Document:

Exhibit 10.2

SEPARATION AGREEMENT AND RELEASE

          This Separation Agreement and Release (“Agreement”), is entered into effective the ______ day of September, 2006, by Martin P. Mahan (“Executive”) and Bancshares of Florida, Inc., (“Bancshares”).  For purposes of this Agreement, “Bancshares” shall include any and all of Bancshares’ affiliates, parents, subsidiaries, related business entities, successors, and assigns.   

          Whereas, Executive is employed by Bancshares as Executive Vice President and Chief Operating Officer pursuant to the terms of a written employment agreement dated February 1, 2005 (“the Employment Agreement”); and

          Whereas, the parties have now resolved to end their employment relationship under the terms and conditions set forth herein, 

          Now therefore, for and in consideration of the covenants set forth herein and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Bancshares and Executive agree as follows:

          1.   Effective Date: Executive’s employment with Bancshares will be terminated effective October 1, 2006 (“the Effective Date of Termination”). On the Effective Date of Termination, Mr. Mahan will also resign from the Boards of Directors of Bancshares and of Bank of Florida – Southeast. The Executive will be relieved of all duties and responsibilities related to his positions as of that date.  

          2.   Separation Benefits: Upon expiration of the revocation period set forth in Paragraph 10 of this Agreement (“Revocation Period”), and provided that Executive is in compliance with the terms and conditions of this Agreement, Bancshares agrees to provide Executive (or his heirs in the case of Executive’s death) the following severance benefits:

	
  
 
  	
  
(a)
  	
  
the base   salary he would have been due (i.e., $225,000 per year) from the Effective   Date of Termination through December 31, 2008 (totaling $506,250), less   applicable withholdings, to be distributed in accordance with ordinary   Bancshares pay periods, beginning the next regular pay period after the   expiration of the Revocation Period.    Notwithstanding the foregoing:
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(i)
  	
  
one full   year of such severance ($225,000) payable under this Section 2(a) shall be   paid to Executive as a lump sum payment on or prior to October 31, 2006; and
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
(ii)
  	
  
should a   “Change-in-Control” (defined herein to mean the acquisition of greater than   50% of the outstanding shares of Bancshares’ common stock) occur, Executive   shall receive any remaining unpaid portion of his severance payable under   this Section 2(a) immediately in a lump sum payment.
  

	
  
 
  	
  
(b)
  	
  
a $70,000   payment upon the termination of the Revocation Period, as specific   consideration for the non-solicitation covenants contained in Paragraph 7 of   this Agreement .
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(c)
  	
  
at   Bancshares’ expense, Bancshares shall continue the Executive’s participation   in any employee benefit plans and programs in which the Executive was   entitled to participate immediately prior to the Effective Date of   Termination for the shorter of:
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(i)
  	
  
one year   from the date of termination; or
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(ii)
  	
  
the period   of time ending on the date the Executive becomes eligible for participation   in a comparable plan provided by another employer; provided, however, that   the Executive’s continued participation is possible under the general terms   and provisions of such plans and programs.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(d)
  	
  
Executive’s   rights relative to the following stock option grants shall be as stated in   the relevant stock option agreements issued under the Stock Option Program   (as defined in Paragraph 5[a]), except that the:
  
	
   
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(i)
  	
  
grant   effective on August 28, 2002 for 22,500 shares shall expire on December 31,   2007 and shall no longer be treated as incentive stock options under the   Internal Revenue Code of 1986, as amended.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(ii)
  	
  
grant   effective on October 21, 2003 for 10,000 shares shall expire on December 31,   2007 and shall no longer be treated as incentive stock options under the   Internal Revenue Code of 1986, as amended.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
(iii)
  	
  
grant effective   on December 15, 2005 for 4,329 shares shall be governed by the relevant stock   option agreement shall expire on December 31, 2007 and shall no longer be   treated as incentive stock options under the Internal Revenue Code of 1986,   as amended..
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(iv)
  	
  
grant   effective on December 30, 2004 for 15,000 shares shall be governed by the   relevant stock option agreement.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(v)
  	
  
grant   effective on December 15, 2005 for 15,671 shares shall be governed by the   relevant stock option agreement.
  

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          Hereafter, the period between the expiration of the Revocation Period and December 31, 2008, shall be referred to as “the Severance Period”. The first payment in the Severance Period shall include the severance payments which accrued from the Effective Date of Termination to the expiration of the Revocation Period. 

          3.  Total Severance: Executive acknowledges that Bancshares has paid Executive for any unused vacation and sick/personal business leave time accrued as of the Effective Date of Termination. During the Severance Period, Executive shall not be eligible for any additional compensation, incentive pay, bonuses, stock options, or benefits, except as provided for in this Agreement.  Executive shall not accrue any additional vacation or sick/personal leave during the Severance Period, or any other benefits, rights or privileges he would have accrued as an active employee of Bancshares.

          4. Waiver of Rights: Executive agrees that the severance payments and benefits referenced in this Agreement are in excess of all monies and/or benefits owed by Bancshares to him for any reason whatsoever, and except as specifically provided by this Agreement, all rights associated with Executive’s employment and Employment Agreement are terminated as of the Effective Date of Termination of his employment, which will be October 1, 2006.

