**Exhibit 10.52**

 

 

 

 

**REMINGTON**

 

**COLLECTIVE BARGAINING**

**AGREEMENT**

 

**Between**

 

**REMINGTON ARMS COMPANY,**

**INC.**

**ILION, NEW YORK**

 

**and**

 

**INTERNATIONAL UNION,**

**UNITED MINE WORKERS OF**

**AMERICA**

 

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**Table of Contents**

 

| Article I - Enabling Clause                                                                       | 5                                                                           |
|---------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|
|                                                                                              | Section (a) Prior Agreements, Practices and                        Customs  | 5 |
|                                                                                              | Section (b) Recognition                                                     | 5 |
|                                                                                              | Section (c) Non-Discrimination                                              | 5 |
|                                                                                              | Section (d) Definitions                                                     | 5 |
|                                                                                              | Section (e) Payroll Deduction                                               | 6 |
|                                                                                              | Section (f) Successorship                                                   | 6 |
| Article II – Scope and Coverage                                                             | 7                                                                           |
|                                                                                              | Section (a) Work Jurisdiction                                               | 7 |
|                                                                                              | Section (b) Exemptions Clause                                               | 7 |
| Section (c) Supervisors Shall Not Perform Classified                        Work                  | 7                                                                           |
|                                                                                              | Section (d) Management of the Plant                                         | 8 |
|                                                                                              | Section (e) UNION’S Rights                                            | 8 |
|                                                                                              | Section (f) Contracting and Subcontracting                                  | 9 |
|                                                                                              | Section (g) Job Security                                                    | 9 |
| Article III - Wages and Hours                                                                     | 10                                                                          |
|                                                                                              | Section (a) Basic Workday                                                   | 10 |
|                                                                                              | Section (b) Basic Workweek                                                  | 10 |
|                                                                                              | Section (c) Overtime Pay and Premium Pay                                    | 10 |
|                                                                                              | Section (d) Standard Daily Wage Rate                                        | 13 |
|                                                                                              | Section (e) Hourly Wage Rates and Shift                        Differential | 13 |
| Article IV – Holidays                                                                       | 15                                                                          |
|                                                                                              | Section (a) Holidays Observed                                               | 15 |
|                                                                                              | Section (b) Saturday and Sunday Holidays                                    | 15 |
|                                                                                              | Section (c) Plant Floater and December 24                                   | 16 |
|                                                                                              | Section (d) Pay for holidays Worked                                         | 16 |
|                                                                                              | Section (e) Pay for Holidays Not Worked                                     | 16 |
|                                                                                              | Section (f) Birthday Holidays                                               | 16 |
|                                                                                              | Section (g) Time of Payment                                                 | 17 |
| Article V – Vacation                                                                        | 17                                                                          |
|                                                                                              | Section (a) Regular Vacation                                                | 17 |
|                                                                                              | Section (b) Plant Shutdown                                                  | 17 |
|                                                                                              | Section (c) Staggered Vacation                                              | 18 |
|                                                                                              | Section (d) Work During Shutdown                                            | 18 |
|                                                                                              | Section (e) Time of Payment                                                 | 18 |
|                                                                                              | Section (f) Obligation for Payment                                          | 19 |
| Article VI – Allowance                                                                      | 19                                                                          |
|                                                                                              | Section (a) Bereavement Pay                                                 | 19 |
|                                                                                              | Section (b) Jury Duty                                                       | 20 |
|                                                                                              | Section (c) Reporting Pay and Call - In Pay                                 | 21 |
|                                                                                              | Section (d) Military Duty                                                   | 21 |
| Article VII – Joint Labor – Management                        Communication Committee | 21                                                                          |
| Article VIII – Health and Safety                                                            | 22                                                                          |
|                                                                                              | Section (a) Right to a Safe Working place                                   | 22 |
|                                                                                                   |                                                                             |  |  |

 

 

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|                                        | Section (b) Health and Safety Committee                                             | 22 |
|---------------------------------------------|-------------------------------------------------------------------------------------|----|
|                                        | Section (c) Settlement of Health or Safety                        Disputes          | 24 |
|                                        | Section (d) Drug and Alcohol Testing                                                | 24 |
| Article IX – Seniority                | 24                                                                                  |
|                                        | Section (a) Definition of Seniority                                                 | 24 |
|                                        | Section (b) Termination of Seniority                                                | 24 |
|                                        | Section (c) Probationary Period                                                     | 25 |
|                                        | Section (d) Filling Vacancies                                                       | 25 |
|                                        | Section (e) Reduction Realignment Procedure                                         | 25 |
|                                        | Section (f) Panel                                                                   | 27 |
|                                        | Section (g) Panel Custodians                                                        | 27 |
|                                        | Section (h) Panel Members Accrue Seniority                                          | 27 |
|                                        | Section (i) Right to be Recalled                                                    | 27 |
|                                        | Section (j) Recall of Persons on Layoff Status                                      | 28 |
|                                        | Section (k) Job Bidding and Posting Procedure                                       | 28 |
|                                        | Section (l) Temporary Assignments                                                   | 31 |
|                                        | Section (m) Separation Pay                                                          | 32 |
| Article X – Settlement of Disputes    | 33                                                                                  |
|                                        | Section (a) Grievance Committee                                                     | 33 |
|                                        | Section (b) Grievance Procedure                                                     | 34 |
|                                        | Section (c) Finality of Decision or Settlement                                      | 37 |
|                                        | Section (d) Waiver of Time Limits                                                   | 37 |
| Article XI – Discipline and Discharge | 37                                                                                  |
|                                        | Section (a) Just Cause Required                                                     | 37 |
|                                        | Section (b) Procedure                                                               | 37 |
|                                        | Section (c) Suspension                                                              | 38 |
|                                        | Section (d) Compensation for Lost Earnings                                          | 38 |
|                                        | Section (e) Removal of Employee Disciplinary                        Records         | 38 |
| Article XII - Benefits and Practices        | 38                                                                                  |
|                                        | Section (a) Eligibility                                                             | 38 |
|                                        | Section (b) Benefits of Choice                                                      | 38 |
|                                        | Section (c) Length of Service                                                       | 39 |
|                                        | Section (d) Practices                                                               | 39 |
|                                        | Section (e) Administrative and Design Matters and                        Uniformity | 39 |
| Article XIII – Miscellaneous          | 40                                                                                  |
|                                        | Section (a) Pay Day                                                                 | 40 |
|                                        | Section (b) Bulletin Boards                                                         | 40 |
|                                        | Section (c) Safety Shoes                                                            | 40 |
|                                        | Section (d) Eye Examinations                                                        | 40 |
|                                        | Section (e) Disability Accommodation                                                | 41 |
|                                        | Section (f) Medical Appointments                                                    | 41 |
| Article XIV – No Strike or Lockout    | 41                                                                                  |
|                                        | Section (a) Union Not to Strike                                                     | 41 |
|                                        | Section (b) Union to Halt Breach                                                    | 42 |
|                                        | Section (c) Discipline for Breach                                                   | 42 |
|                                        | Section (d) No Lockout                                                              | 42 |
|                                             |                                                                                     |    |

 

 

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| Article XV – Maintain Integrity of the Contract and                        Resort to Courts | 42                       |
|---------------------------------------------------------------------------------------------------|--------------------------|
| Article XVI – Modification and Severability                        Clause                   | 42                       |
|                                                                                              | Section (a) Modification | 42 |
|                                                                                              | Section (b) Severability | 43 |
| Article XVII - Ratification and Termination of this                        Agreement              | 43                       |
| SHORT TERM DISABILITY PAY PLAN                                                                    | 45                       |
| APPENDIX A                                                                                        | 46                       |
| APPENDIX B                                                                                        | 48                       |
| APPENDIX C                                                                                        | 49                       |
| APPPENDIX D                                                                                       | 51                       |
|                                                                                                   |                          |  |

 

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AGREEMENT

 

**Article I - Enabling Clause**

 

Effective this 23rdday of October 2007, the Ilion Plant of REMINGTON ARMS COMPANY, INC.,            situated at Ilion, New York, hereinafter referred to as the PLANT or the EMPLOYER, and            the INTERNATIONAL UNION, UNITED MINE WORKERS OF AMERICA, hereinafter referred to as the            UNION, in consideration of the mutual covenants herein contained have agreed and do            agree as follows:

 

**Section (a) Prior Agreements, Practices and            Customs**

 

This agreement supersedes the collective bargaining agreements            previously executed by the parties. There shall be no prior practices and customs            observed at the Ilion Plant, unless identified in Appendix C. All previous agreements            not contained in this agreement, will be superseded by this Agreement and to remain in            effect must be signed and dated on or after the effective date of this            Agreement.

 

**Section (b) Recognition**

 

The UNION has been and is recognized as the exclusive bargaining agency            for the Employees of said Ilion Plant. This agreement pertains to only the unit to be            recognized; it does not create any rights or obligations not expressly stated herein.            All Employees shall be or become members of the UNION, to the extent and in the manner            permitted by law.

 

**Section (c)            Non-Discrimination**

 

The PLANT and the UNION affirm the policy of nondiscrimination against            any Employee or applicant for employment because of age, disability (within the meaning            of the ADA), race, creed, religion, color, sex, national origin, ancestry or political            activity (whether intra-UNION or otherwise) with respect to wages, hours and working            conditions.

 

**Section (d) Definitions**

 

Wherever the following terms are used in this Agreement, they are            defined as follows:

 

(1)       The term “PLANT”            shall mean the Ilion Plant of Remington Arms Company, Inc. located at Ilion, New            York.

 

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(2)       The terms “Employee”            or “Employees” shall mean any or all of those employees at the Plant            included within the bargaining unit covered by this Agreement.

 

(3)       The terms “Current            Employee” or “Current Employees” shall mean only those employees            hired before September 11, 1997.

 

(4)       The terms “New            Employee” and “New Employees” shall mean only those employees hired            on or after September 11, 1997.

 

(5)       When the term            “Employee(s)” or a personal noun or pronoun appears in this Agreement, it            shall be understood to refer to either the masculine or feminine gender or both as            applicable in the context in which it appears.

 

**Section (e) Payroll            Deduction**

 

(1)  The PLANT will deduct the membership dues, including            initiation fees and assessments, or the legally required equivalent thereof, of the            UNION and its various subdivisions, prescribed by the UNION, and other authorized            deductions, from the salary payable within the month of an Employee who authorizes the            PLANT to make such deductions on a form entitled United Mine Workers of America            Checkoff Authorization Form.

 

(2)  All sums deducted in this manner shall be turned over by            the PLANT to the designated representatives of the UNION, together with a statement            listing the names and social security numbers of all unit Employees and the amount            checked off for each authorized deduction.

 

**Section (f) Successorship**

 

In consideration of the UNION’S execution of this Agreement, the            EMPLOYER promises that the PLANT covered by this Agreement shall not be sold, conveyed,            or otherwise transferred or assigned to any successor without first securing the            successor’s agreement to assume the EMPLOYER’S obligations under this            Agreement including Appendix A. Immediately upon the conclusion of any such sale,            conveyance, assignment or transfer of the PLANT, the EMPLOYER shall notify the UNION of            the transaction. Such notification shall be by certified mail to the            Secretary-Treasurer of the International Union and shall be accompanied by            documentation that the successor obligation set forth herein has been            satisfied.

 

 

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**Article II – Scope and Coverage**

 

**Section (a) Work            Jurisdiction**

 

All current bargaining unit work including processes related to the            production and processing of firearms and routine repair and routine maintenance work            normally performed at the PLANT, and work of the type customarily related to all of the            above shall be performed by bargaining unit Employees of the EMPLOYER covered by and in            accordance with the terms of this Agreement, except as otherwise specified            herein.

 

**Section (b) Exemptions            Clause**

 

It is the Intention of this Agreement to reserve to the EMPLOYER and            except from this Agreement an adequate force of supervisory employees to effectively            conduct the safe and efficient operation of the PLANT and at the same time, to provide            against the abuse of such exemptions by excepting more such employees than are            reasonably required for that purpose.

 

Exempt employees under this provision are salaried employees exempt            under the Fair Labor Standards Act including the Plant Manager, his assistants and            their staff, Supervisory employees, with authority to hire, discharge, promote,            transfer, or otherwise effect changes in status of Employees or effectively to            recommend such action. All non-exempt employees excluded from the bargaining unit will            retain such status. All other Employees working in or around the PLANT shall be covered            by this Agreement, except as otherwise specified herein.

 

The UNION will not seek to organize or ask recognition for such exempt            employees during the life of this Agreement. The EMPLOYER shall not use this provision            to exempt from the provisions of this Agreement more persons than are necessary for the            safe and efficient operation of the PLANT.

