Exhibit 10.1
CROWN CRAFTS, INC.
KEY EMPLOYEE RETENTION PAYMENT
TRUST AGREEMENT
This Trust Agreement (hereinafter this "Agreement") is entered as of this 14th
day of November, 2000 by and between Crown Crafts, Inc., a Georgia corporation
(hereinafter the "Grantor"), and Branch Banking & Trust Co. (hereinafter the
"Trustee").
WHEREAS the Grantor has experienced significant operating losses, reduced
liquidity, and a steep decline in the value of its equity securities;
WHEREAS, the Grantor has embarked upon a recovery plan to reduce debt and
restore the Grantor to profitability;
WHEREAS, in connection with its recovery plan the Grantor has entered into an
agreement to sell certain of its businesses and assets to Aladdin Manufacturing
Corporation (hereinafter "Aladdin") and in connection therewith has agreed to
render to Aladdin certain services during a transition period after the sale
(the "Aladdin Transaction");
WHEREAS these events are likely to cause increased levels of work and
responsibility for employees of the Grantor while simultaneously reducing their
long-term employment security, professional and financial growth opportunities,
general morale;
WHEREAS, the Grantor is aware that its employees have other employment
opportunities and, due to the foregoing circumstances, may resign their
employment, thereby undermining the Grantor's ability to perform its
obligations, execute its recovery plan, and reorganize its business operations
(the "Reorganization Plan");
WHEREAS, the Grantor has identified certain key employees of the Grantor and its
wholly-owned subsidiaries whose continued employment and effective performance
is especially critical to the performance of the Reorganization Plan
(hereinafter "Key Employees"); and
WHEREAS, the Grantor has determined that it is necessary and in the best
interests of the Grantor to agree to pay certain bonus compensation to the Key
Employees in order to induce them to continue in their employment and to assist
the Grantor in carrying out the Reorganization Plan, subject to and conditioned
upon the continued service of the Key Employees and the Grantor's performance of
certain goals that comprise the Reorganization Plan;
NOW, THEREFORE, the parties hereto do hereby establish the Trust and agree that
the Trust shall be comprised, held, administered, and distributed as follows:
SECTION 1
ESTABLISHMENT OF TRUST
(a) INITIAL DEPOSIT. The Grantor hereby delivers and conveys to
the Trustee an initial deposit of $100 (hereinafter the "Initial Deposit"),
which shall become the principal of the Trust to be held in trust, administered,
and distributed by the Trustee as provided in this Agreement.
(b) IRREVOCABILITY. The Trust hereby established shall be
irrevocable. All contributions to the Trust by the Grantor shall be irrevocable,
and the Grantor retains no reversionary, beneficial, legal, equitable, or other
interest in the property of the Trust.
(c) TRUST ASSETS. The principal of the Trust and any earnings
thereon shall be held separate and apart from other funds of the Grantor and
shall be used exclusively for the benefit of the Key Employees as Beneficiaries
of this Trust, in accordance with and subject to the terms of this Trust.
SECTION 2
ADDITIONAL CONTRIBUTIONS
The Grantor shall make the following additional contributions of cash
to the Trust (hereinafter "Additional Contributions"), which the Trustee shall
hold in trust, administer, and distribute as provided in this Agreement:
(a) ALADDIN CLOSING. At or in connection with the closing of the
Aladdin Transaction, the Grantor shall contribute to the Trust all of the sums
listed on Schedule 1 hereto.
(b) DISCRETIONARY. The Grantor may, in its discretion, from time
to time make other Additional Contributions to the Trust for the benefit of some
or all of the same Key Employees or additional Key Employees (each, a
"Beneficiary" and collectively, the "Beneficiaries"), payments to whom may be
subject to the same, additional, or different conditions.
SECTION 3
SEPARATE ACCOUNTS FOR EACH BENEFICIARY
The Trustee shall establish and maintain a separate account
(hereinafter "Account") for each Beneficiary listed in Schedule 1 and for any
additional Beneficiaries of any other Additional Contributions. Each Additional
Contribution shall be applied to the separate Accounts of such Beneficiaries in
the amounts specified in Schedule 1 and in instructions accompanying any other
Additional Contributions.
