary of the Closing Date, except
for (a) the representations and warranties contained in Sections 4.1, 4.2, 4.3, 4.5(a), 4.10, 4.11, 4.12(a), 4.16, 5.1, 5.2, 5.3 and 5.6 and the covenants contained in this Agreement, which shall survive until, and shall terminate on, the date
of expiration of the applicable statute of limitations and (b) the representations and warranties contained in Section 4.13, which shall survive until, and shall terminate on, the sixth (6th) anniversary of the Closing Date (the applicable period of survival is hereinafter referred to as the “Indemnity Period”). The
representations and warranties contained in this Agreement shall not survive any termination of this Agreement. The parties intend to shorten the statute of limitations and agree that no claims or causes of action may be brought after the Indemnity
Period against Seller or Buyer or any of their Representatives, Affiliates or shareholders based upon, directly or indirectly, any of the representations and warranties contained in this Agreement, any covenant that by its terms is to be performed
on or prior to the Closing Date, or any termination of this Agreement. 
 Section 9.2. Seller’s Agreement to Indemnify. Subject to the terms and
conditions set forth herein, from and after the Closing, Seller shall indemnify and hold harmless Buyer and its Representatives, Affiliates and shareholders and their successors and assigns (collectively, “Buyer Indemnitees”) from
and against all liabilities, demands, claims, actions or causes of action, assessments, losses, damages, costs and expenses (including reasonable attorneys’ fees and expenses) (collectively, “Damages”) asserted against or
incurred by any Buyer Indemnitee as a result of or arising out of (a) a breach of any representation or warranty contained in this Agreement, (b) the Excluded Liabilities, or (c) a breach of any agreement or covenant of Seller in this
Agreement. 
 Section 9.3. Buyer’s Agreement to Indemnify. Subject to the terms and conditions set forth herein, from and after the Closing,
Buyer shall indemnify and hold harmless Seller and Seller’s Representatives, Affiliates and shareholders and their successors and assigns (collectively, the “Seller Indemnitees”) from and against all Damages asserted against or
incurred 
  

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 by any Seller Indemnitee as a result of or arising out of (a) a breach of any representation or warranty contained
in this Agreement, (b) the Assumed Liabilities, or (c) a breach of any agreement or covenant of Buyer in this Agreement. 
 Section 9.4.
Limitations on Indemnification. 
 (a) The obligations of a party against whom an indemnification claim is brought (the
“Indemnifying Party”) to indemnify the Buyer Indemnitee or Seller Indemnitee seeking indemnification (the “Indemnified Party”) pursuant to Sections 9.2 and 9.3 are subject to the following limitations: 

(i) Except with respect to the Assumed Liabilities and the Excluded Liabilities, no indemnification shall be made with respect to any
such claim unless (x) the amount of such claim exceeds $25,000 (any such claim, a “Qualifying Claim”) and (y) the aggregate amount of Damages under all Qualifying Claims exceeds $250,000 and, in such event, indemnification
shall be made only to the extent such Damages exceed $250,000 in the aggregate, it being understood that such amount shall be a “deductible”; 
 (ii) in no event shall an Indemnifying Party’s aggregate obligation to indemnify Indemnified Parties (excluding indemnification with respect to breaches of the representations and warranties contained in Sections
4.1, 4.2, 4.3, 4.5(a), 4.10, 4.11, 4.12(a), 4.13, 4.16, 5.1, 5.2, 5.3 and 5.6 and indemnification with respect to the Assumed Liabilities and the Excluded Liabilities) exceed $6,550,000; and 
 (iii) in no event shall an Indemnifying Party’s aggregate obligation to indemnify Indemnified Parties (including indemnification with
respect to breaches of the representations and warranties contained in Sections 4.1, 4.2, 4.3, 4.5(a), 4.10, 4.11, 4.12(a), 4.13, 4.16, 5.1, 5.2, 5.3 and 5.6 and indemnification with respect to the Assumed Liabilities and the Excluded Liabilities)
exceed the amount of the Closing Consideration. 
 (b) The amount of any Damages payable pursuant to this Article 9 shall be reduced by any
amount received by the Indemnified Parties with respect thereto under any insurance coverage. Indemnified Parties shall use commercially reasonable efforts to collect any amounts available under such insurance coverage and from such other party
alleged to have responsibility. If an Indemnified Party receives an amount under insurance coverage or from the Indemnifying Party with respect to Damages at any time subsequent to any indemnification provided by the Indemnifying Party pursuant to
this Article 9, then such Indemnified Party shall promptly reimburse the Indemnifying Party for any payment made or expense incurred by the Indemnifying Party in connection with providing such indemnification up to such amount received by the
Indemnified Party, but net of any expenses incurred by such Indemnified Party in collecting such amount. 
  

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 (c) An Indemnifying Party shall be obligated to indemnify Indemnified Parties only for those claims
giving rise to Damages as to which the Indemnified Parties have given the Indemnifying Party prompt written notice with reasonable specificity prior to the end of the Indemnity Period (to the extent the Indemnity Period applies to such Damages). Any
written notice delivered by an Indemnified Party with respect to Damages shall set forth with reasonable detail the basis of the claim for such Damages and, to the extent reasonably practicable, a reasonable estimate of the amount thereof. Failure
to give prompt notice of a claim for Damages hereunder shall not affect the Indemnifying Party’s obligations under this Article 9, except to the extent that the Indemnifying Party is materially prejudiced by such failure to give prompt notice.

 Section 9.5. Third Party Indemnification. In addition to the limitations set forth in Section 9.4, the obligations of any Indemnifying Party
to indemnify any Indemnified Party under this Article 9, resulting from the assertion of liability by third parties (a “Claim”), will be subject to the following terms and conditions: 
 (a) Any Indemnified Party will give the Indemnifying Party written notice of any such Claim promptly after learning of such Claim, and the Indemnifying
Party may at its option undertake the defense thereof by representatives of its own choosing. Failure to give prompt notice of a Claim hereunder shall not affect the Indemnifying Party’s obligations under this Article 9, except to the extent
that the Indemnifying Party is materially prejudiced by such failure to give prompt notice. If the Indemnifying Party, within thirty (30) days after notice of any such Claim, fails to assume the defense of such Claim, the Indemnified Party
against whom such claim has been made will (upon further notice to the Indemnifying Party) have the right to undertake the defense, compromise or settlement of such claim on behalf of and for the account and risk, and at the expense, of the
Indemnifying Party, subject to the right of the Indemnifying Party to assume the defense of such Claim at any time prior to settlement, compromise or final determination thereof. 
 (b) Anything in this Article 9 to the contrary notwithstanding, (i) the Indemnified Party shall not settle a claim for which it is indemnified
without the prior written consent of the Indemnifying Party, which consent shall not be unreasonably withheld, conditioned or delayed, and (ii) the Indemnifying Party shall not enter into any settlement or compromise of any action, suit or
proceeding or consent to the entry of any judgment for other than monetary damages to be borne by the Indemnifying Party without the prior written consent of the Indemnified Party, which consent shall not be unreasonably withheld, conditioned or
delayed. 
 ARTICLE 10 
 MISCELLANEOUS 
 Section 10.1. Warranties Exclusive. The parties acknowledge that the representations and warranties contained in
Article 4 and Article 5 are the only representations or warranties given by the parties and that all other express or implied warranties are disclaimed. Without limiting the foregoing, Buyer acknowledges that, except for the Excluded Liabilities and
the representations and warranties contained in Article 4, the Acquired Assets are conveyed “AS IS,” “WHERE IS” and “WITH ALL FAULTS” and that all warranties of merchantability or fitness for 
  

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 a particular purpose are disclaimed. WITHOUT LIMITING THE FOREGOING AND EXCEPT AS EXPRESSLY PROVIDED HEREIN, BUYER
ACKNOWLEDGES THAT SELLER AND ITS REPRESENTATIVES HAVE MADE NO REPRESENTATION OR WARRANTY CONCERNING ANY (A) USE TO WHICH THE ACQUIRED ASSETS MAY BE PUT, (B) FUTURE REVENUES, COSTS, EXPENDITURES, CASH FLOW, RESULTS OF OPERATIONS, FINANCIAL
CONDITION OR PROSPECTS THAT MAY RESULT FROM THE OWNERSHIP, USE OR SALE OF THE ACQUIRED ASSETS OR THE ASSUMPTION OF THE ASSUMED LIABILITIES, (C) ENVIRONMENTAL CONDITIONS AT THE REAL PROPERTY, INCLUDING THE PRESENCE OR RELEASE OF HAZARDOUS
SUBSTANCES, OR (D) OTHER INFORMATION OR DOCUMENTS MADE AVAILABLE TO BUYER OR ITS AFFILIATES OR REPRESENTATIVES. 
 Section 10.2. Sole and Exclusive
Remedy. The parties agree and acknowledge that, from and after the Closing Date, the indemnification provisions of Article 9 shall, except in the case of actual fraud, be the sole and exclusive remedy of each party (including the Seller
Indemnified Parties and the Buyer Indemnified Parties) (a) for any breach of the other party’s representations, warranties, covenants, or agreements contained in this Agreement or (b) otherwise with respect to the Acquired Assets,
this Agreement, or any of the transactions contemplated by this Agreement. 
 Section 10.3. Waiver of Consequential Damages. NOTWITHSTANDING ANYTHING
CONTAINED TO THE CONTRARY IN THIS AGREEMENT, SELLER AND BUYER AGREE THAT THE RECOVERY BY EITHER PARTY HERETO OF ANY DAMAGES SUFFERED OR INCURRED BY IT AS A RESULT OF ANY BREACH BY THE OTHER PARTY OF ANY OF ITS REPRESENTATIONS, WARRANTIES OR
OBLIGATIONS UNDER THIS AGREEMENT SHALL BE LIMITED TO THE ACTUAL DAMAGES SUFFERED OR INCURRED BY THE NON-BREACHING PARTY AS A RESULT OF THE BREACH BY THE BREACHING PARTY OF ITS REPRESENTATIONS, WARRANTIES, OR OBLIGATIONS HEREUNDER AND IN NO EVENT
SHALL THE BREACHING PARTY BE LIABLE TO THE NON-BREACHING PARTY FOR ANY INDIRECT, CONSEQUENTIAL, SPECIAL, EXEMPLARY, OR PUNITIVE DAMAGES (INCLUDING ANY DAMAGES ON ACCOUNT OF LOST PROFITS OR OPPORTUNITIES OR LOST OR DELAYED PRODUCTION) SUFFERED OR
INCURRED BY THE NON-BREACHING PARTY AS A RESULT OF THE BREACH BY THE BREACHING PARTY OF ANY OF ITS REPRESENTATIONS, WARRANTIES, OR OBLIGATIONS HEREUNDER. 
 Section 10.4. Waiver of Right to Trial by Jury. SELLER AND BUYER HEREBY WAIVE TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY PROCEEDING DIRECTLY OR INDIRECTLY ARISING
OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR THE CONTEMPLATED TRANSACTIONS (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). 
 Section 10.5.
Notices. Unless otherwise provided in this Agreement, any notice, tender, or delivery to be given under this Agreement by any party to the other may be effected (a)
  

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 by personal delivery in writing, (b) by registered or certified mail, postage prepaid, return receipt requested, or
(c) by reputable overnight commercial carrier guaranteeing overnight delivery, and shall be deemed communicated upon actual receipt. Mailed notices shall be addressed as set forth below, but each party may change the address to which notices
are to be sent to such party by written notice in accordance with this paragraph. 
  

	 	(a)	If to Seller, addressed to: 

 Propex
Fabrics Inc. 
 260 The Bluffs 
 Austell, Georgia 30168 
 Attention: Chief Executive Officer 
 Facsimile: (770) 944-4612 
  

	 	  	with copies (which shall not constitute notice) to: 

 Propex Fabrics Inc. 
 260 The Bluffs 
 Austell, Georgia 30168 
 Attention: John Stover 
 Facsimile: (770) 944-4612 
 Bracewell & Giuliani LLP 
 711 Louisiana Street, Suite 2300 
 Houston, Texas 77002-2770 
 Attention: Geoffrey A. Long 
 Facsimile: (713) 221-2106 
  

	 	(b)	If to Buyer, addressed to: 

 Mohawk
Industries, Inc. 
 160 South Industrial Boulevard 
 Calhoun, Georgia 30701 
 Attention: General Counsel 
 Facsimile: (706) 624-2483 
  

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	 	  	with a copy (which shall not constitute notice) to: 

 Alston & Bird LLP 
 One Atlantic Center 
 1201 West Peachtree Street 
 Atlanta, Georgia 30309-3424 
 Attention: Alexander W. Patterson 
 Facsimile: (404) 253-8172 
 Section
10.6. Entire Agreement; Amendment; Waiver. This Agreement (including all exhibits, schedules and annexes hereto) and the instruments and documents to be executed pursuant hereto constitute the entire agreement between the parties hereto
relating to the subject matter of this Agreement and supersede all other prior agreements, understandings, negotiations and discussions, whether oral or written, of the parties. This Agreement may be amended, supplemented or modified only by a
written instrument executed by the Buyer and Seller, or in the case of a waiver, by the party waiving compliance. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision of this
Agreement (whether or not similar), and no such waiver shall constitute a continuing waiver unless otherwise expressly provided. 
 Section 10.7. Closing
Date. All actions to be taken on the Closing Date pursuant to this Agreement shall be deemed to have occurred simultaneously, and no act, document or transaction shall be deemed to have been taken, delivered or effected until all such actions,
documents and transactions have been taken, delivered or effected. 
 Section 10.8. Severability. Should any term, provision or paragraph of this
Agreement be, for any reason, determined to be invalid, illegal or unenforceable in any respect, said provision shall survive to the extent it is not so determined, and all of the other provisions of this Agreement shall remain in full force and
effect only if, after excluding the portion deemed to be illegal, invalid or unenforceable, the remaining terms shall provide for the consummation of the transactions contemplated by this Agreement in substantially the same manner as originally set
forth at the later of (a) the date hereof and (b) the date this Agreement was last amended. 
 Section 10.9. Headings. The table of contents
and the headings contained in this Agreement are for convenience of reference only and are not intended to be a part of, or to affect the meaning or interpretation of, this Agreement. 
 Section 10.10. Payment of Fees and Expenses. Except as otherwise provided in this Agreement, and whether or not the transactions contemplated by this Agreement are consummated, Buyer, on the one hand and
Seller, on the other hand, shall be responsible for, and shall pay, all of their respective fees and expenses, including those of its counsel, incurred in the negotiation, preparation and consummation of the Agreement and the transactions
contemplated hereby. 
 Section 10.11. Assignments. Neither this Agreement nor any of the rights or obligations under this Agreement may be assigned
by Seller without the prior written consent of Buyer, or by Buyer without the prior written consent of Seller; provided, that either party may, without the 
  

