SIXTH AMENDMENT TO THE
SAVINGS AND PROFIT SHARING PLAN OF
GALEY & LORD INDUSTRIES, INC.
Effective April 1, 1992, Galey & Lord Industries, Inc. amended and restated
a Savings and Profit Sharing Plan for its Employees:
WHEREAS, it is necessary to replace certain pages of said Plan in order
to incorporate amendments with respect to employees of G&L Service Company,
North America, Inc. that were authorized by Resolution duly adopted by the Board
of Directors of Galey & Lord Industries, Inc. by unanimous written consent dated
June 3, 1996.
NOW, THEREFORE, said Plan is amended as follows:
Effective June 7, 1996, pages 2, 5, 10, 12, 32 and 33 are hereby
deleted and the following revised pages are substituted in lieu thereof.
IN WITNESS WHEREOF, this amendment to the Savings and Profit Sharing
Plan of Galey & Lord Industries, Inc. is, by the authority of the Board of
Directors of the Employer, executed on behalf of the Employer, the 7th day of
June, 1996.
GALEY & LORD INDUSTRIES, INC.
/s/ Arthur C. Wiener
Authorized Officer
ATTEST:
/s/ Michael R. Harmon
Secretary
In no event will the amount each Participant in the Hourly Plan would
receive if the Hourly Plan were terminated immediately after its merger with the
Salaried Plan be less than the amount such Participant would have been entitled
to receive immediately preceding the merger if the Plan had then terminated.
This paragraph is not intended to guarantee the market value of plan assets as
of any particular point in time.
If the provisions of this Plan and the Trust Agreement which is part of
this Plan are found to be contradictory, then the provisions of this Plan
document shall apply.
Section 1.4. Form of Plan. The Plan shall be a single plan of a
controlled group. The total assets of the Plan shall be available to provide
benefits for any Plan Participant.
Section 1.5. Governing Law. This Plan shall be regulated, construed and
administered under the laws of the State of North Carolina, except when
preempted by federal law.
Section 1.6. Headings. The headings and subheadings in this Plan have
been inserted for convenience and reference only and are to be ignored in any
construction of the provisions hereof.
Section 1.7. Gender and Number. The masculine gender shall be deemed to
include the feminine, the feminine gender shall be deemed to include the
masculine, and the singular shall include the plural unless otherwise clearly
required by the context.
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Section 2.10. Date of Reemployment. The date on which an Employee
completes an Hour of Service following a termination or Break in Service.
Section 2.11. Disability. The permanent and total inability, by reason
of physical or mental infirmity, or both, of a Participant to perform the
principal duties of his regular occupation with the Employer, which inability is
expected to last at least one year. Disability shall be established by the
certification in writing by a physician or physicians acceptable to the Plan
Administrator that such Disability existed at the time the Participant ceased to
perform the duties required in his employment with the Employer.
Section 2.12. Employee. Any person who is employed by the Employer,
including a United States citizen or resident who is employed by a foreign
subsidiary of the Employer with respect to which an agreement under Code Section
3121(l) applies and who would otherwise meet all requirements for participation
as set forth herein, unless contributions under a funded plan of deferred
compensation are provided by a foreign subsidiary.
Section 2.13. Employee Deferral Account. The balance posted to the
record of each Participant, Inactive Participate or Beneficiary consisting of
elective deferrals of the Participant's Compensation and adjustments as of each
Adjustment Date, less any payments therefrom. Each Employee Deferral Account
shall include, where appropriate, subaccounts which reflect Employee-directed
investments if permitted in Section 9.2.
Section 2.14. Employee Voluntary Contribution Account. The balance
posted to the record of each Participant, Inactive Participant, or Beneficiary
consisting of the Participant's voluntary contributions made prior to April 1,
1992 and adjustments as of each Adjustment Date, less any payments therefrom.
Each Employee Voluntary Contribution Account shall include, where appropriate,
subaccounts which reflect Employee-directed investments if permitted in Section
9.2.
Section 2.15. Employer. Galey & Lord Industries, Inc. and adopting
Related Employers. Effective June 7, 1996 G&L Service Company, North America,
Inc. is an adopting Related Employer to the Plan.