SECTION 4
APPLICATION OF INCOME AND FORFEITURES
(a) INCOME. Interest, dividends, and other income shall be
allocated to the Accounts of each Beneficiary in proportion to the respective
values thereof.
(b) FORFEITURES. In the event that any Beneficiary becomes
ineligible, as determined by the Trustee in accordance with Section 8 hereof, to
receive any payments from the Trust, such Accounts shall be forfeited and
allocated among remaining Accounts as follows:
(i) If a forfeited Account is that of Michael H. Bernstein, E.
Randall Chestnut, Rudolph J. Schmatz, or Carl A. Texter
(hereinafter the "Senior Executive Beneficiaries"), it shall
be allocated among the other Senior Executive Beneficiaries'
Accounts in proportion to the relative values of their
respective Accounts. If there are no other Senior Executive
Beneficiaries having Account balances, then any forfeited
Accounts shall be allocated among the Accounts of all other
Beneficiaries in proportion to the relative values of their
respective Accounts.
(ii) If a forfeited Account is that of a Beneficiary other than a
Senior Executive Beneficiary, it shall be allocated among the
Accounts of all other Beneficiaries who are not Senior
Executive Beneficiaries in proportion to relative values of
their respective Accounts. If there are no other Beneficiaries
having Account balances who are not Senior Executive
Beneficiaries, then any forfeited Accounts shall be allocated
among the Accounts of all Senior Executive Beneficiaries in
proportion to the relative values of their respective
Accounts.
(iii) If all remaining Accounts have been forfeited, they shall be
allocated among and distributed to Beneficiaries who have
already received payments in proportion to such payments.
(c) RECONCILIATION OF ACCOUNTS. Periodically, but not less often
than quarterly, the Trustee shall apply all income and expenses currently to all
Accounts and render an accounting to the Grantor. As of the date of any required
payment to any Beneficiary, the Trustee shall determine whether any Accounts
have been forfeited, shall reallocate the balances of forfeited Accounts, and
shall otherwise bring all Accounts current.
(d) ACCRUALS AND CHARGES AFTER PAYMENT DUE DATE. No income or
forfeiture allocation shall accrue and no expenses shall be charged to a payment
between a payment due date and the period, not to exceed two weeks, necessary to
calculate withholdings and issue checks. However, in the event payments are
delayed for other reasons, such as a need to resolve a dispute about a
Beneficiary's entitlement to a payment, allocations shall continue.
SECTION 5
PAYMENT AND ALLOCATION OF FEES AND EXPENSES
(a) TRUSTEE'S FEES. The Trustee shall be entitled to an annual fee
of 100 basis points for the first $2,000,000 of funds in the Trust and 40 basis
points for all additional funds in the Trust. The Trustee shall be entitled to
charge to the Trust as an additional fee $20 for each check issued to a
Beneficiary. Such fees shall be charged to the Trust quarterly in arrears and
shall compensate the Trustee for all services and expenses necessary to perform
its duties hereunder accept as set forth in Paragraph 5(b) below.
(b) EXTRAORDINARY EXPENSES. In the event, that the Trustee
determines that there are substantial questions about its duties as Trustee
and/or the entitlement of a Beneficiary or any other person to property of the
Trust and the Grantor has not at its own expense made available to the Trustee
legal counsel reasonably satisfactory to the Trustee, then the Trustee may
engage outside legal counsel to advise and represent it and the fees and
expenses of such counsel shall be additional expenses of administration that may
be charged to the Trust.
