Document:

Exhibit 10.1

 

 

 

Congratulations on your new assignment!

 

In addition to the challenges your new position brings, you and your family will encounter many changes as you leave familiar surroundings, find a new place to live and settle into your new location.

 

The relocation of employees contributes to the Company’s ability to stay flexible and competitive. For that reason, we have partnered with Global Mobility Solutions (GMS), as well as a number of other top rate service providers, to provide you with a program of relocation support to reduce normal move disruptions, and enable you to get settled in your new home and job as quickly as possible.

 

This Relocation Guide outlines the services made available to you to help facilitate your move, including selling your current residence and finding a new community and home.

 

Please take the time to read through this guide and familiarize yourself with the policy and GMS relocation services before you begin planning your relocation. Recognizing that relocating can be a disruptive time, the Company, through your dedicated Relocation Coach will assist you and your family throughout your move.

 

Our best wishes for success in your new location!

 

	
 
    	
 
    
	
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Contents
    	
 
    
	
 
    	
 
    
	
Benefits at a Glance
    	
3
    
	
 
    	
 
    
	
Introduction
    	
4
    
	
 
    	
 
    
	
Relocation Administration
    	
5
    
	
 
    	
 
    
	
Forms to Complete
    	
5
    
	
 
    	
 
    
	
Expense Reimbursement
    	
6
    
	
 
    	
 
    
	
Relocation and Transition Expenses
    	
6
    
	
 
    	
 
    
	
Miscellaneous Expense Allowance
    	
6
    
	
 
    	
 
    
	
House Hunting
    	
7
    
	
 
    	
 
    
	
Home Sale Assistance program
    	
8
    
	
 
    	
 
    
	
Renters’ Assistance
    	
16
    
	
 
    	
 
    
	
Destination Location
    	
17
    
	
 
    	
 
    
	
Home Purchase Closing Cost Assistance
    	
18
    
	
 
    	
 
    
	
Shipment of Household Goods
    	
19
    
	
 
    	
 
    
	
Tax Assistance
    	
21
    
	
 
    	
 
    
	
Tax Treatment Table
    	
23
    

 

	
 
    	
 
    
	
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BENEFITS AT A GLANCE

	
 
    	
 
    	
 
    	
 
    	
 
    
	
Policy   Component
    	
 
    	
 
    	
Description
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Eligibility
    	
 
    	
 
    	
·  You are eligible for coverage   under the relocation program described in this guide if you are classified as   an active full-time current or newly-hired, salaried executive level   employees and senior officers; homeowner or renter. It is your responsibility   to work with the Sr. Manager Human Resources to monitor your eligibility for   benefits and to ensure your status is accurately reflected in the payroll   system.

 

·  Note: Active Full-time (AF) means not L, LP, or T   status.
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Miscellaneous   Allowance
    	
 
    	
 
    	
·  You will receive an Allowance   of $10,000 to cover expenses not provided elsewhere in the policy

 

·  Such payment will   not be grossed-up
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Home   Finding Trip
    	
 
    	
 
    	
·  Professional assistance will   be provided by GMS

 

·  The Company will   provide you with two home finding trips for up to seven days/six nights, for   you, your spouse or one additional family member and for your children.

 

·  Reimbursable   expenses include reasonable costs associated with:

 

o Airfare or Mileage

 

 

o Lodging

 

o Meals ($25/day/adult &   $15/day/child)

 

·  Rental car (if   airfare)
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Temporary   Housing
    	
 
    	
 
    	
·  Professional assistance will   be provided by GMS

 

·  The Company will   provide you with temporary housing accommodations for up to 90 days

 

·  Up to 14 days   rental car if automobile is being shipped
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Home   Sale Assistance:

 

GPO/Amended   Value Sale
    	
 
    	
 
    	
·  Marketing Assistance

 

·  Appraised Value   Offer

 

·  Amended Value Sale

 

·  Independent Sale
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Renter   Services
    	
 
    	
 
    	
·  Lease Cancellation:

 

o Up to two months’ rent if required to cover lease   cancellation or lease break fees
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
New   Home Purchase Assistance
    	
 
    	
 
    	
·  If you decide to purchase a   home in the new location, you will be reimbursed for normal and customary new   home purchase closing costs

 

·  Reimbursement   includes a 1% loan origination fee
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Movement   of Household Goods
    	
 
    	
 
    	
·  A professional van line will   be selected and coordinated by GMS

 

·  Van line will pack,   load, transport, unload goods, and unpack, including normal appliance   servicing

 

·  The Company will   provide:

 

o Debris pick up

 

o Storage for up to 90 days

 

o Up to $125,000 of valuation coverage

 

o Shipment for up to two automobiles if the   distance to the new location is over 300 miles
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Final   Trip to the Destination Location
    	
 
    	
 
    	
·  You and your family will be reimbursed   for en route expenses from the departure location to the destination   location. Reimbursable expenses include reasonable costs associated with:

 

o Airfare if vehicle(s) is/are shipped

 

o Lodging – 1 night in origin, en route

 

o Mileage – 1 vehicle if 1 is shipped or 2 vehicles   if none are shipped

 

o Meals($25/day/adult &   $15/day/child)

 

·  You must travel a   minimum of 300 miles per day by the most direct route

 
    	
 
    

 

	
 
    	
 
    
	
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INTRODUCTION

 

On the Move...

 

This handbook has been designed to help you understand Dollar General’s relocation program and to assist you and your family in relocating as quickly as possible with minimal inconvenience.  You are encouraged to carefully read this handbook in its entirety.  Recognizing that relocating can be a disruptive process, the Company and GMS will assist you and your family throughout your move.

 

Eligibility

 

The relocation program was developed to facilitate the movement of active, full-time newly-hired and current, salaried, executive-level employees or senior officers who are requested to relocate by the Company and designated by the Company to receive the benefits described in this handbook.

 

In order to be eligible for relocation as described in this handbook, your relocation must meet the IRS 50-mile distance test.  The distance between your former residence and your new job site must be at least 50 miles greater than the distance between your former residence and your former job site.

 

Family

 

Your family members eligible for assistance under this policy include your spouse and your dependent household members.  In the event an additional member of your household is asked to relocate by the Company, you are eligible to receive only one set of benefits.

 

Time Limit

 

You are eligible for the benefits extended in this handbook for up to 12 months following your effective date of transfer. All expense reports related to your relocation are required to be submitted within 90 days of the date incurred within this 12-month period.

 

Disclaimer

 

The Company has the sole right at any time to revise, amend or discontinue this policy.  This policy shall not be considered or construed as an employment contract and does not constitute a guarantee of employment for any minimum or specified period of time.

 

Policy Exceptions

 

If you feel an exception is needed, please submit your request in writing to your GMS dedicated Relocation Coach.  They will review and forward your request to the Relocation Department at Dollar General for consideration.  Upon initial receipt, the Relocation Department will present a recommendation along with facts to the appropriate senior level officer for final approval by the Board’s Compensation Committee.  Your dedicated Relocation Coach will communicate the decision to you.