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 consent of the other party, (a) assign its rights under this Agreement to one or more wholly-owned subsidiaries of
such party or (b) pledge, grant a security interest in or assign as collateral all or any portion of its interest in, or rights under, this Agreement to any one or more financial institutions, and upon foreclosure or sale or deed in lieu of
foreclosure by or to any such financial institutions, the rights of such party hereunder may be assigned to any such financial institutions or any purchaser upon such foreclosure or sale or deed in lieu of foreclosure. Unless otherwise agreed by the
non-assigning party, no assignment pursuant to this Section 10.11 shall relieve the assigning party of its obligations under this Agreement. 
 Section
10.12. Binding Effect; No Third Party Beneficiary. This Agreement shall bind and inure to the benefit of parties and their respective successors and permitted assigns. This Agreement shall be binding upon and inure solely to the benefit of
Seller, Buyer and their respective successors and permitted assigns, and nothing in this Agreement (except Article 9 hereof, pursuant to which Buyer Indemnitees and Seller Indemnitees are intended to be third-party beneficiaries), express or
implied, is intended to or shall confer upon any other Person any rights, benefits or remedies of any nature whatsoever under or by reason of this Agreement. 
 Section 10.13. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Georgia without regard to the rules of conflict of laws of the State of Georgia. 
 Section 10.14. Construction. In the interpretation and construction of this Agreement, the parties acknowledge that the terms of this Agreement reflect extensive
negotiations between the parties and that this Agreement shall not be deemed, for the purpose of construction and interpretation, to have been drafted by either party hereto. 
 Section 10.15. Counterparts. This Agreement may be signed in two (2) or more counterparts each of which shall be deemed an original. The parties further agree that counterparts to Agreement may be
delivered by facsimile. 
 Section 10.16. Time is of the Essence. Time is of the essence in this Agreement, and all of the terms, covenants and
conditions of this Agreement. 
 Section 10.17. Jurisdiction and Consent to Service. Seller and Buyer each (a) agree that any suit, action or
proceeding arising out of or relating to this Agreement shall be brought solely in state or federal court of competent jurisdiction located in Fulton County, Georgia; (b) consents to the exclusive jurisdiction of each such court in any suit,
action or proceeding relating to or arising out of this Agreement; (c) waives any objection that it may have to the laying of venue in any such suit, action or proceeding in any such court; and (d) agrees that service of any court paper
may be made in such manner as may be provided under applicable laws or court rules governing service of process. 
 *  *  *  *  * 
  

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

  

			
	PROPEX FABRICS INC.
		
	By:	 	 /s/ Edmund A. Stanczak, Jr.

	Name:	 	Edmund A. Stanczak, Jr.
	Title:	 	President and Chief Executive Officer

  

			
	ALADDIN MANUFACTURING CORPORATION
		
	By:	 	 /s/ Frank H. Boykin

	Name:	 	Frank H. Boykin
	Title:	 	V.P Finance and Assistant SecretaryDesign-Build Agreement

 Exhibit 10.1 
 THE ASSOCIATED GENERAL CONTRACTORS OF AMERICA 
 

 
 AGC DOCUMENT NO. 410 
 STANDARD FORM OF DESIGN-BUILD AGREEMENT AND 
 GENERAL CONDITIONS BETWEEN OWNER AND 

DESIGN-BUILDER 
 (Where the Basis
of Payment is the Cost of the Work Plus a Fee) 
 This standard form agreement was developed with the advice and cooperation of the AGC Private Industry
Advisory Council, a number of Fortune 500 Owners’ design and construction managers who have been meeting with AGC contractors to discuss issues of mutual concern. AGC gratefully acknowledges the contributions of these owners’ staff who
participated in this effort to produce a basic agreement for construction. 
 TABLE OF ARTICLES 
 1. AGREEMENT 
 2. GENERAL PROVISIONS 
 3. DESIGN-BUILDER’S RESPONSIBILITIES 
 4. OWNER’S RESPONSIBILITIES

 5. SUBCONTRACTS 
 6. TIME 
 7. COMPENSATION 
 8. COST OF THE WORK 
 9. CHANGES IN THE WORK 
 10. PAYMENT FOR CONSTRUCTION PHASE SERVICES

 11. INDEMNITY, 
 12. INSURANCE, BONDS, AND WAIVER OF
SUBROGATION 
 13. SUSPENSION AND TERMINATION OF THE AGREEMENT AND OWNER’S RIGHT TO PERFORM DESIGN-BUILDER’S RESPONSIBILITIES 
 14. DISPUTE RESOLUTION 
 15. MISCELLANEOUS PROVISIONS 
 16. EXISTING CONTRACT DOCUMENTS 

 AMENDMENT NO. 1 
 This Agreement has important legal and insurance consequences. Consultation with an attorney and an insurance adviser is encouraged with respect to its completion or modification. 
 ARTICLE 1 
 AGREEMENT 

This Agreement is made to be effective as of the 6th day of March in the year 2006 by and between the 
 OWNER 
 The Midland Company 
 7000 Midland Boulevard 
 Batavia, Ohio 45102-2601 
 and the 
 DESIGN-BUILDER 

Miller-Valentine Construction, LLC, an Ohio limited liability company 
 4000 Miller-Valentine Court 
 P.O. Box 744 
 Dayton, Ohio 45401-0744 
 for services in connection with the following PROJECT 
 Five story office
addition to the existing facility located at 7000 Midland Boulevard, Amelia, Ohio, with a single story conference center with a basement, fit-up of the first, third and fourth floors of the addition and all related site work. 
 Notice to the parties shall be given at the above addresses. 
 ARTICLE 2 
 GENERAL PROVISIONS 
 2.1 TEAM RELATIONSHIP The Owner and the Design-Builder agree to proceed with the Project on the basis of trust, good faith and fair dealing and shall take all actions reasonably necessary to perform this Agreement in an economical and
timely manner, including consideration of design modifications and alternative materials or equipment that will permit the Work to be constructed by the Dates of Substantial Completion and Final Completion if they are established by Amendment
No. 1. The Design-Builder agrees to procure or furnish, as permitted by the law of the State in which the Project is located, the design phase services and construction phase services as set forth below. 
 2.1.1 The Design-Builder represents that it is an independent contractor and that it is familiar with the type of work it is undertaking. 
 2.2 ARCHITECT/ENGINEER. Architectural and structural engineering services shall be procured from licensed, independent design professionals retained by the Owner
pursuant to a separate agreement between the Owner and the Architect/Structural Engineer (“Architect/Structural Engineer’s Agreements”). The Owner covenants and warrants to the Design-Builder that the Architect/Structural
Engineer’s Agreements shall expressly require the Architect/Structural Engineer to provide the design information and services needed by the Design-Builder to perform the Work. The Architect for the Project is PDT Architects/Planners. The
Structural Engineer for the Project is Smith/Roberts & Associates, Inc. Site/civil and mechanical engineering services shall be procured from licensed, independent design professionals retained by the Design-Builder or furnished by licensed
employees of the Design-Builder is located. The standard of care for site/civil and mechanical engineering services performed under this Agreement shall be the care and skill ordinarily used by members of the site/civil and mechanical engineering
profession practicing under similar conditions at the same time and locality. The person or entities providing architectural and structural engineering services shall be referred to collectively as the Architect/Structural Engineer. The person or
entity providing site/civil and mechanical engineering services shall be referred to collectively as the Civil/Mechanical Engineer. If the Civil/Mechanical Engineer is an independent design professional, the site/civil and mechanical engineering
services shall be procured pursuant to a separate agreement between the Design-Builder and the Civil/Mechanical Engineer. The civil engineer for the Project is SWA Design Group, Inc. (“Civil Engineer”) The mechanical engineer for the
Project is Heapy Engineering, LLC (“Mechanical Engineer”). 

 2.3 EXTENT OF AGREEMENT This Agreement is solely for the benefit of the parties, represents the entire and integrated
agreement between the parties, and supersedes all prior negotiations, representations or agreements, either written or oral. The Owner and the Design-Builder agree to look solely to each other with respect to the performance of the Agreement. The
Agreement and each and every provision is for the exclusive benefit of the Owner and the Design-Builder and not for the benefit of any third party nor any third party beneficiary, except to the extent expressly provided in the Agreement. 

2.4 DEFINITIONS 
  

	 	.1	The Contract Documents consist of: 

 a. Change Orders and
written amendments to this Agreement including exhibits and appendices, signed by both the Owner and the Design-Builder, including Amendment No. 1 if executed; 
 b. this Agreement except for the existing Contract Documents set forth in item e. below; 
 c. the most
current documents approved by the Owner pursuant to Subparagraph 3.1.4, 3.1.6 or 3.1.7; 
 d. the information provided by the Owner pursuant
to Clause 4.1.2.1; 
 e. the Contract Documents in existence at the time of execution of this Agreement which are set forth in Article 16;

 f. the Owner’s Program provided pursuant to Subparagraph 4.1.1; 
 In case of any inconsistency, conflict or ambiguity among the Contract Documents, the documents shall govern in the order in which they are listed above.

 .2 The term day shall mean calendar day, unless otherwise specifically defined. 
 .3 Design-Builder’s Fee means the compensation paid to the Design-Builder for salaries and other mandatory or customary compensation of the
Design-Builder’s employees at its principal and branch offices except employees listed in Subparagraph 8.2.2, general and administrative expenses of the Design-Builder’s principal and branch offices other than the field office, and the
Design-Builder’s capital expenses, including interest on the Design-Builder’s capital employed for the Work, and profit. 
 .4
Defective Work is any portion of the Work not in conformance with the Contract Documents as more fully described in Paragraph 3.8. 
 .5 The
term Fast-track means accelerated scheduling which involves commencing construction prior to the completion of drawings and specifications and then using means such as bid packages and efficient coordination to compress the overall schedule. The
Design-Builder shall notify the Owner if the Cost of the Work includes costs anticipated due to any accelerated schedule or other Fast-tracking of the Project. 
 .6 Final Completion occurs on the date when all of Design-Builder’s obligations under this Agreement are complete and accepted by the Owner and final payment becomes due and payable. 
 .7 A Material Supplier is a party or entity retained by the Design-Builder to provide material and equipment for the Work. 
 .8 Others means other contractors and all persons at the Worksite who are not employed by Design-Builder, its Subcontractors or Material Suppliers.

 .9 The Owner is the person or entity identified as such in this Agreement and includes the Owner’s Representative. 
 .10 The Owner’s Program is an initial description of the Owner’s objectives, that may include budget and time criteria, space requirements and
relationships, flexibility and expandability requirements, special equipment and systems, and site requirements. 
 . 11 The Project, as
identified in Article 1, is the building, facility and/or other improvements for which the Design-Builder is to perform the Work under this Agreement. It may also include improvements to be undertaken by the Owner or Others. 

 .12 A Subcontractor is a party or entity, which shall include the Civil/Mechanical Engineer, retained by
the Design-Builder as an independent contractor to provide the on-site labor, materials, equipment and/or services necessary to complete a specific portion of the Work. The term Subcontractor does not include the Architect/Structural Engineer or any
separate contractor employed by the Owner or any separate contractors subcontractors. 
 .13 Substantial Completion of the Work, or of a
designated portion, occurs on the date when the Design-Builder’s obligations are sufficiently complete in accordance with the Contract Documents so that the Owner can or does occupy or utilize the Project, or a designated portion, for the use
for which it is intended, in accordance with Paragraph 10.4. The issuance of a Certificate of Occupancy is not a prerequisite for Substantial Completion if the Certificate of Occupancy cannot be obtained due to factors beyond the
Design-Builder’s control. This date shall be confirmed by a Certificate of Substantial Completion signed by the Owner and the Design-Builder. The Owner shall be entitled to rely on inspections by the Architect/Strutural Engineer and other
professionals in determining whether to sign the Certificate of Substantial Completion. The Certificate shall state the respective responsibilities of the Owner and the Design-Builder for security, maintenance, heat, utilities, damage to the Work,
and insurance. The Certificate shall also list the items to be completed or corrected, and establish the time for their completion and correction, within the time frame, if any, established in Amendment No. 1 for the Date of Final Completion.