(c) PRIORITY OF CHARGES. All fees and expenses and expenses
authorized by this Section 5 shall be allocated among and charged pro rata to
the various Accounts as follows:
(i) First, to the Initial Deposit made pursuant to Section 1(a)
hereof;
(ii) Second, to all forfeited Accounts not previously reallocated
to other Accounts;
(iii) Third, to all Accounts to the extent of additions thereto from
previous allocations of forfeited Accounts;
(iv) Fourth, to interest, dividend and other income to be applied,
or previously applied, to the Accounts of Beneficiaries who
are not Senior Executive Beneficiaries;
(v) Fifth, to interest, dividend and other income available to be
applied, or previously applied, to the Accounts of Senior
Executive Beneficiaries;
(vi) Sixth, to principal in the Accounts of Senior Executive
Beneficiaries; and
(vii) Seventh, to principal of all other Accounts.
SECTION 6
PAYMENTS TO BENEFICIARIES
The Trustee shall promptly pay each Beneficiary as the dates and/or
other events specified for payment in Schedule 1, provided the Beneficiary has
met all conditions precedent to eligibility as specified in Schedule 1 and
determined in accordance with Section 8.
SECTION 7
TAXES AND TAX FILINGS
(a) WITHHOLDING TAXES. The Grantor represents that all payments to
Beneficiaries of this Trust are to be treated as bonuses payable to employees
and as such are subject to various federal, state, and local withholding taxes.
Calculation, deduction, payment of such taxes and filing of returns and reports
with respect thereto shall be as follows.
(i) As soon as the Trustee can determine the amount of gross
payment to be made to a Beneficiary on or as of any date, it
shall send a report thereof to the Grantor's payroll service
provider, currently ADP, or another payroll service provider
selected by the Trustee (the "Payroll Service Provider");
(ii) The Trustee shall direct the Payroll Service Provider to
compute for each such payment the amounts of all required
deductions and withholdings and to report the amounts thereof
to the Trustee and to the Grantor;
(iii) Based on the report of the Payroll Service Provider, the
Trustee shall distribute the net payments to the Beneficiaries
and shall transfer to the Payroll Service Provider all
withheld taxes and other funds with instructions for the
Payroll Service Provider to pay over such funds to the tax
authorities or other persons entitled thereto along with all
required returns and reports;
(iv) The Trustee shall simultaneously provide a report of such
transactions to the Grantor so that it may timely pay and
report on the employer's shares of all such payments; and
(v) The Trustee shall request that the Payroll Service Provider
provide to the Trustee and the Grantor confirmation that it
has properly deposited all such funds and filed all such
reports and returns.
(b) ALTERNATE PROCEDURE. In the event the Trustee determines there
is a substantial risk that the Payroll Service Provider will not timely and
accurately performed its duties under Paragraph 7(a), the Trustee shall promptly
implement alternative procedures to achieve the legally proper results.
(c) OTHER TAXES. The Trustee shall prepare and file all income,
property and other tax returns for the Trust and shall pay over to the tax
collection authorities all taxes imposed on the Trust. Such payments are
expenses of the Trust to be allocated among Accounts as provided in this
Agreement.
SECTION 8
DETERMINING BENEFICIARIES' ELIGIBILITY TO RECEIVE PAYMENTS
(a) PROOF OF ELIGIBILITY. On or before each due date for a payment
to a Beneficiary, the Trustee shall ascertain, from information provided by the
Grantor or other sources deemed reliable by the Trustee, the names of each
Beneficiary and the original principal amounts due each Beneficiary ("Payment
Information"). Adjustments for allocation of income, expenses of administration,
and forfeited Accounts shall be made by the Trustee. In the event that the
Trustee is not able to obtain the required Payment Information from the Grantor,
the Trustee shall send a notice to each Beneficiary who may be entitled to a
payment, inviting such Beneficiary to submit evidence (such as a paycheck stub
showing that he/she is still employed by the Grantor or Aladdin or an affiliate
of either, as the case may be) and a statement signed by such Beneficiary under
penalty of perjury that all facts represented by him/her are true and that
he/she is entitled to a payment at that time.
