EXHIBIT (10n)
December 12, 2003
William M. Lowe, Jr.
1394 Westwood
Birmingham, MI 48009
Dear Bill:
I am pleased to extend an offer of employment to you as the Chief Financial
Officer of Unifi, Inc., effective January 6, 2004, contingent upon the
completion of successful referencing and a new employee substance abuse
screening test. In your capacity as CFO, you will report to me and be
accountable for all aspects of finance, treasury, corporate financial reporting,
and compliance with SEC and NYSE requirements.
Specific duties include providing leadership and providing input regarding the
strategic direction for the company. You will also be responsible for signing
and the overall accuracy and completeness of all legal and financial documents
filed with the SEC and NYSE. You will inform the CEO and Board of Directors of
all key financial issues, as well as working with the CEO in planning and
forecasting future actions. You will be expected to maintain investor relations,
which includes speaking at conferences, responding to daily requests from
shareholders and bondholders, quarterly conference calls and develop and retain
new shareholders. You will be expected to maintain relationships with bankers,
attorneys, accountants, factors, equity investments and partnerships, and other
professional service organizations utilized by the company.
The details of your compensation and benefits package, provided you accept our
offer, consist of the following:
1. Base Salary
Your base annual salary, effective upon your commencement of
employment with Unifi is $350,000 to be paid at regular intervals in
accordance with the general practices of the company. A sign-on
bonus of $75,000 will be paid on the first regular pay period.
2. Bonus Opportunity
Unifi's Annual Incentive Plan for Salaried Employees is designed to
provide an opportunity to earn incentive compensation based on
corporate performance, business unit performance, and/or individual
contributions against critical measures that drive the success of
the business.
Based on the bonus opportunity set forth by the company, the bonus
potential would be up to 40% of your base salary. Half of your bonus
potential is based
on fiscal year financial targets of the company, specifically
Earnings per Share (EPS) and Free Cash Flow (FCF). The other half of
your bonus is based on the achievement and execution of goals
pertaining to personal leadership and ability to create and drive
change.
3. Stock Grant
A stock grant of 20,000 restricted shares of common stock will be
awarded effective with your start date. These shares will vest over
a five-year period beginning on the day of the grant. Twenty percent
(20%) will be vested on the grant date. You should be aware that, as
a member of executive management, you will be expected to build
toward and maintain a position in Unifi stock equal to three-times
the value of your base salary.
4. Options Award
A stock options award of 20,000 shares of common stock, which will
vest over a period of five years, will be awarded effective with
your start date.
5. Automobile Allowance
An automobile allowance of $1000 per month will be paid on the first
day of each month. Additionally, Unifi will reimburse for actual
auto expenses such as gas, oil, cleaning and normal repairs.
Insurance costs and property taxes are not reimbursable.
6. Life Insurance
To be determined and discussed upon your arrival.
7. Company Benefits
You will participate in all company life, health, medical and dental
plans as well as 401(k) plans when eligible under the specific plan
guidelines.
a) The 401(k) plan provides a company match. The match is dollar
for dollar up to 3%, and then $0.50 on the dollar between 3%
and 5% with immediate vesting. You will have immediate
eligibility to participate in the plan, and you may make
changes to your deferral amounts at any time.
b) You will have access to Unifi's comprehensive medical and
dental plan on the first day of the month following sixty (60)
days of employment. Any COBRA-related expenses will be
reimbursed by Unifi during the period between your hire date
and the first date of coverage.
8. Relocation
Unifi will provide reimbursement for closing costs incurred during
the sale of the current permanent residence (including associated
realtor fees) as well as closing expenses incurred in the purchase
of a new permanent residence. Company agrees to pay for expenses
incurred in packing and moving household and personal goods. Company
will pay reasonable temporary living expenses for a period of six
months.
9. Miscellaneous
Unifi agrees to pay reasonable club dues. Unifi will grant four
weeks of vacation upon hire.
10. Severance Understanding
In the unlikely event that some circumstance should occur beyond
your control resulting in a separation of employment, Unifi will pay
your base salary for a period of twelve months except in the case of
disciplinary termination.
Bill, I believe that you will make a strong member of our executive team, and I
look forward to welcoming you to Unifi. Please let me know if you have any
questions as I look forward to hearing from you as soon as possible.
Sincerely,
BRIAN R. PARKE
Brian Parke
Chief Executive Officer
Unifi, Inc.
Accepted by: WILLIAM M. LOWE, JR. December 15, 2003
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