Document:

ex10-1.htm

    
      

    

    Exhibit
10.1

    

    EMPLOYMENT
AGREEMENT

    

    

    This EMPLOYMENT AGREEMENT (this
“Agreement”), dated as of December 30, 2008, is made and entered into by and
between MILLER INDUSTRIES,
INC., a Tennessee corporation (the “Company”), and WILLIAM G. MILLER (the
“Employee”).

    

    W I T N E S S E T H:

    

    WHEREAS, Employee and the
Company entered into an employment agreement (the “Original Agreement”) as of
July 8, 1997, embodying the terms of Employee’s employment and pursuant to which
Employee has been serving as Chairman of the Board of Directors and Co-Chief
Executive Officer of the Company; and

    

    WHEREAS, this Agreement amends
and restates the Original Agreement as of the Effective Date in order, inter
alia, to evidence formal compliance with Section 409A of the Internal Revenue
Code of 1986, as amended, and the guidance thereunder (such Section, referenced
herein as “Section 409A”; and such code, referenced herein as the
“Code”).

    

    NOW, THEREFORE, in
consideration of these premises, and of the mutual covenants and agreements
hereinafter set forth, the parties agree as follows:

    

    1.           
Term.  Employee’s
employment under this Agreement shall commence on the date hereof and shall
continue until terminated in accordance with the provisions of Section 4 below (the
“Employment Period”).

    

    2.           
Salary
and Benefits.

    

    2.1           During
the Employment Period, for all services rendered by the Employee under this
Agreement, the Company shall pay the Employee a base salary per annum (the “Base
Salary”) that shall be agreed to by the Company and the Employee from time to
time, but which shall in any event be substantially the same as the base salary
of the Co-Chief Executive Officer of the Company or the Chief Executive Officer
of the Company if other than Employee, payable in accordance with the customary
payroll policy of the Company in effect at the time such payment is
made.

    

    2.2           In
addition to the Base Salary, the Employee shall be entitled to participate in
any of the Company’s present and future stock or cash based bonus plans that are
generally available to its senior executives, as such plans may exist or be
changed from time to time at the discretion of the Company.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    2.3           The
Employee shall be entitled to such vacation time, fringe benefits, insurance
coverage, and other benefits as the Company generally provides to its executive
officers from time to time.

    

    3.           
Duties.  The Employee
shall serve the Company as its Chairman of the Board (“Chairman”) and as its
Co-Chief Executive Officer (“CCEO”) (the Employee may cease serving as the CCEO
at his discretion without terminating or otherwise affecting this
Agreement).  As Chairman and CCEO, the duties of the Employee shall
include but not be limited to the supervision of the business affairs of the
Company and such other duties as are customarily performed by comparably
situated officers and as may be assigned from time to time by the Company’s
Board of Directors (the “Board”).  During the term of this Agreement,
the Employee shall devote his primary time, attention and skill to his duties
hereunder; faithfully and diligently perform such duties and exercise such
powers as may be from time to time assigned to or vested in him by the Board;
obey the directions of the Board; and use his best efforts to promote the
interests of the Company.  The Company acknowledges, however, that the
Employee may pursue other business related interests so long as they do not
interfere with the performance of Employee’s duties for the
Company.  The Employee may be required in pursuance of his duties
hereunder, to perform services for any company controlling, controlled by or
under common control with the Company (such companies hereinafter collectively
called “Affiliates”) for some period of time and from time to
time.  The Employee shall obey all policies of the
Affiliates.

    

    4.           
Termination.  Unless terminated
in accordance with the following provisions to this Section 4, the
Company shall continue to employ the Employee and the Employee shall continue to
work for the Company, during the Employment Period.

    

    4.1           The
Company may terminate the Employee’s employment at any time for Cause.  “Cause”
shall mean (i) willful malfeasance or gross negligence or (ii) knowingly
engaging in wrongful conduct resulting in detriment to the good will of the
Company or damage to the Company’s relationships with its customers, suppliers
or employees.  Upon termination pursuant to this Section 4.1, the
Company shall pay the Employee any salary earned and unpaid to the date of
termination, and any outstanding funds advanced by the Company to or on behalf
of the Employee shall become immediately due and payable.

    

    4.2           In
the event the Employee dies or becomes mentally or physically handicapped or
disabled so as to be unable to perform his duties during the Employment Period,
this Agreement shall automatically terminate with no further liability on the
part of the Company.

    

    4.3           This
Agreement may be
terminated by either party upon three (3) years
prior written notice of termination, with or without Cause. If the Company
breaches this Agreement by terminating Employee’s employment without Cause
without notice or prior to the end of the three-year notice period, the Employee
shall be entitled to receive, as damages payable as a result of, and arising
from, a breach of this Agreement, the compensation and benefits set forth in (a)
through (c) below.  All compensation payable under (a) through (c)
below shall be subject to the terms of Section 8.10, which may delay the payment
of the compensation for up to 6 months.

     

    
      
         

      

      
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    (a)           Base
Salary.  The Employee will continue to receive his current Base
Salary (subject to withholding of all applicable taxes) through the end of the
thirty-six-month notice period, payable in normal payroll periods, in the same
manner as it was being paid as of the date of termination, and no less
frequently than monthly.  For purposes hereof, the Employee’s “current
Base Salary” shall be the highest rate in effect during the twelve-month period
prior to the Employee's termination.

