**Exhibit 10.2**

 

**LaborContract**

**Agreement**

 

between

 

**FrankHolton Company**

A Division of Conn-Selmer, Inc.

 

and

 

**Local No. M94**

of the

International Brotherhood ofBoilermakers,

Iron Shipbuilders, Blacksmiths,Forgers & Helpers

 

 

Effective August 16, 2005

Through

July 20, 2008

 

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###### **AGREEMENT**

######  

THIS AGREEMENT made and effective this 16thday of August, 2005 by and between Conn-Selmer, Inc., and its successorslocated and doing business in Elkhorn, Wisconsin (hereinafter referred to asthe “Company”), and LOCAL NO. M94 of THE INTERNATIONAL BROTHERHOOD OFBOILERMAKERS, IRON SHIPBUILDERS, BLACKSMITHS, FORGERS & HELPERS(hereinafter referred to as the “Union”).

 

WITNESSETH:

 

SECTION 1.                                ThisAgreement is entered into for the purpose of collective bargaining on wages,hours, and working conditions and to provide a method of adjusting grievancesarising in regard thereto during the term of this Agreement.

 

SECTION 2. The parties hereto agree toabide by all provisions herein and to work in harmony for the promotion of thebusiness.

 

ARTICLE I

RECOGNITION

 

SECTION 1.  The Company recognizes the Union ascollective bargaining agent for all employees, except supervisors******and those in atechnical, clerical or administrative capacity.

 

SECTION 2.  Supervisors******are hereby defined as supervisoryemployees having direction over the work of other employees and who shall havecharge of recognized departmental divisions including, but not restricted to,Machining, Fabrications, Tool Room, Valve, Large Horn Mount, Small Horn Mount,Assembly, Buffing, Repair, Inspection and Maintenance or who shall have generalsupervision in two or more of the above departments.

 

SECTION 3. Clerical and Administrative employees are defined asthose whose work consists primarily of mental rather than physical effort andwhich may involve record keeping, figuring, typing, filing, etc.

 

SECTION 4. A Lead Person is a regularUnion member who shall perform production work. In addition, the employee maysupervise other departmental employees and direct the performance of work asscheduled by the supervisor**.**  A Lead Person has no authority to fire orhire, nor recommend the same. The employee shall be paid a $.50 per hour abovethe highest job grade of the department.

 

SECTION 5. Employees not coming underthe provisions of this Agreement, i.e., *Supervisors*,Clerical and Administrative employees, shall not become members of the Unionand if transferred to such work, shall resign from the Union.

 

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SECTION 6. Summertime help (students)shall be required to become Union members following 90 continuous calendar daysof annual employment.

 

ARTICLE II

REPRESENTATION

 

SECTION 1. The Union shall elect a UnionShop Committee whose duties it shall be to confer with the Company on allmatters of mutual interest that may arise between the Company and the Union.Prior to any company postings, the Company agrees to discuss with the UnionShop Committee, policy changes, and plant rules. In addition, the Companyagrees to prior discussions regarding layoffs and recalls with the Union.

 

SECTION 2. It is understood and agreedthat all grievance meetings shall be held during the first shift (day shift)during the working hours and the Company shall pay the Union Committee for alllost time for said meeting.

 

**SECTION 3.  The Company shall permit employees to take aleave of absence, without pay, as official representatives of the Union toattend State or International conventions, conferences or workshops, subject tothe following:**

 

**a)**              As to the Union’sInternational Convention, a maximum of two (2) employees may receive anexcused leave of absence up to a maximum of five (5) days during suchConvention.

 

b)             As to State,conferences or workshops, a maximum of two (2) employees may receive anexcused leave of absence during said conferences and/or workshops.  Such leave(s) shall not exceed three (3) conferencesor workshops per calendar year.

 

c)            The Company shallgrant an excused leave of absence for four (4) employees for the purposeof arbitration hearing, the formulation of contract proposals and negotiationsof same.

 

Not withstanding the above, the Company shall grant the Union Presidentan excused absence with one (1) month notice to attend to Union businessaway from the Company premises not to exceed the five (5) days percalendar year.

 

ARTICLE III

MANAGEMENT RIGHTS

 

All rights of Management, which are notspecifically limited by the provisions of other articles of the Agreement, areretained by the Company. The Management of the business and the direction ofthe working forces including, but not limited to, the right to plan, direct andcontrol all the operation of services to be performed in or at the plant or byemployees of the Company; to assign and transfer employees; to schedule theworking hours; to hire, promote, to suspend, discipline, discharge for cause,or to relieve

 

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employees because of lack of work or for other legitimate reasons; tomake and enforce reasonable shop rules and reasonable regulations; tointroduce new and improved methods, materials, equipment or facilities, are theexclusive functions of Management, limited only by the express language of thisAgreement addressed to a specific function of Management; provided, however,that such rights shall not be exercised to conflict with any of the expresswritten provisions of this Agreement.

 

ARTICLE IV

GRIEVANCE PROCEDURE

 

SECTION 1. For the purposes of thisAgreement, a grievance is any dispute or difference of opinion between theCompany and the Union or between the Company and any employee covered by thisAgreement involving the meaning, interpretation or application of theprovisions of this Agreement. All employee grievances and complaints shall behandled in the following manner:

 
| STEP 1. | Any employee who has a complaint shall  discuss it orally with the employee’s supervisor either alone or accompanied  by committeemen, as the employee may desire.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| STEP 2. | If a complaint is not settled  satisfactorily as provided in Step 1 and the employee desires to process a  grievance or if the Union decides to file a general policy grievance, such  grievance shall be reduced to writing and presented to the employee’s  supervisor. Such document, to be considered, must be signed by the employee  and/or the employee’s committeeman and must be presented to the supervisor  within seven (7) working days after the employee acquired knowledge of  the event giving rise to the grievance. The supervisor shall provide the  employee with a written answer to such grievance within seven  (7) working days. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| STEP 3. | If the employee or the Union is  dissatisfied with the supervisor’s answer to Step 2, and the Union desires to  appeal the grievance further, it may do so by submitting a written appeal to  the Production Manager within seven (7) working days following receipt,  by the employee, of the supervisor’s Step 2 answer. The Production Manager  shall provide the committee with a written answer to a grievance so appealed  within seven (7) working days.                                                                                                                                                                                           |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| STEP 4. | If the Union is dissatisfied with the  results of the joint meeting in Step 3, and desires to appeal the grievance  further, it may do so by submitting a written appeal to the General Manager  within seven (7) working days following receipt, by the committee, of  the Production Manager’s Step 3 answer. The General Manager shall provide the  committee with a written answer to a grievance so appealed within seven  (7) working days.                                                                                                                                                                                                              |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| STEP 5. | If the Union is dissatisfied with the  General Manager’s answer in Step 4, a joint meeting will be called within  twenty (20) working days, to be attended by the Company and Union  representatives to discuss and seek resolutions to the grievance.                                                                                                                                                                                                                                                                                                                                                                                                                   |

