Document:

Document

10.1

SEPARATION OF SERVICES AND CONSULTING AGREEMENT
This Agreement is made as of the 31st day of October, 2020, by and between The Dixie Group, Inc. a Tennessee Corporation, having corporate offices located at 475 Reed Road, Dalton, Georgia and its subsidiaries (the “Company”), and Jon A. Faulkner, an individual resident of Tennessee (“Faulkner”). 
Whereas, during the past year, Faulkner has served the Company as Vice President Strategic Initiatives, and in that capacity has provided the Company with services that have included mentoring the Company’s Chief Financial Officer; and
Whereas, the Company’s Chief Financial Officer has now fully taken over all duties and responsibilities of that office, and the Company has completed negotiation and implementation of its credit agreements and its long-term credit financing strategy; and
Whereas, the Company, as part of its strategy to reduce costs and increase efficiencies of its senior management function, desires to obtain certain continued services of Faulkner, following his separation from the Company, pursuant to the terms and on the conditions set forth below; and 
Whereas, Faulkner is willing to provide such services to the Company on the terms and conditions specified herein.
Now, Therefore, the parties hereto, desiring to be legally bound, do hereby enter into the following Separation of Services and Consulting Agreement (the Agreement) on the Terms and Conditions and for the duration specified herein.
1.Duration of Agreement (Term).  This Agreement shall be effective from and after October 31, 2020, the date of Faulkner’s separation from the Company’s service, and shall continue for a term of 18 months thereafter ending on April 30, 2022, unless sooner terminated in accordance with the terms hereof.
2.Services to be Provided by Faulkner under this Agreement. During the term hereof, Faulkner shall provide the following services to the Company: a) he shall assist Company management with the planning, negotiation, structuring, reporting, and implementation of any strategic or financial transactions, so designated or identified from time to time by management, and, to the extent requested by management, shall participate in discussions, negotiations, planning sessions and the like, with respect to such transactions; b)  he shall participate in the continued training of the Company’s Chief Financial Officer in the discharge of the CFO’s functions as now or hereafter requested by the Company, including  particularly (but not by way of limitation) the functions and role of the CFO in the Company’s SEC reporting process and accounting functions; and c) he shall provide any and all other items of service and consultation to the Company and its management as the Company may desire, relating to (among other matters) pending litigation, SEC and Nasdaq filings and reports, the Company’s loan and credit 

10.1

agreements and the administration and reporting thereof, and other matters identified from time to time by the Company and its management. The consulting services to be provided hereunder shall amount to, on average, approximately four hours per week during the term hereof and shall not in total exceed four hours of service per week by Faulkner for the term hereof.
3.Faulkner’s Compensation.  Faulkner shall be paid in the amounts and at the times set forth on Annex A attached hereto and made a part hereof.  Faulkner shall be responsible for all withholding taxes attributable to the payment of such sums. In accordance with the terms of the outstanding restricted stock awards held by Faulkner, and the terms of the Plan, certain of such awards shall vest as set forth on Annex B.  The compensation provided for herein shall be due and payable and shall be paid to Faulkner so long as this Agreement is in effect, whether or not the Company or Company’s management requests that Faulkner provide any of the services outlined herein.
4.Early Termination. Faulkner may terminate this agreement for cause, if the Company shall fail to pay any sum or sums due hereunder following notice of such failure and the failure of the Company to cure such failure within 10 business days of such notice. Notwithstanding the foregoing, this Agreement may be terminated by the Company if Faulkner shall willfully and intentionally fail to faithfully discharge his duties in accordance with the terms of this Agreement. In the event of Faulkner’s inability to perform his duties substantially in accordance with the terms of this Agreement as a consequence of illness, disability, injury or death during the first 12 months this Agreement is in effect, then Faulkner (or his legal representative, as the case may be) shall be paid the unpaid balance of the sum that would otherwise have been paid for the first 12 months of this Agreement.  In all other cases, following termination of this Agreement (including by way of illness, death, disability or injury), Faulkner shall be paid only such sum or sums due and owing through the date of termination, and the Company shall have no further obligation to make payment to Faulkner thereafter.
5.Business Expenses. The Company shall pay or reimburse Faulkner for all reasonable bona fide business expenses incurred by Faulkner in the performances of services under this Agreement in accordance with current policies generally in effect with respect to reimbursement of business expenses for executive officers of the Company.
6.Indemnification. The Company shall indemnify Faulkner (and advance expenses in the event of a claim for indemnification) with respect to any claim, loss or proceeding arising out of or relating to the performance of his services as a consultant or his serving in such capacity, to the same extent as for the directors and executive officers of the Company.
7.Relationship of Parties.  Faulkner is acting under this agreement as an independent contractor of the Company and not as an employee.  As such, Faulkner shall have no claim against the Company for vacation pay, sick leave, retirement benefits Social Security, worker’s compensation, health or disability benefits of any kind based on services performed during the term of this Agreement. Moreover, Faulkner shall have no 