Section 2.16. Employer Discretionary Contribution Account. The balance
posted to the record of each Participant, Inactive Participant, or Beneficiary
consisting of his allocated share of Employer discretionary contributions and
adjustments as of each Adjustment Date, less any
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who receives no compensation which constitutes income from sources within the
United States within the meaning of Code Section 861(a)(3), or (3) a "leased
employee," as defined in Code Section 414(n)(2).
Section 2.32. Qualified Matching Contributions. Employer matching
contributions that are subject to the distribution and nonforfeitability
requirements of Code Section 401(k) when made.
Section 2.33. Qualified Matching Contribution Account. The balance
posted to the record of each Participant, Inactive Participant, or Beneficiary
consisting of his allocated share of Qualified Matching Contributions and
adjustments as of each Adjustment Date, less any distributions therefrom. Each
Qualified Matching Contribution Account shall include, where appropriate,
subaccounts which reflect Employee-directed investments if permitted in Section
9.2.
Section 2.34. Qualified Nonelective Contributions. Employer
contributions (other than matching contributions or Qualified Matching
Contributions) that Participants may not elect to receive in cash; that are
nonforfeitable when made; and that are distributable only in accordance with the
distribution provisions applicable to Employee deferrals (other than hardship
distributions).
Section 2.35. Qualified Nonelective Contribution Account. The balance
posted to the record of each Participant, Inactive Participant, or Beneficiary
consisting of his allocated share of Qualified Nonelective Contributions and
adjustments as of each Adjustment Date, less any distributions therefrom. Each
Qualified Nonelective Contribution Account shall include, where appropriate,
subaccounts which reflect Employee-directed investments if permitted in Section
9.2.
Section 2.36. Qualifying Year of Service. For the purpose of
participation, the 12-consecutive month period beginning on an Employee's Date
of Employment or Date of Reemployment or the first day of any month after the
Employee's Date of Employment or Date of Reemployment during which he completes
at least 1,000 Hours of Service. For purposes of this Section, (a) any former
employee of the Decorative Prints division of Burlington Industries, Inc. who
became an Employee pursuant to the Purchase Agreement dated March 29, 1994
between Galey & Lord Industries, Inc. and Burlington Industries, Inc. shall be
granted his applicable past service with Burlington Industries, Inc., as defined
in Section 2.41(g) and (b) any former employee of Farah U.S.A., Inc. who became
an Employee as of June 7, 1996 shall be credited with service with Farah U.S.A.,
Inc. as provided in Section 2.41(h).
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(c) Where the Employer maintains the plan of a predecessor employer, Years
of Service, as determined above, with such predecessor employer shall
be treated as Years of Service with the Employer.
(d) Service for any former employee of Burlington Industries, Inc. who was
an employee under the Hourly or Salaried Plan on February 1, 1988,
shall include service rendered to Burlington Industries, Inc. prior to
February 1, 1988, to the extent such service would have been counted in
computing Years of Service if it had been rendered as an Employee.
(e) Service shall include any absence from the service of the Employer or a
Related Employer because of service in the Armed Forces of the United
States provided that the Employee returns to the service of the
Employer or a Related Employer having applied to return while his
reemployment rights were protected by law.
(f) Service shall also include any portion of a leave of absence which is
not otherwise included in Years of Service under this Section, to the
extent authorized by the Employer.
(g) For purposes of vesting and qualifying Years of Service only, Years of
Service shall include applicable past service with the Burlington
Industries, Inc. for any former employee of the Decorative Prints
division of Burlington Industries, Inc. who became an Employee pursuant
to the Purchase Agreement dated March 29, 1994 between Galey & Lord
Industries, Inc. and Burlington Industries, Inc. For purposes of
determining each such Employee's employment year, for the purposes of
vesting and Qualifying Year of Service only, the original Date of
Employment with Burlington Industries, Inc. shall be used. For purposes
other than vesting and qualifying Years of Service, Years of Service
shall not include any past service with Burlington Industries, Inc.
(h) For purposes of Qualifying Year of Service only, any former employee of
Farah U.S.A., Inc. who became an Employee as of June 7, 1996 shall be
credited with service with Farah U.S.A., Inc. For purposes other than
Qualifying Year of Service, service prior to June 7, 1996 shall be
disregarded, and the Vesting Computation Period for such Employee shall
be the 12-month period commencing with June 7, 1996 and anniversaries
thereof, as provided in Section 2.40.