(b) PROOF OF INELIGIBILITY. In the event that a Beneficiary's
right to receive payments has terminated, the Trustee shall obtain evidence
thereof from the Grantor or other sources deemed reliable by the Trustee,
identifying any such Beneficiary whose rights have terminated, the facts causing
such termination, and the last known addresses and telephone numbers of such
Beneficiary. The Trustee shall forward to the Beneficiary the Grantor's
certificate or relevant portion thereof by certified mail return receipt
requested or by a courier that provides a proof of delivery and shall advise the
Beneficiary that the Trustee will accept the certificate as true and act
accordingly unless the Beneficiary communicates his/her disagreement in writing
and submits contrary evidence under penalty of perjury.
(c) GRANTOR'S CERTIFICATES. Any certificate by the Grantor
pursuant to this Section 8 shall be executed under penalty of perjury by any two
individuals shown by a certificate of incumbency executed by the Secretary or an
Assistant Secretary of the Grantor to be Chairman of the Board, Chief Executive
Officer, Chief Operating Officer, Chief Financial Officer, or a Vice President
of the Grantor.
SECTION 9
INVESTMENTS
The Grantor hereby directs the Trustee to hold all assets of the Trust,
and any earnings thereon, in a stable value fund of the Trustee's choosing, to
minimize any fluctuation in principal value of the Trust's assets. The assets of
the Trust shall be invested as a single pooled investment fund, with the
separate Accounts for each
Beneficiary being commingled for investment purposes. The Trustee is
specifically authorized to utilize its own proprietary mutual funds to invest
the Trust's assets.
SECTION 10
RESPONSIBILITY OF THE TRUSTEE
(a) STANDARD OF CARE. The Trustee shall act with the care, skill,
prudence and diligence under the circumstances then prevailing that a prudent
person acting in like capacity and familiar with such matters would use in the
conduct of an enterprise of a like character and with like aims; provided,
however, that the Trustee shall incur no liability to any person for any action
taken in reliance upon sworn statements by the Grantor or Beneficiaries as
provided in this Agreement unless such sworn statements are clearly
contradictory, and provided, further, that the Trustee shall not be liable to
any person for any acts or omissions of itself or any of its agents except acts
or omissions that constitute gross negligence, willful misconduct or bad faith.
(b) INDEMNIFICATION. The Grantor hereby agrees to indemnify the
Trustee against, and hold the Trustee harmless from, any and all loss, damage,
penalty, liability, cost, and expense, including without limitation, reasonable
attorneys' fees and disbursements, that may be incurred by, imposed upon, or
asserted against the Trustee by reason of any claim, regulatory proceeding, or
litigation arising from any act done or omitted to be done by any individual or
person with respect to the Trust; provided, however, that the Grantor shall not
be liable for any fees or expenses of attorneys or other professionals incurred
in investigating or defending any such claim unless prior to incurring such
costs the Trustee shall have given the Grantor written notice of the pendency of
such claim.
(c) COUNSEL. The Trustee may consult with legal counsel (who may
also be counsel for the Grantor) with respect to any of its duties or
obligations hereunder and may charge the costs thereof to the Trust to the
extent provided in Paragraph 5(b) above.
(c) AGENTS. The Trustee may, at its own expense, hire agents,
accountants, actuaries, investment advisors, financial consultants or other
professionals to assist it in performing any of its duties or obligations
hereunder.
(d) TRUSTEE POWERS. The Trustee shall have, without exclusion, all
powers conferred on the Trustee by applicable law, unless expressly provided
otherwise herein.
(e) INTERPLEADER. The Trustee shall have the right to institute an
interpleader action for any payments to Beneficiaries or other disbursements
regarding which, in the Trustee's sole discretion, there are conflicting claims.
SECTION 11
RESIGNATION AND REPLACEMENT OF THE TRUSTEE
(a) RESIGNATION. The Trustee may resign at any time by written
notice to the Grantor and Beneficiaries, which notice shall provide that it will
be effective on a certain date, which shall be not less than 60 days nor more
than 90 days after the date of the notice.