 

**Section (c) Supervisors Shall Not Perform            Classified Work**

 

Supervisory employees shall perform no classified work covered by this            Agreement except in emergencies and except if such work is necessary for the purpose of            training or instructing bargaining unit Employees. Plant Management retains the right            to audit operations which may include measuring and gauging components and auditing            finished product as well as engineering support for product development and            troubleshooting so long as the number of bargaining unit Employees currently performing            such work is not eliminated or reduced. When a dispute arises under this section, it            shall be adjudicated through the grievance and arbitration procedures covered by this            Agreement and in such proceedings the following rule will apply: the burden            is

 

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on            the EMPLOYER to prove that classified work has not been performed by supervisory            personnel.

 

**Section (d) Management of the            PLANT**

 

| (1) | Management Rights |
|-----|-------------------|

             

The UNION recognizes and agrees that, except as specifically limited by            the express provisions of this Agreement, the PLANT maintains the sole and exclusive            right to manage its business in such a manner as the PLANT shall determine to be in its            best interest. The exercise or nonexercise of the rights retained by the PLANT shall            not be deemed to waive any such rights or the discretion to exercise any such rights in            some other way in the future.

             

(2) Most Favored Nations

             

During the term of this Agreement should the UNION either (A) enter into            an agreement with any other competing firearm manufacturer (with comparable gross            sales) other than Remington Arms Co., Inc. or any of its component divisions, the terms            or conditions of which agreement are more advantageous to the other employer than those            contained in this Agreement; or (B) Countenance a course of conduct by any other            comparable competing firearms manufacturer signed to an agreement with the UNION, which            course of conduct enables the other employer to operate under more advantageous terms            and conditions than are provided for in this Agreement, the PLANT shall be privileged            to adopt such advantageous terms and conditions upon written notice to the UNION of its            intent to do so.

 

**Section (e) UNION’S            Rights**

 

(1) Authorized representatives of the District and the International            will be allowed access to the PLANT property to insure compliance with this Agreement,            after giving notice and their reason for seeking access. The President, International            Vice Presidents, Field Representatives and International Safety Representatives and            Secretary-Treasurer of the International Union will be granted access to the PLANT            provided that such officials have given a minimum of 48 hours advance notification and            reason of their desire to visit, provided there is no interference with production. The            EMPLOYER shall provide candidates for UNION office reasonable opportunity to campaign            among its Employees during their non-working hours and in non-working areas, provided            there is no interference with production. The EMPLOYER further agrees to provide space            on PLANT property for the holding of UNION elections and the ratification of collective            bargaining agreements. However, the UNION agrees that there shall be no solicitation or            UNION meetings or promotional UNION activity on PLANT time.

             

 

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(2) The Local Union President, Vice President, Financial Secretary,            Recording Secretary and Employees who are either elected or appointed to the Joint            Labor-Management Communications Committee, the Health and Safety Committee, and the            Grievance Committee shall have the right of movement throughout the PLANT in the            performance of their official duties, provided the UNION officials noted above do not            unreasonably interfere with the production of Employees. Local Union Officers and            committee member shall seek permission from their supervisor to leave their work area            in order to meet their responsibilities as outlined within this Agreement. Permission            will be granted unless there is a justifiable business reason for denying such            permission. Once permission has been granted, the Employee will be paid their regular            rate as long as the responsibilities are carried out during the Employee’s            regular work hours.

 

(3) UNION officials noted above in subsection (2), with proper advance            notification to Human Resources, will be excused to participate in UNION activities. In            cases where multiple UNION officials noted above in subsection (2) are requesting to be            excused for multiple days, the request shall be submitted as far in advance as possible            but no less than two (2) working days prior to the requested time off. In cases of            District or International Conventions or conferences, no more than ten (10) Employees            shall be excused to attend. Employees who have an official request for a leave of            absence shall be granted leave to serve as District or International officers or            representatives and shall retain their seniority and accrue seniority while they are on            such leave. Employees who have an official request for a leave of absence shall be            granted leave to accept a temporary UNION assignment, not to exceed four (4)            consecutive months, and to return to their former jobs and shifts. No more than two (2)            Employees may accept such temporary UNION assignments at the same time. Permanent UNION            appointees and those Employees who are elected to District or International office            shall be entitled to return to a job, provided that Employees with greater seniority at            the PLANT are not on layoff.

 

**Section (f) Contracting and            Subcontracting**

 

Notwithstanding anything to the contrary in this Agreement, the PLANT            has the unlimited right to contract out or transfer work.

 

**Section (g) Job Security**

 

During the life of this Agreement, and based on market demand, the M/7,            M/700, M/7600, M/7400, M/1187, M/1100, M/870, SP10, M/552, M/572, M750, M7615 and            105CTi will continue to be produced only at the Ilion Plant; however, in accordance            with Article II, Section (f), the PLANT retains the right to purchase and/or procure            component parts and services for the foregoing models.

 

 

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**Article III - Wages and Hours**

 

**Section (a) Basic Workday**

 

The regular or basic “workday” shall begin at 7:00 am and            end the following day at 7:00 am. The EMPLOYER may designate other            “workdays” for individual Employees or groups of Employees following            discussion of the need to do so with the Local Union.

 

**Section (b) Basic Workweek**

 

The regular or basic “workweek” shall begin Monday at 7:00            a.m. and shall end the following Monday at 7:00 am. The EMPLOYER may designate other            “workweeks” for individual Employees or groups of Employees following            discussion of the need to do so and agreement by the Local Union. An Employee’s            basic “workweek” will not be changed without seven days prior notice. In            the event the parties are unable to reach agreement regarding the work week change, the            EMPLOYER may implement the change, subject to the UNION’s right to file a            grievance and submit the matter to arbitration for final resolution. In cases where the            change is of a single week duration, the agreement and notice provisions of this            section shall not apply, but the affected Employee(s) will be given as much notice as            possible.

 

**Section (c) Overtime Pay and Premium            Pay**

 

(1)        Overtime pay at one and            one-half times the Employee’s regular rate will be paid for:

             

(A)           All hours worked at the direction of management in excess of eight (8)            hours in any period of twenty-four (24) consecutive hours. This provision shall not be            applicable if the excess hours worked are at the request of the Employee.

             

| (B) | All hours worked in excess of forty (40) in the regular                        workweek. |
|-----|------------------------------------------------------------------------------------------|

             

| (C) | All hours worked on the Employee’s sixth consecutive                        day off. |
|-----|--------------------------------------------------------------------------------------------|

             

(D)         All hours worked on Saturday unless Saturday is included in the            Employee’s regularly scheduled workweek.

 

| (2) | Overtime pay at double the Employee’s regular rate                        will be paid for: |
|-----|---------------------------------------------------------------------------------------------------|

             

| (A) | All hours worked on the Employee’s seventh consecutive                        day. |
|-----|------------------------------------------------------------------------------------------|

             

 

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(B)               All hours worked on Sunday unless Sunday is included in the            Employee’s regularly scheduled workweek.

 

(3)                          For            the purpose of determining whether an Employee has worked a sixth or seventh day within            the regular workweek as set forth in this Article, such Employee shall be considered to            have performed a day’s work when:

 

(A)               The Employee works the regularly scheduled hours in a day.

             

(B)               The Employee is off work due to a Holiday or other Contractual            day.

             

(C)               The Employee is excused for part of the day by management.

             

(D)               The Employee is absent a full day as a result of being sent home due to            lack of work without prior notification not to report.

 

(4)        Work on the seventh            consecutive day and all holidays is optional. In the event all Employees refuse such            work, management retains the right to assign the least senior Employees in the needed            job title to work.

             

(5)        An Employee who is            required to work on one of his scheduled days of rest shall not be required to take            compensating time off.

             

(6)        Overtime opportunities            shall be distributed on an equitable basis. The EMPLOYER is responsible for scheduling            overtime and determining qualified Employees to perform overtime work. Weekend (and            sixth and seventh day worked) overtime hours shall be distributed by the EMPLOYER among            the Employees qualified to perform the work involved pursuant to the following            guidelines:

             

| (A) | All shifts on a particular assignment working                        overtime: |
|-----|--------------------------------------------------------------------------------|

 

(i)                 Ask regular operator(s) of that primary assignment on the shift that            will be running.

             

(ii)                If he refuses, ask other operators in the same Department, on the same            shift, who are qualified to perform the work.

 

(iii)               If they refuse, ask other operators in the same Area Manager’s            area, on the same shift, who are qualified to perform the work.

             

 

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(iv)               If they refuse, the EMPLOYER may assign the work to the least senior            employee in the Area Manager’s area qualified to perform the work.

 

| (B) | Only one shift of a multi-shift job working                        overtime: |
|-----|------------------------------------------------------------------------------|

 

The overtime opportunity will be offered to all regular operators of            that assignment on all shifts on an equitable basis. Management reserves the right to            schedule the specific hours of such overtime work. If there are an insufficient number            of volunteers, the EMPLOYER may assign the work to the least senior regular operators            of that assignment.

 

Note that inemergencysituations, the EMPLOYER will take whatever steps are necessary to keep            a job running and assure no break in the production flow.

 

(7)      When more than one rate is            applicable to the same hours of work, the rates shall not be pyramided, but only the            highest single rate applicable shall be paid. Any hours paid for at any overtime rate,            except hours worked on Holidays, shall not be used again for the purpose of determining            any other overtime hours. When time and one-half (1 1⁄2), two (2), or two and one            half (2 1/12) times rates are paid for hours worked, such hours shall be considered            overtime hours.

 

(8)      If there are an insufficient            number of volunteers for overtime pursuant to Subsection (6) of this Article III(c),            then the EMPLOYER may require mandatory overtime of up to ten (10) hours per work week            consisting of work shifts not to exceed:

             

i.               Up to ten (10) hours on the first five (5) days of any scheduled work            week (i.e., not to exceed two (2) hours of mandatory overtime per shift).

             

| ii. | Six (6) hours on the sixth                        (6th) day                        worked. |
|-----|--------------------------------------------------------------------------------------------|

 

(A)       The EMPLOYER has the right to determine the hours of work and            determining qualified Employees to perform overtime work.

             

(B)       Employee absences during mandatory overtime and voluntary overtime once            accepted by the Employee shall be logged on the Employee’s work history and            counted as an unexcused absence in the Attendance Policy.

             

(C)     Overtime shall not be applicable for the Short Term Disability Pay Plan            or vacation considerations.

             

(D)       Employees shall be given twenty-four (24) hour advance notice of            mandatory overtime scheduled on the sixth            (6th). By way of

             

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example, if an Employee is going to be scheduled for mandatory overtime            on a Saturday, the Employee shall be informed of the assignment by the end of his shift            on Thursday.

 

**Section (d) Standard Daily Wage            Rate**

 

The Employee’s Standard daily wage rate as used herein shall be            calculated in accordance with the following formula:

 

Employee’s Established

| Monthly Salary x 12          | =          | Straight Time Rate |
|------------------------------|------------|--------------------|
| 52 Weeks x 40 Hours Per Week | (Per hour) |               |
|                              |            |                    |  |  |

 

The            term regular rate as used herein shall mean the straight time rate plus shift            differential, if any, but excluding all other payments.

 

**Section (e) Hourly Wage Rates and Shift            Differential**

 

(1)            Hourly Wage Rates

 

(A)               The four (4) Level Pay Structure is included in this Agreement as            Appendix A. This structure will remain the same during the life of this Agreement            however, all Employees actively employed on the effective date of this Agreement will            receive:

 

| Effective Date   | Amount |
|------------------|--------|
| October 29, 2007 | 3.5%   |
| November 3, 2008 | 3%     |
| November 2, 2009 | 3%     |
| November 1, 2010 | 3%     |
| November 7, 2011 | 3.5%   |

 

 

(B)               Appendix B lists each of the pay levels and the job titles and job code            numbers incorporated within each pay level. The EMPLOYER shall not introduce additional            pay levels or job titles during the life of this

             

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Agreement or combine existing job titles or pay levels without            discussions with and agreement by the Local Union. In the event the parties are unable            to reach agreement regarding the appropriate pay level and job code number, the            EMPLOYER may implement the change, subject to the UNION’s right to file a            grievance and submit the matter to arbitration for final resolution.

 

(2)            Shift Differential

 

An Employee permanently scheduled or temporarily assigned to work            between the hours of 3:30 p.m. and 7:00 a.m. shall receive a night shift differential            amounting to ten percent (10%) of the applicable rate for Current Employees and $0.75            per hour for New Employees for such hours, according to the procedures in paragraphs            (A) through (E) of this Section. No shift differential shall be paid when such hours            worked at the request of the Employee.

 

(A)               A day shift Employee shall receive shift differential when the hours            worked in a workday amount to four or more* between the hours of 3:30 pm and 7:00 am,            and provided the Employee worked his normal shift and the hours qualifying for shift            differential are an extension of that shift.

             

*Employees scheduled to begin work at 4:00 a.m. will receive shift            differential for those hours worked between the hours of 4:00 a.m. and 7:00            a.m.

             

(B)               A day shift Employee shall receive shift differential for all hours            worked between 3:30 p.m. and 7:00 a.m. provided the Employee worked his normal shift            and a break in work of one hour or more occurs between the normal shift and those hours            qualifying for shift differential.