          5.(a) In exchange for the consideration set forth in this Agreement, the Executive, for himself and his heirs, successors and assigns, hereby releases and discharges Bancshares, its subsidiaries, affiliates, related companies, predecessors, successors or assigns, and all their executives, employees, officers, directors, agents, shareholders, and assigns, from all claims, charges, liability, legal action, litigation, charges, demands, damages, actions, or causes of actions of any kind, whether known or unknown, which Executive has or may have from the beginning of the world to the date of this Agreement, except as expressly set forth herein. This release includes, but is not limited to: (i) claims arising under any federal, state, or local constitution, statute, regulation, ordinance, or law, including without limitation the Age Discrimination in Employment Act; the Americans with Disabilities Act, the
Rehabilitation Act of 1973, Title VII of the Civil Rights Act of 1964, the Florida Civil Rights Act, the Family and Medical Leave Act,  (ii) claims arising out of Executive’s employment with Bancshares or the separation of that employment; (iii) claims arising out of any prior oral or written agreements between Executive and Bancshares, including but not limited to the  Employment Agreement; (iv) claims arising under the 1999 Stock Option Plan or the 2005 Stock Compensation Plan, amendments thereto and any agreements executed in connection therewith (collectively “the Stock Option Program”); (v) any purported right of Executive to receive any salary, wages, bonus, stock, insurance, severance pay, commission, paid time off, unemployment compensation or other compensation or benefits of any kind whatsoever; (vi) claims relating to any impairment of Executive’s ability to obtain employment; (vii) claims for attorneys’ fees and costs; and (viii) any and all other state,
federal or local statutory, contract, tort or common law claims of any kind.

          (b) In exchange for the consideration set forth in this Agreement, Bancshares hereby releases and discharges Executive from all claims, charges, liability, legal action, litigation, charges, demands, damages, actions, or causes of actions of any kind, whether known or unknown, which Bancshares has or may have from the beginning of the world to the date of this Agreement, except as set forth hereafter. This release includes, but is not limited to: (i) claims arising under any federal, state, or local constitution, statute, regulation, ordinance, or law, (ii) claims arising out of Executive’s employment with Bancshares or the separation of that employment; (iii) claims arising out of any prior oral or written agreements between Executive and any of Bancshares; (iv) claims for attorneys’ fees and costs; and (v) any and all other state, federal or local statutory, contract, tort or common
law claims of any kind.  Notwithstanding the foregoing, Bancshares does not release Executive from any claims by third parties for actions taken by Executive which were outside the scope of his authority as an officer and director and have not yet been asserted as of the date of execution of this Agreement. Bancshares does not release or waive any claims arising after the date this Agreement is executed.

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          6.  Confidentiality of Agreement: Executive agrees that he shall not disclose, disseminate or publicize the existence, terms, and conditions of this Agreement to any other persons, except as follows: (i) to state and federal authorities to the extent required by law; (ii) in response to an order of a court of competent jurisdiction; (iii) in response to a properly issued subpoena; (iv) to his counsel or accountants; or (v) in an action to enforce this Agreement. Executive acknowledges and agrees that his agreement to maintain the confidentiality of this Agreement is a material inducement to Bancshares entering into the Agreement. If Bancshares establishes in a court of competent jurisdiction, a breach by Executive of this Paragraph, Executive will be liable for liquidated damages in the amount of Ten Thousand Dollars and No Cents ($10,000) for each such breach, without any need to establish
actual damage or harm. This Paragraph shall be liberally construed to effect its purpose of assuring maximum permissible confidentiality of this Agreement, which shall be deemed to be of the essence of this Agreement. This provision, however, shall not preclude Bancshares from seeking greater actual damages should such be sustained and quantifiable.

          7. Non-Compete and Non-Solicitation: Executive acknowledges that by virtue of his employment with Bancshares, Executive acquired an intimate knowledge of the activities and affairs of Bancshares, including trade secrets and other confidential matters. The Executive, therefore, agrees that from the date hereof until March 31, 2007, the Executive shall not become directly or indirectly employed, as an employee, independent contractor, consultant, or otherwise, with any bank, savings and loan association, bank holding company or savings and loan holding company (“Financial Institution”), headquartered in Collier, Lee, Hillsborough, Broward, Palm Beach, or Miami-Dade Counties, Florida (“Covered Areas”), or with any person or entity whose intent it is to organize another Financial Institution headquartered in a Covered Area, if, in each foregoing instance, Mr. Mahan’s
physical office or principal place of work with such Financial Institution is located in a Covered Area. 

          Executive further agrees that from the date hereof until December 31, 2007, Executive shall not, directly or indirectly: (i) solicit the business of any then current customer (e.g., borrower or depositor) of Bancshares or of any of Bancshares’ subsidiaries, regardless of whether or not Executive was responsible for generating such customer’s business for Bancshares or of any of Bancshares’ subsidiaries; or (ii) solicit any employees of Bancshares or of any of Bancshares subsidiaries. 

          Executive hereby agrees that the duration of the anti-competitive covenant set forth herein is reasonable, and that its geographic scope is not unduly restrictive.

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          Further, each party to this Agreement acknowledges and agrees that in the event that any conflict and/or inconsistency in term(s) exists between the Employment Agreement and this Agreement, including but not limited to the terms of this Section 7, the term(s) of this Agreement shall fully supersede such conflicting and/or inconsistent term(s) of the Employment Agreement, without exception.

          8. Personal Property and Proprietary Information: The Executive agrees to return to Bancshares no later than the close of business two days after the execution of this Agreement any confidential or proprietary information, property (including any automobiles or mobile communication devices or other electronics) and equipment belonging to Bancshares, and warrants that he will not retain any copies of the foregoing. 

          9. Post-Termination Obligations: Bancshares shall pay to Executive such payments and benefits as are required pursuant to this Agreement; provided, however, any such payments shall be subject to Executive’s post-termination cooperation. Such cooperation shall include the following:

	
  
 
  	
  
          (a)  Executive shall furnish such information   and assistance as may be reasonably required by Bancshares or one of its   subsidiaries in connection with any litigation or settlement of any dispute   between Bancshares and a customer or other third parties (including without   limitation serving as a witness in court or other proceedings);
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (b)   Executive shall provide such information or assistance to Bancshares in connection   with any regulatory examination by any state or federal regulatory agency;
  
	
   
  	
  
 
  
	
  
 
  	
  
          (c)   Executive shall keep all of Bancshares’ trade secrets and other proprietary   or confidential information secret to the fullest extent practicable, subject   to compliance with all applicable laws;
  

          Upon submission of proper receipts, Bancshares shall promptly reimburse the Executive for any reasonable expenses incurred by the Executive in complying with the provisions of this Paragraph 9.