 

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| STEP 6. | If the Union is dissatisfied with the  General Manager’s answer in Step 5, and desires to appeal the grievance to  arbitration, it may do so by giving written notice of its request for  arbitration to the General Manager within ten (10) working days  following receipt of the General Manager’s Step 5 answer. Such written notice  shall identify the particular grievance involved. The** **grieving party shall request from the  Federal Mediation and Conciliation Service (“FMCS”) a list of five  (5) arbitrators. Upon receipt of such list, the Union and the Company  shall use a coin toss to determine which party shall strike first from the  list of arbitrators provided by the FMCS. Each party shall strike one name in  an alternating manor until one name remains. This selection process shall be  completed within thirty (30) working days of receipt of said** **list. The grieving party shall notify  the FMCS of the remaining name. The award of the arbitrator shall be final  and binding on the Company, the Union and the employee and employees involved.  The expenses of the arbitrator, including the arbitrator’s fee, shall be  shared equally by the parties. Each party shall pay its own costs of  preparation and presentation. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|    | The arbitrator shall only have the power  and authority to interpret and apply the provisions of this Agreement to the  grievance presented and the arbitrator’s decision shall apply only to the  issue arising out of the facts of such grievance. The arbitrator shall have  no authority to alter, amend, modify, nullify, ignore or add to the  provisions of this Agreement. The arbitrator shall have the power and  authority to establish the effective date of any award.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|    | Copies of all arbitration awards shall be  given to the Company and the Union.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

 

SECTION 2. Grievances protesting thedischarge of any employee covered by this Agreement must be in writing, must besigned by the employee or his/her Union representative and must be submitted tothe Production Manager at Step 3 of the foregoing procedure, within five (5) workingdays following the date of discharge.

 

ARTICLE V

SENIORITY

 

SECTION 1.  ACQUIRING SENIORITY.   New employees and rehired employees shall beregarded as probationary employees and shall establish seniority after thefirst sixty (60) calendar days of continuous employment with the Company and ifretained thereafter, shall be placed upon the seniority list of last hiring.(The Company may discharge or transfer employees at any time duringprobationary period.)  In case of layoff,part-time and probationary employees, excluding watchmen and firemen, shall belaid off first. When a probationary employee is laid off, the employee’semployment shall terminate unless it is anticipated that the layoff will betemporary. If the employee is recalled within a period not exceeding the dateof layoff, the employee shall be reinstated rather than rehired.

 

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SECTION 2.  LOSS OF SENIORITY.     Seniority shall be broken for thefollowing reasons:

 

1.                                       Ifthe employee is discharged for just cause;

 

2.                                       Ifthe employee voluntarily quits the employee’s employment;

 

3.                                       Afterbeing laid off and after receiving notice to return to work, an employee failsto both (a) advise the Company within forty-eight (48) hours of receipt ofsuch notice of the employee’s intention to return to work, and (b) returnto work within five (5) days of notice to do so;

 

4.                                       Ifany employee has seniority of up to one (1) year, and the employee hadbeen laid off for a period exceeding the amount of seniority, or if an employeehas seniority of more than one (1) year if the employee has been laid offfor a period exceeding five (5) years.

 

Notwithstanding the provisions of paragraph 3above, a laid-off employee may refuse work offered by the Company withoutchange of the employee’s seniority status unless the Company can guarantee theemployee at least thirty (30) days of employment, or assure the employee thatto the best of its knowledge and belief, without constituting a guaranteethereof, the Company could offer the employee at least ninety (90) days’ work.Seniority rights shall not be impaired by absence on leave mutually agreed toby the Union and the Company. Upon receipt of a request in writing for amedical leave of absence, the Company will grant such a leave for the period oftime certified by the employee’s physician. In the case of all approved leavesof absence, the employee shall retain all seniority rights which the employeeenjoyed at the time of taking the leave. If the employee overstays a leave of absence without notice and withoutjustifiable cause, seniority may be considered to have been broken at theoption of the Company.

 

SECTION 3. SENIORITY LISTS. The Companyshall furnish the Union, upon request, seniority lists of the employees in eachdepartment at the time the request is made and such lists shall include theemployee’s seniority date in the department and the employee’s last date ofhire by the Company. The lists shall be delivered to the Union not later thanten (10) days from the date of the request. Any challenge as to thesequence of the seniority lists shall be protested through the grievanceprocedure. Seniority lists shall be furnished by the Company to the Union notless often than every six (6) months. The Company shall furnish to theUnion a list of managers and supervisors who exercise authority over employeesin the bargaining unit and the Company shall keep said list current byproviding the Union with information concerning any additions or deletionsthere from.

 

SECTION 4. TRANSFERS. Seniority shall not accrue in more than onedepartment nor shall an employee’s seniority be transferred from one departmentto another. When an employee is temporarily transferred from one department toanother the employee shall continue to accumulate seniority in the departmentfrom which the employee is temporarily transferred and the employee shall notaccumulate seniority to

 

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thedepartment to which the employee is temporarily transferred.  Any employee may be permanently transferredto another department only with the consent of the employee in the event theemployee shall lose all seniority in the department from which the employee wastransferred and shall commence to accumulate seniority in the department towhich the employee is transferred and from the date of the transfer. Withinthirty (30) days of a permanent transfer, an employee so transferred may electto return to the department from which the employee was transferred withoutloss of seniority in the employee’s old department. An employee temporarilytransferred shall receive the rate of pay of the job from which the employeewas transferred or the rate of pay to which the employee is transferred,whichever is the higher, for the period of transfer. The least senior employeein the department who is qualified for a job in another department, whichrequires additional personnel, will be the one who is transferred.