             

(C)               If the majority of hours worked by a day shift Employee are worked on a            night shift (3:30 p.m. to 7:00 a.m.), he will be paid according to paragraph (D) of            this Section.

             

(D)               A second or third shift Employee shall receive shift differential for            all hours worked on his normal shift, as well as for all hours worked which are an            extension of his normal shift, provided he works his normal shift.

             

(E)               If the majority of hours worked by a second or third shift Employee are            worked on the day shift (7:00 am to 3:30 pm), he will be paid according to paragraphs            (A) and (B) of this Section.

 

(F)               Night shift Employees may be temporarily assigned by the EMPLOYER to            work the day shift. When these Employees are reassigned to days, they will continue to            receive their night shift differential for a

             

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period not to exceed two (2) regular work weeks unless an extension of            time is deemed necessary by both parties.

 

This policy will not apply when:

 

(i) The request to work the day shift is originated by the            Employee.

             

(ii) Supervision determines a need for retraining due to a lack of            performance on the part of the Employee.

             

(iii) An Employee who is a successful bidder to a night shift job which            requires training on the day shift and is accordingly assigned to days for initial            training.

             

(iv) An employee is moved pursuant to a medical restriction.

             

**Article IV – Holidays**

 

**Section (a) Holidays            Observed**

 

| (1) | In each year of this Agreement there shall be eleven paid                        Holidays: |
|-----|--------------------------------------------------------------------------------------------|

             

New Year’s Day

Good Friday

Memorial Day

July 4th

Labor Day

Thanksgiving Day

Day after Thanksgiving

December 24 – day before Christmas

Christmas Day

Employee’s Birthday

Plant Floater

 

(2)        With the exception of            the Employee’s Birthday and the Plant Floater, foregoing Holidays shall be            celebrated on the legally designated days.

 

**Section (b) Saturday and Sunday            Holidays**

 

(1)        When any of the foregoing            Holidays falls on Saturday, the preceding Friday will be observed as the            Holiday.

 

 

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(2)        When any of the foregoing            Holidays, except December 24, falls on Sunday, the following Monday will be observed as            the Holiday.

 

**Section (c) Plant Floater and December            24**

 

(1)       The date of celebration of the            Plant Floater Holiday will be selected by each individual Employee to be scheduled in            accordance with the provisions for scheduling vacations as set forth in Article            V.

 

(2)       When December 24 falls on            Friday, the preceding Thursday will be observed as the Holiday. When December 24 falls            on Sunday, the following Tuesday will be observed as the Holiday.

 

**Section (d) Pay for Holidays            Worked**

 

Employees who work on the foregoing Holidays, including designated            birthday Holidays, shall be paid at one and one-half (1 1⁄2) times the            Employee’s regular rate for all such hours worked, and in addition, will be paid            a Holiday allowance calculated at the Employee’s regular rate for the hours            normally scheduled on the day of the workweek, or the Employee shall be paid overtime            pay at two and one-half (2 1⁄2) times the Employee’s regular rate for such            Holiday hours worked, whichever yields the greater pay.

 

**Section (e) Pay for Holidays Not            Worked**

 

Employees who do not work on the foregoing Holidays will be paid their            regular earnings for such day, including regularly scheduled overtime rates. In order            to qualify for Holiday pay for Holidays not worked, the Employee must work both on the            Employee’s last scheduled day prior to the Holiday and on the Employee’s            next scheduled day following the Holiday, unless excused from work on such days by            PLANT management.

 

**Section (f) Birthday            Holidays**

 

With supervisory approval, an Employee may elect to float his/her            birthday to any regularly scheduled workday within the calendar year in which the            birthday falls except for Sunday, a day of vacation or a recognized PLANT wide            holiday.

 

(1)       Employees will be asked in order            of seniority to schedule their birthday Holiday prior to any vacation scheduling each            year.

 

 

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(2)       Employees who choose not to            float their birthday Holiday and elect to take the day of their birthday off, will have            preference over any employee floating the Holiday or scheduling a split day of            vacation.

 

(3)       If an Employee elects not to            schedule the birthday Holiday floater prior to vacation scheduling, the birthday            Holiday will not take preference over vacation days but will be granted on a first-come            first-served basis. The birthday Holiday will be given consideration along with any            late vacation requests.

 

(4)       If the Employee’s birthday            falls during a scheduled week of vacation, the Employee may reschedule the extra            vacation day at some other time during the calendar year following established split            vacation guidelines.

 

(5)        Employees will            observe their birthday Holiday on the day selected. In emergency situations, however,            an Employee’s birthday Holiday may be granted or changed with approval of Area            Supervision prior to the start of the shift during which the Holiday was to be            celebrated.

 

**Section (g) Time of Payment**

 

Payment for Holidays not worked shall be included with pay for the pay            period in which the Holiday occurs.

 

**Article V – Vacation**

 

**Section (a) Regular            Vacation**

 

Employees will qualify for up to five (5) weeks of regular vacation            under the following formula:

 

| Two weeks after one (1) year of service       |   |
|-----------------------------------------------|--------|
| Three weeks after five (5) years of service   |   |
| Four weeks after ten (10) years of service    |   |
| Five weeks after twenty (20) years of service |
|                                               |        |  |  |

 

**Section (b) PLANT Shutdown**

 

The EMPLOYER shall have the option of declaring a vacation shutdown for            up to 10 working days during any calendar year of this Agreement. If the EMPLOYER            elects this option it will notify the Local Union President by January            15thof the year so elected. One            of the two weeks elected for shutdown shall occur during the time period of June 1 -            August 31. If the EMPLOYER elects to exercise the right to shut down the PLANT, up            to

 

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10            working days of an Employee’s regular vacation may be assigned to these shutdown            periods. Vacation shutdown weeks may include observed Holidays covered by this            Agreement. In such cases the EMPLOYER may assign vacation only to those days not            covered by Holidays for a combined total of five (5) days during the shutdown            week.

 

**Section (c) Staggered            Vacation**

 

Any vacation other than vacation described in Section (b) above, shall            be scheduled by the EMPLOYER at times desired by the individual Employees provided the            Employee requests the vacation two (2) working days prior to the actual vacation.            Notwithstanding the foregoing, an Employee may request to use no more than three (3)            vacation days per calendar year with less than two (2) working days notice prior to the            actual vacation. The EMPLOYER may excuse the two (2) working day prior request            requirement in the event of a verifiable severe weather condition. Vacations shall be            scheduled by Employees in accordance with the past practice of vacation scheduling,            recognizing production needs and the Employee’s right to schedule vacation in            weekly segments or split action of single day or 1⁄2 day segments.

 

**Section (d) Work During            Shutdown** 

 

In the event the EMPLOYER declares a vacation shutdown between the            months of June 1 – August 31, Employees who are required to work during the            shutdown shall be assured of scheduling equal days off during the months of June, July,            or August, if they so desire.

 

**Section (e) Time of Payment**

 

(1)       Vacation payment for three            (3) or more consecutive days vacation shall be made by separate check no later than the            last pay day immediately preceding the beginning of the respective vacation periods,            providing advanced vacation forms are turned into the Payroll Department in a timely            fashion. Any vacation of less than three (3) consecutive days will be paid in the same            pay period in which the regular work for that week will be paid.

 

| (2) |
|-----|

 

(A)               Employees who leave their employment (for reasons other than discharge            for just cause) prior to receiving vacation pay shall receive their pro rata share of            vacation payment earned for each of the qualifying years (i.e., first, fifth, tenth,            and twentieth) by their second regular pay period from the time their employment is            severed according to the following guidelines:

             

 

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- If the Employee leaves employment during or after their anniversary            month, they will receive full pay for the additional week of vacation            earned.

             

- Should the Employee leave employment before their anniversary month,            their additional week of vacation pay will be reduced by 1/12 of a week for each month            the Employee leaves prior to the anniversary month. For example, an Employee with an            anniversary month of July who wants to leave in February of a qualifying year will be            leaving five (5) months prior to his anniversary month and will therefore have the            additional week’s vacation pay reduced by 5/12’s of a week.

             

(B)               Employees who leave their employment (for reasons other than discharge            for just cause) prior to receiving vacation pay in the years between qualifying years,            shall receive full vacation pay based on their years of service outlined in Section (a)            of this Article.

             

(C)               Any vacation previously paid during the calendar year will be considered            part of total allotment.

 

**Section (f) Obligation for            Payment**

 

Failure of the EMPLOYER to make full and prompt payment of the amounts            required hereby, in the manner and on the dates herein provided, shall at the option of            the UNION, be deemed a violation of this Agreement. This obligation shall be a direct            and continuing obligation of the EMPLOYER during the life of this Agreement; and it            shall be deemed a violation of this Agreement if the PLANT, to which this Agreement is            applicable, shall be sold, leased, subleased, assigned or otherwise disposed of for the            purpose of avoiding the obligation hereunder.

 

**Article VI – Allowance**

             

**Section (a) Bereavement Pay**

             

(1)        An Employee who is excused            from work because of death in the Employee’s immediate family, shall be paid the            Employee’s regular rate of pay for the Employee’s scheduled working hours            excused for a maximum of three (3) scheduled working days, starting on the day of death            or on the day following death to and including the day after the funeral, but in no            event extending beyond the day after the funeral. A member of the Employee’s            immediate family shall be limited for the purpose of this Section to Mother, Father,            Step-Parent, Mother-in-law, Father-in-law, Sister, Brother, Husband, Wife, Son,            Daughter, Step-child, Grandparent and Grandchild of the employee. No pay allowance            shall be granted in the case where, because of distance or other cause,

 

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the            Employee does not attend the funeral of the deceased. In instances of distant death,            where a local memorial service is held, Employees will be excused with pay, for up to            eight hours, on the day of the service.

 

(2)       Spring interment or split time            off (funeral and interment at a later date) may be granted as long as it does not            exceed three (3) working days in total time off. If an Employee is on vacation and a            death occurs in the family, days used under the above provisions may be rescheduled at            a later date.

 

(3)       In case of death of a            Brother-in-law*, Sister-in-law*, Son-in-law, Daughter-in-law, an Employee may be            excused from work up to eight (8) hours on the day of the funeral and shall be paid the            Employee’s regular rate of pay for the working hours excused. No pay allowance            shall be granted in the case where, because of distance or other cause, the Employee            does not attend the funeral of the deceased. Notice of such deaths must be given to the            Employee’s supervision as soon as it is reasonably possible. In instances of            distant death, where a local memorial service is held, Employees will be excused with            pay, for up to eight hours, on the day of the service.

 

(4)        The hours thus paid for            but not worked shall not be used in computing overtime pay for hours worked in excess            of forty (40) in the workweek, nor shall Such days be counted as days worked in            determining whether the Employee has worked a sixth (6th) or seventh            (7th) day in the regularly            scheduled workweek.

             

(5)       The EMPLOYER may require            verification of death and relation to the Employee.

 

*Brother-in-law and Sister-in-law are defined as the spouse of the            Employee’s Brother or Sister and the Brother or Sister of the Employee’s            spouse.

 

**Section (b) Jury Duty** 

 

When an Employee is called for jury duty service, he shall be excused            from work for the hours he is required to appear in court and for time granted by            supervision for the Employee to prepare for jury duty (travel time, clothes change,            etc.). The amount of this time will be determined at the discretion of the            EMPLOYER’s supervisor. Employees attending jury duty will be paid their regular            rate for the excused hours they would have been scheduled to work, not to exceed eight            (8) hours for any one day and shall be allowed to retain jury fees received for jury            duty service. Time absent for jury duty will be paid as excused jury duty. An Employee            called to jury duty while on vacation (other than previously scheduled vacation            shutdown) will be permitted to reschedule vacation beginning with the first day of jury            duty. Employees who have been selected to jury duty must complete proper PLANT forms            and return them to their supervision each week of jury duty service.

 

 

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**Section (c) Reporting Pay and Call - In Pay**

 

(1)       An Employee who reports for            scheduled work, without prior notification not to report, shall be retained for the            half-day period and given such useful work as may be at hand at the Employee’s            regular rate. If the Employee is offered and does not accept substitute work, the            Employee will be paid only for the time spent at the PLANT until such work is offered.            This provision does not apply to cases where work is not available for reasons beyond            the EMPLOYER’s control, such as power failure, fire, or serious mechanical            difficulties affecting an entire area, or in cases where Employees return to work            following unexcused absences without notifying their supervision. Disability pay shall            not be paid during periods of PLANT shutdown beyond the EMPLOYER’s            control.

 

(2)       An Employee who is called            in and reports for work between regular shifts with less than eight (8) hours notice            shall receive a call-in allowance of two (2) hours pay at the Employee’s regular            rate, in addition to any other pay to which may be entitled.

 

**Section (d) Military Duty**

 

Employees required to perform military service will receive            compensation, rights and benefits per the Remington Military Leave Policy, as amended            from time to time by the EMPLOYER.