(b) APPOINTMENT OF SUCCESSOR. If the Trustee resigns, a successor
Trustee may be appointed in writing by Beneficiaries representing more than
one-half of the aggregate Account values on the date the successor is appointed.
The appointment shall be effective when accepted in writing by the successor
Trustee. If no successor Trustee has been appointed by the end of the notice
period specified in the Trustee's notice of resignation, the Trustee may apply
to a court of competent jurisdiction for appointment of a successor or for
instructions. All expenses of the Trustee in connection with the proceeding
shall be allowed as administrative expenses of the Trust.
(c) TRANSFER OF ASSETS. Upon resignation of the Trustee and
appointment of a successor Trustee, all assets, books, and records shall be
transferred to the successor Trustee. A successor Trustee shall have all of the
rights and powers of the former Trustee, including ownership rights in the Trust
assets. The former Trustee shall execute any instrument necessary or reasonably
requested by the successor Trustee to evidence the transfer.
(d) SUCCESSOR'S LIMITED LIABILITY. The successor Trustee need not
examine the records and acts of any prior Trustee and may retain or dispose of
existing Trust assets in accordance with this Agreement. The successor Trustee
shall not be responsible for, and the Grantor shall indemnify and defend the
successor Trustee from, any claim or liability resulting from any action or
inaction of any prior Trustee or from any other past event, or any condition
existing at the time it becomes successor Trustee.
SECTION 12
AMENDMENT OR TERMINATION
(a) AMENDMENT. This Agreement may be amended by a written
instrument executed by the Trustee and the Grantor to facilitate the
administration, but no such amendment may (i) make the Trust revocable, (ii)
confer on the Grantor any right under any circumstances to receive or direct
distribution of any part of the Trust property, or (iii) increase or decrease
the amount of any payment to any Beneficiary or to change any condition
precedent to, or timing of, any such payment.
(b) NO TERMINATION. The Trust shall not terminate until all of its
property has been properly distributed in accordance with the terms of this
Agreement except that it may be terminated by the unanimous written consent of
(i) all Beneficiaries whose accounts have not been forfeited, (ii) the Grantor,
and (iii) all of the Grantor's creditors that have perfected security interests
in any of the Grantor's assets.
SECTION 13
MISCELLANEOUS
(a) SURVIVAL. Any provision of this Trust Agreement prohibited by
law shall be ineffective to the extent of any such prohibition, without
invalidating the remaining provisions hereof.
(b) NO ASSIGNMENT. Payments due to Beneficiaries under this
Agreement may not be anticipated, assigned (either at law or in equity),
alienated, pledged, encumbered or subjected to attachment, garnishment, levy,
execution or other legal or equitable process.
(c) APPLICABLE LAW. This Trust Agreement shall be governed by and
construed in accordance with the laws of the State of Georgia.
(d) HEADINGS. The headings are solely for convenience and shall
not be relied upon in construing any provisions hereof.
(e) COUNTERPARTS AND FACSIMILE SIGNATURES. This Agreement may be
executed in counterparts any one of which shall be adequate to prove the
Agreement. Neither this Agreement nor any document transmitted in the course of
administration of this Trust shall be deemed invalid or insufficient because an
executed document or signature page was delivered by facsimile.
(f) NOTICES AND REPORTS. Any notice or report required or
permitted by this Agreement shall be deemed given when it has been sent properly
addressed as provided below by any means that provides a confirmation of
delivery and the date thereof and receipt has been documented in the regular
manner of the delivery means used. Such authorized means include, if they meet
the criteria in the preceding sentence, U.S. Postal Service certified mail with
return receipt, facsimile, courier, and email. Notices shall be addressed as
follows:
If to the Grantor:
Crown Crafts, Inc.
1600 RiverEdge Parkway, Suite 200
Atlanta, GA 30328
Attn: Chief Financial Officer
Facsimile: 770-644-6233
If to the Trustee:
Geoff Gilley
Vice President, Trust
Branch Banking & Trust Co.