 

SECTION 5. LAYOFFS AND RECALL.  For purposes of layoff, entitlement toremaining jobs shall be based upon the following:  average number of units by cell, job**efficiency in a batch process, andattendance;******butwhen the foregoing factors are relatively equal as between two or moreemployees, seniority shall govern. Layoffs in a department shall be governed bythe foregoing factors utilizing departmental seniority and any employees laidoff shall be entitled to exercise the rights set forth in this Section 5.  Reference Attachment A (Batch Process ) andAttachment B (Cell Production).

 

If a reduction of force within a departmentshall necessitate the layoff of an employee with two (2) or morecontinuous years of employment with the Company, such an employee may utilizethat seniority to replace any other employee in any other department who hasbeen continuously employed by the Company for a lesser period, provided theformer has the ability to perform the new job. The employee so replaced, if theemployee has two (2) years or more continuous employment with the Company,shall have a similar right to replace any employee in any department who hasless continuous employment service with the Company, provided the formermaintains the same level of efficiency as the employee they have displacedaccording to the following schedule:  50%of level after 5 work days, 75% level after 10 work days******and 100% level******after 15 work days***.*** This procedure willbe followed until an employee is replaced who has less than two (2) yearsof continuous service with the Company and in that event, such employee shallbe laid off. An employee who replaces another under this procedure and therebyenters a new department shall be placed on the bottom of the seniority list insuch new department, but such employee shall have first right to return to hisold job if and when the employee’s old job is reactivated. If at that time anemployee elects not to return to the employee’s old job when it again becomesavailable, the employee shall lose all seniority in the employee’s olddepartment and the employee’s seniority in the employee’s new department shalldate from the time of the employee’s election not to return to the olddepartment.

 

In the event of the disestablishment of anentire department and the ceasing of operations of that department, employeeswithin that department shall be advised whether or not the department is likelyto reopen in the foreseeable future. If it is not likely that the departmentwill be re-established within the foreseeable future,

 

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employees with two (2) or more years of continuous service withthe Company may then elect to accept permanent transfers to any otherdepartment into which they may transfer pursuant to the foregoing procedure andin that event their seniority in such new department shall date from the timeof the transfer. An employee may, however, elect not to exercise the employee’sseniority by replacing an employee with less continuous service and shall havethe option of accepting voluntary layoff subject to recall in line with the employee’sdepartmental seniority to the job the employee held at the time of thelayoff.  In the event that work becomesavailable in a department in which an employee has been laid off, the Companymay temporarily transfer someone from another department to do the work inpreference to recalling the laid off employee unless the work shall amount tomore *sixteen (16)*hours per weekfor a two (2) week consecutive period**.** It is agreed that this provision shall notoperate to give regular and continued work to an employee who otherwise wouldbe on layoff.  Two (2) days’ noticeshall be given to any employee to be laid off for a week or more.  Failing to give two (2) days’ noticewhere applicable, the Company shall give the employee two (2) days’ pay inlieu thereof, provided, however that the foregoing requirement for notice andpay in lieu thereof shall not be applicable to layoffs caused by acts ofnature, or power failures that are not due to negligence of the Company. TheCompany may reduce hours for a period of four (4) weeks if it becomesnecessary to curtail production due to a reduction in business.  If at the end of the time business conditionsstill warrant, the Company agrees to consult with the Union as to theadvisability of continuing at less than forty (40) hours per week, or instead,laying off a sufficient number of employees so as to permit a return to a 40-hourweek. A reduction in working hours as aforesaid shall not prevent the Companyfrom also laying off such number of employees as it deems necessary to meetbusiness conditions.

 

For purposes of layoff only, members of theUnion Shop Committee shall be considered to be at the top of their respectivedepartmental seniority lists. Accordingly, in case of a closedown of an entiredepartment and a discontinuance of the operations of that department, UnionShop Committee members may exercise their rights to replace employees in otherdepartments with less continuous service, provided the Committee man possessesthe ability to perform the job and has two (2) or more years of continuousservice with the Company.

 

SECTION 6. BUMPING PROCEDURE. Anemployee who replaces another employee through the bumping procedure is bumpingthe employee and the regular classification that employee is performing at thatgiven time. The successful bumping employee will be allowed a fifteen (15)working day training period to attain the same level of proficiency of theemployee being displaced**.**  Should the employee fail to reach suchproficiency the employee will be laid off.

 

SECTION 7.PROMOTIONS FROM BARGAINING UNIT. Employees transferred to a position with theCompany outside the bargaining unit shall, if returned to the bargaining unitwithin the three (3) calendar month period immediately following transfer,be credited with all seniority accumulated by them up to and including the dateof such promotion.

 

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ARTICLE VI

HOURS, OVERTIME

 

SECTION 1. The regular workweek shall beforty (40) hours, eight (8) hours per day, to be performed on Monday,Tuesday, Wednesday, Thursday, and Friday. All hours worked in excess of forty(40) hours per week, excepting watchmen and firemen, shall be consideredovertime and shall be paid for the rate of time and one-half (1-1⁄2) the regularrate of pay for such work. Paid holidays shall be considered as time worked forpurposes of computation of overtime. All employees shall punch the time clock “in”and “out” and shall only be paid for the work “clocked.”

 

SECTION 2. All work performed on Sunday and following legalholidays: New Year’s Day, Good Friday, Memorial Day, Independence Day, LaborDay, Thanksgiving Day, Day after Thanksgiving, Christmas Eve, Christmas Day,New Year’s Eve shall be paid for at double the regular rates of pay for thework performed.

 

SECTION 3. The Company shall post a list every two (2) weeksupon which employees desiring to make themselves available for overtime work orgeneral maintenance assignments during that month shall record their names.

 

Assignments for such general maintenance work shall be distributed fromthat list by seniority, provided the employees have the ability to perform therequired tasks. If at any time such list is exhausted, the Company may offersuch overtime general maintenance assignments to any employee who will acceptthe same and the Union Shop Committee shall cooperate in attempting to provideemployees necessary to perform such work.