 

**Article VII – Joint Labor –            Management Communication Committee**

 

The parties recognize that the prosperity and efficiency of the PLANT            are dependent upon their ability to work cooperatively. In order to further implement            this expression of purpose, Joint Labor-Management Communication Committee shall be            established at the PLANT. The UNION representation on this committee shall be the Local            Union Executive Board. The EMPLOYER shall designate its representatives to the            Committee. Neither party shall have more than six (6) representatives on the Committee.            The Committee shall meet at mutually agreeable times, but no less than once a month.            The function of the Committee shall be to identify problem areas, exchange information            and to seek to develop a good working relationship within the PLANT. Representatives            from the UNION or the EMPLOYER may suggest areas of special concern or interest as            topics of discussion during these Committee meetings, as long as they are consistent            with the purpose of this Committee and the provisions of this Agreement.

 

 

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**Article VIII – Health and Safety**

 

**Section (a) Right to a Safe Working            place**

 

Every Employee covered by this Agreement is entitled to a safe and            healthful place to work, and the parties jointly pledge their individual and joint            efforts to attain and maintain this objective. Recognizing that the health and safety            of the Employees covered by this Agreement are one of the highest priorities of the            parties, the EMPLOYER and UNION will continue to cooperate to reach the objective of            eliminating accidents and health hazards, and will encourage Employees to use the            procedures stated herein to reach that objective.

 

**Section (b) Health and Safety            Committee**

 

(1)        At the PLANT there shall            be a Health and Safety Committee made up of nine (9) UNION members employed at the            PLANT who are qualified by experience or training and selected by the Local Union. The            Local Union shall inform the EMPLOYER of the names of the Committee members. Committee            members shall be deemed to be acting within the scope of their employment at the PLANT            within the meaning of the applicable workers’ compensation law, while in the            performance of their duties as outlined within this Agreement. The Health and Safety            Committee shall select, from among its members, a Chairman who shall coordinate the            activities and functions of the Committee and who will serve as their representative on            the Central Safety Committee and the joint Labor-Management Communications            Committee.

 

(2)       A member of the Health and            Safety Committee, assigned by the Committee Chairman, may participate with Management            in the existing inspection program and scheduled Serious Potential Incident            meetings.

 

(3)      Employees should first report health            and safety complaints or conditions to their immediate supervision. Members of the            Health and Safety Committee will make every effort to ensure that the Employee has            first brought the complaint to the attention of their immediate supervision before            presentation to the Plant Safety Supervisor. Upon presentation of alleged health and            safety complaints or conditions by the Chairman of the Health and Safety Committee or            his designee to the Safety Supervisor, the UNION and the Safety Supervisor will            schedule a joint investigation of the complaint or condition.

 

Management will notify the Chairman of the Health and Safety Committee            or his designee of a complaint or accident as soon as practicable, using its best            efforts to do so. The Chairman of the Health and Safety Committee or his designee shall            be given a copy of any incident report generated as a result of an injury to an            Employee. A member of the Health and Safety Committee shall participate with the Safety            Supervisor in the initial

 

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formal safety investigation if the Safety Supervisor determines that an            investigation is necessary.

 

(4)       PLANT Management and up to three            (3) members of the Health and Safety Committee shall meet regularly at times arranged            by the parties for the purpose of discussing health and safety matters. Meetings shall            be held on a monthly basis or more frequently if needed. No more than three (3) members            of the Health and Safety Committee shall be compensated, at their regular rate of pay,            by the EMPLOYER for any lost time spent in these meetings.

 

(5)       A member of the Health and            Safety Committee, and an authorized representative of the International Union, shall be            allowed to accompany a representative of any State or Federal agency regarding health            and safety on an inspection of the PLANT.

             

(6)       A member of the Health and            Safety Committee, assigned by the Health and Safety Committee Chairman, shall be            invited to attend Serious Potential Incident meetings, Joint Complaint Investigations            and other scheduled safety sub-committee meetings. Time spent performing the above            recognized Committee activities will be compensated at his regular rate of pay, by the            EMPLOYER, if performed during the member’s regularly scheduled work hours. Off            shift employees will be scheduled to attend safety meetings as part of their regularly            scheduled work hours.

 

(7)       The UNION and the EMPLOYER agree            that, prior to requesting intervention from a federal or state agency on any matter            relating to employee health and safety, the UNION will present the issue to the            EMPLOYER, which will then be given a reasonable period of time within which to respond.            Only after receipt of the EMPLOYER’s response, or the EMPLOYER’s failure to            respond, will the UNION seek such outside intervention.

 

(8)       The Safety Supervisor shall each            month provide the Health and Safety Committee with two copies of a list of all (i)            first aid treatment cases and (ii) accidents reported to OSHA, which shall include, but            not limited to the OSHA 200 log. Such report will reflect the nature of the injury and            the location of the accident.

 

(9)      The Health and Safety Committee shall            attend annual Health and Safety Training of up to five (5) working days as agreed to by            the UMWA International Union and the EMPLOYER. The training will be designed to improve            Health and Safety knowledge skills. Committee members attending and participating in            such training shall be paid at their regular rate of pay for lost working time by the            EMPLOYER for attendance at the training.

 

 

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**Section (c) Settlement of Health or Safety            Disputes**

 

When a dispute arises at the PLANT involving Health and Safety, an            immediate, earnest and sincere effort shall be made to resolve the matter. If the            dispute is not resolved by the Employee and his immediate supervisor, nor with the            assistance of the Health and Safety Committee, the dispute will be adjudicated through            the grievance procedure.

 

**Section (d) Drug and Alcohol            Testing**

 

(1)        During the            Probationary Period, Employees shall be subject to the Remington Drug Free Workplace            Policy, as amended from time to time by the EMPLOYER.

             

(2)        Employees shall be            subject to the drug and alcohol testing policy set forth in Appendix C.

             

**Article IX – Seniority**

 

**Section (a) Definition of            Seniority**

 

Seniority of Employees employed in the bargaining unit shall be the            Employee's most recent date of hire at the PLANT adjusted for any previous period of            unbroken seniority provided such seniority was not terminated in accordance with            section (b) below.

 

**Section (b) Termination of            Seniority**

 

Seniority shall be terminated upon the Employee's termination for just            cause; voluntary resignation; transfer to a job outside the bargaining unit, expiration            of recall rights after termination for lack of work; or failure to return to work as            scheduled after completion of a leave of absence agreed to by the PLANT or the failure            to return to work as return to work as scheduled. Employees who transfer to a job            outside of the bargaining unit will lose their seniority and in the event the employee            returns to the bargaining unit will be treated as a new employee.

 

 

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| **Section (c) Probationary Period** |
|-------------------------------------|

 

During the first one hundred twenty (120) calendar days of employment, a            new Employee will be subject to demotion, transfer, or termination by the PLANT and            such action shall not be subject to Articles X and XI of this Agreement. After one            hundred twenty (120) days probationary period, the Employee's seniority will be            established in accordance with the provisions of Section (a) of this Article. Any            discipline in the first 120 days will carry into the next sixty (60) days.

 

**Section (d) Filling            Vacancies**

 

When vacancies occur, they will be filled in the following            order:

 

(1)        To Employees qualified for            the job, per provisions of the Job Bidding and Posting Procedure.

 

(2)       To reasonably available former            bargaining unit Employees laid off due to reduction of force and on a panel and            possessing the necessary qualifications to step in and perform the work of the job at            the time the job is awarded.

 

(3)       To new applicants qualified to            step in and perform the work of the job.

 

If            opportunities arise to bring products of any type currently manufactured elsewhere to            the Ilion facility, Management reserves the right to permanently fill jobs associated            with those products without regard to the provisions of Article IX section (d), Filling            Vacancies, and such placements will not be subject to the Grievance Procedure under            Article X section (b). Any openings that occur after the first year of production will            be filled in accordance with the provisions of Article IX, section (d). During the            first year of production, employees placed under this provision will not be subject to            displacement under Article IX, section (e), Reduction Realignment Procedure, unless a            PLANT-wide excess creates a reduction in force. This section does not apply to product            designed and developed to be produced at Ilion.

 

**Section (e) Reduction Realignment            Procedure** 

 

In the event the EMPLOYER determines that there is an "excess" of jobs            within a job code in the bargaining unit, representatives of the EMPLOYER shall notify            the Local Union and the parties will follow the process covered within this section. In            all cases where the work force is to be reduced, Employees with the greatest seniority            at the PLANT shall be retained provided that they have the required qualifications (as            would normally be posted) and the ability to perform the available work. If at any time            there is an excess within a training progression, those Employees in level 03 of the            training progression will be added to the excess list and Employees on temporary            assignments

 

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will            be returned to their primary assignments for purposes of regression. When an excess            occurs in normal progression positions, the least senior person in the progression will            be excessed. Prior to any excess process, all open jobs will be posted one cycle.            Employees considered excess will be given twenty four (24) hour written notice prior to            posting, if the business conditions indicate that the excess condition could reverse            within the next six (6) months, which may allow some or all of the operators to return            to their primary assignment, management may place the group of employees on Temporary            Assignments during that period. Realignments or reductions of the work force shall be            in accordance with the following guidelines:

             

(1)        Once excess assignments            are determined, if the Employees in those assignments are not the lowest senior            Employees, they will have the option to replace the lowest senior Employees within the            Department, level, job code and shift.

 

(2)        Excessed employees will be            given options, by seniority, providing their choice does not result in a higher pay            level:

 

(A)               Accept any open position and receive immediate bid rights and retain            preferential treatment or:

             

(B)               Bump the lowest seniority person in the PLANT in the same pay level and            shift. If Employee(s) cannot preserve pay levelandshift, or:

             

(C)               Bump the lowest seniority person in the PLANT in same pay levelorsame shift. When neither (A) nor (B) is            satisfied, Employee(s) will be advised of their options to preserve (C), prior to            choosing shift or level.

 

(3)        When Employee(s) have no            options in their pay level, they will drop one (1) pay level at a time until their need            is satisfied maintaining their shift.

 

(4)        When an excess is            declared, all open jobs will be posted one cycle.

             

(5)        Bidding restrictions will            be removed for excessed Employees only. If an excessed employee is successful in            bidding they will receive immediate bid rights and retain preferential            treatment.

 

(6)        In a bumping situation if            shift and level are preserved, the Employee will not have bid rights restored for six            (6) months following the date an excess offering was awarded.

 

(7)        For purposes of            regression, all Employees within code 742 (Department Specialist) will return to code            741 (Machine Line Operator).

 

(8)        Employees transferring for            any reason between production and support departments will receive the second step of            the pay level and will progress depending on performance. If the Employee left the            support department within twenty-four (24)

 

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months and at the top of the rate of pay, the Employee will return to            the support department at the top rate of the job.

 

(9)        During any excess            resulting in a layoff, the Volunteer Leave of Absence (VOLA) procedure will be followed            as per current practice.

 

**Section (f) Panel**

 

Employees with seniority who are laid off because of a reduction in the            work force shall be placed on a panel from which they shall be returned to employment            on the basis of seniority as outlined in Section (d)(2) of this Article.

 

**Section (g) Panel            Custodians**

 

A designated representative of the EMPLOYER and the Recording Secretary            of the Local Union shall retain panel records. It shall be the obligation of laid off            Employees, with seniority, to keep the custodians of the panel informed of any change            of address and/or phone number where they may be regularly reached. Notice to the last            known address of the laid-off Employee by certified mail shall be sufficient notice of            recall. The Employee so notified may either accept or reject the job which is            available; but if the Employee rejects a job which he has the ability to perform, or            fails to respond within five (5) working days after receipt of such notice, or accepts            but fails to report for work in a reasonable amount of time, his name shall be removed            from the panel and he shall sacrifice his seniority rights at the PLANT.

 

**Section (h) Panel Members Accrue            Seniority**

 

Employees who are placed on the panel shall retain the seniority earned            prior to their layoff, and, in order to protect their relative seniority standing, will            continue to accrue seniority while on the panel.

 

**Section (i) Right to be            Recalled**

 

(1)        Employees, with seniority,            laid off for lack of work shall retain their seniority for five (5) years. Employees            laid-off for lack of work may exercise their seniority in accordance with the            provisions of this Article.

 

(2)        Any person on the panel            list who secures other employment during the period when no work is available for him            at the PLANT shall in no way jeopardize his seniority rights while engaged in such            other employment. However, any person on the panel list who secures other employment            and does not return to work when there is

 

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available employment at the PLANT, shall sacrifice his seniority rights            at the PLANT and shall have his name removed from the panel list.

 

**Section (j) Recall of Persons on Layoff            Status**

 

When a job at the PLANT exists that is not filled by Employees within            the active working force, the panel custodians will review the list and the EMPLOYER            shall recall the appropriate person from the panel list to the job to be            filled.

 

**Section (k) Job Bidding and Posting            Procedure**

 

(1)        Eligibility:            Employees with one year or more of service will be eligible to bid open jobs unless the            employee is not available to return to work within 30 work days from time of bid. All            open jobs will be posted at the appropriate pay level for the job title as listed in            Appendix B. The senior Employee, among those eligible bidders, with the required posted            qualifications and ability to perform the job will be awarded the job. If an excess            situation exists, and an excess Employee has less than one year of service, the            excessed Employee will be allowed to bid. If an employee has been shift realigned, they            will be able to bid for shift.