          10. Revocation and Consideration Period: The Executive has up to twenty-one (21) calendar days following his receipt of this Agreement to consider this Agreement prior to signing. Executive has been advised to consult with an attorney prior to executing this Agreement, and has done so. Executive may revoke this Agreement within seven (7) days after his execution of this Agreement. If Executive elects to revoke this Agreement within time allotted, Executive shall deliver notice of such election in writing to Bancshares’ Chief Executive Officer, Michael L. McMullan, 1185 Immokalee Road, Naples, Florida 34110, prior to 5 p.m. on the seventh day after execution. Executive understands that Bancshares shall not commence payment of the severance payments and benefits set forth in Paragraph 2 above until and unless the periods set forth in this Paragraph (including the notice period to Bancshares)
have expired and the Executive has not revoked the Agreement.  This Agreement shall not be enforceable until after the seven (7) day Revocation Period has expired. In the event that Executive revokes this Agreement, the severance payments and benefits described herein will not be paid to Executive, this Agreement will be void and the parties shall be restored to the status quo ante.

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          11. Mutual Nondisparagement: (a) For the 36 month period commencing on the date of this Agreement, the Executive shall not knowingly make any Public Statements (or statements which do not qualify as Public Statements), written or oral, which disparage or defame Bancshares or its subsidiaries or their directors, executive officers, or employees, or their representatives or advisors in their capacity as representatives and advisors to Bancshares or its subsidiaries. Furthermore, the Executive will use his best efforts to prevent any other person from making any Public Statements, written or oral, which disparage or defame Bancshares or its subsidiaries or their directors, executive officers, or employees, or their representatives or advisors in their capacity as representatives and advisors to Bancshares or its subsidiaries.

          (b) For the 36 month period commencing on the effective date of this Agreement, Bancshares shall not make and shall instruct its subsidiaries, executive officers and directors (collectively “Covered Individuals”) not to knowingly make any Public Statements, written or oral, which disparage or defame the Executive. 

          (c) For purposes of this Paragraph 11, (i) the term “Public Statement” shall mean any statement that the person who makes it intends, or could reasonably expect, to become public, and (ii) no Public Statement shall be attributed to the Bancshares unless it is made by a Covered Individual or an advisor in an official statement or is in the form of a press release or other similar public statement on behalf of Bancshares or one of its subsidiaries. Notwithstanding the foregoing, nothing in this Section 7 shall prevent any person from (i) responding publicly to incorrect, disparaging or derogatory Public Statements made after the Effective Date of Termination to the extent reasonably necessary to correct or refute such Public Statements or (ii) making any truthful statement to the extent (x) required by law or by any court, arbitrator, mediator or administrative or legislative body (including any
committee thereof) with actual or apparent jurisdiction to order such person to disclose or make accessible such information or (y) necessary in any litigation or other proceeding between the parties including, without limitation, in connection with this Agreement or its enforcement.

          12. Remedies for Breach: (a)    The Executive and Bancshares agree that, except for the specific remedies for injunctive relief as contained in Paragraph 12(b), any controversy or claim arising out of or relating to this Agreement, or any breach thereof, including, without limitation, any claim that this Agreement or any portion thereof is invalid, illegal or otherwise voidable, shall be submitted to binding arbitration before and in accordance with the Rules of the American Arbitration Association. Judgment upon the determination and/or award of such arbitrator may be entered in any court having jurisdiction thereof; provided, however, that this clause shall not be construed to permit the award of punitive damages to either Party. The prevailing party to said arbitration shall be entitled to an award of reasonable attorneys’ fees. The venue for arbitration shall be in
Collier County, Florida.

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          (b)  The Executive and Bancshares acknowledge and agree that the services to be performed by Executive are special and unique and that money damages cannot fully compensate Employer in the event of Executive’s violation of the provisions of Paragraphs 6, 7, 8, 9 and 11 of this Agreement. Thus, in the event of a breach of any of the provisions of any such Paragraph, the Executive agrees that Bancshares, upon application to a court of competent jurisdiction, shall be entitled to an injunction restraining the Executive from any further breach of the terms and provision of such Paragraph. Should the Executive prevail in an action seeking such an injunction, the Executive shall pay all costs and attorneys’ fees incurred by Bancshares in and relating to obtaining such injunction. The Executive’s sole remedy, in the event of the wrongful entry of such injunction, shall be the dissolution of
such injunction and recovery of attorneys’ fees. The Executive hereby waives any and all claims for damages by reason of the wrongful issuance of any such injunction.  

          (c)  Notwithstanding any other provision of this Agreement, the injunctive relief described in Paragraph 12(b) herein and all other remedies provided for in this Agreement which are available to Bancshares as a result of the Executive’s breach of this Agreement, are in addition to and shall not limit any and all remedies existing at law or in equity which may also be available to Bancshares.

          12. Amendments: This Agreement may not be altered, amended, modified or terminated except in writing by both the Executive and an authorized representative of Bancshares. This Agreement, constitutes the entire Agreement between Executive and Bancshares, written or oral, and supercedes all prior agreements between the parties. The rights and obligations of the parties under this Agreement shall inure to the benefit of and shall be binding upon the successors and assigns of Bancshares and Executive, and Executive consents to enforcement of any covenant herein by any such successor or assign.  

