SIXTEENTH AMENDMENT
TO
ANGELICA CORPORATION
RETIREMENT SAVINGS PLAN
WHEREAS, Angelica Corporation, a corporation duly organized and
existing under the laws of the State of Missouri ("Company"),
established and continues to maintain the Angelica Corporation
Retirement Savings Plan ("Plan"); and
WHEREAS, effective September 1, 1998, the Company desires to amend
the Plan.
NOW, THEREFORE, the Plan is hereby amended, effective September 1,
1998 unless otherwise noted, in the following respects:
I.
Section 1.11 of the Plan is hereby deleted in its entirety and the
following is substituted in lieu thereof:
"1.11. "Employee" shall mean any person who is
employed by any of the Participating Employers in any capacity who
is normally employed to work a regular full-time work week (as
determined by reference to the employment conditions in effect at
the plant or other location at which such person is employed).
The term "Employee" shall not include any person who is a member
of a collective bargaining unit covered by an agreement between
employee representatives and one or more Participating Employers
if retirement benefits were the subject of good faith bargaining
except to the extent such collective bargaining agreement provides
for participation in the Plan. For purposes of determining an
individual's employment status and position, the job
classification assigned to him by his employer shall be
conclusive. "Employee" shall also not include any individual who
is deemed to be a "leased employee" within the meaning of Code
Section 414(n)."
II.
Section 4.4 of the Plan is hereby deleted in its entirety and the
following is substituted in lieu thereof:
"4.4. Company Matching Contributions. For each Plan Year as
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long as the Plan is in existence (but subject to the rights
reserved in the Company hereunder to amend or terminate the Plan),
the Participating Employer shall make a Matching Contribution out
of current or accumulated profits to the Trust Fund. For Plan
Years beginning before January 1, 1998, such Matching Contribution
shall be an amount equal to one-fourth (1/4) of one percent (1%)
for each one percent (1%), up to a maximum of six percent (6%), of
the Base Pay of each Participant who had a salary deferral
election in effect; provided, however, that the maximum amount of
Matching Contributions which may be made for any one Plan Year
based on the salary deferral of any one Participant shall be Six
Hundred Dollars ($600.00). For each Plan Year beginning on and
after January 1, 1999, such Matching Contribution shall be an
amount equal to thirty percent (30%) of one percent (1%) for each
one percent (1%), up to a maximum of six percent (6%), of the Base
Pay of each Participant who has a salary deferral election in
effect for each such Plan Year. Anything contained herein to the
contrary notwithstanding, the Matching Contribution, if any, made
on behalf of Participants who are covered by a collective
bargaining agreement entered into with the Participating Employer
may be different from the Matching Contributions for Participants
who are not covered by a collective bargaining agreement and may
be different among such Participants who are covered by the
collective bargaining agreement."
III.
Article X of the Plan is hereby deleted in its entirety and the
following is substituted in lieu thereof:
"ARTICLE X
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LOANS
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10.1 Upon the application of any Participant who is a Party
in Interest, as defined in Section 3(14) of the Employee
Retirement Income Security Act of 1974, as amended, the
Administrator may direct the Trustee to make a loan or loans to
such Participant. With respect to a Participant who is a member
of a collective bargaining unit, all loans must be in increments
of $50 and must be in an amount not less than $500. With respect
to all other Participants, all loans must be in increments of $100
and must be in an amount not less than $600. In no event shall
the total
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amount of any such loan or loans to any Participant plus interest
thereon exceed the lesser of:
(a) $50,000, reduced by the excess (if any) of (i) the
highest outstanding balance of loans of such Participant from the
Plan during the one year period ending on the day before the date
on which such loan is made, over (ii) the outstanding balance of
loans of such Participant from the Plan on the date on which such
loan is made, or
(b) The lesser of (i) one-half (1/2) of the aggregate
amount which would be distributable to the Participant from his
Account in the event of the termination of his employment with the
Employing Companies, or (ii) the amount in such Participant's
Account which is invested in the Interest Income Fund.
