Document:

Exhibit 10.1

     

        SUBSCRIPTION
AGREEMENT

     

    Made and
signed effective as of the ___ day of __________ (month) 2010.

     

    BETWEEN:         _____________________

     

    (the “Investor”)

     

    AND:                    Felafel Corp.

     

    (the “Company”)

     

    
      	
              WHEREAS:

            	
              the
      Board of Directors of the Company determined that it is in the Company’s
      best interests to raise capital by means of the issuance of shares of
      Common Stock in the Company (the “Shares”) all on the terms and conditions
      more fully set forth in this Agreement;
and

            

    

     

    
      	
              WHEREAS:

            	
              the
      Investor wishes to invest in the Company pursuant to the terms and
      conditions more fully set forth in this Agreement;
  and

            

    

     

    
      NOW
THEREFORE THE PARTIES AGREE AS FOLLOWS:

    

     

    
      Preamble
and Exhibits; Investment

    

     

    
      	
              1.

            	
              a)

            	
              The
      Preamble to this Agreement and the Exhibits hereto constitute an integral
      part hereof.

            

    

     

    
      
        	
              	
                b)

              	
                Subject
      to the terms and conditions hereof, the Investor is acquiring from the
      Company, in consideration of US$_______ paid by the Investor to the
      Company, _____________ Shares at a price of US$ 0.02 per Share. Subject to
      the Company’s acceptance of the Investor’s subscription and the Investor’s
      payment in full of the purchase price, the Shares will be duly authorized,
      validly issued, fully paid-up, non-assessable and free of all mortgages,
      charges, pledges, claims, liens and encumbrances and any third party
      rights created by the Company and will be entitled to all rights to which
      the Company’s Shares are
entitled.

              

      

    

     

    
      Declarations
of the Company

    

     

    
      	
              2.

            	
              The
      Company covenants, represents and warrants the following to be true and
      correct:

            

    

     

    
      
        	 	
                a)

              	
                The
      Company is a Delaware corporation, formed by filing its Certificate of
      Incorporation with the Secretary of State of the State of Delaware on June
      2, 2009 under the Delaware General Corporation
  Law.

              

      

    

     

    
      
        Exhibit
10.1 Stock Subscription Agreement

         

      

      
         

        
          

        

      

      
         

      

    

    
      
        	
              	
                b)

              	
                The
      Company has the necessary power and authority to execute and deliver this
      Agreement, to allot the Shares hereunder and to carry out and perform its
      obligations hereunder. This Agreement is valid and binding upon the
      Company and enforceable in accordance with its terms, subject to
      applicable liquidation, wind-up, insolvency, reorganization, moratorium
      and similar laws affecting creditors’ rights and remedies generally and
      subject, as to enforceability, to general principles of equity. This
      Agreement does not require the consent or approval of any third party in
      order for it to be fully binding on and enforceable against the Company.
      The execution and delivery of this Agreement by the Company does not, and
      the consummation of the transactions contemplated hereby and the
      performance by the Company of the provisions of this Agreement will not,
      violate any provisions of the Company’s Certificate of
      Incorporation.

              

      

    

     

    
      
        	
              	
                c)

              	
                Neither
      the Company nor any of its affiliates nor any person acting on its or
      their behalf (i) has conducted or will conduct any general solicitation
      (as that term is used in Rule 502(c) of Regulation D) or general
      advertising with respect to any of the Shares, or (ii) made any offers or
      sales of any security or solicited any offers to buy any security under
      any circumstances that would require registration of the Common Stock
      under the Securities Act of
1933.

              

      

    

     

    
      Declarations
of Investor

    

     

    
      
        	
                3.

              	
                The
      Investor covenants, represents and warrants the following to be true and
      correct:

              

      

    

     

    
      
        	
              	
                a)

              	
                The
      Investor understands that the Shares are being sold in connection with an
      offering by the Company of an aggregate of up to 2,000,000 (two million)
      shares of Common Stock for total proceeds of up to $40,000 (fifty thousand
      dollars).

              

      

    

     

    
      
        	
              	
                b)

              	
                The
      Investor understands and acknowledges that the Shares are being offered
      and sold under one or more of the exemptions from registration under the
      Securities Act of 1933, as amended (the “Act”), that the Investor is
      purchasing said Shares without being offered or furnished any offering
      literature, prospectus or other material, financial or otherwise, except
      as noted herein, that this transaction has not been scrutinized by the
      United States Securities and Exchange Commission or by any regulatory
      authority charged with the administration of the securities laws of any
      state. The Investor hereby further represents and warrants as
      follows:

              

      

    

     

    
      
         
i)                     
The
Investor confirms that the Investor understands and has fully considered, for
purposes of this investment, the risks of any investment in the Shares and that
the Investor understands that: (i) this investment is suitable only for an
investor who is able to bear the economic consequences or losing the Investor’s
entire investment, (ii) the purchase of Shares is a speculative investment which
involves a high degree of risk of loss by the Investor of the Investor’s entire
investment, and (iii) that there is no public market for the Shares and
accordingly, it may not be possible for the Investor to liquidate the Investor’s
investment in the Shares in case of an emergency. The Investor understands that
the following factors, among others, could cause the loss of any or all of the
Investor’s investment.

      

    

     

    
      
        Exhibit
10.1 Stock Subscription Agreement

         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      
        	
              	
                (1)

              	
                The
      Company currently does not have enough working capital to satisfy its
      capital needs. The Company is dependent upon its management team to fund
      its ongoing operations, and cannot be certain that future financing will
      be available to it on acceptable terms when it needs it. The Company can
      give no assurances that it will be able to sell any portion of this
      offering or that management will continue to fund its ongoing operations.
      This, along with the possibility of other factors and circumstances the
      Company cannot predict, may require it to seek additional financing faster
      than anticipated. If the Company is unable to obtain financing to meet its
      needs, the Investor may lose all of the Investor’s
    investment.

              

      

    

     

    
      
        	
              	
                (2)

              	
                The
      Company’s officers and directors will only devote a limited amount of time
      to the Company. Their divided interests may hinder the Company's ability
      to generate revenue. This could result in missed business opportunities
      and worse-than-expected operating results. The Investor may lose the
      Investor’s entire investment.

              

      

    

     

    
      
        	
              	
                (3)

              	
                Management
      has never operated in the industry in which it intends to operate. This
      lack of experience may result in the Company’s needing to employ outside
      experts that have such experience. The additional cost could result in a
      net operating loss and, ultimately, could result in the Company's failure.
      Management's inexperience may limit the Company’s ability to generate
      revenues. The Company may never achieve successful operations, and the
      Investor may lose the Investor’s entire
  investment.

              

      

    

     

    
      
        	
              	
                ii)

              	
                The
      Investor acknowledges that all documents received from the Company contain
      the management’s view of the Company, and that the analysis of the market
      and of the Company’s strategy and competitive position contained therein
      represent subjective assessments about which reasonable persons could
      disagree and there can be no assurance that the actual results of
      operations of the Company will be as
  contemplated.

