Document:

FORM OF EXECUTIVE AGREEMENT WITH CERTAIN EXECUTIVE

EXHIBIT 10.2 
 
FORM OF EXECUTIVE AGREEMENT 
 
The following Executive Agreement has been entered into with the following officers as of the date indicated opposite their
name: 
 

	  Thomas V. Butta
  Executive Vice President and Chief Marketing Officer
	   	  January 21, 2003

	   	  
	
	  Barry F. Cohen
  Executive Vice President, Strategic Services and partners
	   	  January 21, 2003

	   	  
	
	  Paul J. Cunningham
  Executive Vice Presidnet, Worldwide Sales
	   	  January 21, 2003

	   	  
	
	  James E. Heppelmann
  Executive Vice President, Software Solutions and Chief
  Technology Officer
	   	  January 21, 2003

	   	  
	   	  

 

EXECUTIVE AGREEMENT 
 
This Agreement is entered into as of the
             day of             , 200_ between Parametric Technology Corporation, a Massachusetts corporation (the
“Company”), and [Executive], [Address] (the “Executive”). 
 
WHEREAS, the Executive is the [Executive Title] of the Company; and 
 
WHEREAS, to provide incentive for the Executive to remain with the Company, the Company desires to make the following arrangements with
the Executive concerning certain payments and benefits to be provided to the Executive in the event of the termination of his employment without cause or in the event of certain other events specified herein; 
 
NOW, THEREFORE, the Company and the Executive hereby agree as
follows: 
 
1.    Termination Notice.    The Company agrees that it may not terminate the employment of the Executive unless (i) it does so for Cause (as defined below) or (ii) the Company has
delivered to the Executive a written notice of such termination of employment (the “Termination Notice”) at least twelve (12) months in advance of the effective date thereof. The duties of the Executive during the period from the date of
delivery of a Termination Notice until the termination of his employment shall be as determined by the Board of Directors. 
 
2.    Salary and Benefits. 
 
(a)    During the period from the date of delivery of a Termination Notice (the
“Notice Date”) until the earlier of (i) the date twelve (12) months after the Notice Date, or (ii) the date the Executive commences employment with another company or organization, it being agreed that the Executive shall immediately
notify the Company of such event (the “Severance Period”), and so long as the Executive is in compliance with the terms of this Agreement and any material provision of any other written agreement with the Company, the Company shall (A) pay
to the Executive, per normal payroll practice, a salary (the “Severance Period Salary”) at a rate equal, on an annualized basis, to the highest annual salary (excluding any bonuses) in effect with respect to the Executive during the six
month period immediately preceding the Termination Notice and (B) provide the Executive with employee benefits, including health insurance, dental insurance, life insurance, participation in the Company’s 401(k) plan and Employee Stock Purchase
Plan and short-term and long-term disability coverage, pursuant to the same terms and conditions under which the Company makes such benefits available to employees generally, all subject to the terms and conditions of the respective plans and
applicable law (collectively, the “Severance Period Benefits”). 
 
(b)    In the event that (i) there is a Change in Control (as defined below) of the Company and (ii) within twelve (12) months thereafter, a Change in Status (as defined below) of the Executive occurs,
and so long as the Executive is in compliance with the terms of this Agreement and any material provision of any other written agreement with the Company, the Company shall pay the Severance Period Salary and provide the Severance Period Benefits to
the Executive during the period from the effective date of the Change in Status until the earlier of (i) the date twelve (12) months after such date or (ii) the date the Executive commences employment with another company or organization, it being
agreed that the Executive shall immediately notify the Company of such event. Such compensation and benefits, and those provided under Section 3, shall be in lieu of any other compensation and benefits to the Executive with respect to any continuing
employment during such period, and the Company shall have no obligation to make any payments or provide any benefits to the Executive under Section 2(a) above. 
 
3.    Stock Options and Other Equity Awards.    Effective upon a Change in Control, (i) all
outstanding stock options and stock appreciation rights (“SARs”) granted under any Stock Plan (as defined below) held by Executive shall immediately become exercisable in full, (ii) all restrictions applicable to restricted stock held by
Executive under any Stock Plan shall immediately lapse, and (iii) all other criteria for vesting of any award 

 

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granted under any Stock Plan and held by Executive shall be deemed to have been met, notwithstanding any vesting schedule or other provisions
to the contrary in the agreements evidencing such stock options, SARs, restricted stock or other award. The Company and Executive hereby agree that such agreements are hereby and will be deemed amended to give effect to this provision. 
 