 .14 A Subsubcontractor is a party or entity who has an agreement with a Subcontractor to perform any portion of the Subcontractor’s
work. 
 .15 The Work is the Design Phase Services procured or furnished in accordance with Paragraph 3.1, the preparation of the Projected
Cost of the Work in accordance with Subparagraph 3.1.7, the Construction Phase Services provided in accordance with Paragraph 3.3, Additional Services that may be provided in accordance with Paragraph 3.10, and other services which are necessary to
complete the Project in accordance with and reasonably inferable from the Contract Documents. 
 .16 Worksite means the geographical area at
the location mentioned in Article 1 where the Work is to be performed. 
 ARTICLE 3 
 DESIGN-BUILDER’S RESPONSIBILITIES 
 Except for the
architectural, design and structural engineering services to be provided by the Architect/Structural Engineer, the Design-Builder shall be responsible for procuring or furnishing the design and for the construction of the Work consistent with the
Owner’s Program, as such Program may be modified by the Owner during the course of the Work. The Design-Builder shall exercise reasonable skill and judgment in the performance of its services consistent with the team relationship described in
Paragraph 2.1, but does not warrant nor guarantee schedules and estimates. 
 The Design-Builder and the Owner may establish a Fast-track approach to the
design and construction services necessary to complete the Project. Such agreement establishing a Fast-track approach and the Schedule of the Work shall be included as an exhibit to this Agreement. In the absence of such agreement, the parties shall
proceed in accordance with Paragraphs 3.1 and 3.3 below. 
 3.1 DESIGN PHASE SERVICES 
 3.1.1 PRELIMINARY EVALUATION. The Design-Builder shall review the Owner’s Program to ascertain the requirements of the Project and shall verify such
requirements with the Owner. The Design-Builder’s review shall also provide to the Owner a preliminary evaluation of the site with regard to access, traffic, drainage, parking, building placement and other considerations affecting the building,
the environment and energy use, as well as information regarding applicable governmental laws, regulations and requirements. The Design-Builder shall also propose alternative architectural, civil, structural, mechanical, electrical and other systems
for review by the Owner, to determine the most desirable approach on the basis of cost, technology, quality and speed of delivery. The Design-Builder will also review existing test reports but will not undertake any independent testing nor be
required to furnish types of information derived from such testing in its Preliminary Evaluation. Based upon its review and verification of the Owner’s Program and other relevant information the Design-Builder shall provide a Preliminary
Evaluation of the Project’s feasibility for the Owner’s acceptance. The Design-Builder’s Preliminary Evaluation shall specifically identify any deviations from the Owner’s Program. 
 3.1.2 PRELIMINARY SCHEDULE. The Design-Builder shall prepare a preliminary schedule of the Work. The Owner and the Architect/Strutural Engineer shall
provide written approval of milestone dates established in the preliminary schedule of the Work. The schedule shall show the activities of the Owner, the Architect/Structural Engineer, the Civil/Mechanical Engineer and the Design-Builder necessary
to meet the Owner’s completion requirements. The schedule shall be updated periodically with the level of detail for each schedule update reflecting the information then available. If an update indicates that a previously approved schedule will
not be met, the Design-Builder shall recommend corrective action to the Owner in writing. 

 3.1.3 PRELIMINARY ESTIMATE. When sufficient Project information has been identified, the Design-Builder
shall prepare for the Owner’s acceptance a preliminary estimate utilizing area, volume or similar conceptual estimating techniques. The estimate shall be updated periodically with the level of detail for each estimate update reflecting the
information then available. If the preliminary estimate or any update exceeds the Owner’s budget, the Design-Builder shall make recommendations to the Owner. 
 3.1.4 SCHEMATIC DESIGN DOCUMENTS. The Design-Builder shall submit for the Owner’s written approval Schematic Design Documents for the civil, mechanical, electrical and other systems being designed by the
Design-Builder or its Civil/Mechanical Engineer, based on the agreed upon Preliminary Evaluation. Schematic Design Documents shall include drawings, outline specifications and other conceptual documents illustrating the Project’s basic
elements, scale, and their relationship to the Worksite. One set of these documents shall be furnished to the Owner. When the Design-Builder submits the Schematic Design Documents the Design-Builder shall identify in writing all material changes and
deviations that have taken place from the Design-Builder’s Preliminary Evaluation, schedule and estimate. The Design-Builder shall update the preliminary schedule and estimate based on the Schematic Design Documents. Schematic Design Documents
for the architectural and structural portions of the Project shall be provided to the Owner and the Design-Builder by the Architect/Strutural Engineer. 
 3.1.5 PLANNING PERMITS. The Design-Builder shall obtain and the Owner shall pay for all planning permits necessary for the construction of the Project. 
 3.1.6 DESIGN DEVELOPMENT DOCUMENTS. The Design-Builder shall submit for the Owner’s written approval Design Development Documents based on the
approved Schematic Design Documents. The Design Development Documents shall further define the Project including drawings and outline specifications fixing and describing the Project size and character as to site utilization, and other appropriate
elements incorporating the civil, mechanical, electrical, and other systems being designed by the Design-Builder or its Civil/Mechanical Engineer. One set of these documents shall be furnished to the Owner. When the Design-Builder submits the Design
Development Documents, the Design-Builder shall identify in writing all material changes and deviations that have taken place from the Schematic Design Documents. The Design-Builder shall update the schedule and estimate based on the Design
Development Documents. Design Development Documents for the architectural/structural portions of the Project shall be provided to the Owner and the Design-Builder by the Architect/Strutural Engineer. 
 3.1.7 CONSTRUCTION DOCUMENTS. The Design-Builder shall submit for the Owner’s written approval Construction Documents based on the approved Design
Development Documents. The Construction Documents shall set forth in detail the requirements for construction of the Work, and shall consist of drawings and specifications based upon codes, laws and regulations enacted at the time of their
preparation. When the Design-Builder submits the Construction Documents, the Design-Builder shall identify in writing all material changes and deviations that have taken place from the Design Development Documents. Construction shall be in
accordance with these approved Construction Documents. One set of these documents shall be furnished to the Owner prior to commencement of construction. If a GMP has not been established, the Design-Builder shall prepare a further update of the
schedule and projected Cost of the Work based on the Construction Documents (“Projected Cost of the Work”). The Projected Cost of the Work shall be used to monitor actual costs. The Design-Builder shall meet with the Owner and the
Architect/Strutural Engineer to review the Projected Cost of the Work. In the event the Owner or the Architect/Strutural Engineer discovers any inaccuracies or inconsistencies in the Projected Cost of the Work, they shall promptly notify the
Design-Builder, who shall make appropriate adjustments to the Projected Cost of the Work. When the Projected Cost of the Work is acceptable to the Owner, the Owner shall acknowledge and approve the Projected Cost of the Work in writing. The
Owner’s approval of the Projected Cost of the Work in no way constitutes or implies that the Projected Cost of the Work is a guaranteed maximum price. The Projected Cost of the Work may be changed from time to time, by written Change Orders.
The Projected Cost of the Work shall include, among other things, a description of the Contract Documents upon which the Project is based, a list of clarifications and assumptions made by the Design-Builder in the preparation of the Projected Cost
of the Work, a statement of the estimated Cost of the Work, the Design-Builder’s Fee and the Design-Builder’s Contingency. 
 3.1.8
OWNERSHIP OF DOCUMENTS. Upon the making of payment pursuant to Paragraph 10.5, the Owner shall receive ownership of the property rights, except for copyrights, of all documents, drawings, specifications, electronic data and information prepared,
provided or procured by the Design-Builder, its Civil/Mechanical Engineer, Subcontractors and consultants and distributed to the Owner for this Project. (Design-Build Documents) Use and ownership of any design-build documents prepared, provided or
procured by the Architect/Structural Engineer shall be governed by the Architect/Strutural Engineer’s Agreement. 
 .1 If this Agreement
is terminated pursuant to Paragraph 13.2, the Owner shall receive ownership of the property rights, except for copyrights, of the Design-Build Documents upon payment for all Work performed in accordance with this Agreement, at which time the Owner
shall have the right to use, reproduce and make derivative works from the Design-Build Documents to complete the Work. 

 .2 If this Agreement is terminated pursuant to Paragraph 13.3, the Owner shall receive ownership of the
property rights, except for copyrights, of the Design-Build Documents upon payment of all sums provided in Paragraph 12.3, at which time the Owner shall have the right to use, reproduce and make derivative works from the Design-Build Documents to
complete the Work. 
 .3 The Owner may use, reproduce and make derivative works from the Design-Build Documents for subsequent renovation and
remodeling of the Work, but shall not use, reproduce or make derivative works from the Design-Build Documents for other projects without the written authorization of the Design-Builder, who shall not unreasonably withhold consent. 
 .4 The Owner’s use of the Design-Build Documents without the Design-Builder’s involvement or on other projects is at the Owner’s sole risk,
except for the Design-Builder’s indemnification obligation pursuant to Paragraph 3.7, and the Owner shall defend, indemnify and hold harmless Design-Builder, its Civil/Mechanical Engineer, Subcontractors and consultants, and the agents,
officers, directors and employees of each of them from all claims, damages, losses, costs and expenses, including but not limited to attorney’s fees, costs and expenses incurred in connection with any dispute resolution process, arising out of
or resulting from Owner’s use of the Design-Build Documents. 
 .5 The Design-Builder shall obtain from its Civil/Mechanical Engineer,
Subcontractors and consultants property rights and rights of use that correspond to the rights given by the Design-Builder to the Owner in this Agreement. 
 3.2 DESIGN-BUILDER’S CONTINGENCY 
 3.2.1 DESIGN-BUILDER’S CONTINGENCY. The Projected Cost of the Work shall include as the
Design-Builder’s Contingency, a sum equal to $500,000. The Design-Builder’s Contingency will be monitored by the Design-Builder and the Owner for use at the Design-Builder’s discretion to cover costs which are properly reimbursable as
a Cost of the Work but are not the basis for a Change Order. The Design-Builder shall report to the Owner, on a monthly basis, all expenditures made from the Design-Builder’s Contingency, and shall consult with the Owner in advance regarding
any expenditure out of the Design-Builder’s contingency for a particular item which exceeds $20,000.00. 
 3.3
CONSTRUCTION PHASE SERVICES 
 3.3.1 The Construction Phase will commence upon the issuance by the Owner of a written notice to proceed with
construction and the Design-Builder’s receipt of a building permit for the Project. If construction commences prior to execution of Amendment No. 1, the Design-Builder shall prepare for the Owner’s written approval a list of the
documents that are applicable to the part of the Work which the Owner has authorized, which list shall be included in the Owner’s written notice to proceed. 
 3.3.2 In order to complete the Work, the Design-Builder shall provide all necessary construction supervision, inspection, construction equipment, labor, materials, tools, and subcontracted items. 
 3.3.3 The Design-Builder shall give all notices and comply with all laws and ordinances legally enacted at the date of execution of the Agreement which
govern the proper performance of the Work 
 3.3.4 The Design-Builder shall obtain and the Owner shall pay for the building permits necessary
for the construction of the Project. 
 3.3.5 The Design-Builder shall keep such full and detailed accounts as are necessary for proper
financial management under this Agreement. The Owner and the Architect/Strutural Engineer shall be afforded access to all the Design-Builder’s records, books, correspondence, instructions, drawings, receipts, vouchers, memoranda and similar
data relating to this Agreement. The Design-Builder shall preserve all such records for a period of three years after the final payment or longer where required by law. 
 3.3.6 The Design-Builder shall provide periodic written reports to the Owner and the Architect/Strutural Engineer on the progress of the Work in such detail as is required by the Owner and as agreed to by the Owner
and the Design-Builder. 
 3.3.7 The Design-Builder shall develop a system of cost reporting for the Work, including regular monitoring of
actual costs for activities in progress and estimates for uncompleted tasks and proposed changes in the Work. The reports shall be presented to the Owner and the Architect/Strutural Engineer at mutually agreeable intervals. 

 3.3.8 The Design-Builder shall regularly remove debris and waste materials at the Worksite resulting from
the Work. Prior to discontinuing Work in an area, the Design-Builder shall clean the area and remove all rubbish and its construction equipment, tools, machinery, waste and surplus materials. The Design-Builder shall minimize and confine dust and
debris resulting from construction activities. The Design-Builder will take reasonable steps to protect occupied areas of the Worksite and the existing building adjoining the Project (“Building”) in connection with performing the Work. The
Design-Builder shall provide 30 days’ prior written notice prior to closing any portion of the Building and the parking lot to allow for the performance of the Work. At the completion of the Work, the Design-Builder shall remove from the
Worksite all construction equipment, tools, surplus materials, waste materials and debris. 
 3.3.9 The Design-Builder shall prepare and
submit to the Owner: 1 set of the final marked up as-built drawings, in general documenting how the various elements of the Work including changes were actually constructed or installed, or as defined by the parties by attachment to this Agreement.

 3.4 SCHEDULE OF THE WORK. The Design Builder shall prepare and submit a Schedule of Work for the Owner’s acceptance and written approval as to
milestone dates. This Schedule shall indicate the dates for the start and completion of the various stages of the Work, including the dates when information and approvals are required from the Owner. The Schedule shall be revised as required by the
conditions of the Work. 
 3.5 SAFETY OF PERSONS AND PROPERTY 
 3.5.1 SAFETY PRECAUTIONS AND PROGRAMS. The Design-Builder shall have overall responsibility for safety precautions and programs in the performance of the
Work. While the provisions of this Paragraph establish the responsibility for safety between the Owner and the Design-Builder, they do not relieve Subcontractors of their responsibility for the safety of persons or property in the performance of
their work, nor for compliance with the provisions of applicable laws and regulations. 
 3.5.2 The Design-Builder shall seek to avoid injury,
loss or damage to persons or property by taking reasonable steps to protect: 
 .1 its employees and other persons at the Worksite;

 .2 materials, supplies and equipment stored at the Worksite for use in performance of the Work; and 
 .3 the Project and all property located at the Worksite and adjacent to work areas, whether or not said property or structures are part of the Project or
involved in the Work. 
 3.5.3 DESIGN-BUILDER’S SAFETY REPRESENTATIVE. The Design-Builder shall designate an individual at the Worksite
in the employ of the Design-Builder who shall act as the Design-Builder’s designated safety representative with a duty to prevent accidents. Unless otherwise identified by the Design-Builder in writing to the Owner, the designated safety
representative shall be the Design-Builder’s project superintendent. The Design-Builder will report immediately in writing all accidents and injuries occurring at the Worksite to the Owner. When the Design-Builder is required to file an
accident report with a public authority, the Design-Builder shall furnish a copy of the report to the Owner. 
 3.5.4 The Design-Builder shall
provide the Owner and the Architect/Strutural Engineer with copies of all notices required of the Design-Builder by law or regulation. The Design-Builder’s safety program shall comply with the requirements of governmental and quasi-governmental
authorities having jurisdiction over the Work. 
 3.5.5 Damage or loss not insured under property insurance which may arise from the
performance of the Work, to the extent of the negligence attributed to such acts or omissions of the Design-Builder, or anyone for whose acts the Design-Builder may be liable, shall be promptly remedied by the Design-Builder. Damage or loss
attributable to the acts or omissions of the Owner, the Architect/Structural Engineer, or Others and not to the Design-Builder shall be promptly remedied by the Owner. 
 3.5.6 If the Owner, in the exercise of its reasonable discretion, deems any part of the Work or Worksite unsafe, the Owner, without assuming responsibility for the Design-Builder’s safety program, may require the
Design-Builder to stop performance of the Work or take corrective measures satisfactory to the Owner, or both. If the Design-Builder does not adopt corrective measures, the Owner may perform them and reduce by the costs of the corrective measures
the Cost of the Work as provided in Article 8. The Design-Builder agrees to make no claim for damages, compensation for Design Phase Services, any increase in the Design-Builder’s Fee and/or the Date of Substantial Completion and/or the Date of
Final Completion based on the Design-Builder’s compliance with the Owner’s reasonable request. 