              

      

    

     

    
      
        	
              	
                iii)

              	
                The
      Investor has been provided an opportunity for a reasonable period of time
      prior to the date hereof to obtain additional information concerning the
      offering of the Shares, the Company and all other information to the
      extent the Company possesses such information or can acquire it without
      unreasonable effort or
expense;

              

      

    

     

    
      
        Exhibit
10.1 Stock Subscription Agreement

         

      

      
        3

        
          

        

      

      
         

      

    

    
      iv)           
The
Investor confirms that the Investor is: (i) able to bear the economic risk of
this investment, (ii) able to hold the Shares for the period of time set forth
herein, and (iii) presently able to afford a complete loss of the Investor’s
investment; and represents that the Investor has sufficient liquid assets so
that the illiquidity associated with this investment will not cause any undue
financial difficulties or affect the Investor’s ability to provide for the
Investor’s current needs and possible financial contingencies, and that the
Investor’s commitment to all speculative investments (including this one if the
Investor’s subscription is accepted by the Company) is reasonable in relation to
the Investor’s net worth and annual income;

    

     

    
      v)           
The
Investor has such knowledge and experience in financial and business matters
that the Investor is capable of evaluating the merits and risks of an investment
in the Shares and of making an informed investment decision. The Investor also
represents that it has not been organized for the purpose of acquiring the
Shares;

    

     

    
      vi)          
The
Shares are being acquired by the Investor solely for the Investor’s own personal
account, for investment purposes only, and not with a view to, or in connection
with, any resale or distribution thereof; the Investor has and had no contract,
undertaking, understanding, agreement or arrangement, formal or informal, with
any person to sell, transfer or pledge to any person the Shares for which the
Investor is subscribing, any part thereof, any interest therein or any rights
thereto; the Investor has no present plans to enter into any such contract,
undertaking, agreement or arrangement; and the Investor understands the legal
consequences of the foregoing representations and warranties to mean that the
Investor must bear the economic risk of the investment for an indefinite period
of time because the Shares have not been registered under the Act and,
therefore, cannot be sold unless they are subsequently registered under the Act
(which the Company is not obligated to do) or unless an exemption from such
registration is available; the Shares will be considered “Restricted Securities”
for purposes of Rule 144 promulgated under the Act;

    

     

    
      vii)         
The
Investor understands that no Federal or state agency has passed on or made any
recommendation or endorsement of the Shares and that the Company is relying on
the truth and accuracy of the representations, declarations and warranties
herein made by the Investor in offering the Shares for sale to the Investor
without having first registered the Shares under the Act;

    

     

    
      viii)       
 The
Investor realizes that the basis for the exemption may not be present if,
notwithstanding such representations, the Investor has in mind merely acquiring
the Shares for a fixed or determinable period in the future, or for a market
rise, or for sale if the market does not rise. The Investor does not have any
such intention;

    

    
      
        Exhibit
10.1 Stock Subscription Agreement

         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      ix)          
The
Investor represents and warrants to the Company that all information that the
Investor has provided to the Company, including, without limitation, the
information in the Investor Questionnaire attached hereto or previously provided
to the Company (the “Investor Questionnaire”), is true, correct and complete as
of the date hereof. In the event that any information in the Investor
Questionnaire changes on or before the Closing, the Investor will update the
Investor Questionnaire to reflect such changes.

    

     

    
      
        	
              	
                c)

              	
                The
      Investor has relied solely upon the advice of its own tax and legal
      advisors with respect to the tax and other legal aspects of this
      transaction. No representations or warranties have been made to the
      Investor by the Company, or any officer, employee, agent, affiliate or
      subsidiary of the Company, other than the representations of the Company
      contained herein, and in subscribing for Shares the Investor is not
      relying upon any representations other than those contained
      herein.

              

      

    

     

    
      
        	
              	
                d)

              	
                The
      Investor has the necessary power and authority to execute and deliver this
      Agreement, to receive and hold the Shares and to carry out and perform its
      obligations hereunder. This Agreement is valid and binding upon the
      Investor and enforceable in accordance with its terms, subject to
      applicable liquidation, wind-up, insolvency, reorganization, moratorium
      and similar laws affecting creditors’ rights and remedies generally and
      subject, as to enforceability, to general principles of equity. The
      execution and delivery of this Agreement by the Investor does not, and the
      consummation of the transaction contemplated hereby and the performance by
      the Investor of the provisions of this Agreement will not violate any
      provisions of the Investor’s Certificate of Incorporation and By-laws, or
      any provisions of, or result in the acceleration of any obligation under,
      or constitute an event of default, or an event which, with the giving of
      notice or the passage of time, or both, would constitute an event of
      default under any mortgage, lien, lease, agreement, instrument, order,
      arbitration award, judgment or decree to which the Investor is bound,
      which, either individually or in the aggregate would result in a material
      adverse change in the business, properties, results of operations,
      condition (financial or otherwise) of the
  Investor.

              

      

    

     

    
      
        	
              	
                e)

              	
                Any
      resale of the Shares during the ‘distribution compliance period’ as
      defined in Rule 902(f) to Regulation S shall only be made in compliance
      with exemptions from registration afforded by Regulation S. Further, any
      such sale of the Shares in any jurisdiction outside of the United States
      will be made in compliance with the securities laws of such jurisdiction.
      The Investor will not offer to sell or sell the Shares in any jurisdiction
      unless the Investor obtains all required consents, if
  any.

              

      

    

    
      
        Exhibit
10.1 Stock Subscription Agreement

         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      
        	
              	
                f)

              	
                (1)    The
      Investor understands that the Shares are being offered and sold to the
      Investor in reliance on an exemption from the registration requirements of
      United States federal and state securities laws under Regulation S
      promulgated under the Securities Act and that the Company is relying upon
      the truth and accuracy of the representations, warranties, agreements,
      acknowledgments and understandings of the Investor set forth herein and in
      the Investor Questionnaire attached hereto in order to determine the
      applicability of such exemptions and the suitability of the Investor to
      acquire the Shares. In this regard, the Investor represents, warrants and
      agrees that:

              

      

    

     

    
      
        	
              	
                (2)

              	
                The
      Investor is not a U.S. Person (as defined below) and is not an affiliate
      (as defined in Rule 501(b) under the Securities Act) of the Company and is
      not acquiring the Shares for the account or benefit of a U.S. Person. A
      U.S. Person means any one of the
following:

              

      

    

     

    
      	
               
      

            	
              (A)

            	
              any
      natural person resident in the United States of
  America;

            

    

     

    
      	
               
      

            	
              (B)

            	
              any
      partnership or corporation organized or incorporated under the laws of the
      United States of America;

            

    

     

    
      	
               
      

            	
              (C)

            	
              any
      estate of which any executor or administrator is a U.S.
      person;

            

    

     

    
      	
               
      

            	
              (D)

            	
              any
      trust of which any trustee is a U.S.
person;

            

    

     

    
      	
               
      

            	
              (E)

            	
              any
      agency or branch of a foreign entity located in the United States of
      America;

            

    

     

    
      	
               
      

            	
              (F)

            	
              any
      non-discretionary account or similar account (other than an estate or
      trust) held by a dealer or other fiduciary for the benefit or account of a
      U.S. person;

            

    

     

    
      	
               
      

            	
              (G)

            	
              any
      discretionary account or similar account (other than an estate or trust)
      held by a dealer or other fiduciary organized, incorporated or (if an
      individual) resident in the United States of America;
  and

            

    

     

    
      	
               
      

            	
              (H)

            	
              any
      partnership or corporation if:

            

    

     

    
      	
               
      

            	
              (i)

            	
              organized
      or incorporated under the laws of any foreign jurisdiction;
      and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              formed
      by a U.S. person principally for the purpose of investing in securities
      not registered under the Securities Act, unless it is organized or
      incorporated, and owned, by accredited investors (as defined in Rule
      501(a) under the Securities Act) who are not natural persons, estates or
      trusts.

            

    

     

    
      
        Exhibit
10.1 Stock Subscription Agreement

         

      

      
        6

        
          

        

      

      
         

      

    

     

    
      
        	
              	
                (3)

              	
                At
      the time of the origination of contact concerning this Agreement and the
      date of the execution and delivery of this Agreement, the Investor was
      outside of the United States.

              

      

    

     

    
      
        	
              	
                (4)

              	
                The
      Investor will not, during the period commencing on the date of issuance of
      the Shares and ending on the first anniversary of such date, or such
      shorter period as may be permitted by Regulation S or other applicable
      securities law (the “Restricted Period”), offer, sell, pledge or otherwise
      transfer the Shares in the United States, or to a U.S. Person ) for the
      account or for the benefit of a U.S. Person, or otherwise in a manner that
      is not in compliance with Regulation
S.