     

    (b)           Bonus.  The
Employee shall be paid bonus payments from the Company in each month beginning
with the month following the month in which his employment is terminated and
ending with the month in which falls the last day of the thirty-six month notice
period, in an amount for each such month equal to one-twelfth of the average
(“Average
Bonus”) of the bonuses earned by him for the three calendar years
immediately preceding the year in which such termination occurs.  Any
bonus amounts that the Employee had previously earned from the Company but which
may not yet have been paid as of the date of termination shall not be affected
by this provision.  Employee shall also receive, within 60 days after
the date of his termination, a prorated bonus for any uncompleted fiscal year at
the date of termination equal to the Average Bonus multiplied by the number of
days he worked in such year divided by 365 days.

    

    (c)           Health and Life Insurance
Coverage.  The Company shall provide Employee (and any spouse
or dependents covered at the time of the Employee’s termination) with medical,
dental, life insurance and other health benefits (pursuant to the same Company
Plans that are medical, dental, life insurance and other health benefit plans
and that are in effect for active employees of the Company), for the remainder
of the thirty-six (36) month notice period following the date of Employee’s
termination of employment.  The coverages provided for in this
paragraph shall be applied against and reduce the period for which COBRA will be
provided.

     

    (1)           To
the extent that such medical, dental or other health benefit plan coverage is
provided under a self-insured plan maintained by the Company (within the meaning
of Section 105(h) of the Code):

     

    (X)           the
charge to Employee for each month of coverage will equal the monthly COBRA
charge established by the Company for such coverage in which the Employee or the
Employee’s spouse or dependents (as applicable) are enrolled from time to time,
based on the coverage generally provided to salaried employees (less the amount
of any administrative charge typically assessed by the Company as part of its
COBRA charge), and Employee will be required to pay such monthly charge in
accordance with the Company’s standard COBRA premium payment requirements;
and

     

    (Y)           on
the date of Employee’s termination of employment (subject to delay under
Paragraph 8 below), the Company will pay Employee a lump sum in cash equal, in
the aggregate, to the monthly COBRA charge established by the Company for the
coverage being provided on Employee’s termination date to the Employee and, if
applicable, his spouse and dependents, for each month of coverage in the
36-month period. For this purpose, the Company’s monthly COBRA charge will be
increased by 10% on each January in the projected payment period and such
increased amount shall apply to each successive month in the calendar year in
which the increase became applicable.

     

    
      
         

      

      
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    (2)           To
the extent that such medical, dental or other health benefit plan coverage is
provided under a fully-insured medical reimbursement plan (within the meaning of
Section 105(h) of the Code), there will be no charge to Employee for such
coverage.

     

    4.4           In
the event of a “Change in Control” (as such term is defined in the Company’s
Stock Option and Incentive Plan), the Employee may terminate this Agreement upon
sixty (60) days notice of termination.

    

    5.           
Competition.  The Employee
agrees that during the term of this Agreement, the Employee will not directly or
indirectly, whether or not for compensation and whether or not as an employee,
be engaged in any business competing with or which may compete with the business
of the Company (or with any business of any Affiliate for which the Employee
performed services hereunder) within any state, region or locality in which the
Company or such Affiliate is then doing business or marketing its products, as
the business of the Company or such Affiliate may then be constituted and in
which the Employee has been involved.  This agreement not to compete
shall be applicable for three (3) years from the date of termination of
employment hereunder by the Employee in breach of this Agreement or by the
Company for Cause, notwithstanding that the Employee shall not be entitled to
any compensation hereunder from and after any such termination.

    

    For purposes of this Agreement, the
Employee shall be deemed to be engaged in such a business if he is an employee,
officer, director, or partner, of any person, partnership, corporation, trust or
other entity which is engaged in such a business or if he directly or indirectly
performs services for such entity or if he or any member of his immediate family
beneficially owns an equity interest, or interest convertible into equity, in
such entity; provided, however, that the foregoing shall not prohibit the
Employee or a member of his immediate family from owning, for the purpose of
passive investment, less than five percent (5%) of any class of securities of a
publicly held corporation.

    

    The Employee acknowledges that his
services to be rendered to the Company in the aforesaid capacity are of a
special and unusual character which have a unique value to the Company, the loss
of which cannot adequately be compensated by damages in an action at
law.  In view of (i) the unique value to the Company of the services
of the Employee for which the Company has employed the Employee; and (ii) the
confidential information to be obtained by or disclosed to the Employee as an
employee of the Company; and as a material inducement to the Company to employ
the Employee and to pay to the Employee the compensation for such services to be
rendered for the Company by the Employee, the Employee covenants and agrees the
Company shall be entitled to equitable relief to the full extent available under
the applicable law.

     

    
      
         

      

      
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    6.           
Confidentiality.  The Employee
shall not divulge or communicate to any person (except in performing his duties
under this Agreement) or use for his own purposes trade secrets, confidential
commercial information or any other information, knowledge or data of the
Company or of any of its Affiliates which is not generally known to the public
and shall use his best efforts to prevent the publication or disclosure by any
other person of any such secret, information, knowledge or data.  All
documents and objects made, compiled, received, held or used by the Employee
while employed by the Company in connection with the business of the Company
shall be and remain the Company’s property and shall be delivered by the
Employee to the Company upon the termination of the Employee’s employment or at
any earlier time requested by the Company.