4.    Definitions. 
 
(a)    The Company shall be deemed to
have terminated the Executive’s employment for “Cause” if it does so (i) for the Executive’s willful and continued failure to substantially perform his duties to the Company (other than any such failure resulting from the
Employee’s incapacity due to physical or mental illness or any such actual or anticipated failure after a Change in Status of the Executive), provided that the Company has delivered a written demand for substantial performance to the Executive
specifically identifying the manner in which the Company believes that the Executive has not substantially performed his duties, and that the Executive has not cured such failure within 30 days after such demand, (ii) for willful conduct by the
Executive which is demonstrably and materially injurious to the Company, (iii) because the Executive has been convicted of, or has pled guilty or nolo contendere to, a felony or (iv) for the Executive’s willful violation of any material
provision of any confidentiality, nondisclosure, assignment of invention, noncompetition or similar agreement entered into by the Executive in connection with his employment by the Company. For purposes of this paragraph, no act or failure to act on
the Executive’s part shall be deemed “willful” unless done or omitted to be done by the Executive not in good faith and without reasonable belief that his action or omission was in the best interests of the Company. 
 
(b)    A “Change in Control” of
the Company shall mean the occurrence of any of the following events: (i) any “person”, as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (other than the
Company, any trustee or other fiduciary holding securities under an employee benefit plan of the Company, or any corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportion as their ownership of
stock in the Company) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company’s
then outstanding securities (other than as a result of acquisitions of such securities from the Company); (ii) individuals who, as of the date hereof, constitute the Board of Directors of the Company (the “Incumbent Board”) cease for any
reason to constitute at least a majority of the Board, provided that any person becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a
majority of the directors then comprising the Incumbent Board (other than an election or nomination of an individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of the
directors of the Company) shall be, for purposes of this Agreement, considered to be a member of the Incumbent Board; (iii) the consummation of a merger, share exchange or consolidation of the Company or any subsidiary of the Company with any other
corporation (each a “Business Combination”), other than (A) a Business Combination that would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or
by being converted into voting securities of another entity) beneficial ownership, directly or indirectly, of a majority of the combined voting power of the Company or the surviving entity (including any person that, as a result of such transaction,
owns all or substantially all of the Company’s assets either directly or through one or more subsidiaries) outstanding immediately after such Business Combination or (B) a merger, share exchange or consolidation effected to implement a
recapitalization of the Company (or similar transaction) in which no “person” (as defined above) is or becomes the beneficial owner of 50% or more of the combined voting power of the Company’s then outstanding securities; or (iv) the
stockholders of the Company approve (A) a plan of complete liquidation of the Company; or (B) an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets but excluding a sale or spin-off of a
product line, business unit or line of business of the Company if the remaining business is significant as determined by the Company’s board of directors in its sole discretion. 
 

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(c)    A “Change in Status” of the Executive shall mean the occurrence, without the Executive’s written consent and without Cause, of any of the following circumstances (unless such circumstances
constitute an isolated, insubstantial and inadvertent action not taken in bad faith and are fully remedied by the Company within 30 days after receipt of notice thereof by the Executive): (i) any diminution or change in a manner adverse to the
Executive of (A) his title, office or position with the Company, (B) his salary or other benefits (other than diminutions that are made generally with respect to substantially all executives of similar rank), or (C) his duties, responsibilities or
employment condition, (ii) the Company’s requiring the Executive (without his consent) to be based at any office or location more than fifty (50) miles from the location of his principal office on the date of this Agreement, or (iii) the
failure by the Company to pay to the Executive any portion of his compensation within ninety (90) days after such compensation is due. 
 
(d)    A “Stock Plan” of the Company shall mean any stock option or equity compensation plan of the Company
in effect at any time, including without limitation the 1987 Incentive Stock Option Plan, the 1997 Incentive Stock Option Plan, the 1997 Nonqualified Stock Option Plan and the 2000 Equity Incentive Plan. 
 
5.    Taxes. 
 
(a)    Withholding.    All payments to be made to the Executive under this Agreement will be subject to any required withholding of federal, state and local income and employment
taxes. 
 