 

	
 
    	
 
    
	
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RELOCATION ADMINISTRATION

 

Upon notification of your relocation, your dedicated Relocation Coach will contact you and be your main point of contact throughout your move.  Your dedicated Relocation Coach will guide you through each step of the relocation process, answer your questions, and help coordinate all aspects of your move.  Listed below are highlights of the services your dedicated Relocation Coach will provide to you:

 

à         general information,

 

à         expense report reimbursements,

 

à         disposition of your present home,

 

à         assistance in finding a new residence,

 

à         moving your household goods,

 

à         moving you and your family to the new location, and

 

We encourage you to become fully involved in your move and work closely with the professionals who have been made available to assist you throughout the relocation process.  By working closely with your dedicated Relocation Coach, you will be able to effectively manage your move.

 

Forms to Complete

 

Our goal is to have a relocation process that is as simple and easy to use as possible.  Therefore, there are only two steps that you must complete before receiving your relocation benefits.

 

Step 1.   Complete and return the Relocation Initiation Form

 

The Relocation Initiation Form provides us with important information to pass on to the moving company and for relocation check/reimbursement requests.

 

Step 2.   Complete and return the Employee Reimbursement Form.

 

The Employee Reimbursement Form states that you have read Dollar General’s Relocation policy and understand that you are responsible for any expenses not covered under the policy.  This form may also have a reimbursement schedule you would follow to pay back a pro-rated share of your relocation benefits should you leave the company within a year of the date of your last relocation reimbursement or last relocation expense incurred by Dollar General..

 

Both of these forms can be mailed or faxed to the following:

 

Dollar General Human Resources Relocation

 

100 Mission Ridge

 

Goodlettsville, TN  37072

 

Fax (615) 855-5872

 

	
 
    	
 
    
	
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EXPENSE REIMBURSEMENT

 

Most ordinary expenses involved in moving from one location to another are covered under this policy.  Any questions of interpretation should be discussed with your dedicated Relocation Coach before you take action.

 

All relocation expenses must be submitted on the Relocation Expense Report Form (will be provided to you by GMS) and must not be combined with regular business expenses.  In order to determine the federal and state tax liability for reimbursed expenses, all relocation expenses must be reported accurately.

 

Where relocation-related expenses are specifically reimbursable, consistent guidelines apply.

 

à           All reimbursable expenses must be reasonable and appropriate.

 

à           All relocation benefits are reflected in U.S. dollars.

 

à   All reimbursable moving expenses must be incurred within 12 months from the effective date of employment or transfer and submitted for payment within 90 days from the date the expense is incurred.

 

à           Only expenses specifically outlined in the policy will be reimbursed.

 

à           You must submit original receipts for reimbursement.  Your completed expense reports together with your original receipts should be forwarded directly to your dedicated Relocation Coach.

 

à           It is important not to include any business expenses on relocation expense forms.

 

RELOCATION AND TRANSITION EXPENSES

 

Miscellaneous Expense Allowance

 

	

    	
The Company will provide you with an   allowance equal to $10,000, to cover many of the incidental expenses not   specifically reimbursed under this policy, which may occur as a direct result   of your transfer. Some of these expenses may include:
    

 

à           driver’s licenses and automobile registrations in the new location,

 

à           meals during temporary living,

 

à           duplicate mortgage,

 

à           utility deposits,

 

à           shipment of pets,

 

à           cleaning or maid service (new or old location),

 

à           non-refundable tuition, memberships, club dues or subscriptions,

 

à           piano tuning,

 

à           tips to movers,

 

à           drapery and carpet installation or alterations,

 

à           television or cable installation or adjustments,

 

à           overnight mail charges,

 

à           tax consulting,

 

à           items unique to your personal move not covered by this policy,

 

à           disassemble/reassemble playground, gym equipment, swimming pools, and similar items.

 

	
 
    	
 
    
	
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For newly hired employees, a check will be processed and deposited into your account within 2 weeks after your start date.

 

Tax Assistance

 

Gross-up will not be provided for the Miscellaneous Expense Allowance.

 

House Hunting

 

Dollar General will provide you and your spouse or one additional household member and your children with two (2) house hunting/apartment hunting trips for a total of seven (7) days.  The House Hunting Trip will include the following:

 

Ø            Hotel accommodations for a maximum six (6) nights.

 

Ø            Airfare or mileage reimbursement at current Company rate if personal vehicle is driven.

 

Ø            Reimbursement for rental car for maximum of seven (7) days.

 

Ø            Reimbursable meal expenses not to exceed $25.00/day per adult, $15.00/day per child (original receipts must be submitted).

 

Tax Assistance

 

Gross-up will be provided for residence hunting expenses.

 

Temporary Living

 

Temporary Living Assistance is intended only for short-term living arrangements at the new location.  Dollar General will reimburse you for up to 90 days of temporary living expenses.  Temporary living assistance includes the following:

 

à         One bedroom fully furnished corporate apartment for employee only.

 

à         If trailing family, a two bedroom fully furnished corporate apartment may be requested in lieu of a one bedroom.

 

à         Reimbursement for full size rental car for a maximum of two (2) weeks

 

 

If you require temporary living assistance please contact your dedicated Relocation Coach at least two weeks in advance.  He or she will be happy to help you make arrangements and answer any questions you may have.

 

Return Trip

 

If you are required to report to work in your new location prior to your family’s final move, you shall receive coverage of travel expenses for one (1) return trip home per month up to a total of 3 round trips during the temporary living period. One family member may visit you in the new location in lieu of a return trip.

 

Tax Assistance

 

Gross-up will be provided for temporary living and return trip expenses.

 

	
 
    	
 
    
	
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HOME SALE ASSISTANCE PROGRAM

 

Your dedicated Relocation Coach will provide you with the necessary expertise to facilitate the sale of your home through the services described below.

 

Home Eligibility

 

A home eligible for home sale assistance is any completed single-family or two-family residence, including a condominium that is used as your principal residence and that is owned by you, your spouse, any of your dependents residing in the same household, or any combination of those persons at the time you are asked to relocate.  This also includes land customarily considered part of a residential lot and all personal property normally sold with a residence according to local custom.  If your home does not meet these eligibility guidelines, you may qualify for reimbursement of certain home sale closing costs and commission expenses if you sell your primary residence on your own.

 

Homes considered ineligible for home sale assistance (Guaranteed Buyout Offer/Buyer Value Option) include, but are not limited to, the following:

 

        cooperative apartments,

        mobile homes,

        vacation/secondary homes,

        investment properties,

        homes with excessive acreage (+5 acres),

        homes that are partially completed or under substantial renovation,

        homes ineligible for conventional financing,

        houseboats,

        homes deemed ineligible through building inspections, and

        vacant lots appraised as contributory value only.

 

If you have any questions regarding your home’s eligibility, please contact your dedicated Relocation Coach prior to beginning the relocation process.

 

Overview

 

Marketing Your Home

 

 

	

    	
 

You are required to speak with your dedicated Relocation Coach prior   to taking any steps to list or market your home. You are required to market   your home for a minimum of 90 days from the date your home is listed with an   approved real estate agent.

 
    

 

The home sale process will begin with the appraisal and listing your home.  Your dedicated Relocation Coach will help you select a qualified real estate agent and together they will determine selling strategies targeted to help you receive the best 

 

	
 
    	
 
    
	
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possible offer for your home. The advantage to successfully marketing your home and selling to an outside buyer is that you may receive a greater cash return than the Appraised Value Offer.