 3.6 HAZARDOUS MATERIALS 
 3.6.1 A Hazardous Material is any substance or material identified now or in the future as hazardous under any federal, state or local law or regulation,
or any other substance or material which may be considered hazardous or otherwise subject to statutory or regulatory requirements governing handling, disposal and/or clean-up. The Design-Builder shall not be obligated to commence or continue work
until all Hazardous Material discovered at the Worksite has been removed, rendered or determined to be harmless by the Owner as certified by an independent testing laboratory approved by the appropriate government agency. 
 3.6.2 If after the commencement of the Work, Hazardous Material is discovered at the Project, the Design-Builder shall be entitled to immediately stop
Work in the affected area. The Design-Builder shall report the condition to the Owner and, if required, the government agency with jurisdiction. 
 3.6.3 The Design-Builder shall not be required to perform any Work relating to or in the area of Hazardous Material without written mutual agreement. 
 3.6.4 The Owner shall be responsible for retaining an independent testing laboratory to determine the nature of the material encountered and whether it is a Hazardous Material requiring corrective measures and/or
remedial action. Such measures shall be the sole responsibility of the Owner, and shall be performed in a manner minimizing any adverse effects upon the Work of the Design-Builder. The Design-Builder shall resume Work in the area affected by any
Hazardous Material only upon written agreement between the parties after the Hazardous Material has been removed or rendered harmless and only after approval, if necessary, of the governmental agency or agencies with jurisdiction. 
 3.6.5 If the Design-Builder incurs additional costs and/or is delayed due to the presence or remediation of Hazardous Material, the Design-Builder shall
be entitled to an equitable adjustment in compensation for Design Phase Services, the Design-Builder’s Fee and/or the Date of Substantial Completion and/or the Date of Final Completion. 
 3.6.6 Provided the Design-Builder, its Subcontractors, Material Suppliers and Subsubcontractors, and the agents, officers, directors and employees of each
of them, have not, acting under their own authority, knowingly entered upon any portion of the Work containing Hazardous Materials, and to the extent not caused by the negligent acts or omissions of the Design-Builder, its Subcontractors, Material
Suppliers and Subsubcontractors, and the agents, officers, directors and employees of each of them, the Owner shall defend, indemnify and hold harmless the Design-Builder, its Subcontractors and Subsubcontractors, and the agents, officers, directors
and employees of each of them, from and against any and all direct claims, damages, losses, costs and expenses, including but not limited to attorney’s fees, costs and expenses incurred in connection with any dispute resolution process, arising
out of or relating to the performance of the Work in any area affected by Hazardous Material. To the fullest extent permitted by law, such indemnification shall apply regardless of the fault, negligence, breach of warranty or contract, or strict
liability of the Owner or its Architect/Structural Engineer. 
 3.6.7 Material Safety Data (MSD) sheets as required by law and pertaining to
materials or substances used or consumed in the performance of the Work, whether obtained by the Design-Builder, Subcontractors, the Owner or Others, shall be maintained at the Project by the Design-Builder and made available to the Owner and
Subcontractors. 
 3.6.8 During the Design-Builder’s performance of the Work, the Design-Builder shall be responsible for the proper
handling of all materials brought to the Worksite by the Design-Builder. Upon the issuance of the Certificate of Substantial Completion, the Owner shall be responsible under this Paragraph for materials and substances brought to the site by the
Design-Builder if such materials or substances are required by the Contract Documents. 
 3.6.9 The terms of this Paragraph 3.6 shall survive
the completion of the Work under this Agreement and/or any termination of this Agreement. 
 3.7 ROYALTIES, PATENTS AND COPYRIGHTS. The Design-Builder shall
pay all royalties and license fees which may be due on the inclusion of any patented or copyrighted materials, methods or systems selected by the Design-Builder and incorporated in the Work. The Design-Builder shall defend, indemnify and hold the
Owner harmless from all suits or claims for infringement of any patent rights or copyrights arising out of such selection. The Owner agrees to defend, indemnify and hold the Design-Builder harmless from all suits or claims of infringement of any
patent rights or copyrights arising out of any patented or copyrighted materials, methods or systems specified by the Owner or its Architect/Structural Engineer. 

 3.8 WARRANTIES AND COMPLETION 
 3.8.1 The Design-Builder warrants that all materials and equipment furnished under the Construction Phase of this Agreement will be new unless otherwise specified, of good quality, in conformance with the Contract
Documents, and free from defective workmanship and materials. Warranties shall commence on the Date of Substantial Completion of the Work. The Design-Builder agrees to correct all construction performed under this Agreement which is defective in
workmanship or materials within a period of two years from the Date of Substantial Completion or for such longer or shorter periods of time as may be set forth with respect to specific warranties required by the Contract Documents. The
Design-Builder shall advise the Owner of any additional expense to be included in the Cost of the Work for obtaining a duration in excess of the one year standard for specific warranties required by the Contract Documents. 
 3.8.2 To the extent products, equipment, systems or materials incorporated in the Work are specified and purchased by the Owner, they shall be covered
exclusively by the warranty of the manufacturer. There are no warranties which extend beyond the description on the face of any such warranty. To the extent products, equipment, systems or materials incorporated in the Work are specified by the
Owner but purchased by the Design-Builder and are inconsistent with selection criteria that otherwise would have been followed by the Design-Builder, the Design-Builder shall assist the Owner in pursuing warranty claims. ALL OTHER WARRANTIES
EXPRESSED OR IMPLIED INCLUDING THE WARRANTY OF MERCHANTABILITY AND THE WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE ARE EXPRESSLY DISCLAIMED. 
 3.8.3 The Design-Builder shall secure required certificates of inspection, testing or approval and deliver them to the Owner. 
 3.8.4 The Design-Builder shall collect all written warranties and equipment manuals and deliver them to the Owner in a format directed by the Owner. 
 3.8.5 With the assistance of the Owner’s maintenance personnel, the Design-Builder shall direct the checkout of utilities and start up operations, and adjusting and balancing of systems and equipment for
readiness. 
 3.9 CONFIDENTIALITY. The Design-Builder shall treat as confidential and not disclose to third persons, except Subcontractors,
Subsubcontractors, the Architect/Structural Engineer and the Civil/Mechanical Engineer as is necessary for the performance of the Work, or use for its own benefit any of the Owner’s developments, confidential information, know-how, discoveries,
production methods and the like that may be disclosed to the Design-Builder or which the Design-Builder may acquire in connection with the Work. The Owner shall treat as confidential information all of the Design-Builder’s estimating systems
and historical and parameter cost data that may be disclosed to the Owner in connection with the performance of this Agreement. Notwithstanding the foregoing, the Owner shall be permitted to disclose those portions of the Contract Documents which
the Owner, as a publicly held company, shall be required to disclose in filings required by applicable law. 
 3.10 ADDITIONAL SERVICES. The Design-Builder
shall provide or procure the following Additional Services upon the request of the Owner. A written agreement between the Owner and the Design-Builder shall define the extent of such Additional Services before they are performed by the
Design-Builder. If the Projected Cost of the Work has been established for the Work or any portion of the Work, such Additional Services shall be considered a Change in the Work, unless they are specifically included in the statement of the basis of
the Projected Cost of the Work . 
 .1 Development of the Owner’s Program, establishing the Project Budget, investigating sources of
financing, general business planning and other information and documentation as may be required to establish the feasibility of the Project. 
 .2 Consultations, negotiations, and documentation supporting the procurement of Project financing. 
 .3 Site evaluations, legal
descriptions and aerial photographs. 
 .4 Appraisals of existing equipment, existing properties, new equipment and developed properties.

 .5 Environmental studies, reports and investigations required for submission to governmental authorities or others having jurisdiction over
the Project. 
 .6 Consultations and representations before governmental authorities or others having jurisdiction over the Project other than
normal assistance in securing building permits. 
 .7 The reasonably required verification of Owner-provided drawings and information.

 .8 Artistic renderings, models and mockups of the Project or any part of the Project or the Work. 

 .9 Inventories of existing furniture, fixtures, furnishings and equipment which might be under
consideration for incorporation into the Work. 
 .10 Interior design and related services including procurement and placement of furniture,
furnishings, artwork and decorations. 
 .11 Making revisions to the Schematic Design, Design Development, Construction Documents or documents
forming the basis of the Projected Cost of the Work after they have been approved by the Owner, and which are due to causes beyond the control of the Design-Builder. Causes beyond the control of the Design-Builder do not include acts or omissions on
the part of Subcontractors, Material Suppliers, Subsubcontractors or the Civil/Mechanical Engineer. Causes beyond the control of the Design-Builder shall include, but not be limited to, acts or omissions on the part of the Owner and/or the
Architect/Structural Engineer. 
 .12 Design, coordination, management, expediting and other services supporting the procurement of materials
to be obtained, or work to be performed, by the Owner, including but not limited to specialty systems which are not a part of the Work. 
 .13
Estimates, proposals, appraisals, consultations, negotiations and services in connection with the repair or replacement of an insured loss, provided such repair or replacement did not result from the negligence of the Design-Builder. 
 .14 The premium portion of overtime work ordered by the Owner, including productivity impact costs, other than that required by the Design-Builder to
maintain the Schedule of Work. 
 .15 Out-of-town travel by the Civil/Mechanical Engineer in connection with the Work, except between the
Civil/Mechanical Engineer’s office, the Design-Builder’s office, the Owner’s office and the Worksite. 
 .16 Obtaining service
contractors and training maintenance personnel, assisting and consulting in the use of systems and equipment after the initial start up. 
 .17 Services for tenant or rental spaces not a part of this Agreement. 
 .18 Services requested by the Owner or required by the Work
which are not specified in the Contract Documents and which are not normally part of generally accepted design and construction practice. 
 .19 Serving or preparing to serve as an expert witness in connection with any proceeding, legal or otherwise, regarding the Project. 
 .20 Document reproduction exceeding the limits provided for in this Agreement. 
 3.11 DESIGN-BUILDER’S REPRESENTATIVE The Design-Builder shall
designate a person who shall be the Design-Builder’s authorized representative. The Design-Builder’s Representative is: David J. Settles, Senior Project Manager. All notices required to be delivered to Design-Builder under the Contract
Documents shall be construed to have been properly delivered if they are delivered to Design-Builder’s Representative at the address described below. Written notices may be delivered in person, by certified mail (return receipt requested), by
express mail delivery carrier (with tracking service), internal inter-office courier, or by electronic mail as follows: 
 Miller-Valentine Construction, LLC 
 4000 Miller-Valentine Court 
 P.O. Box 744 
 Dayton, Ohio 45401-0744 
 Phone: (937) 297-3225 
 E-mail: david.settles@mvg.com 

 ARTICLE 4 
 OWNER’S RESPONSIBILITIES 
 4.1 INFORMATION AND SERVICES PROVIDED BY OWNER. 
 4.1.1 The Owner shall provide full information in a timely manner regarding requirements for the Project, including the Owner’s Program and other
relevant information. 
 4.1.2 The Owner shall provide: 
 .1 all available information describing the physical characteristics of the site, including surveys, site evaluations, legal descriptions, existing conditions, subsurface and environmental studies, reports and
investigations; and 
 .2 unless otherwise provided in the Contract Documents, necessary approvals, site plan review, rezoning, easements and
assessments, fees and charges required for the construction, use, occupancy or renovation of permanent structures, including legal and other required services. 
 4.1.3 The Owner shall provide reasonable evidence satisfactory to the Design-Builder, prior to commencing the Work and during the progress of the Work, that sufficient funds are available and committed for the entire
cost of the Project, including a reasonable allowance for changes in the Work as may be approved in the course of the Work. Unless such reasonable evidence is provided, the Design-Builder shall not be required to commence or continue the Work. The
Design-Builder may stop Work after seven (7) days’ written notice to the Owner if such evidence is not presented within a reasonable time. The failure of the Design-Builder to insist upon the providing of this evidence at any one time
shall not be a waiver of the Owner’s obligation to make payments pursuant to this Agreement, nor shall it be a waiver of the Design-Builder’s right to require that such evidence be provided at a later date. 
 4.1.4 The Design-Builder shall be entitled to rely on the completeness and accuracy of the information and services required by this Paragraph 4.1.