(b)    Payment Limitation.    Notwithstanding anything in this Agreement to the contrary, if the Company determines, based on the opinion of its independent accountants serving as such
immediately prior to the Change in Control (the “Accounting Firm”), that any of the payments provided for in this Agreement, together with any other payments that must be included in such determination, would constitute an “Excess
Parachute Payment” (as defined in Section 280G (or any successor provision thereof) of the Internal Revenue Code of 1986, as amended (the “Code”), and proposed and final regulations thereunder), the payments pursuant to this Agreement
shall be reduced to the maximum amount that would permit a determination that the Executive has not received an Excess Parachute Payment (the “Maximum Amount”) unless the after-tax amount payable to the Executive hereunder without regard
to the foregoing limitation (“Uncapped After-Tax Amount,” as defined below) exceeds the after-tax amount payable to the Executive with regard to such limitation (“Capped After-Tax Amount,” as defined below) by 10% or more. Any
such determination or reduction in amounts payable pursuant to this Agreement shall be made in accordance with the following provisions. 
 
(i)    For purposes of determining whether the amounts payable to the Executive pursuant to this Agreement shall be
reduced to the Maximum Amount, the following terms shall have the meaning indicated. 
 
(A)    The “Uncapped After-Tax Amount” shall be equal to the sum of the amounts payable pursuant to this Agreement (without regard to this paragraph 5(b)) and pursuant to
all benefit and compensation plans and arrangements that must, pursuant to the Code, be included in determining whether an Excess Parachute Payment has been made, less the Income Tax Amount on such sum and the 20% excise tax under Section 4999 of
the Code that would be due on all Excess Parachute Payments. 
 
(B)    The “Capped After-Tax Amount” shall be equal to the sum of the Maximum Amount and all amounts payable pursuant to all benefit and compensation plans and arrangements that must, pursuant to the
Code, be included in determining whether an Excess Parachute Payment has been made, less the Income Tax Amount on such sum. 
 
(C)    The “Income Tax Amount” shall be equal to the amount of federal, state and local income taxes and
the Executive’s share of Federal Insurance Contributions Act taxes that would be due on a payment (after taking into account the deductibility of state and local income taxes for federal income tax purposes) if the highest marginal federal,
state and local income tax rate in effect at the time of the Change in 

 

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Control were imposed on the value of the payments, assuming that the amounts payable pursuant to this Agreement and all benefit and
compensation plans and arrangements shall be treated as paid in full on the date of the Change in Control. 
 
(ii)    If the Accounting Firm determines that payments pursuant to this Agreement should be reduced to the Maximum
Amount, the Company shall promptly give the Executive notice to that effect and a copy of the detailed calculation thereof, and the Executive may then elect, in his sole discretion, which and how much of the payments shall be eliminated or reduced
(as long as, after such election, the present value of the aggregate payments equals the Maximum Amount), and shall advise the Company in writing of his election within 10 days of his receipt of notice. If no such election is made by the Executive
within such period, the Company may elect which and how much of the payments shall be eliminated or reduced (as long as, after such election, the present value of the aggregate payments equals the Maximum Amount) and shall notify the Executive
promptly of such election. All determinations made by the Accounting Firm under this paragraph 5 shall be (i) based upon Sections 280G and 4999 of the Code (or successor provisions thereof) and on proposed or final regulations for applying those
Code sections, or on substantial authority within the meaning of Section 6662 of the Code, (ii) binding upon the Company and the Executive and (iii) made within 60 days of the Notice Date. As promptly as practicable following such determination, the
Company shall pay to or distribute for the Executive’s benefit such payments as are then due to the Executive under this Agreement and shall promptly pay to or distribute for the Executive’s benefit in the future such payments as become
due to the Executive under this Agreement. 
 
(iii)    As a result of possible uncertainty in the application of Section 280G of the Code at the time of the determinations by the Accounting Firm hereunder, amounts may be paid that should not be paid
(“Overpayment”), or additional amounts may not be paid that could be paid (“Underpayment”), in each case, consistent with the calculations required to be made hereunder. In the event that the Internal Revenue Service asserts a
deficiency against the Executive or the Company in such a case and the Accounting Firm determines that an Overpayment has been made, the Executive shall reimburse the Company the amount of such Overpayment together with interest at the applicable
federal rate under Section 7872(f)(2)(B) of the Code within 60 days (or such shorter period as may be required by law) after receipt by the Executive of written notice of such determination by the Accounting Firm, including the amount of the
Overpayment and interest calculation; provided, however that no such amount shall be payable by the Executive to the Company if and to the extent such reimbursement is prohibited by applicable law or would not eliminate either the excise tax under
Section 4999 of the Code or the disallowance of the deduction under Section 280G(a) of the Code, for the amounts previously paid to the Executive. In the event that the Accounting Firm determines that an Underpayment has been made, the Company shall
promptly pay such Underpayment to the Executive, together with interest at the applicable federal rate provided for in Section 7872(f)(2)(B) of the Code. 
 