 

Appraised Value Offer

 

Two independent appraisers will appraise your home to determine the Appraised Value Offer.  Your relocation coach will provide a list of ERC endorsed appraisers in your area to choose from.  This offer will be your “safety net” providing you with a guaranteed price, should your home not sell on the open market.  Your Appraised Value Offer will be available to you for 90 days.

 

Amended Value Sale

 

If you receive a qualified offer on your home from an outside buyer you have an opportunity to “amend” the Appraised Value Offer from GMS to reflect your buyer’s offer.

 

Marketing Assistance

 

As soon as the Company authorizes your relocation, your dedicated Relocation Coach will contact you to explain the first step—the listing, marketing and appraisal of your home.  Placing your home on the market as advantageously as possible is a critical element in successfully marketing your home.  Throughout the home sale process, your dedicated Relocation Coach will continuously track your agent’s efforts to market your home.  The goal of these efforts is to help you obtain the best offer for your home within a reasonable time frame.

 

Your dedicated Relocation Coach’s objectives are to:

 

        help you identify a qualified and active broker to assist you in marketing and listing your home in a highly effective manner;

 

	

    	
        work   with your real estate agent to develop a strategic marketing plan to sell   your home at the best possible market value;

 

        in   conjunction with your real estate agent, suggest any minor repairs and/or   improvements that will increase the marketability of your home; and
    

 

        work with you throughout the process of you selling your home.

 

How the Marketing Process Works...

 

The following is a step-by-step process of marketing assistance services provided by your dedication Relocation Coach.

 

Agent Selection

 

Your dedicated Relocation Coach will place a referral with two (2) area real estate agents who will visit your home and prepare a complete Employee Relocation Council (ERC) Market Analysis.  If you would like to designate a particular real estate agent that has not been recommended, please notify your dedicated Relocation Coach.  As long as the real estate agent agrees to the program’s requirements, he or she will be able to work with you as one of your two selected agents.  You may not utilize or ask to have qualified any real estate agent that is a family member; i.e., spouse, child, mother, father, brother, sister or in-laws.  If you have no preference or are not familiar with local brokers, your dedicated Relocation Coach will assist you in the selection.

 

	
 
    	
 
    
	
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Listing Your Home

 

Your dedicated Relocation Coach will ask you to select one real estate agent from the two you have interviewed.  He or she will then work with you and your selected agent to develop a marketing strategy and establish a list price that is both attractive and realistic in the local market.

 

	
 

You are required to list your home within 110% Appraised   Value. You are required to list your home for a minimum of 90 days   from the initial list date before you are eligible to accept the Appraised Value   Offer.

 
    

 

Listing Exclusion Clause

 

When you speak with your dedicated Relocation Coach, he or she will discuss the necessity of including the following language in the listing agreement with your broker. The reason for this clause is to allow for cancellation of the listing agreement if necessary for GMS to close with the buyer.  This clause is considered “standard operating procedure” among agents who work with corporate transferees.  The following Exclusion Clause should be attached as an addendum to the Listing Agreement.

 

	
“In the event of   any conflict or inconsistency between this Addendum and the Listing   Agreement, the terms of this Addendum shall control.
    
	
 
    	
 
    
	
It is understood and agreed that regardless   of whether or not an offer is presented by a ready, willing and able buyer:
    
	
 
    	
 
    
	
1. No   commission or compensation shall be earned by, or be due and payable to,   broker until the sale of the property has been consummated between seller and   buyer, the deed delivered to the buyer and the purchase price delivered to   the seller; and
    
	
 
    	
 
    
	
2. The seller   reserves the right to sell the property to GMS or to: ____________   (individually and collectively a “Named Prospective Purchaser”) at any time.   Upon the execution by a Named Prospective Purchaser and me (us) of an   Agreement of Sale with respect to the property, this listing agreement shall   immediately terminate without obligation of my (our) part or on the part of   any Named Prospective Purchaser to either pay a commission or to continue   this listing.”
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Real Estate Agent
    	
 
    	
Date
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Seller
    	
 
    	
Date
    	
 
    
	
 

 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Seller
    	
 
    	
Date

 
    	
 
    
							

 

	
 

 

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Monitoring the Marketing Process

 

Your dedicated Relocation Coach will work with you and your real estate agent throughout the marketing process to ensure maximum exposure for your home, provide feedback on the marketing process, and recommend strategy modifications, if needed.

 

Negotiating a Sale

 

	

    	
 

When you   have an interested buyer and receive an offer, your dedicated Relocation   Coach will be a valuable resource as you negotiate a price and an Offer   Letter.  You must submit ALL offers   received to your dedicated Relocation Coach for review and consideration. DO   NOT SIGN a contract (or any other document) with the buyers or take any money   as a deposit from the real estate agent or prospective buyer.
    

 

Finalizing a Sale

 

Your dedicated Relocation Coach will handle the details of the real estate transaction once the terms of the sales agreement have been finalized.

 

APPRAISED VALUE OFFER

 

Your decision to relocate should not be hampered by concerns about selling your home.  GMS will assist you by making an offer to purchase your home at a value established by independent fee appraisers.  The appraisal process will begin immediately after entering the relocation program

 

Appraiser Selection

 

Once you have notified your dedicated Relocation Coach of your choice of appraiser’s, your dedicated Relocation Coach will notify the approved appraisers to contact you in order schedule a convenient time to survey your home.

 

Relocation Appraisal

 

A relocation appraisal is an estimate of the anticipated sales price of your home over a reasonable selling period.  Relocation Appraisers estimate value primarily by comparing your home to the sales of similar properties making detailed adjustments for the differences between those properties and your home.  The appraisers consider location, size, age, condition, and marketability.

 

When the appraisers arrive to inspect your home, you should be prepared to discuss any facts that may be important in determining the value of your home:

 

        any improvements you have made to the home that may or may not be visible to the appraisers; and

 

        any information on similar homes that have recently sold in your area.

 

Your home will be appraised in “as is” condition, so it is important your home shows favorably to maximize the appraised value and resale efforts. Your dedicated

 

	
 
    	
 
    
	
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Relocation Coach and your real estate agent will assist in suggesting specific fix-up items to help maximize your marketing efforts.

 

The appraisers may also ask for a copy of the land survey and a copy of the title policy that you received when you closed on your home.  They will need these items to obtain the correct legal description.

 

Determining the Appraised Value Offer

Your Appraised Value Offer will be equal to the average of two independent relocation appraisals.  However, if the variance between the two appraisals is greater than 5% of the higher amount, a third relocation appraisal will be ordered.  In this case, your offer will be determined by averaging the two closest appraisals. Normal and customary home inspections will be ordered at the time of the appraisals.

 

Your dedicated Relocation Coach will present you with your Appraised Value Offer once the inspection and appraisal reports have been received and reviewed.  Your home will have to pass all inspections and/or you must satisfactorily remedy any deficiencies before your offer is finalized.  The entire process should be completed within 30 days from the date of the last inspection.

 

	
 

 
    	
 

You are required to list your home at no more than 110% of the   Appraised Value Offer. This may require you to make an adjustment to your   most current list price.