 

(2)        Job Progressions: All open            jobs will be posted at the level of the opening. If there is no successful bidder who            meets requirements stipulated, a training bid (when appropriate) will then be offered            at the training bid level (the training bid level is one step below the normal entry            level for the position). In the event of a training bid, some minimal established            requirements will be necessary to fill the opening. The successful bidder of a training            bid will then take the responsibility to get education, etc. and demonstrate            improvement in order to progress.

 

(3)        Posting Procedure: Open            jobs will be posted PLANT wide for three (3) working days. Open jobs within a            progression will be filled by qualified people in the progression prior to posting.            Each posting will include:

 

| **•** | job title                             |   |
|------------|---------------------------------------|--------|
| **•** | rate level                            |   |
| **•** | shift                                 |   |
| **•** | department                            |   |
| **•** | brief description of the job          |   |
| **•** | qualifications and experience needed. |
|            |                                       |        |  |  |  |  |  |

 

| (4) | Bidding Procedure: |
|-----|--------------------|

 

(A)               Open jobs, not filled by normal progressions, will be posted PLANT wide.            Any Employee interested in the position must bid during

             

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the posting period. Skilled jobs will be awarded by seniority following            successful interviews and demonstrations of skills and abilities. With the exception of            skilled jobs, no job will be reposted waiving restrictions. Skilled jobs may be            reposted to provide for training bids when appropriate. Training bids will be awarded            by seniority upon successful demonstrations of abilities and interviews. Any Employee            restricted from bidding otherwise shall be allowed to bid on training bid positions.            Once the posting has been removed from the boards the job posted cannot be withdrawn            without agreement between the UNION and the EMPLOYER.

             

(B)              If the Employee is the senior qualified bidder, meets qualification and            medical requirements to more than one job at a given time, the Employee will be given            24 hours from the time notified to select which bid to accept. The Employee will also            have the option of rejecting any or all successful bids during that 24 hour            period.

             

(C)               Successful bidders will be moved to the new assignment within 20            production days following the award of the bid, unless an extension of time is agreed            upon by both parties. If the new job involves transferring to a higher level of pay,            and an extension beyond 20 production days is required, the Employee will receive the            higher level of pay, at one step above crossover, beginning on the twenty-first day.            Employees transferring, for any reason, between Production and Support Departments will            receive the second step of the pay level and will progress depending on            performance.

 

(D)               Preferential treatment shall be awarded to Employees who were "excessed"            from a job back to the same primary assignment he/she was "excessed" or "bumped" from,            for a period of 24 months from the date of the "excess", provided the Employee has not            successfully bid to another job opening in this 24 month period.

             

(E)               If there are no qualified bidders (including Employees entitled to            preferential treatment) or other bargaining unit personnel in need of a permanent            assignment, the job may be filled by posting a training bid (if applicable) or by a            qualified person from the layoff panel. If there are no qualified persons on the panel            list, the job may be filled by hiring a new Employee.

             

(F)               Employees will be restricted to one (1) bid per 24 month period            throughout the term of this Agreement.

             

(G)             Training of Employees shall take place on their normal shift, unless            such training is not reasonably available on that shift.

 

 

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(5) Training: Appropriate training periods for successful bidders,            excessed placements, new hires, and all other transfers should not exceed the            following:

| **•** | Three (3) weeks for level three (3) jobs.                                                                                                                                                                 |
|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **•** | Level four (4), level five (5) and level six (6) jobs will                        allow for reasonable amounts of training appropriate for the specific                        assignment.                |
| **•** | Training time for job moves will be determined by management                        based on the complexity of the assignment and the training required to                        operate the job safely. |

 

Employees who are unable to satisfactorily perform jobs after the            appropriate amount of training will, at the discretion of management, be declared            non-performers and will be placed according to the Non-Performance section of this            Agreement.

 

(6) Non-Performance: An Employee, not capable of performing all the            requirements and duties of a job, will be placed by the Employment Office to an open            job. This procedure will be available two (2) times per affected Employee during the            duration of this Agreement upon the third time the employee is not capable of            performing all the requirements and duties of a job, the employee will be            discharged.

 

(7) Medical Placement Procedure: Employees with permanent medical            impairments will be placed on jobs best suited for their permanent work restrictions            and which are equal to or less than their existing rate of pay in accordance with the            following procedure:

             

(A)               Permanent medical impairment and work restrictions will be determined            after consultation with the Medical Department.

             

(B)              Employees with a permanent medical impairment will be placed in the            first job for which they have the required skill and which meets their work restriction            following the sequence outlined in Article IX, Section (e)(2).

             

Employees displaced by this process will also be handled in accordance            with the same provisions as outlined in Article IX, Section (e)(2).

             

(C)               This procedure does not apply to Employees who are temporarily            impaired.

             

(D)               Once employed, an Employee cannot be terminated or refused recall from            the panel for medical reasons over his objection without the concurrence of a majority            of a group composed of an EMPLOYER approved physician, an Employee-approved physician,            and a neutral qualified third party (if necessary), that there is a permanent medical            condition or physical restriction which prevents the Employee from performing an            established job, within the bargaining unit, which their

             

30

 

             

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seniority would entitle them to hold. Each party shall bear the cost of            examination by the physician it designates and shall share equally the cost of            examination by the qualified third party. Where the EMPLOYER challenges the physical            ability of an Employee or panel member to perform his regular work and is subsequently            proven wrong, the Employee shall be compensated for time lost due to the EMPLOYER's            challenge.

 

**Section (l) Temporary            Assignments**

 

It is understood that to meet production needs operators may be moved to            other assignments within their Area Manager’s area.

             

All primary assignments in an area may not have full time operators            assigned. Assignments requiring less than a full time person every day or is not            operated on a full time basis will be covered by the flexibility of the operators in            the area.

             

Additionally flexibility in the area will be used to cover for absences,            short term bottlenecks, short term fluctuations in the schedule and back filling for            cross training. The parties recognize that there are instances where such assignments            are necessary, and agree that temporary assignments may be made under the following            guidelines:

             

Only if the reassignment is outside the Area Manager’s area will            it be considered a temporary assignment.

 

(1)        The temporary assigning of            an individual Employee shall not exceed one hundred eighty 180 working days in a            rolling 12 month period.

 

(2)        Employees filling            temporary assignments shall be compensated at the higher of the two rates involved (the            regular rate of his normal job or the regular rate of his temporary            assignment).

 

(3)        Notification of temporary            assignments of more than 10 consecutive work days duration will be made to the Chairman            of the Grievance Committee.

 

(4)        All regular full time job            openings that are determined to be greater than six (6) months in duration will be            posted according to the provisions of the Job Bidding and Posting Procedure unless            mutually agreed to by the EMPLOYER and the UNION.

             

(5)        DCSI or its replacement            will be the official record keeping system for tracking of temporary moves. The            Grievance Committee Chairman will have access to this information when            requested.

             

 

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**Section (m) Separation Pay**

 

(1)      The receipt of separation of pay            provided under this Article is conditioned upon the separation of an Employee from the            active workforce employment rolls as laid-off due to lack of work during the term of            this Agreement.

 

(2)       An Employee who has one (1) year            or more of service shall be paid separation pay each time he is terminated because of            lack of work, except that such pay will not be paid when:

 

(A)               He accepts, before his separation becomes effective, a job at any            REMINGTON ARMS COMPANY, INC’s location;

             

(B)               He is pensioned;

             

(C)               He resigns his employment;

             

(D)               He is scheduled off from work temporarily due to curtailment or            cessation of operation caused by;

 

i.                   Fire, flood, power failure, transportation difficulties, material            shortages, and the like; or

             

ii.                  Any emergency condition beyond the direct control of the EMPLOYER. When            an Employee is “scheduled off” for such reason for a definite or indefinite            temporary period, he shall not be considered as terminated for the purpose of this            Article; or

 

(E)               A buyer or recipient of Remington assets offers an Employee continued            employment.

             

(3)       The PLANT may elect to pay            separation pay in a lump sum or weekly installments.

 

(4)       Separation pay, if being paid in            weekly installments, shall be discontinued when a former Employee is re-employed at any            REMINGTON ARMS COMPANY, INC.’s plant, or is offered and refuses re-employment at            the Ilion Plant.

 

(5)       The amount of an            Employee’s separation pay, subject to the foregoing provisions in this Article,            shall be:

 

(A)               One (1) week’s pay for each of the first four (4) years of            service, plus,

             

 

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(B)               One (1) week’s pay for each year of service over four (4) reduced            by the amount of any separation pay previously paid at any REMINGTON ARMS COMPANY,            INC’s location for service after December 1, 1993 over four (4) years. However,            this reduction shall be reduced in monthly increments to zero over a forty-eight (48)            month period of re-employment from last termination for lack of work.

             

A fractional part of a year, after his first year of service, shall be            computed at the rate of one-twelfth (1/12) of one (1) week’s pay for each month            of service. In such computation, if, in addition to full months of service an Employee            has accrued fifteen (15) or more days on the date he is terminated, he shall be            credited with a full month.

             

For separation pay purposes, a week’s pay shall be the            Employee’s current “straight-time” rate per hour multiplied by the            number of hours, not to exceed forty (40) hours, constituting his normal weekly hours            of work at the time of his termination.

             

(C)               Any other provisions of the Article to the contrary notwithstanding,            separation pay shall never exceed twenty (20) weeks.

 

(6)        An employee who has            received separation pay shall not be required to return any portion of such pay to the            PLANT in the event he is reemployed.

             

(7)        Separation pay shall be in            addition to any vacation allowance and any employment compensation benefits to which            the Employee may be entitled.

             

(8)        Nothing contained in the            Article shall be deemed to qualify, limit or alter in any way the PLANT’s rights            to reduce hours of work to avoid terminations because of lack of work.

             

(9)        Wherever the term            “service” is used in this Article, it shall mean the total length of time            an Employee has been actively employed by the PLANT.

 

**Article X – Settlement of            Disputes**

 

**Section (a) Grievance            Committee**

 

(1)      A Grievance Committee consisting of            fifteen (15) members shall be elected by the members of the UNION employed at the            PLANT. Each member of the Committee shall be an Employee at the PLANT and shall be            eligible to serve as a Committee member only so long as he continues to be an Employee            of the PLANT who is not on layoff. The duties of the Grievance Committee shall be            confined to the adjustment of disputes arising out of this Agreement that the PLANT and            the Employee

 

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or            Employees, with the assistance of the Grievance Committee, fail to adjust. The            Grievance Committee shall have the authority on behalf of the grievants to settle or            withdraw any grievance at step 2 or proceed to step 3 of the grievance            procedure.

 

(2)       The Grievance Committee shall            have no other authority or exercise any other control, except as outlined in this            Agreement, nor shall the Committee in any way interfere with the operation of the            PLANT.

 

A Grievance Committee member who violates this provision shall not be            suspended or discharged for official actions as a Committee member, but may be removed            from the Committee by the PLANT. If the PLANT seeks to remove a Committee member for            violation of this section, it shall so notify the affected Committee member and the            other members of the Committee. If the Committee objects to such removal, the matter            shall be submitted directly to arbitration. If the other members of the Committee so            determine, the affected member shall remain on the Committee until the case is settled            or decided by an arbitrator.

 

(3)       The Grievance Committee shall            select a Chairman from among its members to coordinate its activities and to sit as            their representative on the joint Labor-Management Communication Committee.

 

**Section (b) Grievance            Procedure**

 

Should differences arise between the UNION and the PLANT as to the            meaning and application of the provisions of this Agreement, an earnest effort shall be            made to settle such differences at the earliest practicable time. If differences arise            about matters not specifically mentioned in this Agreement, those matters are to be            referred to the Joint Labor-Management Communication Committee set forth in Article VII            and are not subject to grievance/arbitration provisions found in Article X of this            Agreement. At all steps of the complaint and grievance procedure, the grievant and the            UNION representatives shall disclose to the PLANT representatives a full statement of            the facts and provisions of the Agreement relied upon by them. In the same manner, the            PLANT representatives shall disclose all the facts relied upon by it. The grievant            shall have the right to be present at each step of the grievance procedure until such            time as all evidence is taken. Disputes that remain unresolved despite such effort            shall be resolved as follows:

 

(1)       Step 1 – The Employee will            make his complaint to his immediate Supervisor who shall have the authority to settle            the dispute. The Employee shall make the complaint within ten (10) working days of when            he first knew or should have known of the complaint. Where an Employee makes a            complaint during work time, the Supervisor shall, if possible without interrupting            production, discuss the matter briefly on the spot. The Employee shall be entitled, at            his request, to have a member of the Grievance Committee present to assist him at any            discussion with his supervisor. If the PLANT so chooses, the supervisor shall be            entitled to have another representative of the PLANT in attendance. The            Employee’s immediate supervisor will notify the Employee

 

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of            his decision by the end of the Employee’s second regular scheduled shift            following the complaint. Settlements or withdrawals at this step shall not constitute a            precedent in the handling of other grievances.