    

    7.           
Ownership
of Confidential Information.  The Employee
hereby agrees that any and all improvements, inventions, discoveries, formulas,
processes, methods, know-how, confidential data, trade secrets and other
proprietary information (collectively “Work Product”) within the scope of any
business of the Company or any Affiliate which the Employee may conceive or make
or has conceived or made during his employment with the Company shall be and are
the sole and exclusive property of the Company, and that the Employee shall,
whenever requested to do so by the Company, at its expense, execute and sign any
and all applications, assignments or other instruments and do all other things
which the Company may deem necessary or appropriate (i) in order to apply for,
obtain, maintain, enforce or defend letters patent of the United States or any
foreign country for any Work Product, or (ii) in order to assign, transfer,
convey or otherwise make available to the Company the sole and exclusive right,
title and interest in and to any Work Product.

    

    8.           
Miscellaneous.

    

    8.1           Notice.  Any notice or
other communication required or permitted under this Agreement shall be
effective only if it is in writing and delivered personally or sent by
registered or certified mail, postage prepaid, addressed as
follows:

    

    
      
        	
                If
      to the Company:

              	
                Miller
      Industries, Inc.

              
	 
      	
                P.O.
      Box 120

              
	 
      	
                8503
      Hilltop Drive

              
	 
      	
                Ooltewah,
      Tennessee 37363

              
	 
      	
                Attention:  President

              
	 
      	 
      
	
                If
      to the Employee:

              	
                William
      G. Miller

              
	 
      	
                1025
      Abingdon Lane

              
	 
      	
                Alpharetta,
      Georgia  30202

              

      

    

    

    or to
such other address as any party may designate by notice to the others, and shall
be deemed to have been given upon receipt.

    

    8.2           Entire
Agreement.  This Agreement
constitutes the entire agreement between the parties hereto with respect to the
Employee’s employment by the Company, and supersedes and is in full substitution
for any and all prior understandings or agreements with respect to the
Employee’s employment.

     

    
      
         

      

      
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    8.3           Amendment.  This Agreement
may be amended only by an instrument in writing signed by the parties hereto,
and any provision hereof may be waived only by an instrument in writing signed
by the party or parties against whom or which enforcement of such waiver is
sought.  The failure of either party hereto to comply with any
provision hereof shall in no way affect the full right to require such
performance at any time thereafter, nor shall the waiver by either party hereto
of a breach of any provision hereof be taken or held to be a waiver of any
succeeding breach of such provision, or a waiver of the provision itself, or a
waiver of any other provision of this Agreement.

    

    8.4           Binding
Effect.  This Agreement is
binding on and is for the benefit of the parties hereto and their respective
successors, heirs, executors, administrators and other legal
representatives.  Neither this Agreement nor any right or obligation
hereunder may be assigned by the Employee or the Company, except for assignment
by the Company to any wholly owned subsidiary.

    

    8.5           Severability
and Modification.  If any provision
of this Agreement or portion thereof is so broad, in scope or duration, so as to
be unenforceable, such provision or portion thereof shall be interpreted to be
only so broad as is enforceable.  In addition, to the extent that any
provision of this Agreement as applied to either party or to any circumstances
shall be adjudged by a court of competent jurisdiction to be void or
unenforceable, the same shall in no way affect any other provision of this
Agreement or the validity or enforceability of this Agreement.

    

    8.6           Cost of
Litigation.  In the event
there is any litigation between the Company or its successors or assigns and the
Employee or his heirs or representatives concerning or arising out of this
Agreement, the party prevailing in such litigation shall be reimbursed for all
costs and expenses (including, but not limited to, reasonable attorneys’ fees)
incurred in connection with such litigation.

    

    8.7           Interpretation.  This Agreement
shall be interpreted, construed and governed by and under the laws of the State
of Tennessee.  If any provision of this Agreement is deemed or held to
be illegal, invalid, or unenforceable under present or future laws effective
during the term hereof, this Agreement shall be considered divisible and
inoperative as to such provision to the extent it is deemed to be illegal,
invalid or unenforceable, and in all other respects this Agreement shall remain
in full force and effect; provided, however, that if any provision of this
Agreement is deemed or held to be illegal, invalid or unenforceable there shall
be added hereto automatically a provision as similar as possible to such
illegal, invalid or unenforceable provision as shall be legal, valid or
enforceable.  Further, should any provision contained in this
Agreement ever be reformed or rewritten by any judicial body of competent
jurisdiction, such provision as so reformed or rewritten shall be binding upon
the Employee and the Company.

     

    
      
         

      

      
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    8.8           Counterparts.  This Agreement
may be executed in several counterparts, each of which shall be deemed an
original, but all of which shall constitute one and the same
instrument.

    

    8.9           No
Conflicting Agreement.  The Employee
represents and warrants that he is not party to any agreement, contract or
understanding which would prohibit him from entering into this Agreement or
performing fully his obligations hereunder.

    

    8.10         Section
409A.

     

    (a)          
 Expense
Reimbursements.  To the extent that any expense reimbursement
provided for by this Agreement does not qualify for exclusion from Federal
income taxation, the Company will make the reimbursement only if Employee incurs
the corresponding expense during the term of this Agreement or the period of two
years thereafter and submits the request for reimbursement no later than two
months prior to the last day of the calendar year following the calendar year in
which the expense was incurred so that the Company can make the reimbursement on
or before the last day of the calendar year following the calendar year in which
the expense was incurred; the amount of expenses eligible for such reimbursement
during a calendar year will not affect the amount of expenses eligible for such
reimbursement in another calendar year, and the right to such reimbursement is
not subject to liquidation or exchange for another benefit from the
Company.

