SEVENTH AMENDMENT TO THE
SAVINGS AND PROFIT SHARING PLAN OF
GALEY & LORD INDUSTRIES, INC.
On the 31st day of March, 1992, Galey & Lord Industries, Inc. amended
and restated The Savings and Profit Sharing Plan of Galey & Lord Industries,
Inc. for its Employees, said Plan, as amended and restated, being effective
April 1, 1992;
WHEREAS, the Plan was further amended effective April 1, 1992 and
January 1, 1993; and June 7, 1996,
WHEREAS, it is necessary to amend said Plan in order to modify the
definition of compensation.
NOW, THEREFORE, said Plan is amended as follows:
Effective October 1, 1996, page four is hereby deleted and the
following revised page substituted in lieu thereof.
IN WITNESS WHEREOF, this amendment to The Savings and Profit
Sharing Plan of Galey & Lord, Inc. is, by the authority of the Board of
Directors of the Employer, executed on behalf of the Employer, the 30th day of
September, 1996.
GALEY & LORD INDUSTRIES, INC.
/s/ Arthur C. Wiener
Authorized Officer
ATTEST:
/s/ Michael R. Harmon
Secretary
(b) Salaried Employees. For salaried Employees, Compensation means
remuneration which is fixed in amount and payable
for services on a weekly, bi-weekly, semi-monthly,
monthly, annual, or similar basis, as distinguished from wages on
an hourly or piece-time basis (including wages guaranteed in
a fixed minimum amount of a stated period). Compensation
shall also include overtime pay (except any such overtime pay
relating to bonuses or other incentive payments), vacation pay,
amounts deferred pursuant to an election permitted under Section
401(k) of the Code, any amount which represents a contribution
to a plan described in Section 125 of the Code, and commissions
to the extent such commissions are included in the Employee's
benefit participation base as established for similarly
compensated Employees within the division of the Employer by which
the Participant is employed. Compensation shall not include
bonuses, incentive payments, and insured disability benefits,
payments not directly related to the Employee's performance of his
assigned duties, or payments made in connection with an Employee's
severance.
In addition to other applicable limitations set forth in the Plan, and
notwithstanding any other provision of the Plan to the contrary, for Plan Years
beginning on or after January 1, 1989 and before January 1, 1994, the annual
Compensation of each Employee taken into account under this Plan for any such
Plan Year shall not exceed $200,000, as adjusted for increases in the cost of
living pursuant to Code Section 401(a)(17). For Plan Years beginning on or after
January, 1994, the annual Compensation of each Employee taken into account under
the Plan shall not exceed the OBRA `93 annual compensation limit. The OBRA `93
annual compensation limit is $150,000, as adjusted by the Commissioner of the
Internal Revenue for increases in the cost of living in accordance with Code
Section 401(a)(17)(B). The cost-of-living adjustment in effect for a calendar
year applies to any period, not exceeding 12 months, over which Compensation is
determined (determination period) beginning in such calendar year. If a
determination period consists of fewer than 12 months, the annual compensation
limit will be multiplied by a fraction, the numerator of which is the number of
months in the determination period, and the denominator of which is 12.
For Plan Years beginning on or after January 1, 1994, any reference in
this Plan to the limitation under Code Section 401(a)(17) shall mean the OBRA
`93 annual compensation limit set forth in the preceding paragraph. If
Compensation for any prior determination period is taken into account in
determining an Employee's benefits accruing in the current Plan Year, the
Compensation for that prior determination period is subject to the OBRA `93
annual compensation limit in effect for that prior determination period. For
this purpose, for determination periods beginning before the first day of the
first Plan Year beginning on or after January 1, 1994, the OBRA `93 annual
compensation limit is $150,000. Effective October 1, 1996, Compensation for an
Employee for any pay period shall not exceed an amount equal to the limitation
under Code Section 401(a)(17) multiplied by a fraction, the numerator of which
is one, and the denominator of which is the number of pay periods in the Plan
Year for that Employee.
In determining the Compensation of a Participant for purposes of the
above Compensation limitation, the family aggregation rules of Code Section
414(q)(6) shall apply, except in applying such rules, the term "family" shall
include only the spouse of the Participant and any lineal descendants of the
Participant who have not attained age 19 before the close of the Plan Year. If,
as a result of the application of this paragraph, the Compensation limitation
applies to a family aggregation unit, the limitation shall be prorated among the
affected individuals in proportion to each such affected individual's
Compensation as determined under this Section prior to the application of this
limitation.
Compensation for the first Plan Year during which an Employee
participates shall include only earnings paid during such Plan Year on or after
his Entry Date.
Notwithstanding the above, Compensation for purposes of Sections 4.6
and 4.7 shall mean the total earnings paid to a Participant by the Employer
during a Plan Year reported or reportable on U.S. Treasury Department Wage and
Tax Statement. Form W-2 (or similar form which may be required for such
purposes), plus amounts deferred under this Plan or salary reduced under a Code
Section 125 arrangement maintained by the Employer.
Section 2.9 Date of Employment. The first date on which an Employee
completes an Hour of Service.