 
    

 

 

Title Search

In addition to arranging for the appraisals and inspections, a title search will be initiated in order to prepare for closing.  You may need to be involved in clearing any title issues should they appear on the title report.  Please inform your real estate agent that GMS is bringing the title up-to-date.  This can avoid a duplicate title search.  Often an agent will arrange for a title search upon notification from a lender of a buyer’s loan approval.

 

Offer Period

Your dedicated Relocation Coach will call you with your Appraised Value Offer and outline the timing and process of the home sale program. The Appraised Value Offer has a 90-day acceptance period—90 days to continue marketing your home knowing you have a set “safety net”.  Your 90-day acceptance period begins the day your Offer Letter is postmarked.  You may accept the appraised value offer at any time after marketing your home for 90 days.

 

	
 
    	
 
    
	
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You are required to market your home for 90 days from the list date   before you are able to accept the Appraised Value Offer.

 
    

 

Accepting the Appraised Value Offer

If you are unable to sell your home during the 90-day offer period and accept the Appraised Value Offer, you and your spouse should sign the GMS Offer Letter and return both copies to your dedicated Relocation Coach along with the other supporting documents.  Your execution of the Offer Letter is a legal transaction.  You will need to sign and notarize the Offer Letter and other related documents.

 

The signed GMS Offer Letter and related documents must be received by your dedicated Relocation Coach on or prior to the expiration date of your offer.  The contract will be dated on the day all necessary documents are completed and signed by you and your dedicated Relocation Coach.

 

Vacating the Home

You have 60 days from the date you sign the GMS Offer Letter in which to vacate the property provided a resale closing does not occur sooner.  If you cannot move within 60 days, please let your dedicated Relocation Coach know and you may be granted additional time to vacate, if circumstances warrant.

 

After you and GMS have signed the Offer Letter, you will continue to be responsible for the costs of maintenance, repairs, utilities, insurance, etc., until you actually vacate.  Prior to vacating, you will be expected to cooperate fully with all attempts by GMS to market the home by allowing prospective purchasers to view the premises by appointment during reasonable hours.

 

From the date you vacate, GMS will make all future mortgage, tax, and other carrying payments on your home.  It will also assume payment of maintenance and utility costs.  Your equity statement will reflect mortgage interest through your executed GMS contract or vacate date, whichever comes last.

 

	
 
    	
 
    
	
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Utilities

Since sudden cold weather can cause damage due to freezing, do not turn off any utilities when you vacate the home.  The utilities must be left in your name until you contract with GMS or vacate the home, whichever is later.  At that time, you should request final readings from the utility companies serving your home.  Your dedicated Relocation Coach will instruct your real estate agent to transfer the utilities into the real estate company’s name until the home closes with new buyers. The day you vacate is customarily the date utilities are transferred to the real estate company.  If you receive a utility bill covering a period of time when payment was not your responsibility, please submit the invoice to your dedicated Relocation Coach for payment.

 

Insurance

You will need to cancel your homeowner’s insurance policy effective when GMS signs the Offer Letter or you vacate, whichever is later.  Any refund due to you from the insurance company will be paid directly to you.  Make note to discuss this with your insurance agent and follow-up if necessary.

 

	
 

    	
 

If   you are vacating your home prior to contracting with GMS, contact your   insurance agent to arrange coverage during any periods the home will be   unoccupied. Most homeowner’s insurance policies state coverage is void if the   dwelling is unoccupied for a specific period of time.
    

 

AMENDED VALUE SALE

Achieving an Amended Value Sale is of benefit to you and the Company.  The Company avoids the significant expense of purchasing, maintaining, and reselling your home through GMS and you receive the highest possible price for your home.

 

	
 

If at any time during your marketing period, you   receive an offer through the efforts of your real estate agent, you must   submit the offer to your dedicated Relocation Coach. DO NOT SIGN a contract   (or any other document) with the buyers or take any money as a deposit from   the real estate agent or prospective buyer.

 
    

 

Advantages of an Amended Value Sale

 

	

    	
You may receive a greater cash net return   than the Appraised Value Offer.
    
	
 
    	
 
    
	

    	
You will be relieved of the   responsibilities of property ownership upon vacate or contract date with GMS,   whichever is later.
    
	
 
    	
 
    
	

    	
You will be relieved of the necessity of   closing with the buyer.
    
	
 
    	
 
    
	

    	
After contracting with GMS, you will be   assured of receiving the net proceeds based upon the Amended Value Sale even   if the original sale falls through and does not close.
    

 

	
 
    	
 
    
	
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Analyzing the Offer

Your dedicated Relocation Coach will review the terms of the offer in an effort to determine whether the offer is bona fide (made in good faith), and to confirm that it is not subject to the sale of the buyer’s property, does not contain any unusual or unreasonable terms, and is not subject to interim financing.

 

Amending the Offer Letter

Once the final offer has been approved, your dedicated Relocation Coach will ask you to “amend” the amount in your GMS Offer Letter to reflect the buyer’s offer and to sign and return the Offer Letter.

 

Buyer’s Offer Less Than Appraised Value Offer

At its discretion, the Company may also accept offers which are lower than your Appraised Value Offer.  You will remain eligible to receive your equity calculation based on the Appraised Value Offer.

 

Closing an Amended Value Sale

GMS will acquire your home, according to the terms of the amended GMS Offer Letter with you.  GMS will also fully honor the terms of the Purchase Agreement with the buyers.

 

GMS will make every effort to close the transaction with the buyer.  However, since GMS has already purchased your home, you will not be impacted if the sale to the buyer is not eventually consummated.  Your equity payment will be based upon the Amended Value Sale Price.

 

Responsibility for your property remains with you until you contract with GMS or vacate, whichever is later.  This includes maintenance of your home, payments for utilities, mortgage, taxes, and premiums for insurance.

 

Equity

Your equity is calculated as of the GMS contract date or your scheduled vacate date, whichever is later, and is based upon the Amended Value sale price or guaranteed offer price, whichever is greater.  You will need to coordinate the timing of your equity check with your dedicated Relocation Coach. You may be eligible to receive an equity advance once you have signed the GMS Offer Letter and when there is a specific need for funds to close on a new home in the destination area.

 

	
 

    	
 

It   is important to note that certain items are not covered under the policy and   will be deducted from your final equity, if you have agreed to any of these   additional seller’s expenses:
    

 

	

    	
repairs and improvements requested by the buyer;
    
	
 
    	
 
    
	

    	
buyer’s closing costs;
    
	
 
    	
 
    
	

    	
homeowner warranties;
    
	
 
    	
 
    
	

    	
buyer’s incentives;
    

 

	
 
    	
 
    
	
 

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real estate commission above the standard rate for   your area;
    
	
 
    	
 
    
	

    	
closing dates beyond 60 days of vacating or   contracting with GMS.
    

 

 

INDEPENDENT SALE

If your home is considered ineligible for the Company’s Home Sale Assistance Program (Buyer Value Option or Amended Value Offer) or you elect to sell your home independently prior to initiation into GMS’ Home Sale Assistance Program, you may be eligible to receive direct reimbursement of normal and customary home sale closing costs and commission when you sell your home on your own. Contact your dedicated Relocation Coach to determine if your home qualifies for this home sale option.