          13. Governing Law/Jurisdiction: This Agreement will be construed in accordance with the laws of the State of Florida.  The parties stipulate and consent to the jurisdiction of the federal and state courts in the State of Florida, and to venue in Collier County, in connection with any claim or controversy arising out of or connected with this Agreement. Except as otherwise provided in this Agreement, in any dispute arising under this Agreement, the prevailing party will be entitled to recover reasonable attorneys’ fees and costs.  

          14. Severability: The parties agree that, if any provision in this Agreement is held to be invalid, illegal or unenforceable, such provision will be severed herefrom, and the remainder of this Agreement will continue to be valid and enforceable.

          15. Acknowledgment: The undersigned parties have had an opportunity to read and review this document and they freely, voluntarily and without coercion agree to the terms set forth within the Agreement and waive any rights in contradiction thereto.

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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first written above. 

	
  
EXECUTIVE
  	
  
 
  	
  
BANCSHARES OF FLORIDA, INC.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
/s/ Martin P. Mahan
  	
  
 
  	
  
By:
  	
  
/s/ Joe B. Cox
  
	
  

  	
  
 
  	
  
 
  	
  

  
	
  Martin P.   Mahan
  	
   
  	
   
  	
  Joe B. Cox
  
	
   
  	
   
  	
   
  	
  Vice   Chairman of the Board
  

8EX-10.1

Borrower Dorman Products, Inc.

Contract No 00054727

Tin — 23-2078855

Entity Type — Pennsylvania Corporation

Maturity Date — September 15, 2013

Loan Date — September 27, 2006

Principal Amount — $625,000

THIS COMMERCIAL LOAN AND SECURITY AGREEMENT (hereinafter referred to as “Agreement”) is made
and effective as of the Loan Date identified above between the Borrower identified above
(hereinafter referred to as “Borrower”) and the Tennessee Valley Authority (hereinafter referred to
as “TVA”), a corporate agency and instrumentality of the United States, organized and existing
pursuant to the Tennessee Valley Authority Act of 1933, as amended.

WHEREAS, TVA, pursuant to its statutory authority, engages in programs and projects which further
the economic and social development of the Tennessee Valley;

WHEREAS, Borrower has requested TVA to loan, and TVA has agreed to loan, on the terms and
conditions set forth herein, the Principal Amount identified above (the loan of such amount is
hereinafter referred to as the “Loan”) to Borrower for the Purpose identified above, which will
result in the creation and/or retention of jobs in the Tennessee Valley power service area; and

WHEREAS, Borrower and TVA wish to set forth in writing the terms pursuant to which TVA will provide
funds to Borrower and to delineate the respective rights, duties, and obligations of Borrower and
TVA concerning such funds;

NOW THEREFORE, in consideration of the foregoing and the mutual covenants herein contained, and for
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

	I.	 	LOAN

	A.	 	Use of Funds: Borrower covenants that the TVA funds will be used for the Purpose (as set
forth above).

	B.	 	Promissory Note: To evidence Borrower’s agreement to repay the Loan, Borrower agrees to
execute a Promissory Note (hereinafter referred to as the “Note”) in favor of TVA in the
principal amount of the Loan.

	C.	 	Disbursement of Funds: Upon request, TVA shall disburse funds to the Borrower.

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	II.	 	SECURITY.

	A.	 	Security: The Obligations (as hereafter defined) shall be secured by a Letter of Credit
obtained from Wachovia Bank located at      (the “Letter of
Credit”). The Letter of Credit must be in an amount equal to or greater than the outstanding
indebtedness under the Loan and remain in effect or be renewed until the Loan is paid in full.
The Letter of Credit must be in a form and contain terms and conditions approved by TVA.

This Agreement together with the Note and any other instruments and documents now or hereafter
evidencing, securing or in any way related to the indebtedness evidenced by the Note are each
herein individually referred to as a “Loan Document” and collectively referred to as the “Loan
Documents”.

	B.	 	Obligations. The obligations secured hereby (Obligations) shall include the following
indebtedness and liabilities of Borrower:

	 	(a)	 	the Loan, which is evidenced by the Note, together with all other loans to be made by
TVA concurrently or in connection with this Agreement, all interest and other charges
accrued thereon, and any renewals, extensions or refinancings thereof;

	 	(b)	 	contingent obligations to TVA incurred concurrently or in connection with this
Agreement;

	 	(c)	 	all expenditures by TVA for taxes, levies, insurance and otherwise in performance of
any of Borrower’s duties under this Agreement or any other Loan Document;

	 	(d)	 	all other money heretofore or hereafter advanced by TVA at its option to or for the
account of Borrower, and all other present or future, direct or contingent liabilities and
indebtedness of Borrower to TVA of any nature whatsoever, and any extensions or renewals
thereof; and

	 	(e)	 	all reasonable attorney’s fees, court costs, and expenses of whatever kind incident
to the collection of any of the foregoing Obligations.

	III.	 	CONDITIONS PRECEDENT. In addition to the other requirements in this Agreement, the
obligation of TVA to make the Loan and each disbursement thereof is subject to TVA’s receipt
of the following, each of which shall be a condition precedent:

	A.	 	Execution and Delivery of Loan Documents: The Loan Documents, appropriately completed and
duly executed (where applicable) and delivered.

	B.	 	Documentation of Other Financing: Satisfactory documentation that the remainder of the
financing for the above described project has been obtained.

	C.	 	Borrowing Resolution: A borrowing resolution executed by the Borrower’s board of directors,
governors or other governing body, authorizing the execution of the Loan Documents on behalf
of Borrower..

	IV.	 	REPRESENTATIONS AND WARRANTIES. Borrower represents and warrants to TVA as follows:

	A.	 	Validity of Loan Documents: The Loan Documents are in all respects legal, valid, and binding
in accordance with their terms.