     

    (b)          
 Meaning of
Termination of Employment.  Solely as
necessary to comply with Section 409A, for purposes of Section 4, “termination of employment”
or “employment termination” or similar terms shall have the same meaning as
“separation from service” under Section 409A(a)(2)(A)(i) of the
Code.

     

    (c)          
 Installment
Payments.  For purposes of
Section 4.3 with respect to amounts payable in the event of termination of
employment by the Company without Cause, each such payment is a separate payment
within the meaning of the final regulations under Section 409A.  Each
such payment that is made within 2-1/2 months following the end of the year that
contains the date of Employee’s termination of employment is intended to be
exempt from Section 409A as a short-term deferral within the meaning of the
final regulations under Section 409A, each such payment that is made later than
2-1/2 months following the end of the year that contains the date of Employee’s
termination of employment is intended to be exempt under the two-times
separation pay exception of Treasury Reg. § 1.409A-1(b)(9)(iii) up to the
limitation on the availability of such exception specified in such regulation,
and each such payment that is made after the two-times separation pay exception
ceases to be available shall be subject to delay in accordance with Section
8.10(d) below.

     

    (d)          
 Six Month
Delay.  This Agreement
will be construed and administered to preserve the exemption from Section 409A
of payments that qualify as a short-term deferral or that qualify for the
two-times separation pay exception.  With respect to other amounts
that are subject to Section 409A, it is intended, and this Agreement will be so
construed, that any such amounts payable under this Agreement and the Company’s
and Employee’s exercise of authority or discretion hereunder shall comply with
the provisions of Section 409A and the treasury regulations relating thereto so
as not to subject Employee to the payment of interest and additional tax that
may be imposed under Section 409A.  As a result, in the event Employee
is a “specified employee” on the date of Employee’s termination of employment
(with such status determined by the Company in accordance with rules established
by the Company in writing in advance of the “specified employee identification
date” that relates to the date of Employee’s termination of employment, or in
the absence of such rules established by the Company, under the default rules for identifying specified employees
under Section 409A), any payment that is subject to Section 409A, that is
payable to Employee in connection with Employee’s termination of employment,
shall not be paid earlier than six months after such termination of employment
(if Employee dies after the date of Employee’s termination of employment but
before any payment has been made, such remaining payments that were or could
have been delayed will be paid to Employee’s estate without regard to such
six-month delay).

     

    
      
         

      

      
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    (e)          
 Tax
Treatment.  This Agreement will be construed and administered
to preserve the exemption from Section 409A of payments that qualify as
short-term deferrals pursuant to Treas. Reg. §1.409A-1(b)(4) or that qualify for
the two-times compensation exemption of Treas. Reg.
§1.409A-1(b)(9)(iii).  Employee acknowledges and agrees that the
Company has made no representation to Employee as to the tax treatment of the
compensation and benefits provided pursuant to this Agreement and that Employee
is solely responsible for all taxes due with respect to such compensation and
benefits.

     

    

    IN WITNESS WHEREOF, the
Company and the Employee have executed this Agreement as of the date first
written above.

    

    

    
      
        
          
            
              
                
                  
                    
                      	 
      	MILLER
      INDUSTRIES, INC.	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                              By:

                            	
                              /s/ Jeffrey I. Badgley

                            	 
      
	 
      	 
      	
                              Jeffrey
      I. Badgley

                            	 
      
	 
      	 
      	
                              President
      and Co-Chief Executive Officer

                            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                              EXECUTIVE

                            	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	/s/ William G. Miller	 
      
	 
      	William
      G. Miller	 
      

                    

                  

                

              

            

          

        

      

    

     

     

     

    -8-ex10-2.htm

    
      
        

      
Exhibit 10.2

     

    EMPLOYMENT
AGREEMENT

     

              THIS
EMPLOYMENT AGREEMENT (this “Agreement”) is made
and entered into effective as of the 30th day of December, 2008 (the “Effective Date”), by
and between Miller Industries,
Inc., a corporation organized under the laws of the State of Tennessee,
USA (the “Company”), and Jeffrey I. Badgley (the “Executive”).

     

              WHEREAS,
Executive and the Company entered into an employment agreement (the “Original Agreement”)
as of September, 1998, embodying the terms of Executive’s employment and
pursuant to which Executive has been serving as President and Co-Chief Executive
Officer of the Company; and

     

              WHEREAS,
this Agreement amends and restates the Original Agreement as of the Effective
Date in order, inter alia, to evidence formal compliance with Section 409A of
the Internal Revenue Code of 1986, as amended, and the guidance thereunder (such
Section, referenced herein as “Section 409A”; and
such code, referenced herein as the “Code”).

     

              NOW,
THEREFORE, in consideration of the premises and mutual covenants herein and for
other good and valuable consideration, the parties hereto agree as
follows:

     

              1.          Employment.
Subject to the terms and conditions of this Agreement, Executive shall be
employed by the Company as President and Co-Chief Executive Officer, and shall
perform such duties and functions for the Company and any company controlling,
controlled by or under common control with the Company (such companies
hereinafter collectively called “Affiliates”) as shall
be specified from time to time by the Chairman of the Board; Executive hereby
accepts such employment and agrees to perform such executive duties as may be
assigned to him.