 

(2)       Step 2 – If no agreement            is reached between the Employee and his supervisor, the complaint will be reduced to            writing and shall be submitted on the Standard Grievance form and shall be taken up            within five (5) working days of the supervisor’s decision by no more than two (2)            members of the Grievance Committee and the President of the Local Union and the            PLANT’s Step 2 representative(s). At the step 2 meeting the Grievance Committee            and the PLANT representative(s) will complete the standard grievance form and, if the            complaint is not settled, the grievance shall be referred to a representative of the            UMWA District and the PLANT’s representative(s) for step 3.

 

(3)        Step 3 – Within            seven working days of the time the grievance is referred to them, the District            representative and the representative(s) of the PLANT, who shall be different from the            PLANT’s step 2 representative(s) shall meet and review the facts and pertinent            contract provisions in an effort to resolve the grievance. No more than three (3)            members of the Grievance Committee and the President of the Local Union and the            PLANT’s step 2 representative(s) shall have the right to be present. No verbatim            transcript of the testimony shall be taken nor shall either party be represented by an            attorney licensed to practice law in any jurisdiction in steps 1 through 3 of the            grievance procedure except by mutual agreement applicable to a particular            case.

 

(4)       Step 4 – In cases where            the District representative and the representative(s) of the PLANT fail to resolve the            grievance at step 3, the matter shall, within 10 working days after referral to them,            be referred to the appropriate arbitrator who shall decide the case without delay.            Cases shall be assigned to arbitrators in the following manner:

 

(A)               The District representative and the Company representative shall attempt            to select an arbitrator. In the event the parties do not agree on the selection of an            arbitrator, the District representative shall request from the Federal Mediation and            Conciliation Service (FMCS) three panels of seven (7) arbitrators (including            biographical sketches) by fax or mail with a copy of the request provided to the Plant            Human Resources Manager.

             

(B)               Within ten (10) working days after receipt of the three panels of            arbitrators from FMCS, the parties shall alternately strike names of the seven            arbitrators on each panel so as to end up with a single name from each panel. The            parties shall alternate the right of first strike.

             

(C)               The parties shall then jointly contact each of the three (3) arbitrators            so selected to determine who among these three who has the earliest available date to            hear the case within two weeks to sixty days, and the case then shall be scheduled by            FMCS

 

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with the arbitrator who has the earliest available date.

             

(D)               Both the PLANT and the UNION shall have the right to cross-examine all            witnesses.

             

(E)              The arbitrator shall render his decision as expeditiously as possible.            Failure to do so within sixty (60) days after the record is closed shall be reported to            the FMCS.

             

(F)               The arbitrator shall have no authority to change, add to or subtract            from, or to modify any provisions of this Agreement. The arbitrator shall make his            decision based on the provisions of the contract and the evidence before            him.

             

(G)             The decision and or award of the arbitrator shall be final and binding            on both parties and enforceable in a court of law.

             

(H)               Compensation and expenses of the arbitrator and general expenses of the            arbitration shall be shared equally by the parties, except that each party shall bear            the expenses of its representatives and witnesses.

             

(I)                 Hearings shall take place at a location mutually agreed upon by the            parties.

             

(J)               In cases in which the parties have agreed that there is no question of            fact involved in the grievance, the arbitrator may decide the case upon the basis of a            joint statement of the parties and such exhibits as they shall submit.

             

(K)              The hearing shall be recorded by the arbitrator and shall be closed upon            the completion of testimony, except for the purpose of filing post-hearing briefs            (copies of which will be provided to all parties). The arbitrator shall render his            decision as soon after the close of the hearing as may be feasible. If the arbitrator            is unable to make his decision within 60 days of the close of the hearing, he shall            promptly advise the parties of the reasons for the delay and the date when his decision            will be submitted. Either party may make an official transcript of the hearing. A copy            of such transcript shall be provided to the other party at no charge.

             

(L)              In cases involving compensation, in no event may the arbitrator award            compensation for more than ten (10) working days prior to the date the grievant(s) knew            or should have known of the complaint.

 

 

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**Section (c) Finality of Decision or Settlement**

 

Settlements reached at any step of the grievance procedure shall be            final and binding on both parties and shall not be subject to further proceedings under            this Article except by mutual agreement. Settlements reached at steps 2 and 3 shall be            in writing and signed by appropriate representatives of the UNION and the            PLANT.

 

**Section (d) Waiver of Time            Limits**

 

By agreement the parties may waive the time limits set forth in each            step of the grievance procedure. Absent a mutual agreement, if the PLANT’s answer            is not appealed (i) within fifteen (15) calendar days of the EMPLOYER’s response            in Step 2, or (ii) within twenty (20) calendar days of the EMPLOYER’s response in            Step 3, then the answer made by the PLANT at that step shall be final.

             

**Article XI – Discipline and            Discharge**

 

**Section (a) Just Cause            Required**

 

No Employee covered by this Agreement may be disciplined or discharged            except for just cause. The burden shall be on the EMPLOYER to establish grounds for            discipline or discharge in all proceedings under this Article. In no event, will the            EMPLOYER initiate any form of discipline, beyond ten (10) working days of the time it            knew, or should have known of the infraction, or against an Employee without a member            of the Grievance Committee present, if the Employee requests UNION            representation.

 

**Section (b) Procedure**

 

Where the EMPLOYER concludes that the conduct of an Employee justifies            discharge, the Employee shall be suspended with the intent to discharge and shall be            given written notice stating the reason, with a copy to be furnished to the Grievance            Committee. After 24 hours, but within 48 hours, the Employee shall be afforded the            right to meet with the PLANT’s Step 3 representative(s). At such meeting, no more            than three (3) members of the Grievance Committee and the President of the Local Union            shall be present and, if requested by the Employee or the Grievance Committee, a            representative of the District shall also be present. Upon request by the Employee, the            Grievance Committee, or the District representative, the forty-eight hour time limit            will be extended by an additional 48 hours. The EMPLOYER shall be entitled to have an            equal number of representatives at the meeting. Full disclosure of all information            relied upon by the parties shall be provided at the 24/48 hour meeting.

 

 

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**Section (c) Suspension**

 

If within 24 hours after the conclusion of the 24/48 hour meeting, the            EMPLOYER informs the Employee and the Grievance Committee that it still intends to            discharge the Employee (or if no meeting was requested) the Employee shall have five            (5) working days to file the grievance. If the Employee does not file a grievance            within five (5) working days of the notice of suspension with intent to discharge, the            discharge shall become effective immediately. Grievances involving discharge shall            bypass steps 1 through 3 and shall proceed directly to step 4 of the grievance            procedure.

 

**Section (d) Compensation for Lost            Earnings** 

 

In all arbitration cases where it is determined that just cause for            discharge has not been established, the Employee shall be reinstated and compensated            for lost earnings at his applicable regular rates and any regularly scheduled mandatory            overtime prior to discharge less monies earned during the back pay period. Nothing in            this section shall be construed to, in any way, limit the arbitrator’s right to            modify or mitigate the penalty of discharge.

 

**Section (e) Removal of Employee Disciplinary            Records**

 

All records of Employee discipline issued during the term of this            Agreement may be used as the basis for subsequent progressive disciplinary action no            later than fifteen (15) months following the date of issuance and shall not be used in            subsequent disciplinary action against the Employee. However, all records of Employee            discipline only shall remain in an Employee’s file in Human Resources.

 

**Article XII - Benefits and            Practices**

 

**Section (a) Eligibility**

 

Employees, except as set forth below, shall be entitled to participate            in the following benefit plans and practices of the EMPLOYER.

 

**Section (b) Benefits of            Choice**

 

| **•** | Remington Arms Company, Inc. Pension and Retirement                        Plan |
|------------|---------------------------------------------------------------------------------|
| **•** | Remington Savings and Investment Plan                                           |   |
| **•** | Remington Arms Company Welfare Plan                                             |   |
|       | **•**                                                                      | The Remington Medical Plan |   |
|            |                                                                                 |  |  |  |  |

 

 

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| **•** | The Remington Dental Plan            |   |
|------------|--------------------------------------|--------|
| **•** | Vision Care                          |   |
| **•** | Employee Life Insurance              |   |
| **•** | Optional Life Insurance              |   |
| **•** | Dependent Optional Life Insurance    |   |
| **•** | Long Term Disability Insurance       |   |
| **•** | Accidental Death & Dismemberment |
| **•** | Flexible Spending Accounts           |   |
| **•** | Employee Assistance Program          |   |
|            |                                      |        |  |  |  |  |  |  |  |

 

The specifications for the structure of the benefit arrangements are set            out in Appendix D and are incorporated herein as though fully stated in this Article            XII.

 

**Section (c) Length of            Service**

 

With the exception of the Remington Arms Company, Inc. Pension and            Retirement Plan as provided below, a Current Employee on the old Remington payroll on            November 30, 1993 and hired on the new Remington payroll on December 1, 1993 shall have            his length of service at DuPont recognized for consideration of the benefits and            practices set forth in Sections (b) and (d) herein.

 

**Section (d) Practices**

 

Service Recognition Plan

 

**Section (e) Administrative and Design Matters            and Uniformity**

 

The EMPLOYER (or appropriate fiduciary of the applicable plan) in its            sole and exclusive discretion, may modify the benefits (consistent with the terms set            forth in Appendix D), change the administrator, add or delete investment options            offered to participants and beneficiaries, change funding vehicles, investment advisers            and managers, and service providers and/or (without any limitation arising from the            foregoing enumeration) make any other changes as it determines in its sole and            exclusive discretion provided that any such amendment, modification, change or            termination shall apply equally to employees and non-unit employees unless otherwise            agreed to by the UNION and the EMPLOYER.

 

 

39

 

 

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**Article XIII – Miscellaneous**

 

**Section (a) Pay Day** 

 

All Employees will be paid on a weekly basis. Payment shall be made by            check, or by Direct Deposit if elected by the employee, with recognition for legitimate            deductions. The Employee shall receive, with his pay, a plain statement itemizing the            number of hours worked during the pay period and setting forth straight time, overtime            and premium time hours worked during the pay period. The statement shall also itemize            all payroll deductions.

 

**Section (b) Bulletin Boards**

 

The PLANT will provide and maintain bulletin boards at mutually            agreeable locations for exclusive use by the UNION on which the UNION may post notices.            Such notices shall not be offensive in nature to any individual or group of persons.            Such notices shall show a removal date and shall be delivered to the Human Resources            Manager or their designee prior to posting. An Employee designated by the President of            the Local Union to post notices only will be compensated by the EMPLOYER for time spent            posting notices on bulletin boards for up to two (2) hours per posting no more than            twelve (12) postings per month on the first            (1st) shift or as otherwise            agreed upon by the Local Union and the Human Resources Manager.

 

**Section (c) Safety Shoes** 

 

Each calendar year of this Agreement’s term, the PLANT will            provide each Employee the option of electing either (i) an allowance per current            practice up to $125.00 for the purchase of safety shoes, or (ii) a cash allowance of            seventy five dollars ($75.00).

 

Employees may purchase shoes from the “Shoe Truck” Program            or from an authorized dealer(s) in this area.

 

**Section (d) Eye            Examinations**

 

Each Employee requiring an eye examination within an eighteen (18) month            time period, upon presenting a paid receipt to the Plant Medical Department, will be            reimbursed for the expense of such examination up to a maximum of $50, but in no case            is the reimbursement to exceed the cost of the examination. This section shall not            apply to any employee participating in the EMPLOYER’s vision care benefit            plan.

 

 

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**Section (e) Disability Accommodation**

 

This Agreement shall not prevent the PLANT from making a reasonable            accommodation of disabled persons as required by state and/or federal law, including            the Americans With Disabilities Act. In the event a proposed accommodation would            conflict with an express provision of this Agreement, the parties, at either’s            request, shall meet to discuss the proposed accommodation. Nothing in this section            shall require the UNION to agree to modify terms of this Agreement or to waive            seniority rights under this Agreement. In the event the PLANT and the UNION, in            settling a grievance or litigation would agree, or a court or arbitrator would order            that the PLANT make an accommodation that otherwise conflicts with the terms of this            Agreement, that accommodation shall supersede such conflicting terms of this Agreement.            The parties agree that any accommodation made by the PLANT with respect to job duties            or any other term or condition of employment made pursuant to settlement of a grievance            or litigation (whether formal or informal), or arbitral or court order, shall not, in            any way, become applicable to any other individual, class, or group of Employees but            shall apply only to the person or persons accommodated in the particular situation. The            fact that such person(s) was accommodated, the manner and method of such accommodation            shall be without precedent and therefore may not be used or relied upon by any person            for that purpose at any time in the future.