 4.2 RESPONSIBILITIES DURING DESIGN PHASE. 
 4.2.1 The Owner shall provide the Owner’s Program at the inception of the Design Phase and shall review and timely approve in writing schedules, estimates, Preliminary Estimate, Schematic Design Documents, Design Development Documents
and Construction Documents furnished during the Design Phase as set forth in Paragraph 3.1, and the Projected Cost of the Work as set forth in Subparagraph 3.1.7. 
 4.3 RESPONSIBILITIES DURING CONSTRUCTION PHASE 
 4.3.1 The Owner shall review the Schedule of the Work as set forth in Paragraph 3.4
and timely approve the milestone dates set forth. 
 4.3.2 If the Owner becomes aware of any error, omission or failure to meet the
requirements of the Contract Documents or any fault or defect in the Work, the Owner shall give prompt written notice to the Design-Builder. 
 4.3.3 The Owner shall communicate with the Design-Builder’s Subcontractors, Material Suppliers and the Civil/Mechanical Engineer only through or in the presence of the Design-Builder. The Owner shall have no contractual obligations to
Subcontractors, suppliers, or the Civil/Mechanical Engineer. 
 4.3.4 The Owner shall provide insurance for the Project as provided in Article
12. 
 4.4 OWNER’S REPRESENTATIVE. The Owner’s Representative is Ronald Gramke. The Representative: 
 .1 shall be fully acquainted with the Project; 
 .2 agrees to furnish the information and services required of the Owner pursuant to Paragraph 4.1 so as not to delay the Design-Builder’s Work; and 
 .3 shall have authority to bind the Owner in all matters requiring the Owner’s approval, authorization or written notice. If the Owner changes its representative or the representatives authority as listed above,
the Owner shall notify the Design-Builder in writing in advance. 
 All notices required to be delivered to Owner under the Contract Documents
shall be construed to have been properly delivered if they are delivered to Owner’s Representative at the address described below. Written notices may be delivered in person, by certified mail (return receipt requested), by express mail
delivery carrier (with tracking service), internal inter-office courier, or by electronic mail as follows: 
 The Midland
Company 
 7000 Midland Boulevard 
 Batavia, Ohio 45102-2607 
 Attn: Ronald L. Gramke 
 Phone: (513) 947-5217 
 E-mail: 

 4.5 TAX EXEMPTION. If in accordance with the Owner’s written direction the Design-Builder claims an exemption for
taxes, the Owner shall defend, indemnify and hold the Design-Builder harmless for all liability, penalty, interest, fine, tax assessment, attorney’s fees or other expense or cost incurred by the Design-Builder as a result of any action taken by
the Design-Builder in accordance with the Owner’s direction. 
 ARTICLE 5 
 SUBCONTRACTS 
 Work not performed by the Design-Builder with its own forces shall be performed
by Subcontractors, the Civil/Mechanical Engineer or the Architect/Structural Engineer. 
 5.1 RETAINING SUBCONTRACTORS. The Owner shall have the right to
review and approve all written Project proposals of $5,000 or more submitted by Subcontractors and Material Suppliers. The Design-Builder shall not retain any subcontractor or material supplier to whom the Owner has a reasonable and timely
objection, provided that the Owner agrees to compensate the Design-Builder for any additional costs incurred by the Design-Builder as a result of such objection. The Owner may propose subcontractors to be considered by the Design-Builder. The
Design-Builder shall not be required to retain any subcontractor to whom the Design-Builder has a reasonable objection. 
 5.2 MANAGEMENT OF SUBCONTRACTORS.
The Design-Builder shall be responsible for the management of the Subcontractors in the performance of their work. Except for negligent acts or omissions of the Owner or the Architect/Structural Engineer, the Design-Builder is solely responsible for
insuring that all of the Work completed by the Subcontractors is in conformity with the Contract Documents. The Owner is not responsible for the acts or omissions of Subcontractors retained by the Design-Builder for the performance of the Work.

 5.3 ASSIGNMENT OF SUBCONTRACT AGREEMENTS. The Design-Builder shall provide for assignment of subcontract agreements in the event that the Owner terminates
this Agreement for cause as provided in Paragraph 13.2. Following such termination, the Owner shall notify in writing those Subcontractors whose assignments will be accepted, subject to the rights of sureties. 
 5.4 BINDING OF SUBCONTRACTORS AND MATERIAL SUPPLIERS. The Design-Builder agrees to bind every Subcontractor and Material Supplier (and require every Subcontractor to so
bind its Subsubcontractors and Material Suppliers) to all the provisions of this Agreement and the Contract Documents as they apply to the Subcontractors and Material Suppliers portions of the Work. 
 ARTICLE 6 
 TIME 
 6.1 DATE OF COMMENCEMENT. The Date of Commencement is the effective date of this Agreement as first written in Article 1 unless otherwise set forth below: 
 The Work shall proceed in general accordance with the Schedule of Work as such schedule may be amended from time to time, subject, however, to other
provisions of this Agreement. 
 6.2 SUBSTANTIAL/FINAL COMPLETION. Unless the parties agree otherwise, the Date of Substantial Completion and/or the Date of
Final Completion shall be established in Amendment No. 1 to this Agreement subject to adjustments as provided for in the Contract Documents. The Owner and the Design-Builder may agree not to establish such dates, or in the alternative, to
establish one but not the other of the two dates. If such dates are not established upon the execution of this Agreement, at such time as the Projected Cost of the Work is accepted a Date of Substantial Completion and/or Date of Final Completion of
the Work shall be established in Amendment No. 1. If the Projected Cost of the Work is not established and the parties desire to establish a Date of Substantial Completion and/or Date of Final Completion, it shall be set forth in Amendment
No. 1. 
 6.2.1 Time limits stated in the Contract Documents are of the essence. 

 6.2.2 Unless instructed by the Owner in writing, the Design-Builder shall not knowingly commence the Work
before the effective date of insurance that is required to be provided by the Design-Builder or the Owner. 
 6.3 DELAYS IN
THE WORK 
 6.3.1 If causes beyond the Design-Builder’s control delay the progress of the Work, then the Cost of the Work, compensation
for Design Phase Services and/or the Date of Substantial Completion and/or the Date of Final Completion shall be modified by Change Order as appropriate. In addition, the Design-Builder’s Fee shall be modified by Change Order as appropriate
where the cause for delay results from changes ordered in the Work or acts or omissions of the Owner, the Architect/Structural Engineer or others. Such causes shall include but not be limited to: changes ordered in the Work, acts or omissions of the
Owner, the Architect/Structural Engineer or Others, the Owner or the Architect/Structural Engineer preventing the Design-Builder from performing the Work pending dispute resolution, Hazardous Materials or differing site conditions. Causes beyond the
control of the Design-Builder do not include acts or omissions on the part of the Design-Builder, Subcontractors, Subsubcontractors, Material Suppliers or the Civil/Mechanical Engineer. 
 6.3.2 To the extent a delay in the progress of the Work is caused by adverse weather conditions not reasonably anticipated, fire, unusual transportation
delays, general labor disputes impacting the Project but not specifically related to the Worksite, governmental agencies, or unavoidable accidents or circumstances, the Design-Builder shall only be entitled to its actual costs without fee and an
extension of the Date of Substantial Completion and/or the Date of Final Completion. 
 6.3.3 In the event delays to the Project are
encountered for any reason, the parties agree to undertake reasonable steps to mitigate the effect of such delays. 
 ARTICLE 7

 COMPENSATION 
 7.1 DESIGN PHASE
COMPENSATION 
 7.1.1 The cost of services performed directly by the Civil/Mechanical Engineer is computed separately and is independent from
the Design-Builder’s compensation for work or services performed directly by the Design-Builder; these costs shall be shown as separate items on applications for payment. Due to the fact that the Civil/Mechanical Engineer is retained by the
Design-Builder, the payments to the Civil/Mechanical Engineer shall be as detailed in a separate agreement between the Design-Builder and the Civil/Mechanical Engineer. The cost of architectural and engineering services provided by the
Architect/Structural Engineer shall be paid by the Owner. Such sums shall not be included in the Projected Cost of the Work. The Projected Cost of the Workshall also include Civil/Mechanical Engineer’s Fee. The Design-Builder’s Fee does
not include the fees of the Civil/Mechanical Engineer; however, as provided in Subparagraph 8.2.7, the Cost of the Work upon which Design-Builder’s Fee is based shall include the costs of services rendered by the Civil/Mechanical Engineer.

 7.1.2 The Owner shall compensate the Design-Builder for services performed during the Design Phase as described in Paragraph 3.1, including
preparation of the Projected Cost of the Work as described in Subparagraph 3.1.7, as follows: 
 See Exhibit A attached and incorporated by
reference. 
 7.1.3 Compensation for Design Phase Services, as part of the Work, shall include the Design-Builder’s Fee as established in
Paragraph 7.3, paid in proportion to the services performed, subject to adjustment as provided in Paragraph 7.4. 
 7.1.4 Intentionally
Omitted. 
 7.1.5 Within five (5) days after receipt of each monthly application for payment, the Owner shall give written notice to the
Design-Builder of the Owner’s acceptance or rejection, in whole or in part, of such application for payment. On or before the tenth (10th) day of the month immediately following the Owner’s acceptance or rejection of such application, the Owner shall pay directly to the Design-Builder the appropriate amount for which application for payment is made,
less amounts previously paid by the Owner. If such application is rejected in whole or in part, the Owner shall indicate 

 the reasons for its rejection. If the Owner and the Design-Builder cannot agree on a revised amount on or
before the tenth (10th) day of the month immediately following the Owner’s acceptance or rejection of the
Design-Builder’s application for payment, the Owner shall pay directly to the Design-Builder the appropriate amount for those items not rejected by the Owner for which application for payment is made, less amounts previously paid by the Owner.
Those items rejected by the Owner shall be due and payable when the reasons for the rejection have been removed. 
 7.1.6 If the Owner fails
to pay the Design-Builder at the time payment of any amount becomes due, then the Design-Builder may, at any time thereafter, upon serving written notice that the Work will be stopped within seven (7) days after receipt of the notice by the
Owner, and after such seven (7) day period, stop the Work until payment of the amount owing has been received. 
 7.1.7 Payments due
pursuant to Subparagraph 7.1.5, may bear interest from the date payment is due at the prime rate prevailing at the location of Project. 
 7.2 CONSTRUCTION PHASE COMPENSATION 
 7.2.1 The Owner shall compensate the Design-Builder for Work performed
following the commencement of the Construction Phase on the following basis: 
 .1 the Cost of the Work as allowed in Article 8; and

 .2 the Design-Builder’s Fee paid in proportion to the services performed subject to adjustment as provided in Paragraph 7.4.

 7.2.3 Payment for Construction Phase Services shall be as set forth in Article 10. If Design Phase Services continue to be provided after
construction has commenced, the Design-Builder shall continue to be compensated as provided in Paragraph 7.1, or as mutually agreed. 
 7.3
DESIGN-BUILDER’S FEE. The Design-Builder’s Fee shall be as follows, subject to adjustment as provided in Paragraph 7.4: 
 See
Exhibit A attached and incorporated by reference 
 7.4 ADJUSTMENT IN THE DESIGN-BUILDER’S FEE Adjustment in the
Design-Builder’s Fee shall be made as follows: 
 See Exhibit A attached and incorporated by reference 
 ARTICLE 8 
 COST OF THE WORK

 The Owner agrees to pay the Design-Builder for the Cost of the Work as defined in this Article. This payment shall be in addition to the
Design-Builder’s Fee stipulated in Paragraph 7.3. 
 8.1 COST ITEMS FOR DESIGN PHASE SERVICES. 
 8.1.1 Compensation for Design Phase Services as provided in Paragraph 7.1. 
 8.2 COST ITEMS FOR CONSTRUCTION PHASE SERVICES. 
 8.2.1 Wages paid for labor in the direct employ of the Design-Builder in the performance of the Work. 
 8.2.2
Salaries as set forth on Exhibit B attached and incorporated in this Agreement by reference of the Design-Builder’s employees when stationed at the field office, in whatever capacity employed, employees engaged on the road expediting the
production or transportation of material and equipment, and employees from the principal or branch office performing the functions listed below: 
 .1 Project Managers and Assistant Project Managers. 
 .2 Administrative Assistant, Project Assistant, and/or Administrative Support.

 .3 Project Technicians. 

 8.2.3 Cost of all employee benefits and taxes including but not limited to workers compensation,
unemployment compensation, Social Security, health, welfare, retirement and other fringe benefits as required by law, labor agreements, or paid under the Design-Builder’s standard personnel policy, insofar as such costs are paid to employees of
the Design-Builder who are included in the Cost of the Work under Subparagraphs 8.2.1 and 8.2.2. 
 8.2.4 Reasonable transportation and travel
expenses of the following of Design-Builder’s personnel incurred in connection with the Work: Design-Builder’s Senior Project Manager, currently Dave Settles, Assistant Project Managers, currently Brian James and Brian Hartigan, Safety
Coordinator and Labor Coordinator. 
 8.2.5 Cost of all materials, supplies and equipment incorporated in the Work, including costs of
inspection and testing if not provided by the Owner, transportation, storage and handling. 
 8.2.6 Payments made by the Design-Builder to
Subcontractors for work performed under this Agreement. 
 8.2.7 Fees and expenses for design services procured or furnished by the
Design-Builder or its Civil/Mechanical Engineer. As provided in Paragraph 7.1, fees and expenses for architectural and engineering services provided by the Architect/Structural Engineer and shall be paid directly by the Owner and shall not be
included in the Projected Cost of the Work. 
 8.2.8 Cost, including transportation and maintenance of all materials, supplies, equipment,
temporary facilities and hand tools not owned by the workers that are used or consumed in the performance of the Work, less salvage value and/or residual value; and cost less salvage value on such items used, but not consumed that remain the
property of the Design-Builder. 
 8.2.9 Rental charges of all necessary machinery and equipment, exclusive of hand tools owned by workers,
used at the Worksite, whether rented from the Design-Builder or Others, including installation, repair and replacement, dismantling, removal, maintenance, transportation and delivery costs. Rental from unrelated third parties shall be reimbursed at
actual cost. Rentals from the Design-Builder or its affiliates, subsidiaries or related parties shall be reimbursed at the prevailing rates in the locality of the Worksite up to eighty-five percent (85%) of the value of the piece of equipment.