10.1

claim for compensation, remuneration, reimbursement, or other monies except as expressly set forth in this Agreement. 
8.Tax Matters. Under this Agreement, Faulkner is an independent contractor of the Company. Accordingly, the Company is not required to, and shall not, withhold any income or employment taxes from the payments made hereunder.
9.Non-Competition. Faulkner acknowledges that: i) the Company is in the business of designing, manufacturing, selling, distributing and importing flooring products to residential, commercial, individual and mass merchant customers throughout the United States and Canada (the “Restricted Territory”); and ii) Faulkner’s experience with the Company and the discharge of his duties under this Agreement has and will give him unique access to and possession of trade secrets and other Confidential Information. Further, Faulkner acknowledges that the agreements and covenants of this Section are necessary for the protection of the business, the trade secrets, and the Confidential Information of the Company. Accordingly, Faulkner agrees that he will not, during the term of this Agreement and for a period of eighteen months thereafter (the “Restricted Period”) within the Restricted Territory  directly or indirectly, for any reason, for his own account or on behalf of or together with any other entity: (i) own or have any interest in or act as an officer, director, partner, principal, employee, agent, representative, consultant or independent contractor of or in any way assist  in, any business that competes with any business engaged in during the term of this Agreement by the Company or any of its subsidiaries (excluding minority ownership of stocks in publicly traded companies); (ii) solicit, hire or in any manner encourage any person who is in the employ or service of the Company to leave or terminate such relationship for any reason; or (iii) advise any investors or potential investors making or considering acquisitions of entities engaged in competitive businesses. Furthermore, during the term hereof and for 18 months thereafter, Faulkner shall not directly or indirectly comment upon, or recommend any individual actively employed by the Company.
10.Confidential Information.    For purposes of this Agreement, “Confidential Information” means information which is used in the business of the Company and is proprietary to, about or created by the Company, which gives or may be expected to give, the Company some competitive business advantage or the opportunity to gain such an advantage, the disclosure of which could be detrimental to the Company or the conduct of its business, and includes but is not limited to any information so designated by the Company, and information that is not generally known to other persons or personnel not associated with the Company and is not otherwise publicly available.
a.Faulkner hereby agrees that all Confidential Information is the exclusive and confidential property of the Company, and Faulkner agrees not to disclose any such Confidential Information and to protect the confidentiality of such information agreement. Such Confidential Information is a trade secret.
11.  Choice of Law and Venue.    The parties agree that this Agreement will be construed pursuant to, and governed in accordance with, the laws of the State of Tennessee, without 

10.1

regard to its conflicts of law provisions.  The parties agree that they will first attempt to resolve any disputes arising under this Agreement through good faith negotiation, that any litigation hereunder shall be brought in the courts of the State of Tennessee, County of Hamilton, and that venue and jurisdiction in those courts shall be proper.
12.Entire Contract.    This Agreement contains all of the covenants and agreements between the parties with respect to the rendering of the services contemplated by this Agreement.  Any modification of this Agreement will be effective only if it is in writing signed by the parties hereto.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  The parties hereto may execute this Agreement personally or by facsimile/scan signature.  The section headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.
13.Severability.  If any term, covenant, or condition of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term, covenant, or condition to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each and every remaining term, covenant, or condition of this Agreement shall be valid and enforced to the fullest extent permitted by law.
14.Notices. Any notices to be given hereunder by either party to the other party may be effected either by personal delivery in writing; by guaranteed overnight delivery; by mail, registered or certified, postage prepaid with return receipt requested; or by an electronic transmission, which creates a record that may be retained, retrieved, and reviewed.