	B.	 	Organization: Borrower is (i) duly organized, validly existing, and in good standing in the
state of its organization; (ii) is duly qualified and authorized to do business in each state
in which the Borrower conducts business, (iii) has complied with all federal and state laws
relating to its structure and business; (iv) has all requisite power to carry on its business
as it is now being conducted and as it is proposed to be conducted and to own all of the
properties presently

owned by Borrower; and (v) has all necessary power and authority to enter into, execute,
deliver, accept, and perform the Loan Documents.

	C.	 	Incorporation and Legal Name. Borrower’s state of organization and exact legal name are set
forth on the first page of this Agreement.

	D.	 	Taxes: All taxes and assessments due and payable by Borrower have been paid or are being
contested in good faith by appropriate proceedings, and the Borrower has filed all tax returns
which it is required to file.

	E.	 	Authorization; No Conflicting Obligations: The execution by Borrower of this Agreement and
the documents provided for herein have been duly authorized by appropriate action; and no
provision of Borrower’s organizational documents, nor of any agreement or undertaking to which
Borrower is a party, conflicts with or prevents the Borrower from executing and carrying out
the terms of this Agreement and its implementing documents.

	F.	 	Warranty of No Adverse Change: Nothing has occurred since the ending date of financial
statements submitted by Borrower with the TVA Loan Application or is expected to occur before
funding which will materially affect in an adverse manner the condition of Borrower or its
ability to repay the Loan. Borrower agrees to promptly notify TVA of any significant changes
to its financial position that occur prior to funding of the Loan. Borrower has no known
actual or contingent liabilities of material consequence, except such as are reflected in the
financial statements or in other documents that have been delivered to TVA.

	G.	 	Litigation: There is no proceeding involving Borrower pending, or, to the knowledge of
Borrower threatened before any court or governmental authority, agency, or arbitration
authority, which may materially adversely affect Borrower’s financial conditions or
properties, except as disclosed to TVA in writing and acknowledged by TVA prior to the date of
this Agreement.

	H.	 	Permits: All necessary permits and clearances as may be required by applicable federal,
state, and local laws and ordinances have been obtained.

	I.	 	Continuation of Representation and Warranties: All representations and warranties made under
this Agreement shall be deemed to be made at and as of the date hereof and at and as of the
date of any advance under the Loan.

	V.	 	COVENANTS. Borrower hereby covenants and agrees with TVA that Borrower will:

	A.	 	Local Labor: Utilize local labor to the maximum extent feasible.

	B.	 	Financial Records: Maintain a system of accounting in accordance with Generally Accepted
Accounting Principles (GAAP) applied on a consistent basis throughout the period involved, and
permit TVA to examine and audit Borrower’s books and records at all reasonable times.

	C.	 	Financial Statements. Furnish TVA with the following:

Annual Statements. As soon as available, but in no event later than one hundred twenty
(120) days after the end of each fiscal year of Borrower, true and accurate financial
statements of Borrower, including a balance sheet, income statement, schedule of contingent
liabilities, cash flow statement and any and all other financial information as TVA may
reasonably request for the year ended, audited by a certified public accountant
satisfactory to TVA.

Interim Statements. As soon as available, but in no event later than thirty (30) days
after the end of each fiscal quarter, Borrower’s balance sheet and profit and loss
statement for the period ended, prepared by Borrower.

All financial reports required to be provided under this Agreement shall be prepared in
accordance with GAAP, applied on a consistent basis, and certified by Borrower, or Guarantor as
applicable, as being true and correct.

	D.	 	Existence and Compliance: Maintain its existence, good standing, and qualification to do
business, where required, and all licenses, permits, and the like necessary for the operation
of its business, and comply with all laws, regulations, and governmental requirements
including, without limitation, environmental laws applicable to it or to any of its property,
business operations and transactions.

	E.	 	Adverse Conditions or Events: Promptly advise TVA in writing of (i) any condition, event or
act which comes to its attention that would or might materially adversely affect Borrower’s
financial condition or operations, (ii) any litigation filed by or against Borrower, that
would or might materially adversely affect Borrower’s financial condition or operations, (iii)
any event that has occurred that would constitute an event of default under any Loan Document
and (iv) any uninsured or partially uninsured loss through fire, theft, liability or property
damage in an amount that would or might materially adversely affect Borrower’s financial
condition or operations.

	F.	 	Taxes and Other Obligations: Pay all of its taxes, assessments, and other obligations,
including, but not limited to, taxes, costs, or other expenses arising from the operation of
Borrower’s business, as the same become due and payable, except to the extent the same are
being contested in good faith by appropriate proceedings in a diligent manner.

	G.	 	Insurance: Maintain, at a minimum (a) worker’s compensation insurance, and (b) liability
insurance in the amount of $1,000,000. Borrower will furnish to TVA evidence of compliance
with this paragraph, including furnishing TVA with certificates evidencing the existence and
renewal of such insurance.

	H.	 	Number of Employees: Within sixty (60) days of the end of each of its fiscal years, Borrower
will report to TVA the total number of employees of Borrower at the Project Site.

	I.	 	Engineering and Environmental Assessments: Upon reasonable notice of not less than
twenty-four (24) hours, grant TVA the right to conduct an engineering and/or an environmental
site assessment on the Project Site at any time and resolve all outstanding issues to TVA’s
satisfaction. This paragraph shall not be construed as creating any obligation or duty in TVA
to conduct an assessment, and no such assessment shall be relied upon by or construed as
creating a cause of action not otherwise existing in Borrower or any third party.