 

SECTION 4. Production overtimeassignments shall be distributed *first*, toemployee(s) currently in the job classification, *second*,to employee(s) with current skill proficiency in the job and, *third*, in accordance with seniority within the departmentinvolved, provided the employee has the ability to perform the necessarywork.  If work is available in a departmentfor more people than those within the department who are willing to work,opportunity shall be afforded to employees outside the department in accordancewith seniority, provided the employee has the ability to perform the work. TheCompany agrees to give notice of Saturday overtime work no later than the endof the work shift on the preceding Thursday. Employees are required to work a reasonable amount of overtime asscheduled by the Company. If an employee is scheduled and accepts an overtimeassignment and fails to fulfill that assignment, it shall be considered an “unexcusedabsence” and shall become part of the employee’s record. Further, that employeewill be bypassed, seniority-wise, for the next two (2) overtimeassignments. If the employee calls in “as required” with a valid and acceptableexcuse, no action will be taken.

 

SECTION 5. An employee who is injured onthe job so seriously that the employee shall see a physician and that physiciandetermines that the employee should not return to work for the duration of theday of injury and submits the employee’s physician’s statement in writing tosuch effect to the Company the employee shall be

 

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paid at the employee’s base rate or average earnings for the time lossfrom the scheduled shift on the day of injury.

 

ARTICLE VII

WAGES

 

SECTION 1.  Wage rates effective during the term of thisAgreement shall be paid in accordance with the classification of productionjobs by grade and maximum progression rate as are in Schedule A.

 

SECTION 2. The Company accepts theprinciple of “equal pay for equal work” and will administer same in accord withthe Civil Rights Act of 1964.

 

SECTION 3. The Company agrees to pay forten (10) holidays per year subject to the following conditions:

 

a)                                      Theholidays shall be New Year’s Day, Good Friday, Memorial Day, Fourth of July,Labor Day, Thanksgiving Day, Day after Thanksgiving, Christmas Eve, ChristmasDay, and New Year’s Eve provided that holiday pay shall be given only tocurrent active employees.

 

b)                                     Theemployee must have sixty (60) days of service from the date of the employee’slast hiring.

 

c)                                      Theemployee must be in attendance the regular working day before and after theholiday unless the employee has been excused. Attendance the day before and theday after the Fourth of July shall not be required if it falls during theregular vacation period.

 

d)                                     Holidaypay shall be figured on the basis of eight (8) times the employee’sregular straight time hourly rate.

 

e)                                      Holidaysfalling on Saturdays shall be celebrated on the preceding Friday. Holidaysfalling on Sundays shall be celebrated on the following Monday and employeesshall receive holiday pay for those days.

 

SECTION 4. Paychecks shall be issued ona weekly basis not later than Friday following the close of workweek whichshall be Monday through Sunday.

 

SECTION 5. Any active employee who hasenlisted in the National Guard or in Military Reserves and who is required toattend a training camp shall receive from the Company the difference betweenthe employee’s service pay and the employee’s hourly rate with the Company.Such pay shall be limited to two (2) weeks in one (1) year.

 

Before drawing such difference in pay fromthe Company, the employee shall submit for Company inspection a certifiedstatement of the employee’s service pay.

 

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SECTION 6. Any employee transferred toequal or lower rated classification within another department because of lackof work and in order to avoid being laid off shall be paid during the period ofsuch transfer as follows:

 

(a)                                  Anemployee with less than three (3) years of service at the time of suchtransfer shall be paid the rate of the job to which the employee is transferredand at the employee’s own skill level at the transfer job (giving credit forgeneral knowledge of product and shop practice).

 

(b)                                 Anemployee having three (3) or more years of service at the time of suchtransfer, and who has not previously occupied the job to which the employee istransferred, shall receive not less that twenty cents ($.20) per hour belowmaximum daywork progression rate for the job to which the employee istransferred.

 

(c)                                  Anemployee having three (3) or more years of service at the time of suchtransfer, and who has previously occupied the job to which the employee istransferred, shall receive not less than the maximum daywork progression ratefor the job to which the employee is transferred.

 

SECTION 7. In the event that the Companyestablishes a new job classification, it will establish an hourly rate for suchclassification and/or operation and notify the Union thereof. If the Uniondisagrees with such hourly rate, it may file a grievance within then (10) daysfollowing such notice protesting the rate established by the Company. Suchgrievance procedures are set forth in Article IV hereof. The test ofappropriateness of the new rate shall be whether it bears proper relationshipto the rates set forth in Schedule A, giving proper consideration to thejob content and skill involved.

 

SECTION 8. An employee who is on the payroll and who has a deathin the employee’s immediate family (meaning father, mother, currentfather-in-law or mother-in-law, sister, brother, wife, husband, son or daughter,including legally adopted sons and daughters, current stepchild or stepparent,grandparent or grandchild) shall be given not more than three (3) workingdays off with pay where and to the extent necessary to permit such employee toarrange for and/or attend the funeral.

 

SECTION 9. Employees who are hired on orafter July 21, 1980, shall receive the following automatic increases untilthey reach the maximum progression rate:

 
| **Minimum Amount of Increase** | ** ** | **Payable After**                | ** ** |
|--------------------------------|------------|----------------------------------|------------|
|                           |       |                             |       |
| $.10 per  hour                 |       | The first 8 weeks of employment  |       |
| $.10 per  hour                 |       | The first 24 weeks of employment |       |
| $.15 per  hour                 |       | The first 36 weeks of employment |       |

 

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Thereafter, upon completion of the first 52 weeks of employment, suchemployee shall receive not less than the maximum progression rate for theemployee’s classification.

 

SECTION 10. Employees who are subpoenaedfor jury service shall receive the difference between the amount paid to theemployee by the court for jury service and the amount of regular straight timeearnings lost as a result of the absence from work caused thereby, for amaximum period of two weeks, provided, however, that the foregoing shall notapply in the event that the Company seeks to have an employee excused from juryservice and the employee fails or refuses to cooperate in seeking to beexcused. To be eligible for jury pay, the employee must provide the Companywith a copy of the check received from the Court for jury service.