6.    Term.    This Agreement shall continue in effect until February 25, 2006, unless
extended by the mutual written consent of the Company and the Executive. 
 
7.    Successor. 
 
(a)    This Agreement is personal to the Executive and without the prior written consent of the Company shall not be assignable by the Executive otherwise than by will or the laws
of descent and distribution. 
 
(b)    This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. 
 
(c)    The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company 

 

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would be required to perform it if no such succession had taken place. As used in this Agreement, “Company” shall mean the Company
as defined above and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement. 
 
8.    Miscellaneous. 
 
(a)    This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of
Massachusetts, without reference to principles of conflict of laws. 
 
(b)    This Agreement may not be amended or modified otherwise than by a written agreement executed by the parties hereto or their respective successors and legal representatives. 
 
(c)    This Agreement constitutes the
entire understanding and agreement between the parties hereto with regard to the compensation and benefits payable to the Executive in the circumstances described herein, superseding all prior understandings and agreements, whether oral or written.

 
(d)    The Company agrees
to pay as incurred and within 20 days after submission of supporting documentation, to the full extent permitted by law, all legal fees and expenses the Executive may reasonably incur as a result of any contest (regardless of the outcome thereof) by
the Company, the Executive or others of the validity or enforceability of, or liability under, any provision of this Agreement (including as a result of any contest by the Executive about the amount of any payment pursuant to this Agreement), but
not more than an aggregate of $50,000, in the event the Company prevails thereon plus in each case interest on any delayed payment at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the Code. 
 
(e)    All notices and other
communications hereunder shall be in writing and shall be delivered by hand delivery, by a reputable overnight courier service, or by registered or certified mail, return receipt requested, postage prepaid, in each case addressed as follows:

 
If to the Company: 
 
Parametric Technology Corporation 
140 Kendrick Street 
Needham, MA 02494 
Attention: General Counsel 
 
If to the Executive 
 

	
	
	   	  
	
	
	   	  
	
	
	   	  

 
or to such other address
as either party shall have furnished to the other in writing in accordance herewith. Any notice or communication shall be deemed to be delivered upon the date of hand delivery, one day following delivery to an overnight courier service, or three
days following mailing by registered or certified mail. 
 
EXECUTED
as of the date first written above. 
 
PARAMETRIC
TECHNOLOGY CORPORATION 
 
By:                                     
                                
 
Title: 
 
 

	
	
	   	  

Name: 
 
 
 
 
 

5Second Amd. to Retirement Plan

EXHIBIT 10.82 
 
SECOND AMENDMENT 
TO THE 
RETIREMENT PLAN FOR EMPLOYEES OF GALEY & LORD, INC.

 
WHEREAS, Galey & Lord, Inc. (the
“Company”) maintains The Retirement Plan for Employees of Galey & Lord, Inc., most recently amended and restated as of January 1, 2000 (the “Plan”). 
 
WHEREAS, the Employer is obligated to amend the Plan in accordance with the Community Renewal Tax
Relief Act of 2000; and 
 
WHEREAS, the
Company wishes to amend the Plan to reflect certain provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”). The amendments made for EGTRRA are intended as good faith compliance with the requirements of
EGTRRA and are to be construed in accordance with EGTRRA and guidance issued thereunder. 
 
WHEREAS, the Company wishes to amend the Plan, effective January 1, 2002, to comply with EGTRRA. 
 
WHEREAS, the Company wishes to amend the Plan in accordance with IRS Revenue Ruling 2001-62 and the Model Amendment as set forth in
IRS Revenue Procedure 2002-29. 
 
NOW,
THEREFORE, the Plan is amended as follows: 
 
I. APPLICABLE MORTALITY TABLE 
 
Effective December 31, 2002, the definition of “Actuarial Equivalent” in Section 1.2 of the Plan is amended by adding the following paragraph to the end of the Section to read as follows: 
 
Effective for distributions with annuity starting dates on
or after December 31, 2002, and notwithstanding any other Plan provisions to the contrary, the applicable mortality table used for purposes of converting Participants’ Accrued Benefits into a lump sum benefit payable under the Plan and for
purposes of determining the Actuarial Equivalent of a deferred payment, shall be the mortality table prescribed in Rev. Rul. 2001-62 for all purposes under the Plan. 
 