     

              2.          Duties.
Executive shall devote his full business related time and best efforts to
accomplishing such executive duties at such locations as may be requested by the
Chairman of the Board of the Company. While employed by the Company, Executive
shall not serve as a principal, partner, employee, officer or director of, or
consultant to, any other business or entity conducting business for profit
without the prior written approval of the Chairman of the Board of the Company.
In addition, under no circumstances will Executive have any financial interest
in any competitor of the Company; provided, however, that Executive may invest
in no more than 2% of the outstanding stock or securities of any competitor
whose stock or securities are traded on a national stock exchange of any
country.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

              3.          
Term.
The term of this Agreement shall be for a rolling, three (3) year term
commencing on the date hereof, and shall be deemed automatically (without
further action by either the Company or the Executive) to extend each day for an
additional day such that the remaining term of the Agreement shall continue to
be three (3) years; provided, however, that on Executive’s 62nd
birthday this Agreement shall cease to extend automatically and, on such date,
the remaining “term” of this Agreement shall be three (3) years; provided,
further, that the Company may, by notice to the Executive, cause this Agreement
to cease to extend automatically and, upon such notice, the “Term” of this
Agreement shall be three (3) years following such notice.

     

              4.          
Compensation
and Benefits. As compensation for his services during the Term of this
Agreement, Executive shall be paid and receive the amounts and benefits set
forth in subsections (a), (b), and (c) below:

     

              (a)          Base
Salary. An annual base salary (“Base Salary”) of
$312,033 prorated for any partial year of employment. Executive’s Base Salary
shall be subject to annual review, for adjustments at such time as the Company
conducts salary reviews for its executive officers generally. Executive’s salary
shall be payable in accordance with the Company’s regular payroll practices in
effect from time to time for executive officers of the Company.

     

              (b)          Bonus.
In addition to the Base Salary, the Executive shall be entitled to participate
in any of the Company’s present and future stock or cash based bonus plans that
are generally available to its executive officers, as such plans may exist or be
changed from time to time at the discretion of the Company

     

              (c)          Other
Benefits. Executive shall be entitled to vacation with pay, life
insurance, health insurance, fringe benefits, and such other employee benefits
generally made available by the Company to its executive officers, in accordance
with the established plans and policies of the Company, as in effect from time
to time.

     

              5.         
 Termination.

     

              (a)          By
Executive. Executive may voluntarily terminate his employment hereunder
at any time, to be effective 60 days after delivery to the Company of his
signed, written resignation; Company may accept said resignation and pay
Executive in lieu of waiting for passage of the notice period. Executive hereby
agrees and acknowledges that if he voluntarily resigns from his employment prior
to the end of the Term of this Agreement, then he shall be entitled to no
payment or compensation whatsoever from the Company under this Agreement, other
than as may be due him through his last day of employment.

    
      
         

      

      
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(b)        By
Company. Subject to the terms of this Paragraph and Paragraph 5(c) below,
the Company may terminate Executive’s employment hereunder, in its sole
discretion, whether with or without just cause (as defined in Paragraph
5(b)(viii) below and subject to the notice periods described therein), at any
time upon written notice to Executive. If the Company terminates Executive’s
employment for just cause (as defined in (viii) below), Executive shall be
entitled to no payment or compensation whatsoever from the Company under this
Agreement, other than as may be due him through his last day of employment. If,
prior to the end of the Term of this Agreement, the Company terminates
Executive’s employment without just cause (as defined in (viii) below), the
Executive shall be entitled to receive, as damages payable as a result of, and
arising from, a breach of this Agreement, the compensation and benefits set
forth in (i) through (iv) below. Except to the extent provided in (vii) below,
Executive shall not be required to mitigate damages by reducing the amounts he
is entitled to receive hereunder by earnings from subsequent employment. The
time periods in (i) through (iii) below shall be the lesser of the 36-month
period stated therein or the time period remaining from the date of Executive’s
termination to the end of the Term of this Agreement. All compensation payable
under (i) through (iv) below shall be subject to the terms of Paragraph 8 below,
which may delay the payment of the compensation for up to 6 months.

    
      
        	 
      	 
      
	 
      	
                          
       (i)          Base Salary.
      The Executive will continue to receive his current salary (subject to
      withholding of all applicable taxes and any amounts referred to in
      paragraph (iii) below) for a period of thirty-six (36) months from his
      date of termination, payable in normal payroll periods, in the same manner
      as it was being paid as of the date of termination, and no less frequently
      than monthly. For purposes hereof, the Executive’s “current salary” shall
      be the highest rate in effect during the twelve-month period prior to the
      Executive’s termination.

              
	 
      	 
      
	 
      	
                        
         (ii)         Bonus. The
      Executive shall be paid bonus payments from the Company in each of the
      thirty-six (36) months following the month in which his employment is
      terminated in an amount for each such month equal to one-twelfth of the
      average (“Average Bonus”)
      of the bonuses earned by him for the three calendar years immediately
      preceding the year in which such termination occurs. Any bonus amounts
      that the Executive had previously earned from the Company but which may
      not yet have been paid as of the date of termination shall not be affected
      by this provision. Executive shall also receive, within 60 days after the
      date of his termination, a prorated bonus for any uncompleted fiscal year
      at the date of termination equal to the Average Bonus multiplied by the
      number of days he worked in such year divided by 365
  days.