 

	
 

If your home is eligible for GMS’ home sale assistance (Buyer Value Option   or Amended Value Offer) and you sell your home on your own, the Company will not provide tax assistance for your home sale commission   and closing cost expenses.

 
    

 

Reimbursement of Expenses

Normal and customary home sale closing costs and real estate commission at the prevailing rate in your current location (maximum of 6%) will be reimbursed if you sell your home independently within twelve (12) months of your effective date of transfer.

 

Discount points incurred through negotiation with FHA, VA and conventional financing are not reimbursable.

 

Tax Assistance

 

	

    	
You   will receive tax assistance for normal and customary home sale closing costs   and eligible commission expenses only if your home is ineligible for the Home   Sale Assistance Program (Buyer Value Option or Amended Value Offer).  If you choose to sell your home on your   own, no tax assistance will be provided to you.
    

 

RENTERS’ ASSISTANCE

Lease Cancellation

If you are presently renting your home or apartment at the origination location, you should immediately notify your landlord or lease holder of your move to avoid or minimize penalty charges.  You should attempt to obtain a written waiver of any provisions of the lease requiring fees or penalties due to your transfer.  The Company asks that you make every effort to minimize the penalties by making the best possible arrangements with your landlord.

 

Should you be required to pay a penalty, the Company reimburses up to a maximum of two (2) months’ rent for any combination of lease termination penalty charges, forfeiture of lease deposit, and/or duplicate rent on your former home or apartment.  If necessary, your dedicated Relocation Coach can assist you with lease cancellation arrangements.

 

	
 
    	
 
    
	
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New Lease Agreement

	
 

    	
 

Should   you decided to rent a home or apartment in the destination location your new   lease should be examined carefully before it is signed.  You should negotiate a cancellation clause   that would give you the right to cancel the lease without penalty after   giving 30 days’ notice, in the event of a company-initiated transfer.
    

 

Sample Clause:

 

If tenant’s employer relocates tenant to a location more than fifty (50) miles from the premises that are the subject of this lease, this lease will be automatically terminated without further liability at any time.  Tenant agrees to give landlord at least 30 days’ notice of his/her intention to terminate this lease along with proof of such transfer of employment.

 

Tax Assistance

Gross-up will be provided for renters’ assistance reimbursements.

 

DESTINATION LOCATION

Planning Your House Hunting Trip

Whether you are a homeowner or a renter, selecting a new community and home is one of the most important decisions you will make as a result of your job transfer.  The Company’s relocation program offers you professional home finding counseling through GMS.  The Company encourages you to take advantage of this valuable service.

 

Your dedicated Relocation Coach will discuss your family’s specific needs, preferences, and lifestyle.  After review of your requirements, your dedicated Relocation Coach will select a local real estate professional who is experienced in the areas of interest to you.

 

	
 

 
    	
 

Remember to contact your dedicated   Relocation Coach prior to contacting any real estate agent in the new   location.

 
    

 

 

Your dedicated Relocation Coach and real estate agent will work together to organize your house hunting trip so it is productive.  By planning in advance, the agent will be prepared to take you on area tours and discuss items of interest to you and your family.  Preparation gives you a better chance of quickly finding a residence to fit your needs at a price you can afford.

 

Once your real estate agent is contacted, he or she will provide the following information:

 

	

    	
schools, churches, etc.,
    
	
 
    	
 
    
	

    	
commuting times,
    
	
 
    	
 
    
	

    	
child and elder care services, and
    
	
 
    	
 
    
	

    	
pre-selected homes for viewing
    

 

	
 
    	
 
    
	
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If   you are a current homeowner, you should delay house hunting in the new   location until you have an estimated value on your present home and you have   been pre-qualified by a mortgage lender.    Home purchase decisions made with unrealistic expectations of current   equity may result in over-commitment at the new location.
    

 

Internet Home Search

Although the Internet can be a useful tool to gain information on housing in the new area, keep in mind you need to use the approved real estate agent assigned to you to obtain information or to view any home you find on the Internet.  This will avoid confusion as to which agent you are working with and any possible real estate commission disputes.

 

HOME PURCHASE CLOSING COST ASSISTANCE

If you are purchasing a residence in the new location, you will be reimbursed for reasonable and actual home purchase closing costs provided you sign a contract to purchase a home in the new area and close within one year of your employment effective date or effective date of transfer.

 

One time closing costs for permanent financing will be reimbursed including:

 

	

    	
normal attorney’s fees,
    
	

    	
appraisal fees,
    
	

    	
tax service fees,
    
	

    	
title insurance (lender’s coverage, only),
    
	

    	
recording fees (including tax stamps),
    
	

    	
credit reports,
    
	

    	
survey fees,
    
	

    	
flood certification, and
    
	

    	
inspections required by the lender
    

 

In addition to all closing costs mentioned, the Company will pay one origination point (fee) to close a new first mortgage.  The Company does not cover one-time closing adjustments such as property taxes, home hazard insurance, fuel adjustments, or private mortgage insurance (PMI).  The Company does not cover the costs associated with establishing second mortgages, home equity lines of credit or construction loans.

 

Tax Assistance

Gross-up will be provided for non-deductible home purchase closing costs.

 

National Mortgage Lender Program

The Company has selected national mortgage lenders to provide you with a wide variety of mortgage services.  Your dedicated Relocation Coach will provide you with information on participating mortgage companies.

 

Using the services of these preferred lenders offers many advantages:

 

	

    	
familiarity with the Company’s program,
    
	

    	
mortgage loan pre-approval process,
    

 

	
 
    	
 
    
	
 

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direct billing of closing costs to the Company,   and
    
	

    	
consideration of current spousal income
    

 

	
 

 

    	
 

New Construction

If   you elect to build a home in the new location, you may incur additional   expenses as opposed to purchasing an existing home. Be aware in making your   decision that policy benefits will not be extended if you decide to build.
    

 

MOVING TO THE NEW LOCATION

To enable you and your family to make an effective transition to the new area, the Company’s relocation program provides for a range of move-related assistance:

 

	

    	
pre-move survey of your household goods by the   moving company;
    
	
 
    	
 
    
	

    	
complete packing of all items;
    
	
 
    	
 
    
	

    	
transportation of your household goods to your new   residence;
    
	
 
    	
 
    
	

    	
up to $125,000 in full replacement valuation   coverage for your household goods;
    
	
 
    	
 
    
	

    	
unloading, unpacking, and placement of all   furniture in your new residence; and
    
	
 
    	
 
    
	

    	
storage of your household goods for up to 90 days,   if required.
    

 

Shipment of Household Goods

You, or a representative appointed by you, will need to plan to be present during all phases of your move—pack, load, delivery, and unpacking.  Your own planning, preparation, and involvement during the process will contribute to a successful move.

 

Items Excluded From Shipment

	
 

    	
 

The items listed below are not ordinarily   considered household goods and are your responsibility.  The Company, GMS Relocation, and the moving   company will not be able to take responsibility for these items.
    

The Miscellaneous Expense Allowance is intended to assist you with expenses unique to your personal move and for items not covered by this policy.  Please note the Company will not pay for the shipping of the following items.  If you have any questions, contact your dedicated Relocation Coach.