II. EARNINGS 
 
Effective for Plan years beginning after December 31, 1997, the first full paragraph of the definition of
“Earnings” in Section 1.12 of the Plan is amended in its entirety to read as follows: 
 
A participant’s gross annual non-deferred remuneration received from the Employer and Related Companies (if any) for personal
services, as reported on Form W-2, during the Plan Year, including (to the extent applicable) bonuses, vacation pay, overtime pay, cash awards and commissions. Earnings shall 

exclude contributions or benefits under this Plan or any other plan of deferred
compensation maintained by the Employer, disability pay and severance pay. Notwithstanding the above, Earnings include amounts which would have been received by the Employee as remuneration but for the employee’s election to defer such amounts
under Code Section 125, 132(f)(4), 401(k), 403(b), or 457(b). For convenience of administration, Earnings may be rounded to the nearest $100. 
 
In addition, effective for Plan years beginning after December 31, 2001, the second full paragraph of the definition of
“Earnings” in Section 1.12 of the Plan is amended in its entirety to read as follows: 
 
For any Plan Year, the amount of a Participant’s Earnings that may be taken into account under the Plan must not exceed the
“Code Section 401(a)(17) limit”. The “Code Section 401(a)(17) limit” is $200,000, as adjusted for increases in the cost of living in accordance with Code Section 401(a)(17)(B). If Earnings for any prior determination period are
taken into account in determining an Employee’s Accrued Benefit, Earnings for that prior determination period are subject to the “Code Section 401(a)(17) limit” in effect for that prior determination period. 
 
III. SECTION 415 COMPENSATION 
 
Effective for Plan years beginning after December 31, 1997,
the last sentence of the definition of “Section 415 Compensation “ in Section 1.33 of the Plan is amended in its entirety to read as follows: 
 
Notwithstanding the above, Section 415 Compensation includes amounts which would have been received by the Employee as remuneration but
for the employee’s election to defer such amounts under Code Section 125, 132(f)(4), 401(k), 403(b), or 457(b). 
 
IV. BENEFIT LIMITATIONS IN GENERAL 
 
Effective for limitation years ending after December 31, 2001, Section 5.8 of the plan is amended in its entirety to read as follows:

 
5.8 Benefit Limitations In General:
Notwithstanding anything in the plan to the contrary, the annual retirement benefit provided under this Plan and under all other qualified defined benefit plans maintained by the Employer must not exceed an annual benefit equal to the lesser of (a)
$160,000 (as adjusted by the Secretary of the Treasury) or (b) 100% of the Participant’s average annual Section 415 Compensation from the Employer for the three consecutive calendar years that will produce the highest average. 
 

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For purposes
of this Section 5.8 and Section 5.9, the “Limitation Year” is the Plan year and the terms “Company” and “Employer” include Related Companies. The benefit limitations described in this Section 5.8 are set forth and
governed by Code Section 415, which is incorporated herein by reference. 
 
V. LIMITATION ON ANNUAL ADDITIONS AND ACTUARIAL ASSUMPTIONS 
 
Effective December 31, 2002, Section 5.8 of the Plan which pertains to the limitation on annual benefits under Section 415 of the Code, is amended by adding the following paragraph to the end of the
Section as follows: 
 
Effective for
distributions with annuity starting dates on or after December 31, 2002, and notwithstanding any other plan provisions to the contrary, the applicable mortality table used for purposes of adjusting any benefit or limitation under Section 415 of the
Internal Revenue Code as referenced in this Section 5.8 of the plan is the table prescribed in Rev. Rul. 2001-62. 
 
VI. DIRECT ROLLOVERS OF PLAN DISTRIBUTIONS 
 
Effective December 31, 2001, Section 6.7 of the Plan is amended by adding the following paragraph to the end
of the Section as follows: 
 
Effective December
31, 2001, notwithstanding any other provision of the Plan to the contrary, for purposes of the direct rollover provisions in this Section 6.7 of the Plan, an eligible retirement Plan shall also mean an annuity contract described in Code §403(b)
and an eligible Plan under Code §457(b) which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts
transferred into such Plan from this Plan. The definition of eligible retirement Plan shall also apply in the case of a distribution to a surviving spouse, or to a spouse or former spouse who is the alternate payee under a qualified domestic
relation order, as defined in Code §414(p). 
 