              
	 
      	 
      
	 
      	
                         
        (iii)        Health and Life
      Insurance Coverage. The Company shall provide Executive (and any
      spouse or dependents covered at the time of the Executive’s termination)
      with medical, dental, life insurance and other health benefits (pursuant
      to the same Company Plans that are medical, dental, life insurance and
      other health benefit plans and that are in effect for active employees of
      the Company), for thirty-six (36) months following the date of Executive’s
      termination of employment. The coverages provided for in this paragraph
      shall be applied against and reduce the period for which COBRA will be
      provided.

              

      

    

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

     

    
      
        
          
            	 
      	 
      	 
      
	 
      	 
      	
                                  (1)       
      To the extent that such medical, dental or other health benefit plan
      coverage is provided under a self-insured plan maintained by the Company
      (within the meaning of Section 105(h) of the
  Code):

                  

          

        

      

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        	 
      	 
      	 
      	 	
                                          (X)          the
      charge to Executive for each month of coverage will equal the monthly
      COBRA charge established by the Company for such coverage in which the
      Executive or the Executive’s spouse or dependents (as applicable) are
      enrolled from time to time, based on the coverage generally provided to
      salaried employees (less the amount of any administrative charge typically
      assessed by the Company as part of its COBRA charge), and Executive will
      be required to pay such monthly charge in accordance with the Company’s
      standard COBRA premium payment requirements; and

                              
	 
      	 
      	 
      	 	 
      
	 
      	 
      	 
      	 	
                                          (Y)       
         on the date of Executive’s termination of employment
      (subject to delay under Paragraph 8 below), the Company will pay Executive
      a lump sum in cash equal, in the aggregate, to the monthly COBRA charge
      established by the Company for the coverage being provided on Executive’s
      termination date to the Executive and, if applicable, his spouse and
      dependents, for each month of coverage in the 36-month period. For this
      purpose, the Company’s monthly COBRA charge will be increased by 10% on
      each January in the projected payment period and such increased amount
      shall apply to each successive month in the calendar year in which the
      increase became applicable.

                              
	 
      	 
      	 
      	 	 
      
	 
      	 
      	
                                              (2)       
      To the extent that such medical, dental or other health benefit plan
      coverage is provided under a fully-insured medical reimbursement plan
      (within the meaning of Section 105(h) of the Code), there will be no
      charge to Executive for such coverage.

                              
	 
      	 
      	 
      	 	 
      
	 
      	
                                          
       (iv)         Stock Options and
      Other Equity Awards. As of Executive’s date of termination, all
      outstanding stock options, stock appreciation rights, restricted stock
      units, and other equity awards granted to Executive under the Stock Option
      and Incentive Plan and any other Company stock plans (the “Stock Option
      Plans”) shall become 100% vested and immediately exercisable. To
      the extent necessary, the provisions of this paragraph (iv) shall
      constitute an amendment of the Executive’s stock option or other equity
      compensation agreements under the Stock Option Plans.

                              
	 
      	 
      	 
      	 	 
      
	 
      	
                                        
         (v)          Effect of
      Death. In the event of the Executive’s death after his termination
      of employment by the Company under this Paragraph 5(b), the benefits
      payable under (i) and (ii) of this Paragraph 5(b) shall continue for a
      period of twelve (12) months, or, if shorter, until the end of the Term of
      this Agreement; provided, however, such payments will be paid in a lump
      sum payment within 60 days following the Executive’s death, to the
      Executive’s surviving spouse, or, if none, to the Executive’s estate. In
      addition, in the event of Executive’s death, any dependent coverage in
      effect under (iii) of this Paragraph 5(b) shall continue, for a period of
      12 months, or, if shorter, until the end of the Term of this
      Agreement.

                              

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    

    
      
        	 
      	 
      	 
      	 
      
	 
      	
                          (vi)         Coordination with
      Change in Control Agreement. Notwithstanding any provision of this
      Agreement to the contrary, if Executive’s employment is terminated
      (whether by the Company or by Executive) under circumstances that would
      entitle him to receive benefits under his agreement with the Company
      providing compensation and benefits for termination following a “change in
      control” of the Company (as defined in such agreement), then any such
      termination shall be treated under this Agreement as a termination by the
      Company without just cause and the Executive shall be entitled to the
      compensation and benefits set forth in (i) through (iv) above for the time
      periods provided in this Paragraph 5(b), and such amounts shall be treated
      as damages payable as a result of, and arising from, a breach of this
      Agreement.

              
	 
      	 
      
	 
      	
                          (vii)        Mitigation. If
      Executive becomes entitled to compensation and benefits under this
      Paragraph 5(b) and such payments would be considered to be severance
      payments contingent upon a change in control under Code Section 280G,
      Executive shall be required to mitigate damages (but only with respect to
      amounts that would be treated as severance payments under Code Section
      280G) by reducing the amount of severance payments he is entitled to
      receive by any compensation and benefits he earns from subsequent
      employment (but shall not be required to seek such
      employment).

              
	 
      	 
      
	 
      	
                          (viii)       “Just Cause”.
      For purposes of this Agreement, the phrase “just cause” shall mean: (A)
      Executive’s material fraud, malfeasance, gross negligence, or willful
      misconduct with respect to business affairs of the Company which is
      directly or materially harmful to the business or reputation of the
      Company or any subsidiary of the Company; (B) Executive’s conviction
      of or failure to contest prosecution for a felony or a crime involving
      moral turpitude; or (C) Executive’s material breach of this Agreement. A
      termination of Executive for just cause based on clause (A) or (C) of the
      preceding sentence shall take effect 30 days after the Executive receives
      from Company written notice of intent to terminate and Company’s
      description of the alleged cause, unless Executive shall, during such
      30-day period, remedy the events or circumstances constituting cause;
      provided, however, that such termination shall take effect immediately
      upon the giving of written notice of termination of just cause under any
      clause if the Company shall have determined in good faith that such events
      or circumstances are not remediable (which determination shall be stated
      in such notice).