An application for a loan must be submitted at least fifteen
(15) days prior to the first day of the month during which the
loan is intended to be disbursed and an approved loan shall be
disbursed on or about the last business day of such month. No
Participant may borrow any sum hereunder so long as any previous
loan to such Participant remains unpaid or, if paid, has been
repaid for fewer than thirty (30) days.
10.2 Interest shall be charged thereon at prime plus one-
half percent. Prime means the prime rate of interest being
charged on comparable loans by Bankers Trust Company on the
fifteenth day (or, if the fifteenth day is not a business day the
next succeeding business day) of the month coincident with or next
preceding the date of the loan to the Participant.
10.3 A. All such loans shall be evidenced by the
Participant's promissory note which shall set forth the rate of
interest to be charged thereon and the method and period of time
over which the loan must be repaid. The promissory note may be
prepaid without penalty at any time. In no event shall the
repayment period exceed five (5) years unless the loan proceeds
are used to acquire a dwelling unit which, within a reasonable
time from making of the loan, is to be used as the principal
residence of the Participant. The Administrator shall require
adequate security for any loan which security shall be the
assignment by the Participant of no more than fifty percent (50%)
of his Account which is invested in the Guaranteed Income Fund.
In the event a promissory note or any installment thereunder is
not paid when due, the Administrator shall give written notice to
the Participant
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sent to his last known address and, if the note or such delinquent
installment is not paid within thirty (30) days from the date of
such notice, the Trustee shall have the right to take recourse to
the collateral securing the same, with full right to exercise all
remedies granted a secured party under the applicable laws
(including the Uniform Commercial Code) as if effect in the
various jurisdiction(s) in which the collateral may be located.
If said loan or loans are not entirely discharged as of the date
of the Participant's death, Permanent Disability or other
termination of employment, the Participant or his estate, as the
case may be, shall remain liable for and continue to make payments
on any balance due on said loan or loans.
Any such loan shall be treated as a segregated investment
for the Account of the borrowing Participant, the interest thereon
shall be credited only to such Account (and not to the general
earnings of the Fund), and for the purposes of allocating income
of the Fund or any other appreciation or depreciation of the Fund
for any Valuation Date, the Account of such borrowing Participant
shall be treated as not including the unpaid amount of such
borrowing (but for all other purposes of this Plan, including the
provisions dealing with the allocation of contributions and the
valuation of the corpus of the Trust, the amount of such borrowing
shall continue to be treated as part of the borrowing
Participant's Account, having a fair market value exactly equal to
the unpaid principal balance thereof at any time when it is
necessary to determine its fair market value).
No distribution shall be made to any Participant who has
borrowed from the Trust Fund or to any Beneficiary of any such
Participant until the outstanding balance of the loan, including
interest, has been paid out of the funds otherwise distributable.
B. The Participant shall, in writing, authorize the
Participating Employer to withhold each pay period from the
Participant's salary, an amount determined in accordance with the
terms of the loan application executed by the Participant and
approved by the Administrator.
Payroll deductions shall commence with the first payroll
following the effective date of the loan and the monthly payment
for any month shall be the level monthly amount to fully amortize
the outstanding balance of the loan over the remainder of the
duration of the loan. All payroll deduction payments, and any
other payments received by the Participating Employer from the
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Participant, shall be remitted by the Participating Employer to
the Trustee for credit to the Participant's Account, as provided
in A. above, as of the last day of the calendar month in which
such payments are deducted by the Company, or received from the
Participant.
10.4 The Administrator shall prescribe rules and procedures
for the administration of a loan program which shall be
administered by the Administrator on a uniform and
nondiscriminatory basis.
10.5 A Participant who is not a member of a collective
bargaining unit may be charged a loan processing fee in such
amount and at such time as determined by the Administrator. A
Participant who is a member of a collective bargaining unit shall
not be charged a loan processing fee."
IN WITNESS WHEREOF, the Company has executed this Sixteenth
Amendment and affixed its corporate seal hereto by its duly authorized
officer on this 28th day of August, 1998.
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ANGELICA CORPORATION
By /s/ Don W. Hubble
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Chairman of the Board,
President and Chief Executive Officer
[SEAL]
WITNESSED BY:
/s/ Jill Witter
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Secretary
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