 

**Section (f) Medical            Appointments**

 

Employees shall make every attempt to schedule medical appointments            during non-working time. With prior approval, Employees will be excused from work and            paid for up to four (4) hours up to twelve (12) times per calendar year for the            Employee to report for a medical appointment during work hours. Such medical            appointments must be for diagnosis, follow-up to a recent problem or diagnostic            testing. Dental appointments will be covered only for tooth extractions and root            canals. Routine visits are not covered by this procedure and must be scheduled during            non-working hours. Where that is not possible, the supervisor may excuse the employee            without pay. The EMPLOYER reserves the right to deny the granting of time off for a            medical appointment. Employees are required to provide verification from a licensed            healthcare provider of the medical appointment, including the time of the appointment            and the time the employee arrived and left the appointment.

 

**Article XIV – No Strike or            Lockout**

 

**Section (a) UNION Not to            Strike**

 

Under no circumstances will the UNION or Employees participate in,            instigate, cause, or encourage, any strike during the term of this Agreement, including            economic,

 

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unfair labor practice strikes, sympathy strikes, jurisdictional strikes,            slowdown, walkout, sit-down, mass absenteeism, retarding of work or boycott or work            stoppages.

**Section (b) UNION to Halt            Breach**

 

In the event of a breach of Section (a), the UNION shall use reasonable            means to end the breach, including advising the involved Employees that their conduct            may be in violation of the Agreement, and if it is they may be disciplined up to and            including discharge, and that they should immediately cease the offending            conduct.

 

**Section (c) Discipline for            Breach**

 

The PLANT has the right to discipline, up to and including discharge,            any Employee who violates this Article and such discipline shall be deemed to be for            good cause. Any such discipline or discharge under this Section shall be subject to the            grievance procedure.

 

**Section (d) No Lockout**

 

The PLANT agrees not to lockout the Employees during the term of this            Agreement.

 

**Article XV – Maintain Integrity of the            Contract and Resort to Courts**

 

The UMWA and the EMPLOYER agree and affirm that, except as provided            herein, they will maintain the integrity of this contract and that all disputes which            are not settled by agreement shall be settled by the machinery provided in the            “Settlement of Disputes” Article of this Agreement. Nothing in this            provision, however, is intended to diminish any individual rights an Employee might            enjoy by law. In addition, the EMPLOYER expressly authorizes the UNION to seek judicial            relief, without exhausting the grievance machinery, in cases involving            successorship.

 

**Article XVI – Modification and Severability            Clause**

 

**Section (a) Modification**

 

If during the life of this Agreement there shall be in existence any            applicable law, rule, regulation or order issued by Governmental authority, which shall            be inconsistent with any provision of this Agreement, the parties will meet to modify            such provision to the extent necessary to comply with such law, rule, regulation or            order.

 

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**Section (b) Severability**

 

In the event that any provision of this Agreement shall at any time be            declared invalid by any court of competent jurisdiction, such decision shall not            invalidate the entire Agreement, it being the express intention of the parties hereto            that all other provisions not so declared invalid shall remain in full force and            effect.

 

**Article XVII - Ratification and Termination of            this Agreement**

 

This Agreement shall become effective at 12:01 am on the day following            notification to the Remington Arms Co., Inc., by the International Union, United Mine            Workers of America, that this Agreement has been ratified and approved by the            membership covered hereby.

 

This Agreement shall not be subject to termination by either party            signatory hereto prior to 12:01 a.m. October 28, 2012, provided, however, that either            the party the first part or the party of the second part may terminate this Agreement            on or after 12:01 a.m. October 28, 2012, by giving at least sixty days written notice            to the other party of such desired termination date.

 

IN WITNESS WHEREOF, each of the parties signatory hereto has caused this            Agreement to be signed, effective this 27th day of October 2007, the Agreement having            been ratified and approved by the membership covered hereby on October 26,            2007.

 

On            Behalf of:

UNITED MINE WORKERS OF AMERICA

 

 

|  

           /s/                        Edward D. Yankovich                        Jr.                      |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| By:                                                                                                                                                                                                                                                                               | Edward D. Yankovich Jr. |   |
|                                                                                                                                                                                                                                                                                   |  |  |  |

International District 2 Vice President

 

On            Behalf of:

LOCAL UNION 717

 

 

|  

             /s/                        Stu                        Kennedy                                         |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| By:                                                                                                                                                                                                                                                                                                                                                                                                 | Stu Kennedy |   |
|                                                                                                                                                                                                                                                                                                                                                                                                     |  |  |  |

President

 

43

 

 

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On            Behalf of:

REMINGTON ARMS COMPANY, INC.

 

 

|  

            /s/                        Joseph B.                        Gross                                     |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| By:                                                                                                                                                                                                                                                                                                                                                                       | Joseph B. Gross |   |
|                                                                                                                                                                                                                                                                                                                                                                      | Plant Manager |   |
|                                                                                                                                                                                                                                                                                                                                                                           |  |  |  |  |

 

 

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SHORT TERM DISABILITY PAY PLAN

 

The Short term Disability Pay Plan for Ilion hourly Employees shall be            amended as of the effective date of this Agreement to read as follows:

 

Disability Pay

 

All Employees will be entitled to participate in the Company’s            Short Term Disability Plan as outlined in the Health and Welfare Summary Plan            Description, starting on the Employee’s first calendar day of disability. The pay            structure will be as follows:

 

 

| Duration Per                        Occurrence         | Percentage of regular                        rate of pay* |
|--------------------------------------------------------|-----------------------------------------------------------|
| First calendar                        day              | 0%                                                        |
| Consecutive Days 2                        through 9    | 50%                                                       |
| Consecutive Days 10                        through 180 | 100%                                                      |

 

*Or            awarded State Workers Compensation, whichever is higher.

 

All Employees will be expected to see a doctor on the second calendar            day of illness and must report to the Plant Medical Department on any absence which            extends to the third day.

 

To receive disability pay, an Employee must submit medical documentation            explaining and confirming: (1) the date the Employee became disabled, (2) the medical            reasons why the Employee is unable to work, (3) the cause of the disability, if known,            and (4) the nature, severity and expected duration of the disability. The EMPLOYER, at            its expense, may require an examination by a second health care provider designated by            the EMPLOYER. If the second health care provider's opinion conflicts with the medical            documentation submitted by the Employee, the EMPLOYER, at its expense, may require a            neutral qualified third party to conduct an examination and provide a final and binding            opinion. If an Employee fails to provide the medical documentation required under this            provision, or fails to submit to the examinations specified herein, the            Employee’s claim for disability pay may be denied.

 

 

 

 

45

 

 

----

 

 

**APPENDIX A**

 

| Effective October 29, 2007 |
|----------------------------|
|                       |   |   |   |   |   |   |   |
| Level                      | Start | 6mos | 12mos | 24mos | 36mos | 48mos | 51mos |
| 3                          | $10.77 |   | $11.63 | $12.06 | $12.49 | $15.30 |   |
| 4                          | $12.22 |   | $13.08 | $13.51 | $13.92 | $15.71 | $16.20 |
| 5                          | $15.71 | $16.20 | $16.42 | $16.89 | $17.37 |   |   |
| 6                          | $16.89 | $17.37 | $17.83 | $18.26 | $18.66 |   |   |
|                       |   |   |   |   |   |   |   |
| Effective November 3, 2008 |
|                       |   |   |   |   |   |   |   |
| Level                      | Start | 6mos | 12mos | 24mos | 36mos | 48mos | 51mos |
| 3                          | $11.10 |   | $11.98 | $12.42 | $12.87 | $15.76 |   |
| 4                          | $12.59 |   | $13.47 | $13.91 | $14.34 | $16.18 | $16.68 |
| 5                          | $16.18 | $16.68 | $16.91 | $17.40 | $17.89 |   |   |
| 6                          | $17.40 | $17.89 | $18.37 | $18.81 | $19.22 |   |   |
|                       |   |   |   |   |   |   |   |
| Effective November 2, 2009 |
|                       |   |   |   |   |   |   |   |
| Level                      | Start | 6mos | 12mos | 24mos | 36mos | 48mos | 51mos |
| 3                          | $11.43 |   | $12.34 | $12.79 | $13.25 | $16.23 |   |
| 4                          | $12.97 |   | $13.88 | $14.33 | $14.77 | $16.67 | $17.18 |
| 5                          | $16.67 | $17.18 | $17.41 | $17.92 | $18.42 |   |   |
| 6                          | $17.92 | $18.42 | $18.92 | $19.37 | $19.80 |   |   |
|                       |   |   |   |   |   |   |   |
| Effective November 1, 2010 |
|                       |   |   |   |   |   |   |   |
| Level                      | Start | 6mos | 12mos | 24mos | 36mos | 48mos | 51mos |
| 3                          | $11.77 |   | $12.71 | $13.18 | $13.65 | $16.72 |   |
| 4                          | $13.36 |   | $14.30 | $14.76 | $15.21 | $17.17 | $17.70 |
| 5                          | $17.17 | $17.70 | $17.94 | $18.46 | $18.98 |   |   |
| 6                          | $18.46 | $18.98 | $19.49 | $19.95 | $20.39 |   |   |
|                       |   |   |   |   |   |   |   |

 

46

 

 

----

 

 

 

| Effective November 7, 2011 |
|----------------------------|
|                       |   |   |   |   |   |   |   |
| Level                      | Start | 6mos | 12mos | 24mos | 36mos | 48mos | 51mos |
| 3                          | $12.19 |   | $13.16 | $13.64 | $14.13 | $17.30 |   |
| 4                          | $13.82 |   | $14.80 | $15.28 | $15.74 | $17.77 | $18.32 |
| 5                          | $17.77 | $18.32 | $18.57 | $19.10 | $19.64 |   |   |
| 6                          | $19.10 | $19.64 | $20.17 | $20.65 | $21.11 |   |   |
|                       |   |   |   |   |   |   |   |

 

47

 

 

----

 

 

**APPENDIX B**

 

JOB CODES & TITLES

 

| **•** | Production 100 series         | (103,104,105,106) |   |
|------------|-------------------------------|-------------------|--------|
| **•** | Maintenance 200 series        | (203,204,205,206) |   |
| **•** | Arms Service 300 series       | (303,304,305,306) |   |
| **•** | Custom Shop 400 series        | (403,404,405,406) |   |
| **•** | Production Support 500 series | (503,504,505,506) |   |
| **•** | Technical 600 series          | (603,604,605,606) |
|            |                               |                   |        |  |  |  |

 

 

48

 

 

----

 

 

**APPENDIX C**

 

Practices, Customs and Agreements

 

[Subject to revision by the sub-committee on Appendix C]

 

|  | •      | VLOA (with adjustment                        to medical and dental) 9/13/90 |
|--|--------------------------------------|-----------------------------------------------------------------------------|

|  | •      | Direct Deposit of                        Weekly Payroll Checks 4/11/95 |
|--|--------------------------------------|------------------------------------------------------------------------|

|  | •      | Reporting of Absence to                        Plant Medical 8/1/95 |
|--|--------------------------------------|---------------------------------------------------------------------|

|  | •      | ROI’s                        Probationary Employees reverting to verbal on end of probation                        2/11/00 |
|--|--------------------------------------|----------------------------------------------------------------------------------------------------------------------------------|

|  | •      | Selection of Machine                        Setters 9/8/95 |
|--|--------------------------------------|------------------------------------------------------------|

|  | •      | Employer Obligation to                        Provide Union Representation |
|--|--------------------------------------|----------------------------------------------------------------------------|

|  | •      | Ability to progress in                        recognized Job Codes based on Organization Needs and employee                        skills |
|--|--------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

|  | •      | 742 memo of                        Understanding 7/24/95 |
|--|--------------------------------------|----------------------------------------------------------|

|  | •      | Shift Realignment                        Procedure 6/17/98 |
|--|--------------------------------------|------------------------------------------------------------|

|  | •      | Re-evaluate jobs based                        on significant change Memo of Agreement Undated |
|--|--------------------------------------|-----------------------------------------------------------------------------------------------|

|  | •      | FMS Progression Memo of                        Agreement 7/24/95 |
|--|--------------------------------------|------------------------------------------------------------------|

|  | •      | Jury Duty Guidelines                        letter 8/17/87 |
|--|--------------------------------------|------------------------------------------------------------|

|  | •      | Military Training &                        Service Guidelines Letter 8/17/87 |
|--|--------------------------------------|----------------------------------------------------------------------------------|

|  | •      | Overtime combined with                        1⁄2 day vacation practice      letter                        9/9/99 |
|--|--------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|  | •      | Job Code 767/766                        Issue     Letter of Understanding                        10/13/99 |
|--|--------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|

|  | •      | Medically Prescribed                        Footwear Practice     letter 2/27/84 |
|--|--------------------------------------|-----------------------------------------------------------------------------------------------------------|

|  | •      | Birthday Scheduling                             Memo of Agreement 12/5/00 |
|--|--------------------------------------|----------------------------------------------------------------------------------------------------|

|  | •      | Preferential Treatment                        for Bidding     Memo of Understanding                        5/27/99 |
|--|--------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

|  | •      | Employee Treatment in                        machine Moves or Regrouping Phillips 4th Step Grievance Answer                        1/28/90 |
|--|--------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

|  | •      | Normal Shift                        Schedules |
|--|--------------------------------------|-----------------------------------------------|

|  | •      | Apprentice Program                        Agreement (latest version) |
|--|--------------------------------------|----------------------------------------------------------------------|

|  | •      | Procedure for Call In                        during Vacation Periods 1/15/90 letter |
|--|--------------------------------------|-------------------------------------------------------------------------------------|

|  | •      | Paid Time off for                        Dental/Doctor Appointments 10/31/89 letter |
|--|--------------------------------------|-------------------------------------------------------------------------------------|

|  | •      | Responsibilities of                        Supervision/Employees Concerning Reporting of Medical and Other Absences                        1/29/90 letter |
|--|--------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | •      | Verbal                        Warnings/Absentee Records 7/13/89 Letter |
|--|--------------------------------------|------------------------------------------------------------------------|

|  | •      | Records of Interview                        (ROI’s) in Floor Files     letter                        5/13/90 |
|--|--------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

|  | •      | Holiday’s with                        Religious Meaning – Not Recognized as Plant Holidays 1/5/90                        letter |
|--|--------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

|  | •      | Leaves of                        Absence     1/15/90 Letter |
|--|--------------------------------------|--------------------------------------------------------------------------------------|

|  | •      | Rates of Pay –                        New Hires/Re-Hires undated letter |
|--|--------------------------------------|-------------------------------------------------------------------------------|

|  | •      | Rates of Pay –                        Progression/Regression undated letter |
|--|--------------------------------------|-----------------------------------------------------------------------------------|

|  | •      | Service Awards undated                        letter |
|--|--------------------------------------|------------------------------------------------------|

|  | •      | Filling Job Vacancies                        created by disability |
|--|--------------------------------------|--------------------------------------------------------------------|

|  | •      | Union rights to pagers                        and unrestricted telephone |
|--|--------------------------------------|--------------------------------------------------------------------------|