 

SECTION 11. At any time during the lifeof the contract, either party may request discussions concerning the new wageplans or new methods of compensation, including, but not limited to, incentivepay plans for some or all the classifications covered by this Agreement, andthe parties shall thereupon promptly appoint representatives to meet anddiscuss such matters in good faith in an effort to arrive at a mutuallyagreeable provision which may be instituted during the term of this Agreement.

 

ARTICLE VIII

DISCIPLINE AND DISCHARGE

 

SECTION 1. No employee covered by thisAgreement shall be discharged or disciplined except for good and sufficientcause. Any discharged employee may appeal the employee’s discharge through theUnion Shop Committee for the Union and if after investigation, the Union ShopCommittee believes there may insufficient cause, it shall follow the regulargrievance procedure and, where applicable, may request arbitration.

 

SECTION 2. No employees shall bedisciplined for acting properly in any capacity as a representative of theUnion.

 

SECTION 3. The following shallconstitute “cause” for immediate discharge:

 

(a)                                  Grossor repeated disregard of Company safety rules.

 

(b)                                 Fightingor drunkenness.

 

(c)                                  Stealingproperty of the Company or fellow employees.

 

SECTION 4. Following shall be considered“cause” for discipline (temporary layoff or discharge):

 

(a)                                  Refusalto carry out reasonable and proper instructions of supervisor.

 

(b)                                 Solicitationof Union membership or conducting internal Union business on Company time.

 

(c)                                  Workbelow reasonable quality or quantity standards.

 

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(d)                                 Coercionof a fellow employee or conduct dangerous to the health or safety of anotheremployee.

 

SECTION 5. Procedure for discipline of Section 4 violations:

 

(a)                                  First,one documented verbal warning.

 

(b)                                 Next,one written warning with copies to the Union.

 

(c)                                  Next,three days without pay (at the Company’s discretion).

 

(d)                                 Last,discharge.

 

SECTION 6. Reinstatement

 

All disciplinary warnings shall be cancelledfollowing six consecutive months’ employment without disciplinary citation.Disciplinary warnings shall be removed from the employee’s file after two (2) years.

 

ARTICLE IX

VACATION PAY

 

SECTION 1.

 

(a)                                  Paidvacations shall be accorded from the date hired in accordance with thefollowing schedule:

 
| 10 weeks of service |   | 1 day of vacation   |
|---------------------|--------|---------------------|
| 20 weeks of service |   | 2 days of vacation  |
| 30 weeks of service |   | 3 days of vacation  |
| 40 weeks of service |   | 4 days of vacation  |
| 50 weeks of service |   | 5 days of vacation  |
| 2 years of service  |   | 10 days of vacation |
| 5 years of service  |   | 11 days of vacation |
| 8 years of service  |   | 12 days of vacation |
| 10 years of service |   | 15 days of vacation |
| 15 years of service |   | 17 days of vacation |
| 20 years of service |   | 18 days of vacation |
| 23 years of service |   | 19 days of vacation |
| 25 years of service |   | 20 days of vacation |

 

An employee shall receive the vacation pay towhich the employee is entitled on the last day before the scheduled vacationbegins; except that after January 1, 1977, employees qualifying forfifteen (15) days of vacation pay may, in the alternative, elect to receive thelast five (5) days of such vacation pay on either the first or last payday in December of the vacation year, provided, further that if theemployee wishes to elect

 

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such alternative payment date, the employee notify the Company, inwriting (on forms provided by the Company) no later than May 1 of thevacation year.

 

(b)                                 Inthe case of employees having over one (1) year of actual service since theemployee’s last hiring, the employee must have worked at least thrity-nine (39)whole or partial weeks during the subject vacation year to entitle the employeeto the employee’s full vacation credit. If the employee has worked less thanthirty-nine weeks in the vacation year, the employee shall receive suchproportion of the employee’s normal vacation credit as the number of weeksactually worked is in relation to fifty-two (52) weeks.

 

(c)                                  Forthe purpose of this Article, length of service shall be figured as of June 30and the “vacation year” shall be the year ending June 30. “Weeks ofService” in Section 1 above is defined as whole or partial weeks in whichservice is rendered.

 

(d)                                 Vacationpay shall be computed at employee’s average hourly rate including overtime andincentive pay for four (4) quarterly social security periods for theprevious calendar year ending December 31 for an eight (8) hour day.

 

(e)                                  Thedate allotted to an employee for a vacation will be established by the Companyso as to cause a minimum of interference with normal Company operations.Consistent with the preceding sentence, employees will be given preference asto the time of their vacation on the basis of seniority. In case of a shutdownfor vacation purposes the Company will give notice to the Union and employeenot later than January 15 and five (5) months prior to the scheduledvacation. In emergencies, employees may be scheduled by seniority andqualifications to work.

 

(f)                                    Inthe case of any employee who has been laid off before the regular vacationperiod and has not been recalled to work, the employee shall, at the time ofregular vacation period, receive that proportion of the vacation pay to whichthe employee would have been entitled had the employee not been laid off, whichshall be calculated as the number of weeks worked by the employee in thevacation year in relation to fifty-two (52) weeks.  In no event, however, shall any employee beentitled to vacation pay who has lost seniority under Section 5 of Article Vof this Agreement prior to the end of the vacation year.  No other provisions of the Agreement shallbe  to give laid off employees vacationpay rights other than as provided in this subsection.

 

(g)                                 Inthe case of any employee leaving the service of the Company to enter the ArmedServices of the United States, any vacation credit accrued at the time ofleaving shall be allowed and paid to the employee at that time.

 

(h)                                 Anyemployee eligible for vacation must actually take time off for the fullvacation earned during the regular vacation period, or, at the Company’soption, at some other time, mutually agreed upon. This section shall be

 

14

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subject to further negotiation if problemsdevelop from it in regard to possible Defense or War Work.

 

(i)                                     Ifan employee retires or is incapacitated at any age, the employee shall receiveat the time of retirement or disability, that portion of the employee’svacation pay to which the employee would be entitled under Article IX, section 1(b) above. In the event of the death of an active employee before theregular vacation period, the employee’s wife or husband or nearest of kin shallreceive vacation pay earned in such proportion as months worked in the currentvacation year bear to twelve (12) months.