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election period, at which time the last such election which shall have been made
shall be irrevocable. Any such election, and any revocation thereof, shall be
made by notice in writing to the Plan Administrator in a form which is
satisfactory to the Plan Administrator.
Section 5.7. Information to be Given Participants. Consistent with
regulations prescribed by the Secretary of the Treasury and except as otherwise
permitted by the Code or regulations, no less than 30 days and no more than 90
days before his Annuity Starting Date, except a written statement shall be
mailed or personnally delivered to him setting forth a general description of
the joint and one-half survivor annuity, as well as the circumstances under
which it shall be provided unless the Participant shall elect another form of
payment, the availability of such election, and a general explanation of the
financial effect of such election. Such written statement shall also include a
statement of the rights of the Participant's spouse as provided in Section 5.5.
It shall further notify the Participant that he may request in writing at any
time during the election period specified above, an additional written statement
of the terms and conditions of the joint and one-half survivor annuity and the
financial effect of payment in some method other than the joint and one-half
survivor annuity.
Section 5.8. Commencement of Benefits.
(a) Benefits under this Plan must begin, unless the Participant
elects otherwise, no later than the 60th day after the close
of the Plan Year in which the latest of the following events
occur:
(1) the Participant attains Normal Retirement Age,
(2) the Participant terminates his service with the
Employer, or
(3) the tenth anniversary of the year in which the
Participant commences participation in the Plan.
(b) Benefits for a Participant or Inactive Participant must begin
no later than the earlier of the time specified in Section
5.8(a) or the Participant's or Inactive Participant's Required
Beginning Date, as defined in (c) below.
(c) The Required Beginning Date of a Participant or Inactive
Participant is generally the April 1 of the calendar year
following the calendar year in which the Participant or
Inactive Participant attains age 70 1/2. However, the Required
Beginning Date of a Participant or Inactive Participant who
attains age 70 1/2 before January 1, 1988, shall be determined
in accordance with (1) or (2) below:
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(1) The Required Beginning Date of a Participant or Inactive
Participant who is not a 5- percent owner is the April 1 following the calendar
year in which the later of retirement or attainment of age 70 1/2 occurs.
(2) The Required Beginning Date of a Participant or Inactive
Participant who is a 5- percent owner during any year
beginning after December 31, 1979, is the April 1 following
the later or (i) the calendar year in which the Participant or
Inactive Participant attains age 70 1/2, or (ii) the earlier
of the calendar year with or within which ends the Plan Year
in which the Participant or Inactive Participant becomes a
5-percent owner, or the calendar year in which the Participant
or Inactive Participant retires.
The Required Beginning Date of a Participant or Inactive
Participant who is not a 5-percent owner and who attains age
70 1/2 during 1988, and who has not retired as of January 1,
1989, is April 1, 1990.
For purposes of this Section, a Participant or Inactive
Participant is considered a 5-percent owner if such
Participant or Inactive Participant is a 5-percent owner as
defined in Section 10.3(c)(2) without regard to whether the
Plan is top-heavy, in any Plan Year beginning with the Plan
Year in which the Participant attains age 66 1/2.
(d) Once distributions have begun to a 5-percent owner under this
Section, they must continue to be distributed, even if the
Participant or Inactive Participant ceases to be a 5-percent
owner in a subsequent year.
(e) Notwithstanding Section 5.8(b), (c) and (d) above, if this
Plan is a governmental or church plan, benefits must commence
by the April 1, following the calendar year in which the
Participant retires, or attains age 70 1/2, whichever is
later.
Section 5.9. Consent Requirement. Notwithstanding anything in
this Plan to the contrary, no distribution shall commence to a Participant or
Inactive Participant prior to age 65, without the written consent of the
Participant or Inactive Participant and his or her spouse, unless his or her
total account balance does not exceed $3,500 and did not exceed $3,500 at the
time of any prior distribution.
Notwithstanding the above, spousal consent is not required if the
distribution is in the form of a joint and one-half (or greater) survivor
annuity.
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