#!/bin/bash
 
t=$(mktemp -t -d awkinator2.XXXXXXXXXX) || exit
cd "$t"
trap 'rm -rf "$t"' EXIT ERR
 
cat <<\: >file1.txt
Name	Latin-small	Roman	Latin-caps
F0	a	I	A
F1	b	II	B
F2	c	III	C
F3	d	IV	D
:
 
cat <<\: >file2.txt
Lorem ipsum
Roman here.
LCaps here.
LSmall here.
Lorem ipsum
:
# Trim the obnoxious header
tail -n +2 file1.txt |
while read -r directory LSmall Roman LCaps; do
    mkdir "$directory"
    awk -v LSmall="$LSmall" -v Roman="$Roman" -v LCaps="$LCaps" '
        BEGIN { split("LSmall:Roman:LCaps", k, /:/)
            split(LSmall ":" Roman ":" LCaps, r, /:/) }
        {
            for (j=1; j<=3; ++j)
                if ($0 ~ k[j]) {
                    gsub(/here/, r[j])
                    break
                }
        }1' file2.txt >"$directory"/"$directory".txt
done
 
tail */*.txt

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