 

(j)                                     Ifan employee has five (5) years of service, such employee, if the employeeelects, may take all of the employee’s days of vacation to which the employeeis entitled rather than take ten (10) days of vacation and the balance inwages, in lieu of days off.

 

(k)                                  TheCompany will permit unscheduled vacation leave, not to exceed one day percalendar year, in the event an employee has an emergency or otherwiseunforeseeable inability to work. The employee must provide telephone notice tothe office prior to the shift starting time on the day to be taken as vacation.

 

ARTICLE X

GROUP HEALTH INSURANCE BENEFITS

 

###### **Conn-Selmer, Inc. Choice Benefit Plan**

######  

1.               The attached HealthCare Plan will go into effect on October 2, 2005.

 

2.               The employee weeklycontribution for the Health Care Plan “Choices” will be as follows:

 

# ***CHOICE ONE - Enhanced***

 
| ** **         | ** ** | **Effective  10/2/05** | ** ** |
|--------------------|------------|------------------------|------------|
| Single             |       | 11.22                  |       |
| Employee +  1*     |       | 28.00                  |       |
| Employee +  Family |       | 31.00                  |       |

 

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## ***CHOICETWO - Basic***

 
| ** **     | ** ** | **Effective  10/2/05** | ** ** |
|----------------|------------|------------------------|------------|
| Single         |       | 7.50                   |       |
| Employee +  1* |       | 21.00                  |       |
| Family         |       | 22.53                  |       |

 

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*                 +1 defined as Eligible spouse or one (1) eligible child as definedin the Summary Plan Description**.**

 

**          Employee contributionincreases will be capped at $6.00 per week in the second and third year of thecontract.  Future employee contributionincreases will be effective 7/24/06 and 7/23/07 respectively.

 

3.               Theattached Dental Care Plan will go into effect on October 2, 2005.

 

4.               The employee weeklycontributions for the Dental Care Plan will be as follows:

 
| ** ** | ** ** | **2005** | ** ** | **7/24/06** | ** ** | **7/23/07** | ** ** |
|------------|------------|----------|------------|-------------|------------|-------------|------------|
| Single     |       | 2.50     |       | 2.50        |       | 2.60        |       |
| Family     |       | 7.25     |       | 7.25        |       | 7.35        |       |

 

5.               Theattached Vision Plan will go into effect on October 2, 2005.

 

6.               Theemployee weekly contributions for the Vision Plan will be as follows:

 
| ** ** | ** ** | **2005** | ** ** | **7/24/06** | ** ** | **7/23/07** | ** ** |
|------------|------------|----------|------------|-------------|------------|-------------|------------|
| Single     |       | 1.50     |       | 1.60        |       | 1.70        |       |
| Family     |       | 3.25     |       | 3.35        |       | 3.45        |       |

 

During the term of the Agreement, if anemployee opts out of the Vision Plan for any reason, the employee will not beallowed to re enroll unless agreed to in the next round of negotiations.

 

7.               Disability.  The weekly indemnity for sickness or accidentshall be $155.00 per week for a maximum of thirteen (13) weeks subject to aseven (7) day waiting period unless disability requires immediatehospitalization than the seven (7) day waiting period shall be waived.

 

ARTICLE XI

WORKING CONDITIONS

 

SECTION 1. If any employee is notifiedto report to work, or in normal working hours the employee is not notified thatthe employee is not needed and the employee does report, the employee shallreceive not less than two (2) hours’ pay at the hourly rate.

 

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SECTION 2. The Company will continue tomake reasonable provisions for the safety and health of an employee during thehours of employment in accordance with the Laws of Wisconsin. To insure safetyissues are addressed in a timely manner, a Safety Committee will be formed. Thecommittee will consist of two (2) management-appointed employees and two (2) Union-appointedemployees who will meet not less than quarterly for a plant walk-through and asafety review. Additional meetings can be called at the request of eitherparty.

 

SECTION 3. The last five (5) minutesof each shift will be devoted to personal cleanup and cleanup of the work area.

 

SECTION 4. Regular working hours on aneight (8) hour day shall be from 7:00 a.m. to 12:00 Noon and from12:30 p.m. until 3:30 p.m. It is understood that those hours apply tothe general run of production work only and do not affect the right of theCompany to schedule other hours for maintenance or custodial employees orfor production or other employees for special situations brought by a shortageof facilities or equipment.

 

SECTION 5. Employees who are not in the bargaining unit shall notdo work ordinarily done by production employees except that supervisor mayinstruct or set up their department and in so doing may move materials withinor without the supervisor’s own department and perform minor production work ona fill-in or emergency basis; provided, however, that supervisor shall do noproduction work when no bargaining unit employees are working in the supervisor’sdepartment. The limitation will not apply to experimental work, instruction oraiding any employees with trouble or developing a method of operation. Prior tothe filing of any grievance of a dispute under Article XI, Section 5,a member of the local union committee will notify the Plant Manager of apossible violation.

 

SECTION 6.  In the event there is a permanent job vacancyin a department, it will be posted within the department and may be filled inthe department by the most senior qualified applicant.  If a permanent unfilled vacancy results fromthis procedure, notice of this unfilled vacancy shall be placed on the Companybulletin boards for two (2) working days before the position is filled sothat all interested employees may apply for the position.  The position will be filled by the mostsenior qualified applicant.  The Companyagrees to post job descriptions with notices of all vacancies as the sameoccur.  Where an employee transfers or ispromoted hereunder, the employee must demonstrate qualification in the new jobwithin thirty (30) calendar days or return to the previous job.  However, if performance is not satisfactory,but the employee shows progress, the Company agrees to extend the probationaryperiod by thirty (30) calendar days.

 

SECTION 7. Rest period for all employeesshall be between 9:15 a.m. and 9:30 a.m. each morning.

 

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ARTICLE XII

UNION SECURITY

 

SECTION 1. Any employee who is a memberof the Union in good standing on the effective date of this Agreement, shall,as a condition of employment, maintain the employee’s membership in the Unionto the extent of paying membership dues and uniform assessments uniformlylevied against all Union Members. Such dues and uniform assessments shall bededucted from the employee’s paycheck once each month when the Company isfurnished a deduction authorization signed by the individual employee.