 8.2.10 Cost of the premiums for all insurance and surety bonds which the Design-Builder is required to procure or deems necessary, and
approved by the Owner. 
 8.2.11 Sales, use, gross receipts or other taxes, tariffs or duties related to the Work (other than the income
taxes) for which the Design-Builder is liable. 
 8.2.12 Permits, fees, licenses, tests, royalties, damages for infringement of patents and/or
copyrights, including costs of defending related suits for which the Design-Builder is not responsible as set forth in Paragraph 3.7, and deposits lost for causes other than the Design-Builder’s negligence or the negligence of its
Subcontractors. 
 8.2.13 Losses, expenses or damages to the extent not compensated by insurance or otherwise, and the cost of corrective work
and/or redesign during the Construction Phase and for a period of two years following the Date of Substantial Completion, provided that such corrective work and/or redesign did not arise from the negligence of the Design-Builder or its
Subcontractors. 
 8.2.14 All costs associated with establishing, equipping, operating, maintaining and demobilizing the field office.

 8.2.15 Reproduction costs, photographs, cost of telegrams, facsimile transmissions, long distance telephone calls, data processing
services, postage, express delivery charges, telephone service at the Worksite and reasonable petty cash expenses at the field office. 
 8.2.16 All water, power and fuel costs necessary for the Work except as modified by Outline Specifications. 
 8.2.17 Cost of removal
of all non-hazardous substances, debris and waste materials. 
 8.2.18 Costs incurred due to an emergency affecting the safety of persons
and/or property. 
 8.2.19 Legal, mediation and arbitration fees and costs, other than those arising from disputes between the Owner and the
Design-Builder and/or Subcontractors, reasonably and properly resulting from the Design-Builder’s and/or Subcontractor’s performance of the Work. 

 8.2.20 All costs directly incurred in the performance of the Work,or in connection with the Project, and
not included in the Design-Builder’s Fee as set forth in Article 7, which are reasonably inferable from the Contract Documents as necessary to produce the intended results. 
 8.2.21 Costs incurred for soil borings required for the Project. 
 8.3 DISCOUNTS. All discounts for prompt payment shall accrue to the Owner to the extent such payments are made directly by the Owner. To the extent payments are made with funds of the Design-Builder, all cash discounts shall accrue to the
Design-Builder. All trade discounts, rebates and refunds, and all returns from sale of surplus materials and equipment, shall be credited to the Cost of the Work. The Owner shall be offered an opportunity to pay early in order to obtain any trade
discount or rebate. 
 ARTICLE 9 
 CHANGES IN THE WORK 
 Changes in the Work which are within the general scope of this Agreement may be accomplished, without invalidating
this Agreement, by Change Order, Work Change Directive, or a minor change in the work, subject to the limitations stated in the Contract Documents. 
 9.1 CHANGE ORDER 
 9.1.1 The Design-Builder may request and/or the Owner, without invalidating this
Agreement, may order changes in the Work within the general scope of the Contract Documents consisting of additions, deletions or other revisions to the Projected Cost of the Work, compensation for Design Phase Services, the Design-Builder’s
Fee and/or the Date of Substantial Completion and/or the Date of Final Completion being adjusted accordingly. All such changes in the Work shall be authorized by applicable Change Order, and shall be performed under the applicable conditions of the
Contract Documents. 
 9.1.2 Each adjustment in the Projected Cost of the Work resulting from a Change Order shall clearly separate the amount
attributable to compensation for Design Phase Services, other Cost of the Work and the Design-Builder’s Fee, with the Design-Builder’s Fee not to exceed nine percent (9%) for Change Orders involving changes in the scope of the
Project. For Change Orders not involving changes in the scope of the Project, no additional Design-Builder’s Fee shall be charged. 
 9.1.3 The Owner and the Design-Builder shall negotiate in good faith an appropriate adjustment to the Projected Cost of the Work, compensation for Design Phase Services, the Design-Builder’s Fee and/or the Date of Substantial
Completion and/or the Date of Final Completion and shall conclude these negotiations as expeditiously as possible. Acceptance of the Change Order and any adjustment in the Projected Cost of the Work, compensation for Design Phase Services, the
Design-Builder’s Fee and/or the Date of Substantial Completion and/or the Date of Final Completion shall not be unreasonably withheld. 
 9.2 WORK CHANGE DIRECTIVES 
 9.2.1 The Owner may issue a written Work Change Directive directing a change in
the Work prior to reaching agreement with the Design-Builder on the adjustment, if any, in the Projected Cost of the Work, the Design-Builder’s Fee, the Date of Substantial Completion and/or the Date of Final Completion, and if appropriate, the
compensation for Design Phase Services. 
 9.2.2 The Owner and the Design-Builder shall negotiate expeditiously and in good faith for
appropriate adjustments, as applicable, to the Projected Cost of the Work, the Design-Builder’s Fee, the Date of Substantial Completion and/or the Date of Final Completion, and if appropriate the compensation for Design Phase Services, arising
out of Work Change Directives. As the changed work is completed, the Design Builder shall submit its costs for such work with its application for payment beginning with the next application for payment within thirty (30) days of the issuance of
the Work Change Directive. Pending final determination of cost to the Owner, amounts not in dispute may be included in applications for payment and shall be paid by Owner. 
 9.2.3 If the Owner and the Design-Builder agree upon the adjustments in the Projected Cost of the Work, the Design-Builder’s Fee, the Date of Substantial Completion and/or the Date of Final Completion, and if
appropriate the compensation for Design Phase Services, for a change in the Work directed by a Work Change Directive, such agreement shall be the subject of an appropriate Change Order. The Change Order shall include all outstanding Change
Directives issued since the last Change Order. 

 9.3 MINOR CHANGES IN THE WORK 
 9.3.1 The Design-Builder may make minor changes in the design and construction of the Project consistent with the intent of the Contract Documents which
do not involve an adjustment in the Projected Cost of the Work, the Design-Builder’s Fee, the Date of Substantial Completion and/or the Date of Final Completion, and do not materially and adversely affect the design of the Project, the quality
of any of the materials or equipment specified in the Contract Documents, the performance of any materials, equipment or systems specified in the Contract Documents, or the quality of workmanship required by the Contract Documents. 
 9.3.2 The Design-Builder shall promptly inform the Owner in writing of any such changes and shall record such changes on the Design-Build Documents
maintained by the Design-Builder. 
 9.4 UNKNOWN CONDITIONS. If in the performance of the Work the Design-Builder finds latent, concealed or
subsurface physical conditions which materially differ from the conditions the Design-Builder reasonably anticipated, or if physical conditions are materially different from those normally encountered and generally recognized as inherent in the kind
of work provided for in this Agreement, then the Projected Cost of the Work, the Design-Builder’s Fee, the Date of Substantial Completion and/or the Date of Final Completion, and if appropriate the compensation for Design Phase Services, shall
be equitably adjusted by Change Order within a reasonable time after the conditions are first observed. The Design-Builder shall provide the Owner with written notice within the time period set forth in Paragraph 9.6. 
 9.5 DETERMINATION OF COST 
 9.5.1 An increase or decrease in the Projected Cost of the Work resulting from a change in the Work shall be determined by one or more of the following methods: 
 .1 unit prices set forth in this Agreement or as subsequently agreed; 
 .2 a mutually accepted, itemized lump
sum; 
 .3 costs determined as defined in Paragraph 7.2 and Article 8 and a mutually acceptable Design-BuiIder’s Fee as determined in
Subparagraph 7.4.1; or 
 .4 if an increase or decrease cannot be agreed to as set forth in Clauses 9.5.1.1 through 9.5.1.3 above, and the
Owner issues a Work Change Directive, the cost of the change in the Work shall be determined by the reasonable actual expense and savings of the performance of the Work resulting from the change. If there is a net increase in the Projected Cost of
the Work, the Design-Builder’s Fee shall be adjusted as set forth in Paragraph 7.4. In case of a net decrease in the Projected Cost of the Work , the Design-Builder’s Fee shall not be adjusted. The Design-Builder shall maintain a
documented, itemized accounting evidencing the expenses and savings. 
 9.5.2 If unit prices are indicated in the Contract Documents or are
subsequently agreed to by the parties, but the character or quantity of such unit items as originally contemplated is so different in a proposed Change Order that the original unit prices will cause substantial inequity to the Owner or the
Design-Builder, such unit prices shall be equitably adjusted. 
 9.5.3 If the Owner and the Design-Builder disagree as to whether work
required by the Owner is within the scope of the Work, the Design-Builder shall furnish the Owner with an estimate of the costs to perform the disputed work in accordance with the Owner’s interpretations. If the Owner issues a written order for
the Design-Builder to proceed, the Design-Builder shall perform the disputed work and the Owner shall pay the Design-Builder fifty percent (50%) of its estimated cost to perform the work. In such event, both parties reserve their rights as to
whether the work was within the scope of the Work. The Owner’s payment does not prejudice its right to be reimbursed should it be determined that the disputed work was within the scope of Work. The Design-Builder’s receipt of payment for
the disputed work does not prejudice its right to receive full payment for the disputed work should it be determined that the disputed work is not within the scope of the Work. 
 9.6 CLAIMS FOR ADDITIONAL COST OR TIME. For any claim for an increase in the Projected Cost of the Work, the Design-Builder’s Fee and the Date of Substantial Completion and/or the Date of Final Completion, and if
appropriate the compensation for Design Phase Services, the Design-Builder shall give the Owner written notice of the claim within twenty-one (21) days after the occurrence giving rise to the claim or within twenty-one (21) days after the
Design-Builder first recognizes the condition giving rise to the claim, whichever is later. Except in an emergency, notice shall be given before proceeding with the 

 Work. Claims for design and estimating costs incurred in connection with possible changes requested by the Owner, but
which do not proceed, shall be made within twenty-one (21) days after the decision is made not to proceed. Any change in the Projected Cost of the Work, the Design-Builder’s Fee, the Date of Substantial Completion and/or the Date of Final
Completion, and if appropriate the compensation for Design Phase Services, resulting from such claim shall be authorized by Change Order. 
 9.7 EMERGENCIES.
In any emergency affecting the safety of persons and/or property, the Design-Builder shall act, at its discretion, to prevent threatened damage, injury or loss. Any change in the Projected Cost of the Work, the Design-Builder’s Fee, the Date of
Substantial Completion and/or the Date of Final Completion, and if appropriate the compensation for Design Phase Services, on account of emergency work shall be determined as provided in this Article. 
 9.8 CHANGES IN LAW. In the event any changes in laws or regulations affecting the performance of the Work are enacted after either the date of this Agreement the
Projected Cost of the Work, the Design-Builder’s Fee, the Date of Substantial Completion and/or the Date of Final Completion, and if appropriate the compensation for Design Phase Services, shall be equitably adjusted by Change Order.

 ARTICLE 10 
 PAYMENT
FOR CONSTRUCTION PHASE SERVICES 
 10.1 PROGRESS PAYMENTS 
 10.1.1 On or before the 25th day of each month after the Construction Phase has commenced, the Design-Builder shall submit to the Owner and the Architect
an application for payment consisting of the Cost of the Work performed up to the 30th day of such month, including the cost of material suitably stored on the Worksite or at other locations approved by the Owner, along with a proportionate share of
the Design-Builder’s Fee. Approval of payment applications for such stored materials shall be conditioned upon submission by the Design-Builder of bills of sale and applicable insurance or such other documentation satisfactory to the Owner
which establish the Owner’s title to such materials, or otherwise to protect the Owner’s interest. Prior to submission of the next application for payment, the Design-Builder shall furnish to the Owner a statement accounting for the
disbursement of funds received under the previous application. The extent of information contained in such statement shall be as agreed upon between the Owner and the Design-Builder. The Owner, the Architect/Strutural Engineer and the Design-Builder
shall meet at the Worksite on a monthly basis at the end of every month during the Construction Phase to review the Design-Builder’s applications for payment 
 10.1.2 Within five (5) days after receipt of each monthly application for payment, the Owner shall give written notice to the Design-Builder of the Owner’s acceptance or rejection, in whole or in part, of
such application for payment. On or before the tenth (10th) day of the month immediately following the
Owner’s acceptance or rejection of such application, the Owner shall pay directly to the Design-Builder the appropriate amount for which application for payment is made, less amounts previously paid by the Owner. If such application is rejected
in whole or in part, the Owner shall indicate the reasons for its rejection. If the Owner and the Design-Builder cannot agree on a revised amount then, on or before the tenth (10th) day of the month immediately following the Owner’s acceptance or rejection of the Design-Builder’s application for payment, the Owner shall
pay directly to the Design-Builder the appropriate amount for those items not rejected by the Owner for which application for payment is made, less amounts previously paid by the Owner. Those items rejected by the Owner shall be due and payable when
the reasons for the rejection have been removed. 
 10.1.3 If the Owner fails to pay the Design-Builder at the time payment of any amount
becomes due, then the Design-Builder may, at any time thereafter, upon serving written notice that the Work will be stopped within seven (7) days after receipt of the notice by the Owner, and after such seven day period, stop the Work until
payment of the amount owing has been received. 
 10.1.4 Payments due but unpaid pursuant to Subparagraph 10.1.2, less any amount retained
pursuant to Paragraphs 10.2 and 10.3 may bear interest from the date payment is due at the prime rate prevailing at the place of the Project. 
 10.1.5 The Design-Builder warrants and guarantees that title to all Work, materials and equipment covered by an application for payment, whether incorporated in the Project or not, will pass to the Owner upon receipt of such payment by the
Design-Builder, free and clear of all liens, claims, security interests or encumbrances, hereinafter referred to as liens. The Design-Builder will provide with each application for payment partial lien waivers from the Design-Builder, the
Subcontractors and Material Suppliers with respect to previous payments made by the Owner for Construction Phase Services as reasonably requested by the Owner or Owner’s lender. 
 10.1.6 The Owner’s progress payment, occupancy or use of the Project, whether in whole or in part, shall not be deemed an acceptance of any Work not
conforming to the requirements of the Contract Documents. 