Effective December 31, 2001, notwithstanding any other provision of the Plan to the contrary, for purposes of the direct rollover provisions in this Section 6.7 of the Plan, a portion of a distribution shall not fail to be an
eligible rollover distribution merely because the portion consists of after-tax employee contributions which are not includible in gross income. However, such portion may be paid only to an individual retirement account or annuity described in Code
§408(a) or (b) of the Code, or to a qualified defined contribution Plan described in Code §401(a) or 403(a) that agrees to separately account for amounts so transferred, including separately accounting for the 
 

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portion of such distribution which is includible in gross income and the portion of such
distribution which is not so includible. 
 
VII.
TOP HEAVY RULES 
 
Effective for Plan years
beginning after December 31, 2001, Section 11.1(a) is amended by adding the following paragraphs to the end of the Section to read as follows: 
 
Effective for Plan Years beginning after December 31, 2001, and notwithstanding any other provision of the Plan to the contrary, with
respect to distributions during the year ending on the determination date, the present values of accrued benefits and the amounts of account balances of an employee as of the determination date shall be increased by the distributions made with
respect to the employee under the Plan and any Plan aggregated with the Plan under Code §416(g)(2) during the 1-year period ending on the determination date. The preceding sentence shall also apply to distributions under a terminated Plan
which, had it not been terminated, would have been aggregated with the Plan under Code §416(g)(2)(A)(i). In the case of a distribution made for a reason other than separation from service, death, or disability, this provision shall be applied
by substituting “5-year period” for “1-year period.” 
 
Effective for Plan Years beginning after December 31, 2001, and notwithstanding any other provision of the Plan to the contrary, the accrued benefits and accounts of any individual who has not
performed services for the Employer during the 1-year period ending on the determination date shall not be taken into account. 
 
Effective for Plan years beginning after December 31, 2001, the definition of “Key Employee” in Section 11.1(b) is amended in
its entirety to read as follows: 
 
A Key
Employee is any Employee or former Employee (including any deceased employee) who at any time during the Plan year that includes the determination date was an officer of the Employer having annual compensation greater than $130,000 (as adjusted
under Code §416(i)(1) for Plan years beginning after December 31, 2002), a 5-percent owner of the Employer, or a 1-percent owner of the Employer having annual compensation of more than $150,000. For this purpose, annual compensation means
compensation within the meaning of Code §415(c)(3). The determination of who is a key employee will be made in accordance with Code §416(i)(1) and the applicable regulations and other guidance of general applicability issued thereunder.

 
Effective for Plan years beginning after
December 31, 2001, Section 11.2 is amended by adding the following paragraph to the end of the Section to read as follows: 
 
Effective for Plan years beginning after December 31, 2001, notwithstanding any other provision of the Plan to the contrary,

 

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for purposes of satisfying the minimum benefit requirements of Code §416(c)(1) and
the Plan, in determining years of service with the Employer, any service with the Employer shall be disregarded to the extent that such service occurs during a Plan year when the Plan benefits (within the meaning of Code §410(b)) no key
employee or former key employee. 
 
VIII.
The Plan is hereby amended by adding Addendum A (as attached hereto) immediately following the last page of the Plan. 
 
IX. Unless otherwise amended herein, the provisions of the Plan are hereby ratified and confirmed. 
 
THIS AMENDMENT IS EXECUTED this 12th day of December, 2002.

 

	  GALEY & LORD, INC.

	
	  By
	  	  /s/    Leonard F. Ferro

	  	  	  

 

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ADDENDUM A 
MINIMUM REQUIRED DISTRIBUTIONS 
 
(Model Amendment as set forth in Revenue Procedure 2002-29) 
 
Section 1. General Rules 
 
1.1. Effective Date. Unless an earlier effective date is specified in the adoption agreement, the provisions of this article will apply for purposes of
determining required minimum distributions for calendar years beginning with the 2003 calendar year. 
 
1.3. Precedence. The requirements of this article will take precedence over any inconsistent provisions of the plan. 
 
1.4. Requirements of Treasury Regulations Incorporated. All distributions required under this article will be determined and
made in accordance with the Treasury regulations under section 401(a)(9) of the Internal Revenue Code. 
 
1.5. TEFRA Section 242(b)(2) Elections. Notwithstanding the other provisions of this article, distributions may be made under a designation made before January 1, 1984, in accordance with section
242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA) and the provisions of the plan that relate to section 242(b)(2) of TEFRA. 
 
Section 2. Time and Manner of Distribution. 
 
2.1. Required Beginning Date. The participant’s entire interest will be distributed, or begin to be distributed, to the participant no later than the
participant’s required beginning date. 
 