 

SECTION 2. Any employee hired subsequentto May 1, 1951, shall become a member of the Union sixty (60) days afterhiring, and the employee shall, as a condition of employment, maintain theemployee’s membership to the extent of paying membership dues and uniformassessments uniformly levied against all Union members. The employee shall beon probation for sixty (60) days following the employee’s hiring and may bedischarged without recourse to grievance procedure during that period.

 

SECTION 3. If an employee is deniedUnion membership for any reason other than non-payment of dues, the employee’semployment status under this Agreement shall not be affected and the employeeshall be able to perform bargaining unit work.

 

ARTICLE XIII

CONCLUSION

 

SECTION 1. During the term of this Agreement, the Company shallnot conduct a lockout at its plant and the Union shall not strike or cause itsmembers to strike, conduct a slowdown or otherwise interfere with productionfor any cause.

 

In the event that individual employees,acting without Union sanction or authorization, should violate any provision ofthis Section, the Union agrees to try to induce such employees to stop theviolation and/or return to work. The Union shall have twenty-four (24) hours inwhich to accomplish such purpose.

 

All employees who fail to cease the violation or work stoppage withinsuch twenty-four (24) hours may be discharged or otherwise disciplined by theCompany which may assess such penalty as it finds appropriate in thecircumstances.

 

SECTION 2. All provisions of this Agreement shall be effective August 16,2005 for a three-year agreement expiring as of 12:01 a.m. on July 20,2008.  The Company and Union agree tostart negations for subsequent contracts at least thirty (30) days prior to theexpiration of the then current contract.

 

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IN WITNESS WHEREOF, the parties have executedthis Agreement the day and year first above written, pursuant to resolutionsduly adopted by its directors and members, respectively.

 

 
|   | CONN-SELMER, INC.                                  |
|--------|----------------------------------------------------|
|   |                                               |
|   |                                               |
|   | By:                                                |   /s/  Michelle Hammer |   |
|   |                                               | Vice  President |
|   |                                               | Human  Resources |
|   |                                               |
|   |                                               |
|   | LOCAL NO. M94 of THE                               |
|   | INTERNATIONAL BROTHERHOOD OF                       |
|   | BOILERMAKERS, IRON SHIP                            |
|   | BUILDERS, BLACKSMITHS,  FORGERS & HELPERS |
|   |                                               |
|   |                                               |
|   | By:                                                |   /s/  Vicki Freitag |   |
|   |                                               | President |
|   |                                               |
|   |                                               |
|   | Attest:                                            |
|   |                                               |
|   |                                               |
|   |                                               |   /s/  Mike Bagnall |   |
|   |                                               | Secretary |

 

19

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**SCHEDULE A**

** **

**HOLTON**

###### **CLASSIFICATION OF PRODUCTION JOBS**

###### **BY GRADE AND MAXIMUM PROGRESSION RATE**

 
| **Grade**  | ** ** | **Job Classification**                                           | ** ** | **Current  Effective  7/22/2002** | ** ** | **Effective  8/16/05** | ** ** | **Effective  7/23/06** | ** ** | **Effective  7/23/07** | ** ** |
|------------|------------|------------------------------------------------------------------|------------|-----------------------------------|------------|------------------------|------------|------------------------|------------|------------------------|------------|
| ** ** | ** ** | ** **                                                       | ** ** | ** **                        | ** ** | **$0.00**              | ** ** | **$0.20**              | ** ** | **$0.20**              | ** ** |
| ** ** |       |                                                             |       |                              |       |                   |       |                   |       |                   |       |
| **12**     |       | General (Deleader, General Machine, Parts  Washer, Janitor)      |       | 10.03                             |       | 10.03                  |       | 10.23                  |       | 10.43                  |       |
| ** ** |       | Labor (Maintenance helper)                                       |       |                              |       |                   |       |                   |       |                   |       |
| ** ** |       |                                                             |       |                              |       |                   |       |                   |       |                   |       |
| **15**     |       | Silver Solderer – skilled                                   |       | 10.29                             |       | 10.29                  |       | 10.49                  |       | 10.69                  |       |
| ** ** |       | Packer/Shipper                                                   |       |                              |       |                   |       |                   |       |                   |       |
| ** ** |       | Stockkeeper  – Receiving                                    |       |                              |       |                   |       |                   |       |                   |       |
| ** ** |       |                                                             |       |                              |       |                   |       |                   |       |                   |       |
| ** ** |       | Small  Fabrication – Bender – Small, Benchwork Forming |       |                              |       |                   |       |                   |       |                   |       |
| ** ** |       | Finish  Inspector – Horns                                   |       |                              |       |                   |       |                   |       |                   |       |
| ** ** |       | Trombone  Slide Maker                                            |       |                              |       |                   |       |                   |       |                   |       |
| ** ** |       | Mounter A  (Valve & Slide Mounter, Slide Mounter)       |       |                              |       |                   |       |                   |       |                   |       |
| ** ** |       | Lapper                                                           |       |                              |       |                   |       |                   |       |                   |       |
| ** ** |       |                                                             |       |                              |       |                   |       |                   |       |                   |       |
| **16**     |       | Piston Assembler                                                 |       | 10.39                             |       | 10.39                  |       | 10.59                  |       | 10.79                  |       |
| ** ** |       | Strapper                                                         |       |                              |       |                   |       |                   |       |                   |       |
| ** ** |       | Hydraulic  Draw Press Operator                                   |       |                              |       |                   |       |                   |       |                   |       |
| ** ** |       | Heat Treater                                                     |       |                              |       |                   |       |                   |       |                   |       |
| ** ** |       | Assembler A  (Trombone)                                          |       |                              |       |                   |       |                   |       |                   |       |
| ** ** |       | Buffer A  (Wheel Buffer, Hand Colorman/Buffer)                   |       |                              |       |                   |       |                   |       |                   |       |
| ** ** |       | Valve  Assembler                                                 |       |                              |       |                   |       |                   |       |                   |       |
| ** ** |       |                                                             |       |                              |       |                   |       |                   |       |                   |       |
| **17**     |       | Small Parts                                                      |       | 10.49                             |       | 10.49                  |       | 10.69                  |       | 10.89                  |       |
| ** ** |       | Assembler B (Large Horn, French Horn)                            |       |                              |       |                   |       |                   |       |                   |       |
| ** ** |       |                                                             |       |                              |       |                   |       |                   |       |                   |       |
| **18**     |       | Solderer-Welder                                                  |       | 10.60                             |       | 10.60                  |       | 10.80                  |       | 11.00                  |       |
| ** ** |       | Maintenance *A*– general - waste water treatment            |       |                              |       |                   |       |                   |       |                   |       |
| ** ** |       | Play Test                                                        |       |                              |       |                   |       |                   |       |                   |       |
| ** ** |       | Buffer B  (Wheel Polisher & Buffer)                     |       |                              |       |                   |       |                   |       |                   |       |
| ** ** |       | Lacquer Room Operator                                       |       |                              |       |                   |       |                   |       |                   |       |
| ** ** |       | Mounter B                                                        |       |                              |       |                   |       |                   |       |                   |       |
| ** ** |       |                                                             |       |                              |       |                   |       |                   |       |                   |       |
| **21**     |       | Wheel Polisher                                                   |       | 10.81                             |       | 10.81                  |       | 11.01                  |       | 11.21                  |       |
| ** ** |       | Hand Screw  Machine Operator                                     |       |                              |       |                   |       |                   |       |                   |       |
| ** ** |       | Sousa/Tuba  Mounter                                              |       |                              |       |                   |       |                   |       |                   |       |