Company:
The Dixie Group, Inc.
By:                        
Printed Name:                    
Title:                        
Date:                , 2020

10.1

Faulkner:

                        
Jon A. Faulkner
Date:                 , 2020Document

«fullname»

                                       RESTRICTED STOCK UNIT AGREEMENT                                      

THIS RESTRICTED STOCK UNIT AGREEMENT (this “Agreement”) is made as of this ____ day of ________, 20__, between AMERICAN NATIONAL GROUP, INC., a Delaware corporation (the “Company”), and «fullname» (the “Recipient”).

1.         Award.  As of the date of this Agreement and upon execution of this Agreement, seven hundred fifty (750) restricted stock units (“Restricted Stock Units”) shall be issued to the Recipient as hereinafter provided subject to certain restrictions thereon.  The Recipient hereby accepts the Restricted Stock Units, subject to the terms and conditions of this Agreement.

2.         Vesting and Settlement.

 (a)       Vesting by Required Service.  Provided that the Recipient serves continuously as a director or advisory director of the Company until such date, the Restricted Stock Units shall become vested (then, “Vested RSUs”) on May 1, 2021 (“Required Service”):

                         (b)       Vesting by Retirement, Death or Disability. Notwithstanding anything to the contrary in Section 2(a), if Recipient has served continuously as a director or advisory director of the Company until such date, any Restricted Stock Units which had not previously vested shall become vested on the first to occur of Retirement, Death or Disability, each as defined below:

(i)“Retirement” shall occur on the effective date of the Recipient’s retirement as a director or advisory director of the Company at or after attaining the age of 65.

(ii)“Death” shall be the date of the Recipient’s death.

(iii) “Disability” shall be the date the Company determines, in good faith, that, by reason of a physical or mental condition which has existed for thirty days or more, the Recipient is no longer able to perform the material duties of a director or an advisory director of the Company.

                        (c)        Beneficiary upon Death.  Notwithstanding anything to the contrary contained in any will or testament previously or in the future executed by Recipient, and not withstanding any other beneficiary designation or instructions previously provided by Recipient, Recipient hereby designates the following person as the beneficiary of any Restricted Stock Units vesting upon Recipient’s Death:

						
	Beneficiary	
	Street Address	
	City	
	State	
	Zip	

Such beneficiary designation may be revoked or modified by written notice of Recipient to the Company. If all of the beneficiary blanks above are not completed and Recipient has not provided another valid beneficiary designation, Recipient’s estate will be the beneficiary in the event of Recipient’s death. If Recipient has provided or provides another valid designation of beneficiary for any Restricted Stock Units vesting upon Recipient’s Death and a completed and valid designation is not provided above, the other beneficiary designation will be honored.

Any references to “Recipient” herein shall in the event of Recipient’s death mean the beneficiary as provided in this Section 2(c).

(d)       Settlement of Vested RSUs. 

(i)Any Restricted Stock Units that become Vested RSUs shall be settled as soon as administratively practicable after the date such Restricted Stock Units become Vested RSUs.  Subject to the provisions of Section 2(d)(ii), Restricted Stock Units shall be settled by the Company by paying Recipient an amount equal to the number of Vested RSUs times the average closing price of the Company’s common stock for the most recent twenty days on which any securities exchange or association upon which the Company’s common stock is listed or quoted is open for trading prior to the date on which the Restricted Stock Units vest. Delivery of the payment may be made to the Recipient at the Recipient’s last address reflected in the records of the Company. Neither the Recipient nor any of the Recipient’s successors, heirs, assigns or personal representatives shall have any rights or interests in the Company’s common stock or any other rights or interests in the Vested RSUs which are settled in accordance with this Section 2(d).  Notwithstanding anything herein to the contrary, the Company has no obligation to make the payment prescribed by this Section 2(d) if counsel to the Company determines that such payment would violate any applicable law or any rule or regulation of any governmental authority or any rule or regulation of, or agreement of the Company with, any securities exchange or association upon which the Company’s common stock is listed or quoted. The Company shall in no event be obligated to take any affirmative action to comply with any such law, rule, regulation or agreement in order to make such payment.