              

      

    

     

    
      
        	
              	
                (5)

              	
                The
      Investor will, after expiration of the Restricted Period, offer, sell,
      pledge or otherwise transfer the Shares only pursuant to registration
      under the Securities Act or an available exemption therefrom and, in
      accordance with all applicable state and foreign securities
      laws.

              

      

    

     

    
      
        	
              	
                (6)

              	
                The
      Investor was not in the United States, engaged in, and prior to the
      expiration of the Restricted Period will not engage in, any short selling
      of or any hedging transaction with respect to the Shares, including
      without limitation, any put, call or other option transaction, option
      writing or equity swap.

              

      

    

     

    
      
        	
              	
                (7)

              	
                Neither
      the Investor nor or any person acting on the Investor’s behalf has
      engaged, nor will engage, in any directed selling efforts to a U.S. Person
      with respect to the Shares and the Investor and any person acting on the
      Investor’s behalf have complied and will comply with the “offering
      restrictions” requirements of Regulation S under the Securities
      Act.

              

      

    

     

    
      
        	
              	
                (8)

              	
                The
      transactions contemplated by this Agreement have not been pre-arranged
      with a buyer located in the United States or with a U.S. Person, and are
      not part of a plan or scheme to evade the registration requirements of the
      Securities Act.

              

      

    

     

    
      
        	
              	
                (9)

              	
                Neither
      the Investor nor any person acting on the Investor’s behalf has undertaken
      or carried out any activity for the purpose of, or that could reasonably
      be expected to have the effect of, conditioning the market in the United
      States, its territories or possessions, for any of the Shares. The
      Investor agrees not to cause any advertisement of the Shares to be
      published in any newspaper or periodical or posted in any public place and
      not to issue any circular relating to the Shares, except such
      advertisements that include the statements required by Regulation S under
      the Securities Act, and only offshore and not in the U.S. or its
      territories, and only in compliance with any local applicable securities
      laws.

              

      

    

    
      
        Exhibit
10.1 Stock Subscription Agreement

         

      

      
        7

        
          

        

      

      
         

      

    

     

    
      
        	
              	
                (10)

              	
                Each
      certificate representing the Shares shall be endorsed with the following
      legends, in addition to any other legend required to be placed thereon by
      applicable federal or state securities
laws:

              

      

    

     

    (A)“THE
SECURITIES ARE BEING OFFERED TO INVESTORS WHO ARE NOT U.S. PERSONS (AS DEFINED
IN REGULATION S UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“THE SECURITIES
ACT”)) AND WITHOUT REGISTRATION WITH THE UNITED STATES SECURITIES AND EXCHANGE
COMMISSION UNDER THE SECURITIES ACT IN RELIANCE UPON REGULATION S PROMULGATED
UNDER THE SECURITIES ACT.”

     

    (B)“TRANSFER
OF THESE SECURITIES IS PROHIBITED, EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF
REGULATION S, PURSUANT TO REGISTRATION UNDER THE SECURITIES ACT, OR PURSUANT TO
AVAILABLE EXEMPTION FROM REGISTRATION. HEDGING TRANSACTIONS MAY NOT BE CONDUCTED
UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.”

     

    
      
        	
              	
                (11)

              	
                The
      Investor consents to the Company making a notation on its records or
      giving instructions to any transfer agent of the Company in order to
      implement the restrictions on transfer of the Shares set forth in this
      Section 3.

              

      

    

     

    
      	
              (g)

            	
              The Investor agrees to
      indemnify and hold harmless the Company, its officers and directors,
      employees and its affiliates and their respective successors and assigns
      and each other person, if any, who controls any thereof, against any loss,
      liability, claim, damage and expense whatsoever (including, but not
      limited to, any and all expenses whatsoever reasonably incurred in
      investigating, preparing or defending against any litigation commenced or
      threatened or any claim whatsoever) arising out of or based upon any false
      representation or warranty or breach or failure by the Investor to comply
      with any covenant or agreement made by the Investor herein or in any other
      document furnished by the Investor to any of the foregoing in connection
      with this transaction.

            

    

     

    
      
        Exhibit
10.1 Stock Subscription Agreement

         

      

      
        8

        
          

        

      

      
         

      

    

    
      The
Investor’s Investment

    

     

    
      	
              4.

            	
              a)

            	
              The
      Investor understands and agrees that the Company reserves the right to
      reject this subscription for the Shares if, in its reasonable judgment, it
      deems such action in the best interest of the Company, at any time prior
      to the Closing (as hereinafter defined), notwithstanding prior receipt by
      the Investor of notice of acceptance of the Investor's
      subscription.

            

    

     

    
      	
               
      

            	
              b)

            	
              The
      Investor understands and agrees that its subscription for the Shares is
      irrevocable.

            

    

     

    
      
        	
              	
                c)

              	
                In
      the event the sale of the Shares subscribed for by the Investor is not
      consummated by the Company for any reason (in which event this
      Subscription Agreement shall be deemed to be rejected), this Subscription
      Agreement and any other agreement entered into between the Investor and
      the Company relating to this subscription shall thereafter have no force
      or effect and the Company shall promptly return or cause to be returned to
      the Investor the purchase price remitted to the Company by the Investor,
      without interest thereon or deduction therefrom, in exchange for the
      Shares.

              

      

    

     

    
      
        	
              	
                d)

              	
                The
      closing (the “Closing”) of the purchase and sale of the Shares, shall
      occur simultaneously with the acceptance by the Company of the Investor’s
      subscription, as evidenced by the Company’s execution of this Subscription
      Agreement.

              

      

    

     

    
      
        	
              	
                e)

              	
                The
      Investor understands that the price of the Shares offered hereby bears no
      relation to the assets, book value or net worth of the Company and was
      determined arbitrarily by the Company. The Investor further understands
      that there is a substantial risk of further dilution on the Investor or
      its investment in the
Company.

              

      

    

     

    
      Disputes,
Jurisdiction and Governing Law

    

     

    
      	
              5.

            	
              In
      the event of a dispute between the parties or any of them with regard to
      the interpretation, application or enforcement of this Agreement, or
      otherwise with regard to their relationships in the context of this
      Agreement, that dispute shall be submitted to such arbitrator as is
      designated by the Company.

            

    

     

    
      	
              6.

            	
              This
      Agreement shall be governed by, and construed and interpreted in
      accordance with, the laws of the State of New York, without regard to
      conflicts of law principles. Without derogating from the arbitration
      provisions of Clause 5 above, the courts located in the United States
      District Court for the Southern District of New York, will have exclusive
      jurisdiction to decide any dispute between the parties arising out of or
      related to this Agreement.

            

    

     

    
      General
provisions

    

     

    
      	
              7.

            	
              This
      Agreement may not be amended, altered or modified except by a written
      instrument signed by the parties.

            

    

     

    
      
        Exhibit
10.1 Stock Subscription Agreement

         

      

      
        9

        
          

        

      

      
         

      

    

     

    
      	
              8.

            	
              The
      parties agree that they will impose - mutatis mutandis - upon
      any person who may acquire their Shares or part of them their undertakings
      under this Agreement. This Clause will not continue to bind the parties
      after the conclusion of a public offering of the Company’s
      shares.

            

    

     

    
      	
              9.

            	
              Except
      as specifically provided in this Agreement, nothing contained herein shall
      be construed to constitute any party hereto as the agent or partner of any
      other party hereto.

            

    

     

    
      	
              10.

            	
              This
      Agreement supersedes and supplants any previous agreements, declarations
      or undertakings of the parties and is the sole and exclusive instrument by
      which the parties desire to be bound. Specifically, the parties agree that
      any Company business plan that may have been presented to the Investor
      shall have no binding effect as between
them.