 10.1.7 Upon Substantial Completion of the Work, the Owner shall pay the Design-Builder the unpaid balance
of the Cost of the Work, compensation for Design Phase Services and the Design-Builder’s Fee, less one-hundred-fifty percent (150%) of the cost of completing any unfinished items as agreed to between the Owner and the Design-Builder as to
extent and time for completion. The Owner thereafter shall pay the Design-Builder monthly the amount retained for unfinished items as each item is completed. 
 10.2 RETAINAGE. From each progress payment made prior to the time Substantial Completion of the Work has been reached, the Owner shall retain five (5%) of the Hard Costs for the Project. For purposes of this Agreement, “Hard
Costs” shall mean all costs included in the Cost of the Work other than the Design-Builder’s Fee and the cost of Design Phase Services rendered by the Design-Builder or its Civil/Mechanical Engineer. At the time the Work is fifty percent
(50%) complete and thereafter, the Owner shall withhold no further retainage and shall pay the Design-Builder the full amount of what is due on account of subsequent progress payments. 
 10.3 ADJUSTMENT OF DESIGN-BUILDER’S APPLICATION FOR PAYMENT The Owner may adjust or reject an application for payment or nullify a previously approved
Design-Builder application for payment, in whole or in part, as may reasonably be necessary to protect the Owner from loss or damage based upon the following, to the extent that the Design-Builder is responsible under this Agreement: 
 .1 the Design-Builder’s repeated failure to perform the Work as required by the Contract Documents; 
 .2 loss or damage arising out of or relating to this Agreement and caused by the Design-Builder to the Owner or Others to whom the Owner may be liable;

 .3 the Design-Builder’s failure to properly pay the Civil/Mechanical Engineer, Subcontractors or Material Suppliers for labor,
materials, equipment or supplies furnished in connection with the Work, provided that the Owner is making payments to the Design-Builder in accordance with the terms of this Agreement; 
 .4 Defective Work not corrected in a timely fashion; 
 .5 reasonable evidence of delay in performance of the Work such that the Work will not be completed by the Date of Substantial Completion and/or the Date of Final Completion, and that the unpaid balance of the Contract Sum is not sufficient
to offset any direct damages that may be sustained by the Owner as a result of the anticipated delay caused by the Design-Builder; and 
 .6
reasonable evidence demonstrating that the unpaid balance of the Contract Sum is insufficient to fund the cost to complete the Work. 
 The
Owner shall give written notice to the Design-Builder at the time of disapproving or nullifying all or part of an application for payment of the specific reasons. When the above reasons for disapproving or nullifying an application for payment are
removed, payment will be made for the amount previously withheld. 
 10.4 OWNER OCCUPANCY OR USE OF COMPLETED OR PARTIALLY
COMPLETED WORK 
 10.4.1 Portions of the Work that are completed or partially completed may be used or occupied by the Owner when (a) the
portion of the Work is designated in a Certificate of Substantial Completion, (b) appropriate insurer(s) and/or sureties consent to the occupancy or use, and (c) appropriate public authorities authorize the occupancy or use. Such partial
occupancy or use shall constitute Substantial Completion of that portion of the Work. The Design-Builder shall not unreasonably withhold consent to partial occupancy or use. The Owner shall not unreasonably refuse to accept partial occupancy or use,
provided such partial occupancy or use is of value to the Owner. 
 10.5 FINAL PAYMENT 
 10.5.1 Final Payment, consisting of the unpaid balance of the Cost of the Work, compensation for Design Phase Services and the Design-Builder’s Fee,
shall be due and payable when the work is fully completed. Before issuance of final payment, the Owner may request satisfactory evidence that all payrolls, material bills and other indebtedness connected with the Work have been paid or otherwise
satisfied. 
 10.5.2 In making final payment the Owner waives all claims except for: 
 .1 outstanding liens; 

 .2 improper workmanship or defective materials appearing within two years after the Date of Substantial
Completion, except with regard to workmanship or materials which are the subject of a special warranty of one year under the Contract Documents; 
 .3 improper workmanship or defective materials appearing within one year after the Date of Substantial Completion where the workmanship or materials are the subject of a one year warranty under the Contract Documents; 
 .4 work not in conformance with the Contract Documents; and 
 .5 terms of any special warranties required by the Contract Documents. 
 10.5.3 In accepting final payment,
the Design-Builder waives all claims except those previously made in writing and which remain unsettled. 
 ARTICLE 11 
 INDEMNITY 
 11.1
INDEMNITY 
 11.1.1 To the fullest extent permitted by law, the Design-Builder shall defend, indemnify and hold harmless the Owner, its
subsidiaries, owners, officers, directors, members, consultants, agents and employees from all claims, damages, losses, expenses, direct or indirect or consequential (unless covered under the builders’ risk property policy required in paragraph
12.4 and subject to the limitation on consequential damages set forth in paragraph 12.7) resulting from or in any way connected with the Work performed or to be performed by the Design-Builder, the Subcontractors or anyone employed directly or
indirectly by any of them or by anyone for whose acts any of them may be liable. This provision is intended to be, and shall be construed as consistent with, and not in conflict with Ohio Revised Code Section 2305.31. The Design-Builder shall
not be required to defend, indemnify or hold harmless the Owner, Owner’s officers, directors, members, consultants, agents and employees for any acts, omissions or negligence of the Owner, the Owner’s officers, directors, members,
consultants, employees, agents or separate contractors. 
 11.1.2 For the purpose of the foregoing duty to defend and to indemnify the Owner
against liability, but for no other purpose, the Design-Builder, the Subcontractors or anyone employed directly or indirectly by any of them or by anyone for whose acts any of them may be liable expressly waives its statutory and constitutional
immunity, as codified in Article A.II, Section 35 of the Ohio Constitution and at Ohio Revised Code Sections 4123.74 and 4123.741, as an employer, and its compliance with Ohio Workers Compensation. The Owner and the Design-Builder expressly
acknowledge that this waiver was mutually negotiated. The Design-Builder agrees to include in any subcontract with any Subcontractor a provision in which the Subcontractor waives its industrial insurance immunity. 
 11.1.3 To the fullest extent permitted by law, the Owner shall defend, indemnify and hold harmless the Design-Builder, its officers, directors or members,
Subcontractors or anyone employed directly or indirectly by any of them or anyone for whose acts any of them may be liable from all claims for bodily injury and property damage, other than property insured under Paragraph 12.4, that may arise from
the performance of work by the Architect/Structural Engineer or Others, to the extent of the negligence attributed to such acts or omissions by the Architect/Structural Engineer or Others. 
 ARTICLE 12 
 INSURANCE, BONDS AND WAIVER OF SUBROGATION 
 12.1 DESIGN-BUILDER’S LIABILITY INSURANCE 
 12.1.1 The Design-Builder shall obtain and maintain insurance coverage for the following claims which may arise out of the performance of this Agreement, whether resulting from the Design-Builder’s operations or
from the operations of any Subcontractor, anyone in the employ of any of them, or by an individual or entity for whose acts they may be liable: 
 .1 workers compensation, disability and other employee benefit claims under acts applicable to the Work; 

 .2 under applicable employers liability law, bodily injury, occupational sickness, disease or death
claims of the Design-Builder’s employees; 
 .3 bodily injury, sickness, disease or death claims for damages to persons not employed by
the Design-Builder; 
 .4 personal injury liability claims for damages directly or indirectly related to the persons employment by the
Design-Builder or for damages to any other person; 
 .5 claims for physical injury to tangible property, including all resulting loss of use
of that property, to property other than the Work itself and property insured under Paragraph 12.4; 
 .6 bodily injury, death or property
damage claims resulting from motor vehicle liability in the use, maintenance or ownership of any motor vehicle; and 
 .7
contractual liability claims. 
 12.1.2 The Design-Builder’s Commercial General Liability Insurance will be project specific coverage,
and Automobile Liability Insurance as required by Subparagraph 12.1.1 shall be written for not less than the following limits of liability: 
 .1 Commercial General Liability Insurance – Project Specific Coverage. 
 a. Each Occurrence Limit $1,000,000 
 b. General Aggregate $2,000,000 
 c.
Products/Completed Operations Aggregate $2,000,000 
 d. Personal and Advertising Injury Limit $1,000,000 
 .2 Comprehensive Automobile Liability Insurance 
 a. Combined Single Limit Bodily Injury and Property Damage 
 $1,000,000 
 12.1.3 The Design-Builder shall carry a project specific Umbrella Liability policy, which shall be written for not less than the following limit of
liability: 
 .1. Umbrella Liability Policy – Project Specific Coverage. 
 a. Each Occurrence Limit/Aggregate Limit $25,000,000 
 12.1.4 The policies shall contain a provision that coverage will not be canceled or not renewed until at least thirty (30) days prior written notice has been given to the Owner. Certificates of insurance showing required coverage to be
in force shall be filed with the Owner prior to commencement of the Work. The Owner shall be named as an additional insured on the Design-Builder’s commercial general and automobile liability and umbrella policies required above. Specifically,
the Design-Builder shall include the Owner as an additional insured under Commercial General Liability Form CG2010 (11/85 edition). This policy of the Design-Builder shall be primary for the Design-Builder and the Owner, and the Owner’s
insurance covering the Owner will be excess and noncontributory. 
 12.1.5 Project specific products and completed operations insurance shall
be maintained for a minimum period of at least five years after the date of Substantial Completion or final payment, whichever occurs earlier. Specifically, the Design-Builder agrees to provide the Owner as an additional insured under the commercial
general liability form CG 2010 (11/85 edition) for this five-year period. 
 12.2 PROFESSIONAL LIABILITY INSURANCE. The Design-Builder shall obtain
professional liability insurance for claims arising from the negligent performance of professional services under this Agreement, which shall be “practice” or “general office” Professional Liability Insurance written for not less
than $1,000,000 per claim and in the aggregate with a deductible not to exceed $50,000. The Professional Liability Insurance shall include prior acts coverage sufficient to cover all services rendered by the Civil/Mechanical Engineer. The
Design-Builder shall require the Civil Engineer to obtain Professional Liability Insurance for not less than $1,000,000 per claim and in the aggregate and shall require the Mechanical Engineer to obtain Professional Liability Insurance for not less
than $1,500,000 per claim and in the aggregate. These coverages shall be continued in effect for four (4) years after the Date of Substantial Completion. 

 12.3 OWNER’S LIABILITY INSURANCE The Owner shall be responsible for obtaining and maintaining its own liability
insurance. Insurance for claims arising out of the performance of this Agreement may be purchased and maintained at the Owner’s discretion. 
 12.4 INSURANCE TO PROTECT PROJECT 
 12.4.1 The Owner shall obtain and maintain insurance to cover the
replacement cost of the existing building. This policy will remain in force during all construction Work. The Design-Builder shall obtain and maintain All Risk Builders Risk insurance in a form acceptable to the Owner, upon the entire Project for
the full cost of replacement of the new construction at the time of any loss. This insurance shall include as named insureds the Owner, the Architect/Structural Engineer, the Design-Builder, Subcontractors, and Subsubcontractors. This insurance
shall include all risk insurance for physical loss or damage including without duplication of coverage at least: theft, vandalism, malicious mischief, transit, materials stored off site, collapse, falsework, temporary buildings, debris removal,
flood, earthquake, testing, and damage resulting from defective design, workmanship or material. The Design-Builder shall increase limits of coverage, if necessary, to reflect estimated replacement cost. The insurance policy shall be written without
a co-insurance clause. The Owner shall be solely responsible for any deductible amounts. 
 12.4.2 If the Owner occupies or uses a portion of
the Project prior to its Substantial Completion, such occupancy or use shall not commence prior to a time mutually agreed to by the Owner and the Design-Builder. Permission for partial occupancy from the insurance company shall be included as
standard in the property insurance policy, to ensure that this insurance shall not be canceled or lapsed on account of partial occupancy. Consent of the Design-Builder to such early occupancy or use shall not be unreasonably withheld. 
 12.4.3 The Design-Builder shall obtain and maintain boiler and machinery insurance as necessary. The interests of the Owner, the Architect/Structural
Engineer, the Design-Builder, the Subcontractors, and Subsubcontractors shall be protected under this coverage. 
 12.4.4 The Design-Builder
shall provide the Owner with evidence of all property insurance policies before an exposure to loss may occur. Copies of any policies and subsequent endorsements shall be furnished to the Owner. The Owner shall be given thirty (30) days notice
of cancellation, non-renewal, or any endorsements restricting or reducing coverage. The cost of this insurance shall be a Cost of the Work pursuant to Article 8, and the Contract Sum shall be increased by Change Order. If the Owner is damaged by the
failure of the Design-Builder to purchase or maintain property insurance or to so notify the Owner, the Design-Builder shall bear all reasonable costs incurred by the Owner arising from the damage. 
 12.4.5 The Design-Builder and its Subcontractors shall not have the right to self-insure against the risks covered in Subparagraph 12.4.1. 
 12.5 PROPERTY INSURANCE LOSS ADJUSTMENT 
 12.5.1 Any insured loss shall be adjusted with the Owner and the Design-Builder and made payable to the Owner and Design-Builder as trustees for the insureds, as their interests may appear, subject to any applicable
mortgagee clause. 
 12.5.2 Upon the occurrence of an insured loss, monies received will be deposited in a separate account and the trustees
shall make distribution in accordance with the agreement of the parties in interest, or in the absence of such agreement, in accordance with a dispute resolution award pursuant to Article 14. If the trustees are unable to agree between themselves on
the settlement of the loss, such dispute shall also be submitted for resolution pursuant to Article 14. 
 12.6 WAIVER OF
SUBROGATION 
 12.6.1 The Design-Builder waives all rights against the Owner, and any of its employees and agents for damages covered by the
insurance provided pursuant to Paragraph 12.4 to the extent they are covered by that insurance, except such rights as they may have to the proceeds of such insurance held by the Owner as trustee. The Owner waives all rights against the
Design-Builder, and any of its employees, agents, Subcontractors and Subsubcontractors for damages covered by the insurance provided pursuant to Paragraph 12.4 to the extent they are covered by that insurance, except such rights as they may have to
the proceeds of such insurance held by the Design-Builder as trustee. The Design-Builder shall require similar waivers from all Subcontractors, and shall require each of them to include similar waivers in their subsubcontracts and agreements.