              

      

    

     

      
      
  (c)     By
Death. If Executive’s employment is terminated due to Executive’s death,
the Executive’s surviving spouse, or if none, his estate, shall receive the
benefits payable under (i) and (ii) of Paragraph 5(b) above; provided, however,
such payments shall be for a period of 12 months rather than 36 months and such
payments shall be made in a lump sum payment within 60 days of the Executive’s
death.

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

     

              (d)         For
Disability. If Executive’s employment is terminated due to Executive’s
disability (as defined in the Company’s long-term disability plan or insurance
policy, or if no such plan or policy, as determined in good faith by the
Company), Executive shall be entitled to the benefits payable or to be provided
under (i), (ii), (iii) and (iv) of Paragraph 5(b); provided, however, the
benefits under (i), (ii) or (iii) of Paragraph 5(b) shall be payable or to be
provided for a period of 24 months. Executive or his estate, as the case may be,
shall not by operation of this paragraph forfeit any rights in which he is
vested at the time of his death or disability.

     

              (e)         Survival
of Restrictive Covenants. Upon termination of Executive’s employment for
any reason whatsoever (whether voluntary on the part of Executive, for just
cause, or other reasons), the obligations of Executive pursuant to Paragraphs 6
and 7 hereof shall survive and remain in effect for the periods described in
Paragraph 6.

     

              6.          Competition,
Confidentiality, and Nonsolicitation. Executive agrees to be bound by the
terms and conditions of the Noncompetition Agreement attached hereto as Exhibit
“A”, which is hereby made a part of this Agreement.

     

              7.          Injunctive
Relief. The Executive acknowledges that his services to be rendered to
the Company are of a special and unusual character which have a unique value to
the Company, the loss of which cannot adequately be compensated by damages in an
action at law. Executive further acknowledges that any breach of the terms of
Paragraph 6, including Exhibit ”A”, would result in material damage to
the Company, although it might be difficult to establish the monetary value of
the damage. Executive therefore agrees that the Company, in addition to any
other rights and remedies available to it, shall be entitled to obtain an
immediate injunction (whether temporary or permanent) from any court of
appropriate jurisdiction in the event of any such breach thereof by Executive,
or threatened breach which the Company in good faith believes will or is likely
to result in irreparable harm to the Company. The existence of any claim or
cause of action by Executive against the Company, whether predicated on this
Agreement or otherwise, shall not constitute a defense to the enforcement by the
Company of Executive’s agreement under this Paragraph and Paragraph 6
above.

     

              8.          Section
409A.

     

              (a)         Meaning
of Termination of Employment. Solely as necessary to comply with Section
409A, for purposes of Paragraph 5(b) and Paragraph 5(d), “termination of
employment” or “employment termination” or similar terms shall have the same
meaning as “separation from service” under Section 409A(a)(2)(A)(i) of the
Code.

     

              (b)         Installment
Payments. For purposes of Paragraph 5(b) with respect to amounts payable
in the event of termination of employment by the Company without just cause and
Paragraph 5(d) with respect to amount payable in the event of termination of
Executive’s employment for Disability, each such payment is a separate payment
within the meaning of the final regulations under Section 409A. Each such
payment that is made within 2-1/2 months following the end of the year that
contains the date of Executive’s termination of employment is intended to be
exempt from Section 409A as a short-term deferral within the meaning of the
final regulations under Section 409A, each such payment that is made later than
2-1/2 months following the end of the year that contains the date of Executive’s
termination of employment is intended to be exempt under the two-times
separation pay exception of Treasury Reg. § 1.409A-1(b)(9)(iii) up to the
limitation on the availability of such exception specified in such regulation,
and each such payment that is made after the two-times separation pay exception
ceases to be available shall be subject to delay in accordance with Paragraph
8(c) below.

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

     

              (c)          Six Month
Delay. This Agreement will be construed and administered to preserve the
exemption from Section 409A of payments that qualify as a short-term deferral or
that qualify for the two-times separation pay exception. With respect to other
amounts that are subject to Section 409A, it is intended, and this Agreement
will be so construed, that any such amounts payable under this Agreement and the
Company’s and Executive’s exercise of authority or discretion hereunder shall
comply with the provisions of Section 409A and the treasury regulations relating
thereto so as not to subject Executive to the payment of interest and additional
tax that may be imposed under Section 409A. As a result, in the event Executive
is a “specified employee” on the date of Executive’s termination of employment
(with such status determined by the Company in accordance with rules established
by the Company in writing in advance of the “specified employee identification
date” that relates to the date of Executive’s termination of employment, or in
the absence of such rules established by the Company, under the default rules
for identifying specified employees under Section 409A), any payment that is
subject to Section 409A, that is payable to Executive in connection with
Executive’s termination of employment, shall not be paid earlier than six months
after such termination of employment (if Executive dies after the date of
Executive’s termination of employment but before any payment has been made, such
remaining payments that were or could have been delayed will be paid to
Executive’s estate without regard to such six-month delay).