	J.	 	Loan Costs: Assume responsibility and agree to pay all costs in connection with making the
Loan or the enforcement of TVA’s rights under the Loan Documents or at law and expenses
related to enforcement of TVA’s rights under the Loan Documents.

	K.	 	Liens: Promptly pay when due all lawful claims, whether for labor, materials or otherwise,
which could lead to the imposition of a lien against its assets.

	L.	 	Changes. Without TVA’s prior written acknowledgment, Borrower will not (a) change its name or
use any trade name other than Borrower’s true corporate name as stated in the first paragraph
of this Agreement, or (b) change its state of organization as stated in the first paragraph of
this Agreement.

	M.	 	Further Assurances. Do all such further acts, including cooperation in the filing, recording
or renewal of documents, and execute such further conveyances and assurances as TVA reasonably
shall require from time to time for the better and more effective carrying out of the intent
and purposes of this Agreement.

	VI.	 	FEDERAL REQUIREMENTS. Borrower covenants and agrees with TVA as follows:

	A.	 	Audit Requirements: Keep and make available, for a period of three (3) years from the ending
date of this Agreement, accurate records and books of accounts showing the items and costs
funded with the loan proceeds received under this Agreement, as well as data to support

compliance with this Agreement’s terms and conditions. Upon reasonable notice, which shall not
be less than forty-eight (48) hours, TVA, its agents, or the U.S. General Accounting Office
shall have the right to audit without restriction, at any time during normal working hours, all
such books, records and other documents of Borrower until the completion of all close-out
procedures respecting this Agreement and the final settlement and conclusion of all issues
arising out of this Agreement.

	B.	 	Federal Environmental Reviews: TVA as a federal agency is responsible for performing the
appropriate environmental reviews under statutes such as the National Environmental Policy
Act, the National Historic Preservation Act and the Endangered Species Act, and under
applicable Executive Orders such as those governing floodplains and wetlands. Borrower agrees
that TVA must complete all such environmental reviews prior to releasing loan funds.

	C.	 	Lobbying Restrictions: Borrower will comply with section 319 of Public Law No. 101-121,
(codified at 31 U.S.C. § 1352), TVA implementing regulations at 18 C.F.R. § 1315, and the
provisions of Exhibit A (attached hereto and made a part hereto) regarding restrictions on
lobbying.

	VII.	 	DEFAULT. The occurrence of any one or more of the following shall constitute an Event of
Default hereunder:

	A.	 	Failure to Pay or Perform: Failure of any Obligor (which term shall include Borrower, any
endorser, surety, or Guarantor) to (i) pay any principal of or interest on the indebtedness
evidenced by the Note in accordance with the terms thereof, or (ii) perform any of its
obligations under this Agreement, the Note or any of the other Loan Documents.

	B.	 	Misrepresentation: Any misrepresentation by any Obligor as to any material matter hereunder
or under any of the other Loan Documents, or delivery by any Obligor of any schedule,
statement, resolution, report, certificate, notice or writing to TVA that is untrue in any
material respect on the date as of which the facts set forth therein are stated or certified.

	C.	 	Insolvency: The (i) filing by any Obligor in any court pursuant to any chapter of any
statute, either of the United States or any state, of a petition in bankruptcy or insolvency,
or for reorganization, or for other similar relief, or for the appointment of a receiver or
trustee of all or a portion of the properties of such Obligor or an assignment by any of them
for the benefit of creditors; or (ii) filing against any Obligor in any court pursuant to any
chapter of any statute, either of the United States or of any state, of a petition in
bankruptcy or insolvency, or for reorganization, or for appointment of a receiver or trustee
of all or a portion of such Obligor’s properties; or (iii) insolvency (as defined by the
United States Bankruptcy Code) or bankruptcy of any Obligor or the inability of any Obligor to
pay its debts generally as they become due.

	D.	 	Death; Cessation of Legal Existence: Any individual Obligor dies or any Obligor which is an
entity is liquidated, dissolved, partitioned or has its legal existence terminated or
suspended, or the charter, articles, certificate of limited partnership, certificate of
authority or any other document which allows it to legally exist and/or conduct business
either expires or is revoked.

	E.	 	Litigation: Institution of any suit or of any administrative or judicial proceeding under
federal, state or local law or regulation against any Obligor that is deemed by TVA to
materially affect any Obligor in its ability to perform its responsibilities under this
Agreement or any other Loan Document.

	F.	 	Ownership Changes: Unless TVA consents in writing, which will not be unreasonably withheld,
Borrower is purchased by, consolidates with, or merges with a third party.

	G.	 	Default Under Other Obligations: Borrower defaults under any agreement in favor or any other
creditor or person that may materially adversely affect Borrower’s financial conditions or
properties.

	H.	 	Failure to Disprove Default: TVA shall reasonably suspect the occurrence of one or more of
the aforesaid Events of Default and Borrower, upon written notice from TVA, given in
accordance with this Agreement, shall fail to provide evidence reasonably satisfactory to TVA
that such event or Events of Default have not in fact occurred.

	I.	 	Purchase of Non-TVA Supplied Electricity: The power service contract between TVA and the TVA
distributor in whose service territory the Project Site is located either terminates or
expires without renewal.

	J.	 	Non-Renewal of Letter of Credit: The issuer of the Letter of Credit (a) gives notice that
the Letter of Credit will not renew, or (b) otherwise fails to renew the Letter of Credit at
least sixty (60) days prior to the expiration date of the Letter of Credit.

	K.	 	Credit Rating of Letter of Credit Issuer: The credit rating of the issuer of the Letter of
Credit is downgraded to the extent that TVA, in its reasonable discretion, determines it to be
an unacceptable risk to continue to rely on the Letter of Credit as security for the
Obligations.