(ii)The Company shall, upon request, provide Recipient with a “Settlement Option Notice” form, as described herein. A Settlement Option Notice may be used by a Recipient to provide instructions to the Company on settlement of Vested RSUs and any requested tax withholdings therefrom. Unless the Recipient completes, signs and delivers to the Company a Settlement Option Notice in the manner and by the deadline prescribed by the Settlement Option Notice, the Company shall withhold all federal taxes, and may withhold any state, local and other taxes, applicable to the vesting and settlement of Vested RSUs at the time of such settlement. Such withholding shall be at rates required by and otherwise in accordance with applicable laws and regulations. The Company shall obtain the cash necessary for such withholding by reducing the dollar amount paid upon settlement of the Vested RSUs. 

            3.         Restrictions on and Limitations of Restricted Stock Units.

(a)        Restrictions on Transfer.  Except for Restricted Stock Units which transfer to Recipient’s beneficiary upon Recipient’s death, the Restricted Stock Units, whether or not vested, may not be sold, assigned, pledged, exchanged, hypothecated or otherwise transferred, encumbered or disposed of.

(b)        Forfeiture of Restricted Stock Units.  In the event the Recipient’s service as a director or an advisory director of the Company terminates for any reason, other than Retirement, Death or Disability, the Recipient shall, for no consideration, forfeit all Restricted Stock Units which were not vested on such date.

(c)        Rights Associated With Units.  The Restricted Stock Units do not confer any dividend rights, voting rights or any other rights as a shareholder of the Company. The Restricted Stock Units shall be evidenced only by the books of the Company, and no certificate shall be issued in respect thereof.

(d)       Corporate Acts.  The existence of the Restricted Stock Units shall not affect in any way the right or power of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the Company’s capital structure or its business, any merger or consolidation of the Company, any issue of debt or equity securities, the dissolution or liquidation of the Company or any sale, lease, exchange or other disposition of all or any part of its assets or business or any other corporate act or proceeding. The prohibitions of Section 3(a) hereof shall not apply to the transfer of Restricted Stock Units pursuant to a plan of reorganization of the Company.

4.         Securities Regulation.  The Restricted Stock Units may not be sold or otherwise disposed of in any manner that would constitute a violation of any applicable federal or state securities laws.

5.         Service Relationship.  For purposes of this Agreement, the Recipient shall be considered to be a director or an advisory director of the Company as long as the Recipient remains a director or an advisory director of the Company or any successor corporation. Any question as to whether and when there has been a termination of such service, and the cause of such termination, shall be determined by the Company, and its determination shall be final.

6.         Notices.  Any notices or other communications provided for in this Agreement shall be sufficient if in writing and if made in accordance with any form, content and timing requirements provided herein.  In the case of the Recipient, such notices or communica­tions shall be effectively delivered if hand delivered to the Recipient at his principal place of employment or if sent by registered or certified mail to the Recipient at the last address he has filed with the Company.  In the case of the Company, such notices or communica­tions shall be effectively delivered if sent by registered or certified mail to the Company at its principal executive offices.

7.         Construction and Administration.  The Board of Directors of the Company has the power to construe this Agreement.  The Board of Directors of the Company also has the authority, in the exercise of its sole and exclusive discretion, to correct any defect or supply any omission or reconcile any inconsistency in this Agreement in the manner and to the extent it shall deem appropriate.  The determinations and actions of the Board of Directors shall be conclusive.

8.         Binding Effect.  This Agreement shall be binding upon and inure to the benefit of any successors to the Company and all persons lawfully claiming under the Recipient.

9.         Controlling Law.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of Texas.

IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by an officer thereunto duly authorized, and the Recipient has executed this Agreement, all as of the date first above written.

AMERICAN NATIONAL GROUP, INC.

By:    ________________________________________
James E. Pozzi
President and Chief Executive Officer

________________________________________
«signaturename», Recipient

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00316-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00316-of-00352.parquet"}]]