     

              9.          Miscellaneous.

     

              (a)         Notice.
Any notice or other communication required or permitted under this Agreement
shall be effective only if it is in writing and shall be deemed to have been
duly given when delivered personally or seven days after mailing if mailed first
class by registered or certified mail, postage prepaid, addressed as
follows:

    
      
        
          
            	 
      	 
      	 
      
	 
      	
                    If
      to the Company:

                  	
                    Miller
      Industries, Inc.

                  
	 
      	 
      	
                    P.O.
      Box 120

                  
	 
      	 
      	
                    8503
      Hilltop Drive

                  
	 
      	 
      	
                    Ooltewah,
      Tennessee 37363

                  
	 
      	 
      	
                    Attention:
      Chairman of the Board

                  
	 	 	 
	 
      	
                    If
      to the Executive:

                  	
                    Jeffrey
      I. Badgley

                  
	 
      	 
      	
                    1905
      Stoney Creek Drive

                  
	 
      	 
      	
                    Chattanooga,
      Tennessee 37421

                  

          

        

      

    

     

    or to
such other address as any party may designate by notice to the
others.

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

     

              (b)          Entire
Agreement. This Agreement constitutes the entire agreement between the
parties hereto with respect to the Executive’s employment by the Company, and
supersedes and is in full substitution for any and all prior understandings or
agreements with respect to the Executive’s employment.

     

              (c)          Amendment.
This Agreement may be amended only by an instrument in writing signed by the
parties hereto, and any provision hereof may be waived only by an instrument in
writing signed by the party or parties against whom or which enforcement of such
waiver is sought. The failure of either party hereto to comply with any
provision hereof shall in no way affect the full right to require such
performance at any time thereafter, nor shall the waiver by either party hereto
of a breach of any provision hereof be taken or held to be a waiver of any
succeeding breach of such provision, or a waiver of the provision itself, or a
waiver of any other provision of this Agreement.

     

              (d)          Binding
Effect. This Agreement is binding on and is for the benefit of the
parties hereto and their respective successors, heirs, executors, administrators
and other legal representatives. Neither this Agreement nor any right or
obligation hereunder may be assigned by the Executive or the Company, except for
assignment by the Company to any wholly owned subsidiary.

     

              (e)          Severability
and Modification. If any provision of this Agreement or portion thereof
is so broad, in scope or duration, so as to be unenforceable, such provision or
portion thereof shall be interpreted to be only so broad as is enforceable. In
addition, to the extent that any provision of this Agreement as applied to
either party or to any circumstances shall be adjudged by a court of competent
jurisdiction to be void or unenforceable, the same shall in no way affect any
other provision of this Agreement or the validity or enforceability of this
Agreement.

     

              (f)          
Interpretation.
This Agreement shall be interpreted, construed and governed by and under the
laws of the State of Tennessee. Each party irrevocably (i) consents to the
exclusive jurisdiction and venue of the courts of Hamilton County, State of
Tennessee and federal courts in the Eastern District of Tennessee, in any action
arising under or relating to this Agreement (including Exhibit “A” hereto), and
(ii) waives any jurisdictional defenses (including personal jurisdiction and
venue) to any such action. If any provision of this Agreement is deemed or held
to be illegal, invalid, or unenforceable under present or future laws effective
during the term hereof, this Agreement shall be considered divisible and
inoperative as to such provision to the extent it is deemed to be illegal,
invalid or unenforceable, and in all other respects this Agreement shall remain
in full force and effect; provided, however, that if any provision of this
Agreement is deemed or held to be illegal, invalid or unenforceable there shall
be added hereto automatically a provision as similar as possible to such
illegal, invalid or unenforceable provision as shall be legal, valid or
enforceable. Further, should any provision contained in this Agreement ever be
reformed or rewritten by any judicial body of competent jurisdiction, such
provision as so reformed or rewritten shall be binding upon the Executive and
the Company.

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

     

              (g)          Failure
to Enforce. The failure of either party hereto at any time, or for any
period of time, to enforce any of the provisions of this Agreement shall not be
construed as a waiver of such provision(s) or of the right of such party
hereafter to enforce each and every such provision.

     

              (h)          Counterparts.
This Agreement may be executed in several counterparts, each of which shall be
deemed an original, but all of which shall constitute one and the same
instrument.

     

              (i)       
   No
Conflicting Agreement. The Executive represents and warrants that he is
not party to any agreement, contract or understanding which would prohibit him
from entering into this Agreement or performing fully his obligations
hereunder.

     

              IN WITNESS WHEREOF, the
Company and the Executive have executed this Agreement as of the date first
written above.

    
      
        
          	 
      	 
      	 
      	 
      
	 
      	
                  MILLER
      INDUSTRIES, INC.

                	 
      
	 
      	 
      	 
      	 
      
	 
      	
                  By:

                	
                  /s/
      J. Vincent Mish

                	 
      
	 
      	 
      	
                  J.
      Vincent Mish

                	 
      
	 
      	 
      	
                  Chief
      Financial Officer

                	 
      
	 
      	 
      	 
      	 
      
	 
      	
                  EXECUTIVE

                	 
      
	 
      	 
      	 
      	 
      
	 
      	
                  /s/
      Jeffrey I. Badgley

                	 
      
	 
      	
                  Jeffrey
      I. Badgley

                	 
      

        

      

    

     

     

    -9-

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