            

    

     

    
      	
              11.

            	
              None
      of the provisions of this Agreement shall be for the benefit or, or
      enforceable by, any third party.

            

    

     

    
      	
              12.

            	
              This
      Agreement shall be binding upon and inure to the benefit of the parties,
      their respective successors and permitted
  assigns.

            

    

     

    
      	
              13.

            	
              With
      regard to any power, remedy or right provided herein or otherwise
      available to any party hereunder, no waiver or extension of time shall be
      effective unless expressly contained in a writing signed by the waiving
      party and no alteration, modification or impairment shall be implied by
      reason of any previous waiver, extension of time, delay or omission in
      exercise, or other indulgence.

            

    

     

    
      	
              14.

            	
              The
      validity, legality or enforceability of the remainder of this Agreement
      shall not be affected even if one or more of the provisions of this
      Agreement shall be held to be invalid, illegal or unenforceable in any
      respect. However, it is expressly stated that any party that terminates
      this Agreement must terminate it in its
  entirety.

            

    

     

    
      	
              15.

            	
              Upon
      request of the Company, the Investor will enter into a customary form of
      Shareholders’ Agreement.

            

    

     

    
      	
              16.

            	
              All
      parties to this Agreement were represented by counsel. Therefore, there
      shall be no presumption that this Agreement should be interpreted against
      the party that drafted it. Each party to this Agreement shall bear its own
      costs of counsel and other advisors incurred with regard to the
      negotiation (including the due diligence process) of this
      Agreement.

            

    

     

    
      	
              17.

            	
              The
      Article headings in this Agreement are inserted only as a matter of
      convenience, and in no way define, limit, or extend or interpret the scope
      of the Agreement or of any particular
Article.

            

    

     

    
      	
              18.

            	
              This
      Agreement may be executed simultaneously in two or more counterparts, each
      of which shall be deemed to be an original, but all of which together
      shall constitute one and the same
instrument.

            

    

     

    
      
        Exhibit
10.1 Stock Subscription Agreement

         

      

      
        10

        
          

        

      

      
         

      

    

     

    IN
WITNESS WHEREOF THE INVESTOR HAS HEREUNTO SET ITS HAND EFFECTIVE AS OF THE DATE
AND YEAR FIRST WRITTEN

     

    
      
        
          	
                   

                
	
                  [Investor
      Name]

                

        

      

    

     

    ACCEPTANCE
OF SUBSCRIPTION

     

    (to be
filed out only
by the Company)

     

    The
Company hereby accepts the above application for subscription for
Shares.

     

    Dated
Effective as of: __________ ___, 2010

     

    
      
        
          
            
              	
                      FELAFEL
      CORP.

                    
	 
	
                      By:

                    	 
	 
      	
                      President

                    

            

          

        

      

    

     

    
      
        Exhibit
10.1 Stock Subscription Agreement

         

      

      
        11

        
          

        

      

      
         

      

    

    
      FELAFEL
CORP.

       

    

    INVESTOR
QUESTIONNAIRE

    

    
      
        
          
            	
                    A.

                  	
                    General

                    Information

                  	 
      
	 
      	 
      	 
      
	
                    1.

                  	
                    Print
      Full Name of Investor:

                  	
                    Individual:

                  
	 
      	 
      	
                    ______________________________

                  
	 
      	 
      	
                    First,
      Middle, Last

                  
	 
      	 
      	 
      
	 
      	 
      	
                    Partnership,
      Corporation, Trust, Custodial Account, Other:

                  
	 
      	 
      	 
      
	 
      	 
      	
                    ____________________________________________________________

                  
	 
      	 
      	
                    Name
      of Entity

                  
	 
      	 
      	 
      
	
                    2.

                  	
                    Address
      for Notices:

                  	
                    ____________________________________________________________

                  
	 
      	 
      	
                    ______________________________

                  
	 
      	 
      	
                    ____________________________________________________________

                  
	 
      	 
      	 
      
	
                    3.

                  	
                    Name
      of Primary Contact Person:

                    Title:

                  	
                    ____________________________________________________________

                  
	 
      	 
      	 
      
	
                    4.

                  	
                    Telephone
      Number:

                  	
                    ______________________________

                  
	 
      	 
      	 
      
	
                    5.

                  	
                    E-Mail
      Address:

                  	
                    ____________________________________________________________

                  
	 
      	 
      	 
      
	
                    6.

                  	
                    Facsimile
      Number:

                    Permanent
      Address:

                  	
                    ____________________________________

                  
	 	 	 
	
                    7.

                  	
                    Permanent
      Address:

                    (if
      different from Address for Notices above)

                  	
                    ____________________________________________________________

                  

          

        

      

    

     

    
      
        Exhibit
10.1 Stock Subscription Agreement

         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        	
                8.

              	
                Authorized
      Signatory:

              	
                
                  ____________________________________ 

                

              
	 	
                Title: 

              	
                ____________________________________ 

              
	 
      	
                Telephone
      Number:

              	
                ____________________________________

              
	 
      	
                Facsimile
      Number:

              	
                ____________________________________

              

      

    

    

    B.           
 Supplemental
Data for Entities

     

    1.              If
the Investor is not a natural person, furnish the following supplemental data
(natural persons may skip this Section C of the Investor
Questionnaire):

     

    Legal
form of entity (trust, corporation, partnership, etc.):
_________________________

     

    Jurisdiction
of organization: ________________________________________________

    

    2.          
  Was the Investor organized for the specific purpose of acquiring the
Shares?

     

    
      	
              o
      Yes

            	
              o
      No

            

    

    

    If the
answer to the above question is “Yes,” please contact Carl M. Sherer, Esq. at
(617) 997-0097 for additional information that will be required.

    

    3.         
  Are shareholders, partners or other holders of equity or beneficial
interest in the Investor able to decide individually whether to participate, or
the extent of their participation, in the Investor’s investment in the Company
(i.e., can shareholders, partners or other holders of equity or beneficial
interest in the Investor determine whether their capital will form part of the
capital invested by the Investor in the Company)?

     

    
      	
              o
      Yes

            	
              o
      No

            

    

    

    If the
answer to the above question is “Yes,” please contact Carl M. Sherer, Esq. at
(617) 997-0097 for additional information that will be required.

    

    4(a).
       Please indicate whether or not the Investor
is, or is acting on behalf of, (i) an employee benefit plan within the meaning
of Section 3(3) of ERISA, whether or not such plan is
subject to ERISA, or (ii) an entity which is deemed to hold the assets of
any such employee benefit plan pursuant to 29 C.F.R. § 2510.3-101. For example,
a plan which is maintained by a foreign corporation, governmental entity or
church, a Keogh plan covering no common-law employees and an individual
retirement account are employee benefit plans within the meaning of Section 3(3)
of ERISA but generally are not subject to ERISA (collectively, “Non-ERISA Plans”). In
general, a foreign or US entity which is not an operating company and which is
not publicly traded or registered as an investment company under the Investment
Company Act of 1940, as amended, and in which 25% or more of the value of any
class of equity interest is held by employee pension or welfare plans (including
an entity which is deemed to hold the assets of any such plan), would be deemed
to hold the assets of one or more employee benefit plans pursuant to 29 C.F.R. §
2510.3-101. However, if only Non-ERISA Plans were invested in such an entity,
the entity generally would not be subject to ERISA. For purposes of determining
whether this 25% threshold has been met or exceeded, the value of any equity
interest held by a person (other than such a plan or entity) who has
discretionary authority or control with respect to the assets of the entity, or
any person who provides investment advice for a fee (direct or indirect) with
respect to such assets, or any affiliate of such a person, is
disregarded.