2.2. Death of
Participant Before Distributions Begin. If the participant dies before distributions begin, the participant’s entire interest will be distributed, or begin to be distributed, no later than as follows: 
 
(a) If the participant’s surviving
spouse is the participant’s sole designated beneficiary, then, except as provided in the adoption agreement, distributions to the surviving spouse will begin by December 31 of the calendar year immediately following the calendar year in which
the participant died, or by December 31 of the calendar year in which the participant would have attained age 701⁄2, if later. 
 
(b) If the participant’s surviving spouse is not the participant’s sole designated beneficiary, then, except as
provided in the adoption agreement, distributions to the designated beneficiary will begin by December 31 of the calendar year immediately following the calendar year in which the participant died. 
 
(c) If there is no designated beneficiary as
of September 30 of the year following the year of the participant’s death, the participant’s entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the participant’s death.

 
(d) If the participant’s
surviving spouse is the participant’s sole designated beneficiary and the surviving spouse dies after the participant but before distributions to the surviving spouse begin, this section 2.2, other than section 2.2(a), will apply as if the
surviving spouse were the participant. 
 

Addendum A—Page 1 of 4 (PN005) 

 
For purposes of this section
2.2 and section 5, distributions are considered to begin on the participant’s required beginning date (or, if section 2.2(d) applies, the date distributions are required to begin to the surviving spouse under section 2.2(a)). If annuity
payments irrevocably commence to the participant before the participant’s required beginning date (or to the participant’s surviving spouse before the date distributions are required to begin to the surviving spouse under section 2.2(a)),
the date distributions are considered to begin is the date distributions actually commence. 
 
2.3. Form of Distribution. Unless the participant’s interest is distributed in the form of an annuity purchased from an insurance company or in a single sum on or before the required beginning
date, as of the first distribution calendar year distributions will be made in accordance with sections 3, 4 and 5 of this article. If the participant’s interest is distributed in the form of an annuity purchased from an insurance company,
distributions thereunder will be made in accordance with the requirements of section 401(a)(9) of the Code and the Treasury regulations. Any part of the participant’s interest which is in the form of an individual account described in section
414(k) of the Code will be distributed in a manner satisfying the requirements of section 401(a)(9) of the Code and the Treasury regulations that apply to individual accounts. 
 
Section 3. Determination of Amount to be Distributed Each Year. 
 
3.1. General Annuity Requirements. If the participant’s interest is paid
in the form of annuity distributions under the plan, payments under the annuity will satisfy the following requirements: 
 
(a) the annuity distributions will be paid in periodic payments made at intervals not longer than one year; 
 
(b) the distribution period will be over a
life (or lives) or over a period certain not longer than the period described in section 4 or 5; 
 
(c) once payments have begun over a period certain, the period certain will not be changed even if the period certain is
shorter than the maximum permitted; 
 
(d) payments will either be nonincreasing or increase only as follows: 
 
(1) by an annual percentage increase that does not exceed the annual percentage increase in a cost-of-living index that is
based on prices of all items and issued by the Bureau of Labor Statistics; 
 
(2) to the extent of the reduction in the amount of the participant’s payments to provide for a survivor benefit upon death, but only if the beneficiary whose life was being used to determine the
distribution period described in section 4 dies or is no longer the participant’s beneficiary pursuant to a qualified domestic relations order within the meaning of section 414(p); 
 
(3) to provide cash refunds of employee contributions upon the participant’s death; or

 
(4) to pay increased benefits
that result from a plan amendment. 
 
3.2. Amount Required to be
Distributed by Required Beginning Date. The amount that must be distributed on or before the participant’s required beginning date (or, if the participant dies before distributions begin, the date distributions are required to begin under
section 2.2(a) or (b)) is the payment that is required for one payment interval. The second payment need not be made until the end of the next 
 

Addendum A—Page 2 of 4 (PN005) 

payment interval even if that payment interval ends in the next calendar year. Payment intervals are the
periods for which payments are received, e.g., bi-monthly, monthly, semi-annually, or annually. All of the participant’s benefit accruals as of the last day of the first distribution calendar year will be included in the calculation of the
amount of the annuity payments for payment intervals ending on or after the participant’s required beginning date. 
 
3.3. Additional Accruals After First Distribution Calendar Year. Any additional benefits accruing to the participant in a calendar year after the first
distribution calendar year will be distributed beginning with the first payment interval ending in the calendar year immediately following the calendar year in which such amount accrues. 
 
Section 4. Requirements For Annuity Distributions That Commence During Participant’s Lifetime. 
 