 

	

    	
boats 
    	
 
    	

    	
airplanes
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	

    	
campers, trailers, motor homes
    	
 
    	

    	
plants, animals
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	

    	
farm machinery
    	
 
    	

    	
large playground equipment
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	

    	
firewood, rocks, sand, soil, etc. 
    	
 
    	

    	
tool or storage sheds, outdoor buildings
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	

    	
perishable food items, refrigerated or frozen 
    	
 
    	

    	
valuables such as jewelry, money, coins, coin and   stamp collections, irreplaceable photos, stocks, bonds, deeds, wills, and   other legal documents
    	
 
    
	
 
    	
 
    	
 
    
	

    	
aerosol cans, flammable liquids and other   hazardous materials
    	
 
    
	
 
    	
 
    	
 
    
	

    	
lumber, bricks, blocks, cement, tiles and building   materials
    	
 
    

 

	
 
    	
 
    
	
 

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Playground and Similar Equipment

Playground, gym equipment, swimming pools, and similar items must be disassembled prior to your move day.  If the movers disassemble and reassemble these items, you will be responsible for payment of these costs at the time of service.

 

Insurance

Your household goods are protected with up to $125,000 of full replacement valuation coverage.

 

Items of Extraordinary Value (Including Antiques)

It is recommended that items of extraordinary value such as antiques, fine art, furs, silver, china, crystal, photography equipment, oriental rugs, baseball cards, comics, other collectibles, etc. be professionally appraised prior to your move.  If purchased within the last year, the value can be substantiated with a sales receipt.  The Company will not pay for appraisals or any special handling and packaging of antiques or other high-value items.

 

Packing and Loading

Careful packing and proper loading are very important steps in assuring a successful move.  It is important that the mover packs all your household goods.  The driver will prepare a complete inventory list of your household goods describing the condition of each item (nicks, scratches, dents, etc.).  Review the inventory carefully to make sure you agree with the driver’s description before you sign the inventory.  The inventory is an important document in the settlement of claims for loss and damage.

 

Unloading

Check with the van driver about delivery times at the new location. Be sure to give them all possible telephone numbers where you can be reached en route and in the new location.

 

As your goods are being unloaded, you must check off each item on your inventory sheets.  Make notations on the sheets of missing or damaged items immediately and have the driver sign it.  Assembly of furniture will be completed prior to the driver leaving your home.  Unpacking of your goods consists of removing the items from the cartons in the room for which they are labeled.  This does not include putting items away.  Disposal of cartons is included in the move services.

 

Billing

The van line will send the invoice for your move directly to GMS.  If you transport household goods not covered by the policy or incur unauthorized charges, you will be expected to pay for these items at the time of delivery.

 

Tipping

Tips to the movers are not covered under this policy.  Your Miscellaneous Expense Allowance is designed to offset costs associated with tipping.

 

 

	
 
    	
 
    
	
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Shipment of Automobiles

The Company will reimburse mileage at the current business rate for up to two (2) automobiles to be driven to the new location.  In lieu of driving, the Company will pay to ship up to two automobiles if the distance to the new location exceeds 300 miles.

 

Storage in the New Location

You should make every effort to move directly to your permanent residence.  If necessary, are eligible for the storage of your household goods for up to 90 days.

 

Time Off for Moving

Dollar General understands that moving can be a time-consuming and stressful project.  Therefore, you may need to take some time off from work for this purpose.  At your manager’s approval, Dollar General will allow you up to one week of paid time off for relocation.  During this time it is suggested that you take care of anything relating to your relocation so that you are able to become settled in your new residence and be fully focused on your job upon your return.  Please discuss your plans to take time off for moving with your manager well in advance, so that he or she may plan for your absence.

 

Travel to the New Location

You will be reimbursed for one-way transportation for you and your family to travel to the new location.  If you drive, you will be expected to drive a minimum of 300 miles per day and via the most direct route as established by a standard Rand McNally table or equivalent.

 

You will be reimbursed for the following reasonable and actual en route expenses:

 

à         lodging (one night in departure or destination location or en route night as needed),

à         meals, reimbursed up to $25.00/day for adults and $15.00/day for children (original receipts must be submitted),

à         mileage (current business mileage rate), parking, and tolls, and

à         airfare, if necessary (14-day advance purchase required).

 

TAX ASSISTANCE

Many reimbursements made to you are considered taxable income.  The Company is required to report all relocation reimbursements as compensation with the exception of items identified below.  For informational purposes, the Company will provide you with a tax assistance sheet that will be prepared and mailed to you in January following your move.

 

The following expenses are excluded from taxable income:

 

à         reasonable and normal expenses for the movement of household goods;

à         up to thirty days (30) of household goods storage while waiting to occupy your residence in the new location; and

à         reasonable and normal expenses for transportation and lodging for you and your eligible family members from your present location to the new location.

 

	
 
    	
 
    
	
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The Company will assist in paying the additional tax resulting from taxable relocation reimbursements.  Payments will be made directly to the federal, state, and FICA tax authorities.  It is recommended you seek guidance from a tax professional for any year in which you receive relocation-related services or expense reimbursements.  Accurate expense documentation is very important.

 

The tax assistance provided to you is based solely on your Company derived income, your filing status, and number of 1040 exemptions. Spouse income, investment income or any other outside income will not be included in the calculations.  Individual variances from the program’s calculations will not be reimbursed.

 

The additional taxes as calculated by the gross-up program and paid on your behalf will be included on your W-2 as income.

 

	
 
    	
 
    
	
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TAX TREATMENT TABLE

 

Keep in mind some relocation items are not eligible for gross-up.  The table below outlines which relocation payments will be tax assisted.

 

	
Relocation Provision
    	
 
    	
Taxable
    	
 
    	
Deductible/
   Excludable
    	
 
    	
Grossed Up
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Miscellaneous Expense Allowance
    	
 
    	
ü
    	
 
    	
 
    	
 
    	
No
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
House Hunting
    	
 
    	
ü
    	
 
    	
 
    	
 
    	
Yes
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Temporary Living
    	
 
    	
ü
    	
 
    	
 
    	
 
    	
Yes
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Home Sale Assistance
    	
 
    	
Billed directly to Company
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Independent Sale - eligible home    
    	
 
    	
ü
    	
 
    	
 
    	
 
    	
No
    	
 
    
	
Independent Sale - ineligible home
    	
 
    	
ü
    	
 
    	
 
    	
 
    	
Yes
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Renters’ Assistance
    	
 
    	
ü
    	
 
    	
 
    	
 
    	
Yes
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Home Purchase Closing Cost 
    	
 
    	
ü
    	
 
    	
Point may be 
    	
 
    	
Yes 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
deductible
    	
 
    	
excluding point
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Household Goods Move
    	
 
    	
 
    	
 
    	
ü
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Storage 
    	
 
    	
ü
    	
 
    	
ü
    	
 
    	
Yes 
    	
 
    
	
 
    	
 
    	
Days over 30
    	
 
    	
 
    	
 
    	
Days over 30
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Travel to the New Location
    	
 
    	
Meals &
   Mileage greater
   than the current
   IRS mileage rate
   for moving
    	
 
    	
Transportation &
   Lodging
    	
 
    	