 12.6.2 The Owner waives subrogation against the Design-Builder, Subcontractors, Material Suppliers and Subsubcontractors for damages in
excess of $27,000,000 on all property and consequential loss policies carried by the Owner on adjacent properties and for damages in excess of $27,000,000 under property and consequential loss policies purchased for the Project after its completion.

 12.6.3 The policies shall also be endorsed to state that the carrier waives any right of subrogation
against the Design-Builder, and with respect to the Owner’s policies under Section 12.6.2 only, the Subcontractors, Material Suppliers, or Subsubcontractors for damages in excess of $27,000,000. 
 12.7 MUTUAL WAIVER OF CONSEQUENTIAL DAMAGES The Design-Builder agrees to waive all claims against the Owner for all consequential damages that may arise out of or relate
to this Agreement. The Owner agrees to waive all claims against the Design-Builder for all consequential damages that may arise out of or relate to this Agreement in excess of $27,000,000 (“Excess Damages”). The Owner agrees to waive such
Excess Damages, including, but not limited to, the Owner’s loss of use of the Property, all rental expenses incurred, loss of services of employees, or loss of reputation. The Design-Builder agrees to waive damages including but not limited to
the loss of business, loss of financing, principal office overhead and profits, loss of profits not related to this Project, or loss of reputation. This paragraph shall not be construed to preclude contractual provisions for liquidated damages when
such provisions relate to direct damages only. The provisions of this paragraph shall govern the termination of this Agreement and shall survive such termination. 
 12.8 BONDING 
 12.8.1
Performance and Payment Bonds are not required of the Design-Builder. 
 ARTICLE 13 
 SUSPENSION AND TERMINATION OF THE AGREEMENT AND OWNER’S RIGHT 
 TO PERFORM DESIGN -BUILDER’S RESPONSIBILITIES 
 13.1 SUSPENSION BY THE OWNER
FOR CONVENIENCE 
 13.1.1 The Owner may order the Design-Builder in writing to suspend, delay or interrupt all or any part of the Work without
cause for such period of time as the Owner may determine to be appropriate for its convenience. 
 13.1.2 Adjustments caused by suspension,
delay or interruption shall be made for increases in the Projected Cost of the Work, compensation for Design Phase Services, the Design-Builder’s Fee and/or the Date of Substantial Completion and/or the Date of Final Completion. No adjustment
shall be made if the Design-Builder is or otherwise would have been responsible for the suspension, delay or interruption of the Work, or if another provision of this Agreement is applied to render an equitable adjustment. 
 13.2 OWNER’S RIGHT TO PERFORM DESIGN-BUILDER’S OBLIGATIONS AND TERMINATION BY THE OWNER FOR CAUSE 
 13.2.1 If the Design-Builder persistently fails to perform any of its obligations under this Agreement, the Owner may, after five (5) days written
notice, during which period the Design-Builder fails to perform such obligation, undertake to perform such obligations. 
 13.2.2 Upon an
additional five (5) days written notice to the Design-Builder and the Design-Builder’s surety, if any, the Owner may terminate this Agreement for any of the following reasons: 
 .1 if the Design-Builder persistently utilizes improper materials and/or inadequately skilled workers; 
 .2 if the Design-Builder does not make proper payment to laborers, Material Suppliers or Subcontractors, provided that the Owner is making payments to the
Design-Builder in accordance with the terms of this Agreement; 
 .3 if the Design-Builder persistently fails to abide by the orders,
regulations, rules, ordinances or laws of governmental authorities having jurisdiction; or 
 .4 if the Design-Builder otherwise materially
breaches this Agreement. 
 If the Design-Builder fails to cure or commence and continue to cure within the five (5) days, the Owner,
without prejudice to any other right or remedy, may take possession of the Worksite and complete the Work utilizing any reasonable means. In this event, the Design-Builder shall not have a right to further payment until the Work is completed.

 13.2.3 If the Design-Builder files a petition under the Bankruptcy Code, this Agreement shall terminate
if the Design-Builder or the Design-Builder’s trustee rejects the Agreement or, if there has been a default, the Design-Builder is unable to give adequate assurance that the Design-Builder will perform as required by this Agreement or otherwise
is unable to comply with the requirements for assuming this Agreement under the applicable provisions of the Bankruptcy Code. 
 13.2.4 In the
event the Owner exercises its rights under Subparagraph 13.2.1 or 13.2.2, upon the request of the Design-Builder the Owner shall provide a detailed accounting of the cost incurred by the Owner. 
 13.3 TERMINATION BY OWNER WITHOUT CAUSE If the Owner terminates this Agreement other than as set forth in Paragraph 13.2, the Owner shall pay the Design-Builder for all
Work executed and for all proven loss, cost or expense in connection with the Work, plus all demobilization costs. In addition, the Design-Builder shall be paid an amount calculated as set forth below: 
 .1 If the Owner terminates this Agreement prior to commencement of the Construction Phase, the Design-Builder shall be paid for the Design-Builder’s
Design Phase services provided to date as set forth in Subparagraph 7.1.2 and 7.1.3, and a premium as set forth below: None 
 .2 If the Owner
terminates this Agreement after commencement of the Construction Phase, the Design-Builder shall be paid for the Construction Phase Services provided to date pursuant to Subparagraph 7.2.1 and a premium as set forth below: None 
 .3 The Owner shall also pay to the Design-Builder fair compensation, either by purchase or rental at the election of the Owner, for all equipment
retained. The Owner shall assume and become liable for obligations, commitments and unsettled claims that the Design-Builder has previously undertaken or incurred in good faith in connection with the Work or as a result of the termination of this
Agreement. As a condition of receiving the payments provided under this Article 13, the Design-Builder shall cooperate with the Owner by taking all steps necessary to accomplish the legal assignment of the Design-Builder’s rights and benefits
to the Owner, including the execution and delivery of required papers. 
 13.4 TERMINATION BY THE DESIGN-BUILDER 

13.4.1 Upon five (5) days written notice to the Owner, the Design-Builder may terminate this Agreement for any of the following reasons:

 .1 if the Work has been stopped for a sixty (60) day period 
 a. under court order or order of other governmental authorities having jurisdiction; or 
 b. as a result of the declaration of a national emergency or other governmental act during which, through no act or fault of the Design-Builder,
materials are not available; 
 .2 if the Work is suspended by the Owner for sixty (60) consecutive days; 
 .3 if the Owner fails to furnish reasonable evidence that sufficient funds are available and committed for the entire cost of the Project in accordance
with Subparagraph 4.1.3 of this Agreement. 
 13.4.2 If the Owner has for thirty (30) days failed to pay the Design-Builder pursuant to
Subparagraph 10.1.2, the Design-Builder may give written notice of its intent to terminate this Agreement. If the Design-Builder does not receive payment within five (5) days of giving written notice to the Owner, then upon five
(5) days’ additional written notice to the Owner, the Design-Builder may terminate this Agreement. 
 13.4.3 Upon termination by the
Design-Builder in accordance with this Subparagraph, the Design-Builder shall be entitled to recover from the Owner payment for all Work executed and for all proven loss, cost or expense in connection with the Work, plus all demobilization costs and
reasonable damages. In addition, the Design-Builder shall be paid an amount calculated as set forth either in Subparagraph 13.3.1 or 13.3.2, depending on when the termination occurs, and Subparagraph 13.3.3. 

 ARTICLE 14 
 DISPUTE RESOLUTION 
 14.1 WORK CONTINUANCE AND PAYMENT. Unless otherwise agreed in writring, the Design-Builder shall
continue the Work and maintain the approved schedules during all dispute resolution proceedings. If the Design-Builder continues to perform, the Owner shall continue to make payments in accordance with the Agreement. 
 14.2 INITIAL DISPUTE RESOLUTION. In the event of any claims, disputes or other matters in question between the parties to this Agreement, the parties agree first to try
in good faith to settle the dispute by mediation through a dispute resolution center selected by the Design-Builder and the Owner which is located in reasonable proximity to the Worksite. Any demand for mediation must be made within a reasonable
time after the claim, dispute or other matter in question has arisen. The Owner and Design-Builder agree to use best efforts to reach a mediated settlement and fully cooperate with all requests and suggestions of the mediator. 
 14.3 ARBITRATION Any claim, dispute or other matter in question not resolved by mediation will be decided by arbitration in accordance with the arbitration laws of the
state in which the Project is located (“State”) or, if none, under the Federal Arbitration Act. The arbitration process and hearing must be initiated through the appropriate court of the County in which the Project is located
(“Court”). A demand for arbitration may be made concurrently with a demand for mediation and must be made within a reasonable time after the claim, dispute or other matter in question has arisen. 
 14.4 MULTIPARTY PROCEEDING The parties agree that all parties necessary to resolve a claim shall be parties to the same dispute resolution proceeding. Appropriate
provisions shall be included in all other contracts relating to the Work to provide for the consolidation of such dispute resolution proceedings. 
 14.5
DISCOVERY The parties will allow and participate in discovery in accordance with the State Rules of Civil Procedure for a period of ninety (90) days after the filing of an anwer or other responsive pleading. All issues regarding compliance with
discovery requests will be decided by the arbitration panel appointed under the auspices of the Court. 
 14.6 ARBITRATION AWARD The arbitration panel will
have the authority to award any remedy or relief, other than the awarding of punitive damages and consequential damages, to the extent such consequential damages exceed $27,000,000, that a court of the State could order or grant, including, without
limitation, specific performance of any obligation created under this Agreement, the issuance of an injunction, or the imposition of sanctions for abuse or frustration of the arbitration process. The arbitration award must be in writing and must
specify the factual and legal basis for the arbitration panel’s decision. The award rendered by the arbitration panel will be final upon approval by the Court, and the judgment may be entered upon it in accordance with applicable law in any
court having jurisdiction. 
 14.7 COST OF DISPUTE RESOLUTION The cost of any mediation proceeding shall be shared equally by the parties participating. The
prevailing party in any dispute arising out of or relating to this Agreement or its breach that is resolved by the dispute resolution process set forth in Paragraph 14.3, shall be entitled to recover from the other party those reasonable
attorneys’ fees, costs and expenses incurred by the the prevailing party in connection with such dispute resolution process. 
 14.8 LIEN RIGHTS.
Nothing in this Article shall limit any rights or remedies not expressly waived by the Design-Builder which the Design-Builder may have under lien laws. 
 ARTICLE 15 
 MISCELLANEOUS PROVISIONS 
 15.1 ASSIGNMENT Neither the Owner nor the Design-Builder shall assign its interest in this Agreement without the written consent of the other except as to the assignment
of proceeds. The terms and conditions of this Agreement shall be binding upon both parties, their partners, successors, assigns and legal representatives. Neither party to this Agreement shall assign the Agreement as a whole without written consent
of the other except that the Owner may assign the Agreement to a wholly-owned subsidiary of the Owner when the Owner has fully indemnified the Design-Builder or to an institutional lender providing construction financing for the Project as long as
the assignment is no less favorable to the Design-Builder than this Agreement. In the event of such assignment, the Design-Builder shall execute all consents reasonably required. In such event, the wholly-owned subsidiary or lender shall assume the
Owner’s rights and obligations under the Contract Documents. If either party attempts to make such an assignment, that party shall nevertheless remain legally responsible for all obligations under the Agreement, unless otherwise agreed by the
other party. 
 15.2 GOVERNING LAW This Agreement shall be governed by the law in effect at the location of the Project.

 15.3 SEVERABILITY The partial or complete invalidity of any one or more provisions of this Agreement shall not affect the
validity or continuing force and effect of any other provision. 
 15.4 NO WAIVER OF PERFORMANCE The failure of either party to insist, in any one or more
instances, on the performance of any of the terms, covenants, or conditions of this Agreement, or to exercise any of its rights, shall not be construed as a waiver or relinquishment of such term, covenant, condition or right with respect to further
performance. 
 15.5 TITLES AND GROUPINGS The titles given to the articles of this Agreement are for ease of reference only and shall not be relied upon or
cited for any other purpose. The grouping of the articles in this Agreement and of the Owner’s specifications under the various headings is solely for the purpose of convenient organization and in no event shall the grouping of provisions, the
use of paragraphs or the use of headings be construed to limit or alter the meaning of any provisions. 
 15.6 JOINT DRAFTING The parties to this Agreement
expressly agree that this Agreement was jointly drafted, and that both had opportunity to negotiate its terms and to obtain the assistance of counsel in reviewing its terms prior to execution. Therefore, this Agreement shall be construed neither
against nor in favor of either party, but shall be construed in a neutral manner. 
 15.7 RIGHTS AND REMEDIES The parties rights, liabilities,
responsibilities and remedies with respect to this Agreement, whether in contract, tort, negligence or otherwise, shall be exclusively those expressly set forth in this Agreement. 
 ARTICLE 16 
 EXISTING CONTRACT DOCUMENTS 
 The Contract Documents in existence at the time of execution of this Agreement are as follows: 
 As defined in Subparagraph 2.4.1, the following Exhibits are a part of this Agreement: 
 Exhibits A and B attached

 This Agreement is entered into as of the date entered in Article 1. 
  

			
	ATTEST:	 	 /s/ Charles S. Griffith

	
	OWNER: THE MIDLAND COMPANY, an Ohio corporation
		
	BY:	 	 /s/ John I. Von Lehman

		
	PRINT NAME:	 	John I. Von Lehman
		
	PRINT TITLE:	 	EVP & CFO
		
	ATTEST:	 	  

	
	DESIGN-BUILDER: MILLER-VALENTINE CONSTRUCTION, LLC, an Ohio limited liability company
		
	BY:	 	 /s/ David J. Settles

		
	PRINT NAME:	 	David J. Settles
		
	PRINT TITLE:	 	Senior Project Manager

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