      

    
      	
              o
      Yes

            	
              o
      No

            

    
  

    
      
        Exhibit
10.1 Stock Subscription Agreement

         

      

      
        2

        
          

        

      

      
         

      

    

       

    4(b).      
 If the Investor is, or is acting on behalf of, such an employee benefit
plan, or is an entity deemed to hold the assets of any such plan or plans,
please indicate whether or not the Investor is subject to ERISA.

     

    
      	
              o
      Yes

            	
              o
      No

            

    

    

    4(c.)      
 If the Investor answered “Yes” to question 4.(b) and the Investor is
investing the assets of an insurance company general account, please indicate
what percentage of the Investor’s assets the purchase of the Shares is subject
to ERISA. ___________%.

     

    5.           
 Does the amount of the Investor’s subscription for the Shares in the
Company exceed 40% of the total assets (on a consolidated basis with its
subsidiaries) of the Investor?

     

    
      	
              o
      Yes

            	
              o
      No

            

    

    

    If the
question above was answered “Yes,” please contact Carl M. Sherer, Esq. at (617)
997-0097 for additional information that will be required.

     

    6(a).        
Is the Investor a private investment company which is not registered under the
Investment Company Act, in reliance on Section 3(c)(1) or Section 3(c)(7)
thereof?

     

    
      	
              o
      Yes

            	
              o
      No

            

    

    

    6(b).     
  If the question above was answered “Yes,” was the Investor formed
prior to April 30, 1996?

     

    
      	
              o
      Yes

            	
              o
      No

            

    

    

    If the
questions set forth in (a) and (b) above were both answered “Yes,” please
contact Carl M. Sherer, Esq. at (617) 997-0097 for additional information that
will be required.

     

    7(a).         Is
the Investor a grantor trust, a partnership or an S-Corporation for US federal
income tax purposes?

     

    
      	
              o
      Yes

            	
              o
      No

            

    

     

    
      
        Exhibit
10.1 Stock Subscription Agreement

         

      

      
        3

        
          

        

      

      
         

      

    

     

    7(b).     
  If the question above was answered “Yes,” please indicate whether or
not:

     

    (i) more
than 50 percent of the value of the ownership interest of any beneficial owner
in the Investor is (or may at any time during the term of the Company be)
attributable to the Investor’s (direct or indirect) interest in the Company;
or

     

    
      	
              o
      Yes

            	
              o
      No

            

    

    

    (ii) it
is a principal purpose of the Investor’s participation in the Company to permit
the Partnership to satisfy the 100 partner limitation contained in US Treasury
Regulation Section 1.7704-1(h)(3).

     

    
      	
              o
      Yes

            	
              o
      No

            

    

    

    If either
question above was answered “Yes,” please contact Carl M. Sherer, Esq. at (617)
997-0097 for additional information that will be required.

     

    8.           
If the Investor’s tax year ends on a date other than December 31, please
indicate such date below:

     

    
      	 
      	
              ____________________________________

            
	 
      	
              (Date)

            

    

    

    C.          
 Related
Parties

     

    1.          
  To the best of the Investor’s knowledge, does the Investor control,
or is the Investor controlled by or under common control with, any other
investor in the Company?

     

    
      	
              o
      Yes

            	
              o
      No

            

    

    

    If the
answer above was answered “Yes”, please identify such related investor(s)
below.

     

    Name(s)
of related investor(s):
______________________________________________

    _________________________________________________________________________________________________________________________________________________________________________________

    _________________________________________________________________________________________________________________________________________________________________________________

    ____________________

     

    2.           
 Will any other person or persons have a beneficial interest in the Shares
to be acquired hereunder (other than as a shareholder, partner, or other
beneficial owner of equity interest in the Investor)?

     

    
      	
              o
      Yes

            	
              o
      No

            

    

    

    If either
question above was answered “Yes”, please contact Carl M. Sherer, Esq. at (617)
997-0097 for additional information that will be required.

     

    [THE REST
OF THIS PAGE HAS INTENTIONALLY BEEN LEFT BLANK]

    
      
        Exhibit
10.1 Stock Subscription Agreement

         

      

      
        4

        
          

        

      

      
         

      

    

    The
Investor understands that the foregoing information will be relied upon by the
Company for the purpose of determining the eligibility of the Investor to
purchase the Shares. The Investor agrees to notify the Company immediately if
any representation or warranty contained in this Subscription Agreement,
including this Investor Questionnaire, becomes untrue at any time. The Investor
agrees to provide, if requested, any additional information that may reasonably
be required to substantiate the Investor’s status as an accredited investor or
to otherwise determine the eligibility of the Investor to purchase the Shares.
The Investor agrees to indemnify and hold harmless the Company and each officer,
director, shareholder, agent and representative of the Company and their
respective affiliates and successors and assigns from and against any loss,
damage or liability due to or arising out of a breach of any representation,
warranty or agreement of the Investor contained herein.

     

    

    
      
        	
                INDIVIDUAL:

              
	 
      
	
                ____________________________________

              
	
                (Signature)

              
	 
      
	
                ____________________________________

              
	
                (Print
      Name)

              
	 
      
	
                PARTNERSHIP,
      CORPORATION, TRUST, CUSTODIAL ACCOUNT, OTHER:

              
	 
      
	
                ___________________________________

              
	
                (Name
      of Entity)

              
	 
      
	
                By:
      ________________________________

              
	
                (Signature)

              
	 
      
	
                ________________________________

              
	
                (Print
      Name and Title)

              

      

    

     

    
      
        Exhibit
10.1 Stock Subscription Agreement

         

      

      
        5

        
          

        

      

      
         

      

    

    Annex
1

     

    DEFINITION
OF “INVESTMENTS”

     

    
      The term
“investments” means:

    

     

    
      	
              (1)

            	
              Securities,
      other than securities of an issuer that controls, is controlled by, or is
      under common control with, the Investor that owns such securities, unless
      the issuer of such securities is:

            

    

     

    
      	
              (i)

            	
              An
      investment company or a company that would be an investment company but
      for the exclusions or exemptions provided by the Investment Company Act,
      or a commodity pool; or

            

    

     

    
      	
              (ii)

            	
              A
      Public Company (as defined below);

            

    

     

    
      	
              (iii)

            	
              A
      company with shareholders’ equity of not less than $50 million (determined
      in accordance with generally accepted accounting principles) as reflected
      on the company’s most recent financial statements, provided that such
      financial statements present the information as of a date within 16 months
      preceding the date on which the Investor acquires
  Shares;

            

    

     

    
      	
              (2)

            	
              Real
      estate held for investment
purposes;

            

    

     

    
      	
              (3)

            	
              Commodity
      Shares (as defined below) held for investment
  purposes;

            

    

     

    
      	
              (4)

            	
              Physical
      Commodities (as defined below) held for investment
    purposes;

            

    

     

    
      	
              (5)

            	
              To
      the extent not securities, Financial Contracts (as defined below) entered
      into for investment purposes;

            

    

     

    
      	
              (6)

            	
              In
      the case of an Investor that is a company that would be an investment
      company but for the exclusions provided by Section 3(c)(1) or 3(c)(7) of
      the Investment Company Act, or a commodity pool, any amounts payable to
      such Investor pursuant to a firm agreement or similar binding commitment
      pursuant to which a person has agreed to acquire an interest in, or make
      capital contributions to, the Investor upon the demand of the Investor;
      and

            

    

     

    
      	
              (7)

            	
              Cash
      and cash equivalents held for investment
  purposes.

            

    

     

    Real
Estate that is used by the owner or a Related Person (as defined below) of the
owner for personal purposes, or as a place of business, or in connection with
the conduct of the trade or business of such owner or a Related Person of the
owner, will NOT be considered Real Estate held for investment purposes, provided
that real estate owned by an Investor who is engaged primarily in the business
of investing, trading or developing real estate in connection with such business
may be deemed to be held for investment purposes. However, residential real
estate will not be deemed to be used for personal purposes if deductions with
respect to such real estate are not disallowed by section 280A of the Internal
Revenue Code of 1986, as amended.