301 College Street, 2nd Floor
Greenville, SC 29601
Facsimile: 864-242-9507
If to a Beneficiary:
The last known home address of the Beneficiary, with a copy to
his/her last known business address.
The Grantor shall give notice to the Trustee of any changes in
the addresses or other contact information for Beneficiaries.
Any of the above persons may change the address to which notices shall be
directed to it/him/her by giving all other such persons notice of such change in
accordance with this Paragraph 13(f).
IN WITNESS WHEREOF, the parties hereto, intending to be legally bound,
have caused this Agreement to be executed by their respective duly authorized
agents as of the day and year first written above.
GRANTOR: TRUSTEE:
CROWN CRAFTS, INC. BRANCH BANKING & TRUST CO.
By By
---------------------------------- -------------------------------
Carl A. Texter, Vice President -------------------------------
and Chief Financial Officer Its
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SCHEDULE 1 FRACTION OF BENEFICIARY'S ACCOUNT CONDITIONS
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INITIAL TO BE PAID ON PAYMENT DATE (1) (2) PRECEDENT TO
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BENEFICIARY NAME CONTRIBUTION 1/1/2001 3/31/2001 7/1/2001 10/1/2001 ENTITLEMENT
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Appleyard, Peter J $90,000 none none 67% 100% 3
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Backstrom, Mark Scott $8,025 none none 50% 100% 3
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Bajc, Stephen $33,341 none none 50% 100% 3
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Bamrick, Richard J $5,678 none none 50% 100% 3
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Beducian, John S $18,664 none none 50% 100% 3
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Bell, Teri Y $32,445 none none 50% 100% 3
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Benefiel, Marlee McBride $18,500 none none 50% 100% 3
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Bernstein, Michael H $240,000 none none 50% 100% 3
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Blair, Jeffrey Alan $127,500 none 100% none none 4
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Brandwein, Marcia $23,395 none none 50% 100% 3
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Bruno, Joseph W $17,344 none none 67% 100% 3
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Card, Mark Lynell $6,075 none none 67% 100% 3
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Chestnut, E. Randall $225,000 none none 50% 100% 3
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Cochran, Dennis G $84,375 none none 67% 100% 3
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Coleman, Elmo C $8,438 none none 67% 100% 3
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DeBari, Thomas J $27,316 none none 50% 100% 3
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Dunne, Debra L $8,250 none none 50% 100% 3
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Dusel, Henry F $54,375 none 100% none none 4
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Dye, Charles E $25,594 none none 67% 100% 3
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Enholm, Robert A $27,797 none none 50% 100% 3
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Evans, William Lewis $22,500 none 100% none none 4
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Faucher, Lisa $7,088 none 100% none none 4
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Freeman, Gary L $5,110 none none 50% 100% 3
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Freeman, Nanci $31,980 none none 50% 100% 3
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Galloway, Sally J $14,063 none 100% none none 4
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Gillenwaters, Sylvia L $15,005 none 100% none none 4
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Giordano, Glen $22,688 none none 67% 100% 3
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Goldberg, Leslie Joan $18,000 none none 50% 100% 3
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Greenwood, Russell L $12,797 none none none 100% 3
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Groce, Jerry W $30,000 none none none 100% 3
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Guyer, Stephen $6,427 none none 50% 100% 3
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Haggerty, Gerald E $25,000 none none 50% 100% 3
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Hamilton, Robert $13,892 none none 50% 100% 3
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Harman, David H $82,500 none 100% none none 4
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Henry, Walter L $7,425 none 100% none none 4
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Jackson, Bobby Dennis $54,075 none none none 100% 3
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Jacobs, Jeffrey $56,250 none 100% none none 4
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Jacques, Julie $15,000 none none 50% 100% 3
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Jennings, Andre R $34,024 none 100% none none 4
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Kolavennu, Saikiran $7,594 none none 67% 100% 3
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Krum, Paul C $49,200 none 100% none none 3
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Lagasse, Jeffrey L $7,324 none none 67% 100% 3