	VIII.	 	RIGHTS AND REMEDIES:

	A.	 	Limited Right to Cure.

	 	1.	 	The occurrence of an event described in Article VII above shall not constitute an
Event of Default unless (i) with regard to any monetary default or failure to pay any
amount of money when due, such default or failure continues for a period of ten (10) days
after written notice to Borrower pursuant to this Agreement, and (ii) with regard to any
other event stated above (except for subparagraphs B, C, and H for which Borrower shall
have no right to cure), such event continues for a period of thirty (30) days after
written notice to Borrower pursuant to this Agreement. Notwithstanding the foregoing, if
Borrower receives three or more notices of default under this paragraph and another Event
of Default subsequently occurs, TVA shall not be obligated to give Borrower notice of such
Event of Default, the Event of Default shall be deemed to occur immediately, and the
Borrower will not have a right to cure such Event of Default.

	 	2.	 	The above notice provisions and any other notice provisions contained in any other
Loan Document shall run concurrently and not successively.

	 	3.	 	Notwithstanding the foregoing, with regard to TVA’s obligation to make disbursements
hereunder, all Events of Default specified above shall occur immediately hereunder without
any time period in which to correct or cure being applicable, provided, however, that if
the Event of Default is corrected within the applicable cure period, the obligation of TVA
to make any disbursements hereunder shall be reinstated.

	B.	 	TVA Rights and Remedies. Upon an Event of Default and at any time thereafter, TVA may:

	 	(a)	 	declare, at its option, the entire unpaid balance of the Loan and all other sums for
which Borrower is liable under this Agreement, immediately due and payable.

	 	(b)	 	exercise all other rights and remedies of a secured party under Article 9 or other
applicable law and all rights provided herein or in the other Loan Documents.

All of said rights and remedies shall, to the full extent permitted by law, be cumulative.

	C.	 	Proceeds of Remedies. Any or all proceeds resulting from the exercise of any or all of the
foregoing remedies shall be applied as set forth in the Loan Document(s) providing the remedy
or remedies exercised; if none is specified, or if the remedy is provided by this Agreement,
then as follows:

First, to the costs and expenses, including reasonable attorney’s fees, incurred by TVA in
connection with the exercise of its remedies;

Second, to the expenses of curing the default that has occurred, in the event that TVA
elects, in its sole discretion, to cure the default that has occurred;

Third, to the payment of the Obligations, including but not limited to the payment of the
principal of and interest on the indebtedness evidenced by the Note, in such order of
priority as TVA shall determine in its sole discretion; and

Fourth, the remainder, if any, to Borrower or to any other person lawfully thereunto
entitled.

	D.	 	Expenses. Borrower agrees to pay to TVA on demand the amount of all reasonable expenses paid
or incurred by TVA in exercising or enforcing any of its rights hereunder, under the other
Loan Documents or under applicable law, including attorney’s fees and court costs, together
with interest on all such amounts at the highest rate allowed under the Note.

	IX.	 	MISCELLANEOUS

	A.	 	Actions by TVA: TVA, at its option and without any obligation to do so, (i) may discharge or
pay any taxes, assessments, liens, or other encumbrances at any time levied or placed on or
against the Borrower, and (ii) may do all things which it deems necessary to preserve the
enforceability of any Obligations. Any amount so paid, with interest thereon at the maximum
rate permitted by law from date of payment until repaid, shall be secured hereby and shall be
repayable by Borrower on demand.

	B.	 	Waivers by Borrower: Borrower hereby waives, to the extent the same may be waived under
applicable law: (a) notice of acceptance of this Agreement; (b) all claims, causes of action
and rights of Borrower against TVA on account of actions taken or not taken by TVA in the
exercise of TVA’s rights or remedies hereunder, under the Loan Documents or under applicable
law; (c) all claims of Borrower for failure of TVA to comply with any requirement of
applicable law relating to enforcement of TVA’s rights or remedies hereunder, under the Loan
Documents or under applicable law; (d) presentment, demand for payment, protest and notice of
non-payment and all exemptions; (e) any and all other notices or demands which by applicable
law must be given to or made upon Borrower by TVA; (f) settlement, compromise or release of
the obligations of any person primarily or secondarily liable upon any of the Obligations.
Borrower agrees that TVA may exercise any or all of its rights and/or remedies hereunder,
under the Loan Documents and under applicable law without resorting to and without regard to
any collateral or other sources of liability with respect to any of the Obligations.

	C.	 	No Cause of Action: Any TVA review of any matter in accordance with the provisions of this
Agreement shall not create in Borrower, or any third party, any right or cause of action not
otherwise existing and shall not be deemed a warranty of any kind by TVA.

	D.	 	All Matters Satisfactory to TVA: All appraisals, documents and other deliveries required or
contemplated by this Agreement or the other Loan Documents and the persons responsible for the
execution and preparation thereof, and all sureties, guarantor, insurers, and all bonds,
guaranties, and policies of insurance, shall be satisfactory to TVA.

	E.	 	Instructions for Making Payments to TVA: Borrower hereby agrees that, except as otherwise
prescribed by TVA, all amounts due from Borrower to TVA shall be made through Automated
Clearing House (ACH) debits and Borrower agrees to sign such authorizations and instructions
as TVA may deem necessary from time to time to make effective such debits.

	F.	 	Not Deemed to be a Partner: TVA shall not be deemed to be a partner nor joint venturer with
Borrower or any guarantor or affiliate thereof in making this Agreement or by any action taken
hereunder. This Section shall survive termination of this Agreement.

	G.	 	Jurisdiction/Choice of Law: This Agreement shall be governed by federal law and the laws of
the State of Tennessee to the extent to which there is no applicable federal law. In any
legal proceedings in connection with, or for enforcement of this Agreement, Borrower consents
to

personal jurisdiction in the United States District Court for the Eastern District of Tennessee
at Knoxville, and expressly waives any objections as to venue in such court. A final judgment
in any such action or proceeding shall be conclusive and may be enforced in any other
jurisdiction by suit on the judgment or in any other manner provided by law.