    
      
        Exhibit
10.1 Stock Subscription Agreement

         

      

      
        6

        
          

        

      

      
         

      

    

     

    A
Commodity Interest or Physical Commodity owned, or a Financial Contract entered
into, by the Investor who is engaged primarily in the business of investing,
reinvesting, or trading in Commodity Shares, Physical Commodities or Financial
Contracts in connection with such business may be deemed to be held for
investment purposes.

     

    “Commodity
Shares” means commodity futures contracts, options on commodity futures
contracts, and options on physical commodities traded on or subject to the rules
of:

     

    
      	
              (i)

            	
              Any
      contract market designated for trading such transactions under the
      Commodity Exchange Act and the rules thereunder;
  or

            

    

     

    
      	
              (ii)

            	
              Any
      board of trade or exchange outside the United States, as contemplated in
      Part 30 of the rules under the Commodity Exchange
  Act.

            

    

     

    
      	
               
      

            	
              “Public
      Company” means a company that:

            

    

     

    
      	
              (i)

            	
              files
      reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of
      1934, as amended; or

            

    

     

    
      	
              (ii)

            	
              has
      a class of securities that are listed on a Designated Offshore Securities
      Market, as defined by Regulation S of the Securities
  Act.

            

    

     

    
      	
               
      

            	
              “Financial
      Contract” means any arrangement
that:

            

    

     

    
      	
              (i)

            	
              takes
      the form of an individually negotiated contract, agreement, or option to
      buy, sell, lend, swap, or repurchase, or other similar individually
      negotiated transaction commonly entered into by participants in the
      financial markets;

            

    

     

    
      	
              (ii)

            	
              is
      in respect of securities, commodities, currencies, interest or other
      rates, other measures of value, or any other financial or economic
      interest similar in purpose or function to any of the foregoing;
      and

            

    

     

    
      	
              (iii)

            	
              is
      entered into in response to a request from a counter party for a
      quotation, or is otherwise entered into and structured to accommodate the
      objectives of the counterparty to such
  arrangement.

            

    

     

    “Physical
Commodities” means any physical commodity with respect to which a Commodity
Interest is traded on a market specified in the definition of Commodity Shares
above.

     

    “Related
Person” means a person who is related to the Investor as a sibling, spouse or
former spouse, or is a direct lineal descendant or ancestor by birth or adoption
of the Investor, or is a spouse of such descendant or ancestor, provided that,
in the case of a Family Company, a Related Person includes any owner of the
Family Company and any person who is a Related Person of such an owner. “Family
Company” means a company that is owned directly or indirectly by or for two or
more natural persons who are related as siblings or spouse (including former
spouses), or direct lineal descendants by birth or adoption, spouses of such
persons, the estates of such persons, or foundations, charitable organizations
or trusts established for the benefit of such persons.

    
      
        Exhibit
10.1 Stock Subscription Agreement

         

      

      
        7

        
          

        

      

      
         

      

    

     

    For
purposes of determining the amount of investments owned by a company, there may
be included investments owned by majority-owned subsidiaries of the company and
investments owned by a company (“Parent Company”) of which the company is a
majority-owned subsidiary, or by a majority-owned subsidiary of the company and
other majority-owned subsidiaries of the Parent Company.

     

    In
determining whether a natural person is a qualified purchaser, there may be
included in the amount of such person’s investments any investment held jointly
with such person’s spouse, or investments in which such person shares with such
person’s spouse a community property or similar shared ownership interest. In
determining whether spouses who are making a joint investment in the Partnership
are qualified purchasers, there may be included in the amount of each spouse’s
investments any investments owned by the other spouse (whether or not such
investments are held jointly). There shall be deducted from the amount of any
such investments any amounts specified by paragraph 2(a) of Annex 2 incurred by
such spouse.

     

    In
determining whether a natural person is a qualified purchaser, there may be
included in the amount of such person’s investments any investments held in an
individual retirement account or similar account the investments of which are
directed by and held for the benefit of such person.

    
      
        Exhibit
10.1 Stock Subscription Agreement

         

      

      
        8

        
          

        

      

      
         

      

    

    Annex
2

     

    VALUATIONS
OF INVESTMENTS

     

    The
general rule for determining the value of investments in order to ascertain
whether a person is a qualified purchaser is that the value of the aggregate
amount of investments owned and invested on a discretionary basis by such person
shall be their fair market value on the most recent practicable date or their
cost. This general rule is subject to the following provisos:

     

    (1)          In
the case of Commodity Shares, the amount of investments shall be the value of
the initial margin or option premium deposited in connection with such Commodity
Shares; and

     

    (2)          In
each case, there shall be deducted from the amount of investments owned by such
person the following amounts:

     

    (i)           The
amount of any outstanding indebtedness incurred to acquire the investments owned
by such person.

     

    (ii)           A
Family Company, in addition to the amounts specified in paragraph (a) above,
shall have deducted from the value of such Family Company’s investments any
outstanding indebtedness incurred by an owner of the Family Company to acquire
such investments.

    
      
        Exhibit
10.1 Stock Subscription Agreement

         

      

      
        9Unassociated Document

    

     

    FIFTH
AMENDMENT

     

    THIS
FIFTH AMENDMENT dated as of December 17, 2010 (this “Amendment”) amends
the Credit Agreement dated as of May 18, 2007 (as amended, the “Credit Agreement”)
among PATRICK INDUSTRIES, INC., an Indiana corporation (the “Borrower”), the
LENDERS party thereto and JPMORGAN CHASE BANK, N.A., as Administrative Agent (in
such capacity, the “Administrative
Agent”).  Capitalized terms used but not defined herein have
the respective meanings given to them in the Credit Agreement.

     

    WHEREAS,
the Borrower has requested certain amendments to the Credit
Agreement.

     

    NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

     

    SECTION
1. AMENDMENTS.  Subject
to the conditions precedent set forth in Section 4, the
Credit Agreement is amended as follows:

     

    1.1 Amendments to Definitions in
Section 1.1.  

     

    1.1.1 The
following definition of “Successful Refinancing” is added to Section 1.1 in
proper alphabetical sequence:

     

    “Successful
Refinancing” has the meaning assigned to such term in Section
5.13.

     

    1.1.2 The definitions of “Borrowing Base,” “Revolving
Termination Date” and “Term Maturity Date” in Section 1.1 are amended in their
entirety to read as follows, respectively:

     

    “Borrowing Base” means
as of any date, the lesser of (a) the sum of (i) 80% of the amount of all
Eligible Accounts Receivable plus (ii) 50% of the amount of all Eligible
Inventory measured at the lower of cost or fair market value; or (b)
$28,000,000.

     

    “Revolving Termination
Date” means the earlier of (a) May 31, 2011 and (b) the date on which the
Revolving Commitments terminate pursuant to Section 2.8 or Article
VII.

     

    “Term Maturity Date”
means the earlier of (a) May 31, 2011 and (b) the date on which the Term Loans
are declared due and payable pursuant to Article
VII.

     

    1.2 Amendments to Section
2.11(g).  Section 2.11(g) is amended in its entirety to read as
follows:

     

    (g)           All
prepayments of Term Loans shall be applied in the inverse order of the maturity
of the remaining installments thereof.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    1.3 Amendments to Section
5.1

     

    1.3.1 Section
5.1(b) is amended by inserting the following parenthetical clause immediately
after the reference to “45 days” at the beginning of clause (ii)
thereof:

     

    “(or, in
the case of the fiscal quarter ending March 31, 2011, 30 days)”.