 

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| **Grade**  | ** ** | **Job Classification**                                                        | ** ** | **Current  Effective  7/22/2002** | ** ** | **Effective  8/16/05** | ** ** | **Effective  7/23/06** | ** ** | **Effective  7/23/07** | ** ** |
|------------|------------|-------------------------------------------------------------------------------|------------|-----------------------------------|------------|------------------------|------------|------------------------|------------|------------------------|------------|
| ** ** | ** ** | ** **                                                                    | ** ** | ** **                        | ** ** | **$0.00**              | ** ** | **$0.20**              | ** ** | **$0.20**              | ** ** |
| ** ** |       |                                                                          |       |                              |       |                   |       |                   |       |                   |       |
| **22**     |       | Licensed Plant Wastewater                                                     |       | 11.05                             |       | 11.05                  |       | 11.25                  |       | 11.45                  |       |
| ** ** |       | Treatment  Operator                                                           |       |                              |       |                   |       |                   |       |                   |       |
| ** ** |       | Bender –  large                                                          |       |                              |       |                   |       |                   |       |                   |       |
| ** ** |       |                                                                          |       |                              |       |                   |       |                   |       |                   |       |
| **24**     |       | Buffer *C*                                                                    |       | 11.17                             |       | 11.17                  |       | 11.37                  |       | 11.57                  |       |
| ** ** |       | Dent Check/Repairman                                                          |       |                              |       |                   |       |                   |       |                   |       |
| ** ** |       |                                                                          |       |                              |       |                   |       |                   |       |                   |       |
| **25**     |       | Wheel Colorman (All Models)                                                   |       | 11.44                             |       | 11.44                  |       | 11.64                  |       | 11.84                  |       |
| ** ** |       | Electrician                                                                   |       |                              |       |                   |       |                   |       |                   |       |
| ** ** |       | CNC Operator                                                                  |       |                              |       |                   |       |                   |       |                   |       |
| ** ** |       | Tool &  Die Machinest                                                |       |                              |       |                   |       |                   |       |                   |       |
| ** ** |       |                                                                          |       |                              |       |                   |       |                   |       |                   |       |
| **27**     |       | Bell Spinner                                                                  |       | 11.64                             |       | 11.64                  |       | 11.84                  |       | 12.04                  |       |
| ** ** |       | Sousa/Tuba Color Buff                                                         |       |                              |       |                   |       |                   |       |                   |       |
| ** ** |       |                                                                          |       |                              |       |                   |       |                   |       |                   |       |
| **28**     |       | Maintenance B                                                                 |       | New                               |       | 13.00                  |       | 13.20                  |       | 13.40                  |       |
| ** ** |       |                                                                          |       |                              |       |                   |       |                   |       |                   |       |
| **30**     |       | Tool & Die Journeyman                                                |       | New                               |       | 18.00                  |       | 18.20                  |       | 18.40                  |       |
|       |
|            |
| ** ** |       | * First Aid Attendant will receive $.30 per  hour in addition to normal rate. |       |

 

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**LETTEROF UNDERSTANDING**

 

# ***CRITERIA FORDETERMINATION OF LAYOFF***

 

The Company and the Union agree to acceptpast qualified experience as related to the listing of Job Titles listed in Schedule Aset forth in the Collective Bargaining Agreement dated July 21, 2000 fordetermining experience.

 

For all new employees hired on or after theratification of the Agreement, the new Schedule A which includes jobcombination will be considered in determining their past qualified jobexperience level.

 

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###### **LETTER OF UNDERSTANDING**

 

An employee eligible for leave under thefederal Family and Medical Leave Act (“FMLA”) or the Wisconsin Family andMedical Leave Act (“WFMLA”) may elect to substitute any accrued and unused paidor unpaid leave for unpaid FMLA or WFMLA leave. If any other such paid or unpaid leave is substituted, the FMLA or WFMLAleave period shall not be extended. Although FMLA and WFMLA leave is generally unpaid, an employee mayreceive workers’ compensation benefits if eligible under applicable law, ordisability benefits if eligible under the terms of the Company’s short-term disabilityplan. Any period during which the employee receives such benefits shall notextend the FMLA or WFMLA leave period. FMLA and WFMLA leave shall run concurrently with any substituted paid orunpaid leave.

 

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**LETTER OF UNDERSTANDING**

 

**CRITERIA FOR  LUMP SUM PAYMENT**

** **

No later than two (2) weeks after theCompany has received notice that the Contract has been ratified, the Companywill pay to each eligible employee a lump sum payment of $400.00 minus allrequired deductions; provided however, if the committee unanimously recommendsthe Company’s offer and the Contract is ratified no later than Friday, August 12,2005 the Company will add $100.00 to this $400.00 lump sum payment for a totalof $500.00 to each eligible employee.

 

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