Meals &
   Mileage greater
   than the current
   IRS mileage rate
   for moving
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
									

 

	
 
    	
 
    
	
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U p d a t e d  0 7 / 1 6 /   2 0 1 4Exhibit 10.1

BUSINESS
CONSULTANCY AGREEMENT

 

For this particular instrument
(this “Agreement”) the parties described below, by free will, sign this instrument of business consultancy agreement
under the following terms and conditions:

 

LAKELAND BRASIL S.A.
located in Salvador, BA, at Rua Luxemburgo, 260, Loteamento Granjas Rurais Presidente Vargas, quadra 0, lotes 82-83, Zipcode 41230-130,
registered with corporate Taxpayer’s roll CNPJ/MF under number 04.011.170/0001-22, herein represented pursuant to
its Bylaws, hereinafter simply referred to as CLIENT; and on the other hand;

 

MULTIPLICA Soluções
EMPRESARIAIS LTDA., located in São Paulo, SP, at Rua Rego Barros, n2. 570, apto 104 bloco D, Jardim Vila Formosa,
Zipcode 03460-000, registered with coporate Taxpayer’s CNPJ/MF under number 14.782.440/0001-52, herein represented
pursuant to its Bylaws, hereinafter simply referred to as CONSULTANT,

 

WHEREAS, the CLIENT wishes
to have the CONSULTANT performing the services hereinafter referred to, and

 

WHEREAS, the CONSULTANT
is willing to perform these services,

 

NOW THEREFORE THE PARTIES, hereby
agree as follows:

 

		1.	The CLIENT hires the CONSULTANT to perform, in pertinent part, the following services:

 

		a)	Assistance in securing immediate financing for CLIENT in order to alleviate cash flow constraints that are restricting its
return to profitability, including, without limitation, loan guarantees by CONSULTANT (or affiliates) on behalf of CLIENT to various
financial institutions.

		b)	Emergency structuring and cash flow management services to ensure CLIENT will be able to secure future third party financing.

		c)	Assistance in negotiation and revision of VAT Tax issues.

		d)	Placing a full-time financial analyst at the office of the CLIENT.

 

		2.	MANAGING COMMITTEE:

		a)	A Managing Committee will be created and will consist of one (1) representative of CLIENT and one (1) representative of CONSULTANT.

		b)	The Managing Committee will meet daily to discuss payment of invoices, financing of accounts receivable, factoring and negotiations
with suppliers and banks. Payments proposed to be made to vendors and suppliers and loans must be pre-approved by the mutual agreement
of the Managing Committee. All decisions of the Managing Committee must be included in the minutes of the Managing Committee.

 

    	 

    	 

    

 

		c)	The financial obligations and other agreements and covenants of CLIENT or its parent company, Lakeland Industries, Inc. (“Lakeland
USA”) relating to Lakeland USA’s financing transaction with Alostar Bank, shall not be subject to review, discussion
or decision by the Managing Committee and are not within the jurisdiction of the Managing Committee. Provisions between Lakeland
USA and Alostar Bank included in the foregoing restriction, include, without limitation, the Tencate USD $500,000 exposure limit,
the corporate capital expenditure limit and the restriction on cash advances from Lakeland USA to CLIENT.

		d)	If the event of a disagreement among the representatives of the Managing Committee, the most conservative financial decision
will be adopted. In the event of a continuing disagreement, the members shall use reasonable good faith efforts to resolve any
such differences they may have. If they fail to resolve these differences, then the members shall jointly refer any disputes to
the Arbitration and Mediation Center of the American Chamber of Commerce in Sao Paulo (AMCHAM), in accordance with Section 12 below.

		e)	Named, herein, for representation on the Managing Committee, are:

		f)	By CLIENT: Eduardo Tavarez, registered with individual Taxpayers’ Roll CPF under 112.583.238-00, phone (11) 3613-3711,
e-mail: eftavarez@lakeiand.com;

		g)	By CONSULTANT: Luiz Aifredo Mader, registered with individual Taxpayers’ Roll CPF under 875.804.209.10 and bearer of
the professional ID CREA-PR n2 25.399-D, phone (11) 99401-2530, e-mail: alfmader@hotmail.com.

 

		3.	COSTS AND REMUNERATION:

 

		a)	CONSULTANT shall receive, commencing on the Effective Date (defined in Section 7(c) below), as remuneration for the provision
of consulting services contemplated by this agreement, the greater of (i) R$ 25.000 (Twenty Five Thousand reais) per month (the
“Minimum Fee”) or (ii) 10% (ten percent) of EBITDA of CLIENT calculated based upon U.S. generally accepted accounting
principles (GAAP) (the “EBITDA Amount”). EBITDA shall be defined to mean earnings before interest, taxes, depreciation
and amortization; amounts paid or expenses incurred in connection with this agreement, including, without limitation, fees paid
to CONSULTANT and the financial analyst and the Commission (defined below) shall be included as expenses in determining the EBITDA
Amount. The EBITDA Amount shall be calculated as of the last day of each calendar quarter, subject to final approval by the Managing
Committee of CLIENT.

		b)	Payment of the Minimum Fee shall be made on the 5th day of each month during the term of this agreement. If the EBITDA Amount
calculated for the applicable calendar quarter exceeds R$ 75.000 (Seventy Five Thousand reais), CLIENT shall pay to the CONSULTANT
the excess amount, if any, on the last day of the month immediately following the calendar quarter end.

		c)	The CONSULTANT will designate a financial analyst, an employee of the CONSULTANT who shall have the necessary competency to
perform the responsibilities of CONSULTANT under this agreement, to provide full-time services for the CLIENT. The CLIENT may refuse
the nomination if it deems the professional does not meet the qualification requirements needed to perform the works. In this case,
CONSULTANT shall nominate another analyst. The financial analyst shall be paid a fee for the consulting work of R$ 12,000 (twelve
thousand reais) per month, which fee shall be paid directly by CLIENT on the 5th day of each month.

 

    	 

    	 

    

 

		d)	CLIENT shall reimburse CONSULTANT for the following expenses incurred in connection with the provision of services under this
Agreement and upon provision of the appropriate expense vouchers:

		·	Transportation to locations outside the metropolitan area of São Paulo / SP; and

		·	Accommodation and food for professionals of CONSULTANT outside the metropolitan area of São Paulo - SP.

		·	Any costs or expenses incurred by CONSULTANT in excess of R$5,000 in the aggregate during any calendar quarter shall be pre-approved
in writing by the CLIENT.

 

		4.	OBLIGATIONS:

 

		a)	CONSULTANT agrees to be bound by the provisions set forth in the Annex I (Foreign Corrupt Practices Act Compliance) attached
hereto and made a part of this agreement as if fully set forth in this agreement. CONSULTANT shall sign on a quarterly basis the
declaration of compliance with the provisions set forth in the attached Annex I.

		b)	CONSULTANT must comply, and be responsible for ensuring that CONSULTANT’S employees comply, with the NDA (non-disclosure
agreement) signed by the parties.

		c)	CONSULTANT must comply, and be responsible for ensuring that CONSULTANT’S employees comply, with provisions of Law 12.846,
of 2013.

		d)	CLIENT shall make the monthly payments to the CONSULTANT as contemplated by this agreement.

		e)	CLIENT shall arrange a place and ways for the financial analyst of the CONSULTANT to perform its obligations to CLIENT as contemplated
by this agreement.