     

    1.3.2 Section
5.1(f) is amended to replace the words “20th day”
with the words “10th
day”.

     

    1.3.3 Sections
5.11, 5.12 and 5.13 are hereby amended in their entirety to read as
follows:

     

    5.11           Status Update
Calls.  Participate (and, to the extent requested by the
Administrative Agent, cause its advisers to participate) in a conference call
with the Administrative Agent and the Lenders not less than twice during each
calendar month, in each case at a time mutually agreeable to the Administrative
Agent and the Borrower, to update the Administrative Agent and the Lenders on
the status of the refinancing of this Agreement.

     

    5.12           Financial
Advisors.

     

    (a)           Continue
to retain Periculum Capital Company, LLC (or another firm reasonably
satisfactory to the Required Lenders) as a financial advisor to the Borrower and
its Subsidiaries and cause such financial advisor to (i) be available to discuss
with the Administrative Agent and the Lenders on a monthly basis, during
business hours and upon reasonable prior notice, the business, financial
condition and operations of the Borrower and its Subsidiaries and (ii) deliver
to the Administrative Agent copies of all management and similar reports
delivered by such financial advisor to the Borrower.

     

    (b)           On
or before January 31, 2011, identify an investment banking firm reasonably
satisfactory to the Required Lenders to assist the Borrower in achieving a
Successful Refinancing by supplementing the efforts of, or replacing, the
Borrower’s existing financial advisor (and upon request of the Required Lenders
at any time thereafter, the Borrower shall engage such investment banking firm
for such purpose).

     

    (c)           (i)
Cooperate with any financial advisor engaged by the Administrative Agent on
behalf of the Lenders, (ii) provide such advisor with access to all information
of the types provided to Periculum Capital Company, LLC and/or any other
financial advisor retained by the Borrower and (iii)  promptly (and in any
event within three Business Days after presentation of an invoice therefor)
reimburse the Administrative Agent for any costs associated with retaining such
advisor.

     

    5.13  Refinancing.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (a)           On
or before January 31, 2011, accept a term sheet from a senior lender for a new
senior credit facility that includes revolving availability of not less than
$35,000,000.

     

    (b)           On
or before January 31, 2011, enter into a letter of intent, in form and substance
reasonably satisfactory to the Administrative Agent and the Required Lenders,
providing for additional debt and/or equity, if required, in an amount that,
together with the senior credit facility referred to in clause (a) above,
would be sufficient to repay all obligations under this Agreement and provide
the liquidity necessary for the Borrower’s ongoing operations (a “Successful
Refinancing”).

     

    (c)           On
or before March 15, 2011, enter into a commitment letter that provides for
additional debt and/or equity, if required, in an amount that, together with the
senior credit facility referred to above will be sufficient to complete a
Successful Refinancing.

     

    (d)           Promptly
(and in any event within two Business Days) notify the Administrative Agent and
the Lenders of the expiration or withdrawal of any refinancing proposal or
commitment.

     

    1.4 Amendment to Section
6.4.  The text of clause (i) of Section 6.4 is amended in its
entirety to read as follows: “[Reserved]”.

     

    1.5 Amendments to Article
VII.

     

    1.5.1 Clause
(a) of Article VII is amended by inserting the following after the words “any LC
Disbursement” at the end of clause (i):

     

    “or any fee payable pursuant to the
Fifth Amendment to this Agreement”.

     

    1.5.2 Clause
(d) of Article VII is amended by replacing the words “or 5.8” with the
following: “, 5.8, 5.11, 5.12 or 5.13”.

     

    1.6 Amendment to Schedule
6.8.  Schedule 6.8 to the Credit Agreement is replaced with
Schedule 6.8
hereto.

     

    SECTION
2. Fees.  In
order to induce Lenders to enter into this Amendment, the Borrower shall pay to
the Administrative Agent for the account of the Lenders, pro rata in accordance
with their Total Percentages, the following fees:

     

    (a) An
extension fee of $500,000, which fee shall be fully earned on the Amendment
Effective Date (as such term is defined below).  The extension fee
shall be payable in three installments, as follows: (i) a first installment of
$250,000, which shall be due on the Amendment Effective Date; (ii) a second
installment of $125,000, which shall be due on March 31, 2011; provided that if the
Borrower has repaid all obligations under the Credit Agreement on or before such
date, such second installment shall not be required to be paid; and (iii) a
third installment of $125,000, which shall be due on May 15, 2011; provided that if the
Borrower has repaid all obligations under the Credit Agreement on or before such
date, such third installment shall not be required to be paid.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (b)           An
amendment fee of $300,000, which fee shall be fully earned on the Amendment
Effective Date.  The amendment fee shall be due and payable on the
earlier of (i) the date the Borrower has repaid all obligations under the Credit
Agreement and (ii) the Revolving Termination Date; provided that if the
Borrower has repaid all obligations under the Credit Agreement, (x) on or before
April 30, 2011, such fee shall be reduced to $200,000 and (y) after April 30,
2011 but on or before May 15, 2011, such fee shall be reduced to
$250,000.

     

    Failure to comply with the provisions
of this Section
2 shall constitute an immediate Event of Default under the Credit
Agreement

     

    SECTION
3. REPRESENTATIONS AND
WARRANTIES.  The Borrower represents and warrants to the
Administrative Agent and the Lenders that after giving effect to this Amendment:
(a) the representations and warranties of the Borrower set forth in the Credit
Agreement are true and correct in all material respects (except to the extent
stated to relate to an earlier date, in which case such representations and
warranties were true and correct in all material respects as of such earlier
date); and (b) no Default will exist.

     

    SECTION
4. CONDITIONS
PRECEDENT.  This Amendment shall become effective on the date
(the “Amendment
Effective Date”) on which the Administrative Agent shall have received
the following:

     

    (a)           Counterparts
of this Amendment signed by the Borrower and the Lenders.

     

    (b)           A
Confirmation substantially in the form of Exhibit A signed by
each Loan Party.

     

    (c)           Payment
of all invoiced fees and expenses of the Administrative Agent (including
reasonable attorneys’ fees and expenses) in connection herewith.

     

    (d)           The
first installment of the extension fee referenced in Section 2(a)
above.

     

    SECTION
5. MISCELLANEOUS.

     

    5.1 Continuing Effectiveness,
etc.  After giving effect to this Amendment, the Credit
Agreement shall remain in full force and effect and is hereby ratified, approved
and confirmed in each and every respect.  After the effectiveness
hereof, all references to the Credit Agreement in any Loan Document shall be
deemed to refer to the Credit Agreement as amended hereby.

     

    5.2 Incorporation of Credit
Agreement Provisions.  The provisions of Sections 1.3 (Terms
Generally), 9.7 (Severability), 9.10 (Waiver of Jury Trial) and 9.11 (Headings)
of the Credit Agreement are incorporated by reference as if fully set forth
herein, mutatis
mutandis.

     

    5.3 Signing in
Counterparts.  This Amendment may be signed by the parties
hereto in several counterparts, each of which shall be deemed to be an original
and all of which shall constitute together but one and the same
agreement.  A signature hereto delivered by facsimile or in .pdf
format shall be effective as delivery of an original counterpart.

     

    5.4 Governing
Law.  THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE STATE OF ILLINOIS.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    5.5 Successors and
Assigns.  This Amendment shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and permitted
assigns.

     

    

     

    [Remainder
Of Page Intentionally Left Blank]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    

     

    IN WITNESS WHEREOF, the parties hereto
have caused this Amendment to be signed by their respective officers thereunto
duly authorized as of the day and year first above written.

    
      
        
          
            
              
                
                  
                    	 	 	 	PATRICK
      INDUSTRIES, INC.	 
	 	 	 	 	 