	H.	 	Non-Waiver of Rights, Powers, or Privileges: Neither any failure nor any delay on the part
of TVA in exercising any right, power or remedy hereunder, under any of the Loan Documents or
under applicable law shall operate as a waiver thereof, nor shall a single or partial exercise
thereof preclude any other or further exercise thereof or the exercise of any other right,
power or remedy. No modifications or waiver of any provision of this Agreement or any of the
Loan Documents, and no consent by TVA to any departure by Borrower therefrom, shall in any
event be effective unless the same shall be in writing, and then such waiver or consent shall
be effective only in the specific instance and for the purpose for which given. No notice to
or demand upon Borrower in any case shall entitle Borrower to any other or further notice or
demand in the same, similar or other circumstances.

	I.	 	Construction and Effect. If any provision of this Agreement is held invalid or is
inapplicable, such invalidity or inapplicability shall not affect the validity or
enforceability of the remaining provisions of this Agreement. Captions are inserted herein
for convenience only, and have no bearing on the interpretation or construction of this
Agreement. This Agreement shall bind Borrower and Borrower’s successors and assigns,
including any corporation or other legal entity resulting from a merger, consolidation, or
other restructuring of Borrower. Borrower shall be fully liable for all Obligations arising
under this Agreement, whether or not expressly imposed upon Borrower. Subject to Section
IX(I) with regard to the application of the laws of a state other than the State of Tennessee,
any term used herein that is not otherwise defined shall have the meaning accorded such term
in the Uniform Commercial Code, as adopted in the State of Tennessee.

	J.	 	Notices. Except for any notice required to be given under applicable law in another manner,
all notices, requests, or demands which any party is required or may desire to give to any
other party under any provision of this Agreement must be in writing and, if to Borrower,
delivered to the Borrower’s address set forth on the first page of this Agreement and, if to
TVA, to the following address: Tennessee Valley Authority, Economic Development, OCP 2A, 26
Century Blvd., Suite 100, Nashville, Tennessee 37214. Each party shall have the right to
designate a substitute address by written notice to the other party. Each such notice,
request, and demand shall be deemed given or made as follows: (1) If sent by mail, upon the
earlier of the date of receipt or five (5) days after deposit in the U.S. Mail, first class
postage prepaid; return receipt requested; or (2) If sent by any other means, upon delivery.

	K.	 	WAIVER OF JURY TRIAL. THE BORROWER HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVES
ANY RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR
ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR
ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENT (ORAL OR WRITTEN), OR ACTIONS OF THE
BORROWER OR TVA. THIS WAIVER IS MADE BY BORROWER AFTER HAVING CONSULTED WITH OR HAD AMPLE
OPPORTUNITY TO CONSULT ITS LEGAL COUNSEL CONCERNING THE CONSEQUENCES OF SUCH WAIVER. THIS
PROVISION IS A MATERIAL INDUCEMENT FOR THE TVA TO ACCEPT THIS AGREEMENT AND MAKE THE LOAN.

	L.	 	Setoff. TVA shall have the right, in addition to all other rights and remedies available to
it following an Event of Default, to set off against any Obligations due TVA, any debt owing
to Borrower by TVA. Borrower hereby confirms TVA’s right to setoff, and nothing in this
Agreement or any of the Loan Documents shall be deemed a waiver or prohibition of TVA’s right
of setoff.

	M.	 	Merger and Integration. This Agreement and the attached exhibits and schedules (if any)
contain the entire agreement of the parties hereto with respect to the matters covered and the
transactions contemplated hereby, and no other agreement, statement or promise made by any
party hereto, or by any employee, officer, agent or attorney of any party hereto, which is not
contained herein shall be valid or binding.

Dorman Products, INC.

By: /s/ Matt Barton

Title: Chief Financial Officer

TENNESSEE VALLEY AUTHORITY

By: /s/ John J. Bradley

	 	 	John J. Bradley

Senior Vice President

Economic Development

2

EXHIBIT A

Certification for Contracts, Grants,

Loans, And Cooperative Agreements

The undersigned certifies, to the best of his or her knowledge and belief, that:

	(1)	 	No federal appropriated funds have been paid or will be paid by or on behalf of the
undersigned to any person for influencing or attempting to influence an officer or employee of
any agency, a member of Congress, an officer or employee of Congress, or an employee of a
member of Congress in connection with the awarding of any federal contract; the making of any
federal grant; the making of any federal loan; the entering into of any cooperative agreement;
and the extension, continuation, renewal, amendment, or modification of any federal contract,
grant, loan, or cooperative agreement.

	(2)	 	If any funds other than federal appropriated funds have been paid or will be paid to any
person for influencing or attempting to influence an officer or employee of any agency, a
member of Congress, an officer or employee of Congress, or an employee of a member of Congress
in connection with this federal contract, grant, loan, or cooperative agreement, the
undersigned shall complete and submit Standard Form-LLL, “Disclosure of Lobbying Activities,”
in accordance with its instructions.

	(3)	 	The undersigned shall require that the language of this Certification be included in the
award documents for all subawards at all tiers (including subcontracts, subgrants, and
contracts under grants, loans, and cooperative agreements) and that all subrecipients shall
certify and disclose accordingly.

This certification is a material representation of fact upon which reliance was placed when this
transaction was made or entered into. Submission of this certification is a prerequisite for
making or entering into this transaction imposed by 31 U.S.C. 1352. Any person who fails to file
the required certification shall be subject to a civil penalty of not less than $10,000 and not
more than $100,000 for each such failure.

3

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