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Ledbetter, Johnny R $17,325 none none 67% 100% 3
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Lee, Alice Lin $19,000 none none 50% 100% 3
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Long, Donnie R $12,188 none none none 100% 3
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Lusk, Teena S $13,519 none 100% none none 4
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Marchese, Jacqueline $17,200 none none 50% 100% 3
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Mattiford, Richard $8,909 none none 67% 100% 3
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McEntyre, Leisa J $13,125 none none 67% 100% 3
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Mcinnis, Louisa L $12,500 none none 50% 100% 3
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Miller, D Rex $21,656 none 100% none none 4
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Miller, Geoffrey Lee $5,882 none none 67% 100% 3
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Miller, Stuart M $17,438 none 100% none none 4
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Mote, Gary Don $32,445 none 100% none none 4
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Mumpower, William A $15,034 none 100% none none 4
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Murphy, Valerie Yvette $13,125 none none 67% 100% 3
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Nelson, Cynthia D $21,000 none 100% none none 4
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Newcombe, Pamela Alison $25,000 none none 50% 100% 3
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Robboy, Robin M $26,250 none none 50% 100% 3
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Rodriguez, Salvador $17,000 none none 50% 100% 3
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Samson, Amy Vidrine $10,000 none none 50% 100% 3
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Sanchez, Alfred E $16,941 none none 67% 100% 3
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Sanford, Angela S $21,000 none 100% none none 3
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Schmatz, Rudolph J $157,500 none none 50% 100% 3
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Schmitt, Paul E $35,438 none none 67% 100% 3
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Smith, Kistin Rowe $21,563 none none 67% 100% 3
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Smith, William R $20,000 none 100% none none 4
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Stanley, Patrick Lee $33,750 none none none 100% 3
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Stavros, Diana L $18,750 none 100% none none 4
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Talbot, Janet $10,000 none none 50% 100% 3
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Tenezaph, Jack $23,000 none none 50% 100% 3
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Texter, Carl A $150,000 none none 50% 100% 3
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Thomas, Martha Jane $11,250 none 100% none none 4
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Turner, J Terry $40,556 none 100% none none 4
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Undercoffer, Gregory $35,175 none none 67% 100% 3
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Waddell, Roger D $5,265 none 100% none none 4
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Wade, Sidney William $9,360 none 100% none none 4
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Walton, Darlene K $9,000 33% 50% 100% none 3
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Wasdin, Bonnie B $21,340 none 100% none none 3
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Welch, Harriott H $33,250 none none 50% 100% 3
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Zaffos, Steven J $30,000 none none 50% 100% 3
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total $2,641,782
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NOTES TO SCHEDULE 1
1 If a Beneficiary employed by Crown Crafts, Inc., Mohawk Industries,
Aladdin Manufacturing Corporation or one of their respective affiliated
companies has his/her employment involuntarily terminated by such
company, all Payment Dates for such Beneficiary are accelerated to the
date of employment termination.
2 With respect only to Michael H. Bernstein, E. Randall Chestnut, Rudolph
J. Schmatz, and Carl A. Texter (hereinafter the "Senior Executives"),
all Payment Dates for a Beneficiary who has died or become permanently
disabled are accelerated to the date of such death or disability. In
the event that the maturity of any debt of the Grantor to The
Prudential Insurance Company of America, Bank of America, N.A., or
Wachovia Bank, N.A. pursuant to secured loan documentation in effect on
November 14, 2000 is accelerated, all Payment Dates for Senior
Executives are accelerated to the earlier of the notice of acceleration
or the accelerated maturity date.
3 The Beneficiary shall not have voluntarily terminated his/her
employment by Crown Crafts, Inc. or one of its affiliated companies
prior to the payment due date.
4 The Beneficiary shall not have voluntarily terminated his/her
employment by Mohawk Industries, Aladdin Manufacturing Corporation or
one of their respective affiliated companies prior to the payment due
date.