	 	 	 	 	 	 
	
                             

                          	 	 	By 	
                            /s/
      Andy L. Nemeth

                          	 
	
                             

                          	 	 	 	
                            Name:
      Andy L. Nemeth

                          	 
	
                             

                          	 	 	 	
                            Title:
      Executive Vice President - Finance

                          	 

                  

                

              

            

          

        

      

    

    
       

       

      
        
          
            
              
                
                  
                    	 	 	 	
                            JPMORGAN
      CHASE BANK, N.A., individually 

                            and
      as Administrative Agent

                          	 
	 	 	 	 	 
	 	 	 	 	 	 
	
                             

                          	 	 	By 	
                            /s/
      Michael E. Lewis

                          	 
	
                             

                          	 	 	 	
                            Name:
      Michael E. Lewis

                          	 
	
                             

                          	 	 	 	
                            Title:
      Senior Vice President

                          	 

                  

                

              

            

          

        

      

       

      
         

        
          
            
              
                
                  
                    
                      
                        	 	 	 	FIFTH
      THIRD BANK	 
	 	 	 	 	 
	 	 	 	 	 	 
	
                                 

                              	 	 	By 	
                                /s/
      Kristof C. Schneider

                              	 
	
                                 

                              	 	 	 	
                                Name:
      Kristof C. Schneider

                              	 
	
                                 

                              	 	 	 	
                                Title:
      Vice President

                              	 

                      

                    

                  

                

              

            

          

        

         

        
           

          
            
              
                
                  
                    
                      
                        
                          	 	 	 	
                                  BANK
      OF AMERICA, N.A., as successor to 

                                  LaSalle
      Bank National Association

                                	 
	 	 	 	 	 
	 	 	 	 	 	 
	
                                   

                                	 	 	By 	
                                  /s/
      Robert L. Wallace, Jr.

                                	 
	
                                   

                                	 	 	 	
                                  Name:
      Robert L. Wallace, Jr.

                                	 
	
                                   

                                	 	 	 	
                                  Title:
      Senior Vice President

                                	 

                        

                      

                    

                  

                

              

            

          

           

          
             

            
              
                
                  
                    
                      
                        
                          
                            	 	 	 	KEY
      BANK, NATIONAL ASSOCIATION	 
	 	 	 	 	 
	 	 	 	 	 	 
	
                                     

                                  	 	 	By 	
                                    /s/
      Ryan J. Watkins

                                  	 
	
                                     

                                  	 	 	 	
                                    Name:
      Ryan J. Watkins

                                  	 
	
                                     

                                  	 	 	 	
                                    Title:
      Vice President

                                  	 

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

      
         

        
          
            
              
                
                  
                    
                      	 	 	 	
                              RBS
      CITIZENS, NATIONAL ASSOCIATION, 

                              successor
      by merger with Charter One Bank

                            	 
	 	 	 	 	 
	 	 	 	 	 	 
	
                               

                            	 	 	By 	
                              /s/
      Sam Slater

                            	 
	
                               

                            	 	 	 	
                              Name:
      Sam Slater

                            	 
	
                               

                            	 	 	 	
                              Title:
      Vice President

                            	 

                    

                  

                

              

            

          

        

         

        
          
             

            
              
                
                  
                    
                      
                        
                          	 	 	 	
                                  ASSOCIATED
      BANK

                                	 
	 	 	 	 	 
	 	 	 	 	 	 
	
                                   

                                	 	 	By 	
                                  /s/
      Michael J. Miller

                                	 
	
                                   

                                	 	 	 	
                                  Name:
      Michael J. Miller

                                	 
	
                                   

                                	 	 	 	
                                  Title:
      Senior Vice President

                                	 

                        

                      

                    

                  

                

              

            

             

            
              
                 

                
                  
                    
                      
                        
                          
                            
                              	 	 	 	
                                      PNC
      BANK, NATIONAL ASSOCIATION, as 

                                      Successor
      to National City Bank

                                    	 
	 	 	 	 	 
	 	 	 	 	 	 
	
                                       

                                    	 	 	By 	
                                      /s/
      Adam Sherk

                                    	 
	
                                       

                                    	 	 	 	
                                      Name:
      Adam Sherk

                                    	 
	
                                       

                                    	 	 	 	
                                      Title:
      Vice President

                                    	 

                            

                          

                        

                      

                    

                  

                

                 

                
                  
                     

                    
                      
                        
                          
                            
                              
                                
                                  	 	 	 	
                                          1ST
      SOURCE BANK

                                        	 
	 	 	 	 	 
	 	 	 	 	 	 
	
                                           

                                        	 	 	By 	
                                          /s/
      Amy Kuhar Mauro

                                        	 
	
                                           

                                        	 	 	 	
                                          Name:
      Amy Kuhar Mauro

                                        	 
	
                                           

                                        	 	 	 	
                                          Title:
      Vice President

                                        	 

                                

                              

                            

                          

                        

                      

                    

                     

                  

                

              

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    SCHEDULE
6.8

    

    CONSOLIDATED
EBITDA

    
      
        	
                Fiscal
      Quarter

                (ended
      on or closest to)

              	
                Fiscal
      Quarter then ending

              
	
                December
      31, 2010

              	
                $1,200,000

              
	
                March
      31, 2011

              	
                $1,350,000

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    EXHIBIT
A

    

    FORM OF
CONFIRMATION

    

    December
17, 2010

    

    
      	
              To: 

            	
              JPMorgan
      Chase Bank, N.A., individually and as
  Administrative

            

    

    Agent,
and the other financial institutions that are

    parties
to the Credit Agreement referred to below

    

    Please
refer to the Fifth Amendment dated as of the date hereof (the “Amendment”) to the
Credit Agreement dated as of May 18, 2007 (the “Credit Agreement”)
among Patrick Industries, Inc., an Indiana corporation, the Lenders party
thereto and JPMorgan Chase Bank, N.A., as Administrative
Agent.  Capitalized terms used but not otherwise defined herein have
the respective meanings given to them in the Credit Agreement.

     

    Each of the undersigned hereby confirms
to the Administrative Agent and the Lenders that such undersigned has received a
copy of the Amendment and that, after giving effect to the Amendment and the
transactions contemplated thereby, each Loan Document to which such undersigned
is a party continues in full force and effect and is the legal, valid and
binding obligation of such undersigned, enforceable against such undersigned in
accordance with its terms.

    
       

      
        
          
            
              
                
                  
                    
                      
                        	 	 	 	PATRICK
      INDUSTRIES, INC.	 
	 	 	 	 	 	 
	
                                 

                              	 	 	By 	
                                /s/
      Andy L. Nemeth

                              	 
	
                                 

                              	 	 	 	
                                Name:
      Andy L. Nemeth

                              	 
	
                                 

                              	 	 	 	
                                Title:
      Executive Vice President - Finance

                              	 

                      

                    

                  

                

              

            

          

        

      

      
        
           

          
            
              
                
                  
                    
                      
                        
                          
                            	 	 	 	ADORN
      HOLDINGS, INC.	 
	 	 	 	 	 	 
	
                                     

                                  	 	 	By 	
                                    /s/
      Andy L. Nemeth

                                  	 
	
                                     

                                  	 	 	 	
                                    Name:
      Andy L. Nemeth

                                  	 
	
                                     

                                  	 	 	 	
                                    Title:
      Treasurer and Secretary

                                  	 

                          

                        

                      

                    

                  

                

              

            

          

          
            
               

              
                
                  
                    
                      
                        
                          
                            
                              	 	 	 	ADORN,
      LLC	 
	 	 	 	 	 
	 	 	 	 	 	 
	
                                       

                                    	 	 	By 	
                                      /s/
      Andy L. Nemeth

                                    	 
	
                                       

                                    	 	 	 	
                                      Name:
      Andy L. Nemeth

                                    	 
	
                                       

                                    	 	 	 	
                                      Treasurer
      and Secretary

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}]]