4.1. Joint Life Annuities Where the Beneficiary Is Not the Participant’s
Spouse. If the participant’s interest is being distributed in the form of a joint and survivor annuity for the joint lives of the participant and a nonspouse beneficiary, annuity payments to be made on or after the participant’s required
beginning date to the designated beneficiary after the participant’s death must not at any time exceed the applicable percentage of the annuity payment for such period that would have been payable to the participant using the table set forth in
Q&A-2 of section 1.401(a)(9)-6T of the Treasury regulations. If the form of distribution combines a joint and survivor annuity for the joint lives of the participant and a nonspouse beneficiary and a period certain annuity, the requirement in
the preceding sentence will apply to annuity payments to be made to the designated beneficiary after the expiration of the period certain. 
 
4.2. Period Certain Annuities. Unless the participant’s spouse is the sole designated beneficiary and the form of distribution is a period certain
and no life annuity, the period certain for an annuity distribution commencing during the participant’s lifetime may not exceed the applicable distribution period for the participant under the Uniform Lifetime Table set forth in section
1.401(a)(9)-9 of the Treasury regulations for the calendar year that contains the annuity starting date. If the annuity starting date precedes the year in which the participant reaches age 70, the applicable distribution period for the participant
is the distribution period for age 70 under the Uniform Lifetime Table set forth in section 1.401(a)(9)-9 of the Treasury regulations plus the excess of 70 over the age of the participant as of the participant’s birthday in the year that
contains the annuity starting date. If the participant’s spouse is the participant’s sole designated beneficiary and the form of distribution is a period certain and no life annuity, the period certain may not exceed the longer of the
participant’s applicable distribution period, as determined under this section 4.2, or the joint life and last survivor expectancy of the participant and the participant’s spouse as determined under the Joint and Last Survivor Table set
forth in section 1.401(a)(9)-9 of the Treasury regulations, using the participant’s and spouse’s attained ages as of the participant’s and spouse’s birthdays in the calendar year that contains the annuity starting date.

 
Section 5. Requirements For Minimum Distributions Where
Participant Dies Before Date Distributions Begin. 
 
5.1.
Participant Survived by Designated Beneficiary. Except as provided in the adoption agreement, if the participant dies before the date distribution of his or her interest begins and there is a designated beneficiary, the participant’s entire
interest will be distributed, beginning no later than the time described in section 2.2(a) or (b), over the life of the designated beneficiary or over a period certain not exceeding: 
 
(a) unless the annuity starting date is before the first distribution calendar year, the life
expectancy of the designated beneficiary determined using the beneficiary’s age as of the 
 

Addendum A—Page 3 of 4 (PN005) 

beneficiary’s birthday in the calendar year immediately following the calendar year
of the participant’s death; or 
 
(b) if the annuity starting date is before the first distribution calendar year, the life expectancy of the designated beneficiary determined using the beneficiary’s age as of the beneficiary’s birthday in the calendar year
that contains the annuity starting date. 
 
5.2. No Designated
Beneficiary. If the participant dies before the date distributions begin and there is no designated beneficiary as of September 30 of the year following the year of the participant’s death, distribution of the participant’s entire interest
will be completed by December 31 of the calendar year containing the fifth anniversary of the participant’s death. 
 
5.3. Death of Surviving Spouse Before Distributions to Surviving Spouse Begin. If the participant dies before the date distribution of his or her interest
begins, the participant’s surviving spouse is the participant’s sole designated beneficiary, and the surviving spouse dies before distributions to the surviving spouse begin, this section 5 will apply as if the surviving spouse were the
participant, except that the time by which distributions must begin will be determined without regard to section 2.2(a). 
 
Section 6. Definitions. 
 
6.1. Designated beneficiary. The individual who is designated as the beneficiary under Section 1.5 of the plan and is the designated beneficiary under
section 401(a)(9) of the Internal Revenue Code and section 1.401(a)(9)-1, Q&A-4, of the Treasury regulations. 
 
6.2. Distribution calendar year. A calendar year for which a minimum distribution is required. For distributions beginning before the participant’s
death, the first distribution calendar year is the calendar year immediately preceding the calendar year which contains the participant’s required beginning date. For distributions beginning after the participant’s death, the first
distribution calendar year is the calendar year in which distributions are required to begin pursuant to section 2.2. 
 
6.3. Life expectancy. Life expectancy as computed by use of the Single Life Table in section 1.401(a)(9)-9 of the Treasury regulations. 
 
6.4. Required beginning date. The date specified in Section 5.6 of the plan.

 

Addendum A—Page 4 of 4 (PN005)

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