HAGGAR CORP.
WAGE CONTINUATION PLAN
WHEREAS, HAGGAR CORP., a Nevada Corporation with its principal place
of business in Dallas, Texas, (hereinafter referred to as the "Corporation"),
desires to implement the Haggar Corp. Wage Continuation Plan; and
WHEREAS, the Corporation wishes to provide security and protection
for certain of its valuable employee in the event they are disabled; and
WHEREAS, the Corporation desires to provide this protection through
payments under a disability income policy issued by the Insurer on each
eligible employee; and
WHEREAS, the Internal Revenue Code of 1986 (the "Code") and Treasury
Regulations issued thereunder offer certain incentives for providing such
protection; and
WHEREAS, the following shall constitute the provisions of the Haggar
Corp. Wage Continuation Plan, effective as of October 1, 1999.
ARTICLE 1 - DEFINITIONS
A. PLAN. The Plan is the Haggar Corp. Wage Continuation Plan.
B. EFFECTIVE DATE. The effective date of the Plan is October 1,
1999.
C. ENTRY DATE. The Entry Date is either the Effective Date of
the Plan or the first day of any month following the
Effective Date.
D. CORPORATION. The Corporation is Haggar Corp. and any
successor thereto.
E. EMPLOYEE. An Employee is a person regularly employed by the
Corporation.
F. PARTICIPANT. A Participant is an Employee who is designated as an
Eligible Employee by the Corporation and who has a Policy issued and in
force on his or her life by an Insurer in accordance with the terms of
the Plan.
G. COMPENSATION. Compensation means the Employee's annual base
salary or wage, plus bonuses, commissions, and overtime
payments.
H. INSURER. Insurer means the life insurance company or any other company
which shall issue a Policy as defined in the Plan.
I. POLICY. Policy means an individual disability income policy.
J. DISABILITY. Disability shall have the same meaning or
meanings contained in the Policy.
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ARTICLE II - PARTICIPATION
An Employee is eligible to participate in the Plan on the Entry Date
specified by the Corporation.
ARTICLE III - EMPLOYER CONTRIBUTIONS
The Corporation shall contribute on behalf of each Participant an
amount necessary to purchase a Policy providing the benefits to which he or
she is entitled under Article V.
ARTICLE IV - ELIGIBLE EMPLOYEES
For purposes of this Plan, an Eligible Employee shall be any
employee who is a member of a select group of management or highly
compensated employees of the Corporation or any Subsidiary, who is designated
as such by the Corporation in its sole discretion, and who satisfies the
insurability requirements established by the Corporation under Article VI of
this Plan.
ARTICLE V - BENEFITS
The form and amount of monthly benefit for each Participant shall be
subject to the Insurer's issue and participation limits.
Benefits under this Plan shall be independent of, and in addition
to, those under any other plan, agreement or program maintained by the
Corporation for its employees.
ARTICLE VI - SATISFACTORY HEALTH REQUIREMENTS
Participation in this Plan requires evidence of insurability as
determined by the Insurer. Employees who do not satisfy all requirements of
the Insurer may be issued limited coverage if available in lieu of complete
exclusion from the Plan. An otherwise Eligible Employee who does not meet the
Insurer's requirements for a Policy will not be a Participant in the Plan.
ARTICLE VII - OWNERSHIP OF POLICIES
A. Each Participant shall be the applicant, owner and holder of his or her
Policy. As the insured-owner, the Participant is responsible for
submitting any claims directly to the Insurer and will receive claim
payments directly from the Insurer. The Corporation is in no way
responsible for the processing of claims or the payment thereof and
the determination of claim payments rests solely and wholly with the
Insurer. The insured-owner may request the Corporation to withhold
income tax from any sick pay payments to which a Participant may be
entitled. Should such a request be made, the Insurer is required to
deduct and withhold the appropriate amount from claim payments. The
Corporation will Furnish the insured-owner with the necessary forms
for income tax purposes.
WAGE CONTINUATION PLAN 2
B. The Corporation shall pay its share of the premiums while the Plan is
in effect and while the Employee continues as a Participant in the
Plan.
ARTICLE VIII - POLICY CONTINUATION
When a Participant ceases active full-time employment with the
Corporation, he or she has the right as policy-owner to assume premium
payments for his or her Policy and maintain it in force subject to the terms
of this Policy.
ARTICLE IX - TERMINATION OF EMPLOYMENT OR PLAN
A. In the event of termination of employment of a Participant, the
Corporation shall reduce the total premium paid under the Plan by the
amount of the terminated Participant's premium and inform the Insurer
of such termination.
B. The Corporation may terminate or amend this Wage Continuation Plan by
an express declaration in writing and by notifying the Insurer of such
action. At termination, each Participant may take over payment of
premiums for his or her Policy.
ARTICLE X - ADMINISTRATION
A. This Plan shall be administered by the Corporation or an administrative
committee (the "Committee") appointed by the Corporation. The
committee, if any, shall represent the Corporation in all matters
concerning the administration of this Plan.
B. The Corporation or the Committee shall have the primary responsibility
for the administration and operation of the Plan and shall have all
powers necessary to carry out the provisions of the Plan including the
power to determine all questions arising in the administration,
interpretation and application of the Plan; the power to determine the
eligibility of each Employee for participation in the Plan; the power
to set down uniform and nondiscriminatory rules of interpretation and
administration of the Plan which may be modified from time to time in
light of the Corporation's experience.
C. The Corporation or the Committee shall keep a record of all its
proceedings and acts and shall keep all such books of accounts, records
and other data as may be necessary for the proper administration of the
Plan.
D. The Corporation shall indemnify the Committee, if any, and each member
of the Committee against any and all claims, loss, damages, expense or
liability arising from any action or failure to act, except when the
same is determined to be due to the gross negligence or willful
misconduct of the Committee or the Committee member(s).
E. Except where there has been an agreed allocation and delegation of
administrative authority, the Committee shall act by majority of its
number and may authorize one or more members of the Committee to sign
all documents on behalf of the Committee.
WAGE CONTINUATION PLAN 3
F. The Corporation or the Committee, if any, shall be the agent for
service of legal process for the Plan.
ARTICLE XI - MISCELLANEOUS
A. The terms of this Plan anticipate addition of new Participants and
changes in coverage for existing Participants from time to time.
However, the Corporation is in no way responsible for providing
benefits for which an employee may have become eligible but for which
no Policy has been issued.
B. The Corporation's liability for wage continuation payments is
discharged by the payment of premiums for each individual Policy.
Failure of the Insurer to approve or otherwise honor claim for payment
shall in no way obligate the Corporation.
C. Nothing contained herein shall be construed as a contract of employment
or deemed to give any Participant the right to be retained in the
employ of the Corporation, or to interfere with the rights of any such
employer to discharge any individual at any time, with or without
cause, except as may be otherwise agreed in writing and or provided by
applicable law.
D. Any notice, consent or demand required or permitted to be given under
the provisions of this Plan shall be in writing, and shall be signed by
the party giving or making the same. If such notice, consent or demand
is mailed to a party hereto, it shall be sent by United States
certified mail, postage prepaid, addressed to such party's last known
address as shown on the records of the Corporation. The date of such
mailing shall be deemed the date of notice, consent or demand.
E. This Plan shall be governed by and construed in accordance with the
laws of the State of Texas.
Executed this _________ day of _____________________, 1999.
HAGGAR CORP.
By: /s/ David Tehle
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Its: Senior V.P. & Chief Financial Officer
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