 

		5.	EQUITY SALES:

 

		a)	If during the term of this agreement there is a sale of all of the outstanding capital stock of the CLIENT (a “SALE”),
CONSULTANT shall be paid, as commission, an amount equal to ten percent (10%) of the Net Proceeds (defined below) of the SALE received
by CLIENT (the “Commission”). The Net Proceeds shall be an amount equal to the cash proceeds received by CLIENT less
(i) selling expenses (including commissions, legal, accounting and other professional and transactional fees); (ii) taxes (including
sales, income, capital gains, transfer, deed or mortgage recording taxes) paid or reasonably estimated to be payable in connection
with such Sale; and (iii) the principal, premium or penalty, interest and other amounts required to be paid in respect of any indebtedness
of CLIENT and/or Lakeland USA or any of their subsidiaries. For the avoidance of doubt, the calculation of proceeds of the SALE
shall not take into account any debt of CLIENT assumed by the purchaser.

		b)	The CLIENT agrees that the minimum purchase price of a SALE of the CLIENT shall be seventy percent (70%) of the book value
of the CLIENT determined in accordance with U.S. GAAP. For the avoidance of doubt, such book value shall reflect the VAT liability
which is not, as of this date, reflected in the books and records of CLIENT pursuant to Brazil GAAP but is reflected on books and
records maintained in accordance with US. GAAP.

 

    	 

    	 

    

 

		c)	CONSULTANT acknowledges and agrees that CONSULTANT shall not be entitled to be paid the Commission if EDUARDO TAVAREZ or any
affiliate is the purchaser in a SALE transaction.

 

		6.	COLLATERALS:

 

Attend at present, acting as guarantors and major
payers, obliged with CONSULTANT Mr. EDUARDO TAVAREZ, Brazilian, married, engineer, registered with Individual Taxpayers'
Roll ("CPF/MF") under # 112.583.283-00, both expressly renouncing, at this time, to all benefits as set forth
in articles 827 and its sole paragraph, and 835 and 837 of the Brazilian Civil Code.

 

		7.	VALIDITY OF THE AGREEMENT:

 

		a)	CONSULTANT shall not assign any of its rights or obligations hereunder without the prior written consent of CLIENT.

		b)	This Agreement and all the obligations and benefits hereunder shall inure to the successors and permitted assigns of the parties
hereto.

		c)	This Agreement shall be effective (the “Effective Date”) upon delivery of first loan guaranteed by CONSULTANT for
CLIENT in the amount of at least R$500,000.

		d)	The Agreement has a term of 12 months commencing from the Effective Date and may be extended for an additional 12 months upon
the mutual written agreement of the parties.

 

		8.	TERMINATION OF THE AGREEMENT:

 

The agreement may be terminated in accordance with
the following rules:

 

		a)	By CONSULTANT at any time on sixty (60) days prior written notice to CLIENT.

		b)	By CLIENT at any time after the expiration the one hundred eighty (180) day period immediately following the Effective Date.
If CLIENT shall terminate this agreement without cause prior to the expiration of such one hundred eighty day period, then CONSULTANT
shall be entitled to be paid the Monthly Amount for an additional three months following such breach. For purposes of this agreement
“cause” shall include, without limitation, termination by CLIENT due to breach of this agreement by CONSULTANT.

		c)	In the event of any termination of this agreement for any reason, CLIENT shall settle any outstanding obligations or liabilities
guaranteed by CONSULTANT (or affiliates) pursuant to this agreement and/or remove such guarantees by CONSULTANT (or affiliates)
within one hundred eighty (180) days of the termination.

		d)	In the event of a Sale of CLIENT to a party introduced by CONSULTANT during the term of this agreement, CONSULTANT covenants
and agrees that CONSULTANT shall continue to comply with and be bound by the provisions of Section 4(a) and 4(b) of this agreement
which provisions shall expressly continue to survive for a period of one hundred eighty (180) days after the expiration or termination
of this agreement, except that the provisions of paragraphs (d) and (e) of Annex I attached hereto shall survive indefinitely.

 

    	 

    	 

    

 

		9.	CONTRACTUAL FINE:

 

If the CLIENT cancels this agreement without
cause (as herein defined) on less than six (6) months’ notice, it shall be obligated to pay to CONSULTANT an amount
equal to three months of the Monthly Fee.

 

		10.	GENERAL PROVISIONS:

 

		a)	This agreement is signed in both languages English and Portuguese. In case of any dispute or disagreement, English will prevail
and will be the governing language of the contract.

		b)	The parties acknowledge and agree that Lakeland USA is not a party to this agreement and shall not be bound by the terms and
provisions hereof or in any way liable hereunder.

		c)	Brazilian Law is the substantive applicable law to this contract.

 

		11.	DECLARATIONS:

 

The signatories to the parties declare, under penalty
of the law, that they express, in this document, their legitimate desires, having technical skill and / or being assisted by professionals
with expertise to understand all the terms and conditions herein, and may not claim error and / or ignorance to evade the fulfillment
of their obligations herein agreed.

 

		12.	DISPUTE RESOLUTION:

The parties elect the Arbitration
and Mediation Center of the American Chamber of Commerce in São Paulo (AMCHAM), to settle by arbitration any questions
or issues arising out of this instrument, no matter how privileged, under the Rules of Arbitration of said Institution, as well
as according to the following provisions:

 

		a)	The place of arbitration will be the City of São Paulo, State of São Paulo, Brazil.

		b)	Each party shall appoint one arbitrator. The arbitrators appointed by the parties shall, jointly, appoint the presiding arbitrator.
If the arbitrators do not reach an agreement concerning the appointment of the presiding arbitrator, the appointment shall be made
in accordance with the Arbitration Rules of the Arbitration and Mediation Center of the American Chamber of Commerce in São
Paulo (AMCHAM).

		c)	The parties further agree that only a citizen of the United States shall be appointed as presiding arbitrator, and that at
least two of the three arbitrators must be citizens of the United States.

		d)	The language of the arbitration will be the English.

		e)	The arbitration will be confidential. Both parties shall not reveal to the public any information about the existence and the
result of the arbitration or about documents and other evidence produced during the proceedings subject to the requirements of
applicable law, including, without limitation, the rules and regulations of the U.S. Securities and Exchange Commission.

 

    	 

    	 

    

 

		f)	The Courts of the City of São Paulo, State of São Paulo, Brazil, will have competence to decide on urgent measures
before the setting up of the arbitration panel. After the arbitration panel is established, the arbitrators will have the power
to maintain or review any urgent measures held by the State Courts.

 

In witness whereof, the parties execute this Agreement in two
equal counterparts, before two (2) witnesses.

 

São Paulo, 27 June of 2014

 

	/s/ Luiz Alfredo Mader	 	 
	/s/ Laercio Longo	 	/s/ Eduardo Fernandes Tavarez
	CONSULTANT	 	CLIENT
	WITNESS:	 	 

 

	 	 	 
	NAME:	 	NAME:
	CPF:	 	CPF:
	RG:	 	RG:

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