 

 

49

 

 

----

 

 

|  | •      | Letter of Understanding                        – Calculating Seniority Dates 12/2/98 |
|--|--------------------------------------|--------------------------------------------------------------------------------------------|

|  | •      | SAP Transaction                        Specialist Agreement 2/16/2000 letter |
|--|--------------------------------------|------------------------------------------------------------------------------|

|  | •      | Memo of Understanding                        Doctor Appointments 9/11/2002 |
|--|--------------------------------------|----------------------------------------------------------------------------|

|  | •      | Letter Agreement on Job                        Classification Modernization dated 10/4/07 |
|--|--------------------------------------|-------------------------------------------------------------------------------------------|

|  | •      | Letter Agreement on                        Precision Shop dated 10/4/07 |
|--|--------------------------------------|-------------------------------------------------------------------------|

|  | •      | Letter Agreement on                        Miscellaneous Matters dated 10/4/07 |
|--|--------------------------------------|--------------------------------------------------------------------------------|

             

 

50

 

 

----

 

 

**APPPENDIX D**

| 1. | Remington Arms Company, Inc. Pension and                        Retirement |
|----|----------------------------------------------------------------------------|

| a. | No Employee hired after September 11, 1997, shall be                        eligible to participate in the Remington Arms Company, Inc. Pension and                        Retirement Plan (the “Pension Plan”).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| b. | The Pension Plan will be amended effective December 31, 2007                        to provide that no Participant will earn any further benefit accruals after                        December 31, 2007. As a result, each Participant’s accrued benefit                        will be determined based on the Participant’s compensation and period                        of employment as of December 31, 2007 and compensation and employment after                        December 31, 2007 will not be taken into account. This means that the                        ten-year period used in calculating Average Annual Earnings shall not                        extend past December 31, 2007.                                                                                                                                                             |
| c. | Specifically, the computation of Average Annual Earnings is                        unchanged. It is the greater of 1) the highest annual average Earnings                        received during any 36 consecutive calendar months during the last 10 years                        of Credited Service, or 2) the highest average annual Earnings based on the                        Total Earnings for the highest 3 calendar years of the last 10 years of                        Credited Service. The 10 years period ends on December 31, 2007 for                        computation of Average Annual Earnings.                                                                                                                                                                                                                                                          |
| d. | Participants in the Pension Plan that are active Employees                        with the EMPLOYER on or after January 1, 2008, shall continue to be                        credited for service under the Pension Plan for purposes of (i) vesting,                        (ii) eligibility for early retirement benefits under Section 6.1 of the                        Pension Plan, (iii) eligibility for ancillary disability benefits under                        Section 8.1 of the Pension Plan, (iv) Vested Deferred benefits under                        Section 7 of the Pension Plan, and (v) Forms of Payment under Section 9 of                        the Pension Plan.                                                                                                                                                                                        |
| e. | Current Employees who retired under the DuPont plan have                        been automatically vested under the Pension Plan although only their                        Remington service and earnings beginning December 1, 1993 is recognized.                        For all Current Employees employed by old Remington on November 30, 1993                        and by new Remington on December 1, 1993, who did not retire under the                        DuPont plan, the Pension Plan will continue to recognize all service earned                        at Remington while owned by DuPont and will continue to take into account a                        Current Employee’s earnings at Remington while owned by DuPont in                        addition to the Current Employee’s service and earnings at                        Remington. |

 

 

51

 

 

----

 

 

| 2. | Remington Savings and Investment Plan |
|----|---------------------------------------|

| a. | Employees will participate in a retirement savings                        contribution that will be a part of the Remington Savings and Investment                        Plan (SIP).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| b. | Upon becoming eligible to participate in the SIP, Employees                        hired after September 11, 1997 who have completed 12 months of eligibility                        service, as defined in the Plan, will also be eligible to receive a                        discretionary Profit-Sharing Contribution from the EMPLOYER. An account                        will be created within the SIP in each eligible Employee’s name,                        regardless of whether or not the Employee chooses to contribute to the SIP.                        The EMPLOYER’s discretionary Profit-Sharing Contribution will be                        credited to the Employee’s account, provided that the Employee is an                        active Employee of the EMPLOYER on the last day of the plan year for which                        the contribution is attributed. The amount of the discretionary                        Profit-Sharing Contribution, which the EMPLOYER will make, will be                        determined each year by the Board of Directors of the EMPLOYER and will be                        allocated to the accounts of such employees who are eligible under the                        terms of the SIP. Effective January 1, 2008, the Profit-Sharing                        Contributions shall be subject to a three-year vesting schedule (the five                        year vesting schedule will no longer apply regardless of what Plan Year the                        Profit-Sharing Contribution was made). |
| c. | An Employee will have flexibility to direct any                        contributions allocated to his or her account in the SIP among the various                        investment funds offered within the SIP.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| d. | Effective January 1, 2008, Employees that make contributions                        to the SIP will be eligible to receive a Company Matching Contribution of                        50% on the first 6% of compensation deferred, with no additional match on                        higher levels of deferrals.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| e. | Effective January 1, 2008, for the purpose of calculating                        contributions to the 401(k) Plan, the definition of an Employee’s                        compensation shall include overtime pay.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

| 3.     | Remington Arms Company Welfare Plan   |
|--------|--------------------------------------------|
|   | a.                                         | Remington Medical Plan |   |
|        |                                            |  |  |  |

| i.  | The EMPLOYER shall provide medical benefits for all                        Employees covered by this Agreement and their eligible dependents pursuant                        to the Remington Arms Company Welfare Plan. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ii. | Effective January 1, 2008, Employees will be given the                        opportunity to elect Medical Coverage from Plans A, B or C.                                                                                |

 

 

52

 

 

----

 

 

| 1. | Combined benefits for inpatient and outpatient drug and                        alcohol abuse to a Lifetime Maximum of $25,000 total plan                        benefit. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Exclude coverage for Gastric Bypass Surgery. |
|----|----------------------------------------------|

| 3. | Adopt the company policy for Pre-existing condition for                        Employees hired after January 1, 2008. |
|----|-----------------------------------------------------------------------------------------------------------------------|

| iii. | Prescription Drugs: |
|------|---------------------|

| 1. | Adoption of a 3 tier formulary at retail and mail order.                        Added to the current 2 tier program is a 3rd tier for Non- Preferred                        Brands. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2. | Increase Mail order co-pay for Generic, Brand, and                        Non-preferred brand drugs.                                                                                |

 

| Retail                                     |
|--------------------------------------------|
|                                       | Plan A | Plan B | Plan C |
| Generics                                   | $15 | $15 | $15 |
| Brand                                      | $25 | $25 | $25 |
| Non-Preferred                        Brand | $45 | $45 | $45 |

 

| Mail Order (for a                        maximum 90 day supply) |
|-----------------------------------------------------------------|
|                                                            | Plan A | Plan B | Plan C |
| Generics                                                        | $20 | $20 | $30 |
| Brand                                                           | $30 | $30 | $50 |
| Non-Preferred                        Brand                      | $50 | $50 | $90 |

| iv. | Details of Plans A, B and C are contained in the Summary                        Plan Description. |
|-----|---------------------------------------------------------------------------------------------------|
| v.  | The Monthly Employee Premiums for these plans are as                        follows:              |

 

| Plan                        A | 2007   | 2008   | 2009   | 2010   | 2011   | 2012   |
|-------------------------------|--------|--------|--------|--------|--------|--------|
| EE                            | $40    | $80    | $95    | $120   | $135   | $150   |
| EE+1                          | $86    | $126   | $146   | $176   | $196   | $216   |
| Family                        | $105   | $145   | $170   | $205   | $230   | $255   |
|                          |   |   |   |   |   |   |

 

53

 

 

----

 

 

 

| Plan B | 2007   | 2008   | 2009   | 2010   | 2011   | 2012   |
|--------|--------|--------|--------|--------|--------|--------|
| EE     | $80    | $120   | $135   | $160   | $175   | $190   |
| EE+1   | $172   | $212   | $232   | $262   | $282   | $302   |
| Family | $210   | $250   | $275   | $310   | $335   | $360   |
|   |   |   |   |   |   |   |
| Plan C | 2007   | 2008   | 2009   | 2010   | 2011   | 2012   |
| EE     | n/a    | $55    | $70    | $85    | $100   | $115   |
| EE+1   | n/a    | $105   | $125   | $145   | $165   | $185   |
| Family | n/a    | $130   | $155   | $180   | $205   | $230   |

 

| vi.    | Medical – deductibles |
|--------|-----------------------------|
|   | (1)                         | In network |   |

 

| Plan A |
|--------|
|   | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 |
| EE     | $350 | $350 | $350 | $350 | $350 | $350 |
| EE+1   | $700 | $700 | $700 | $700 | $700 | $700 |
| Family | $1,050 | $1,050 | $1,050 | $1,050 | $1,050 | $1,050 |

 

Plan            B – no deductible

 

| Plan C |
|--------|
|   | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 |
| EE     | n/a | $600 | $700 | $700 | $800 | $800 |
| EE+1   | n/a | $1,200 | $1,400 | $1,400 | $1,600 | $1,600 |
| Family | n/a | $1,800 | $2,100 | $2,100 | $2,400 | $2,400 |

 

| (2) | Out of network |
|-----|----------------|

 

| Plan A |
|--------|
|   | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 |
| EE     | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 |
| EE+1   | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
| Family | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |

 

| Plan B |
|--------|
|   | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 |
| EE     | $500 | $500 | $500 | $500 | $500 | $500 |
| EE+1   | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 |
| Family | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 |

 

 

54

 

 

----

 

 

 

| Plan C |
|--------|
|   | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 |
| EE     | n/a | $1,800 | $2,100 | $2,100 | $2,400 | $2,400 |
| EE+1   | n/a | $3,600 | $4,200 | $4,200 | $4,800 | $4,800 |
| Family | n/a | $5,400 | $6,300 | $6,300 | $7,200 | $7,200 |

 

vii. Out of Pocket Maximums

| (1) | In network |
|-----|------------|

 

| Plan A |
|--------|
|   | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 |
| EE     | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 |
| EE+1   | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
| Family | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 |

 

| Plan B |
|--------|
|   | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 |
| EE     | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 | $1,250 |
| EE+1   | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 |
| Family | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 |

 

| Plan C |
|--------|
|   | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 |
| EE     | n/a | $2,250 | $2,250 | $2,250 | $2,750 | $2,750 |
| EE+1   | n/a | $4,500 | $4,500 | $4,500 | $5,500 | $5,500 |
| Family | n/a | $6,750 | $6,750 | $6,750 | $8,250 | $8,250 |

 

| (2) | Out of network |
|-----|----------------|

 

| Plan A |
|--------|
|   | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 |
| EE     | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 |
| EE+1   | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 | $9,000 |
| Family | $13,500 | $13,500 | $13,500 | $13,500 | $13,500 | $13,500 |

 

| Plan B |
|--------|
|   | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 |
| EE     | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 |
| EE+1   | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 |
| Family | $11,250 | $11,250 | $11,250 | $11,250 | $11,250 | $11,250 |

 

 

55

 

 

----

 

 

 

| Plan C |
|--------|
|   | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 |
| EE     | n/a | $7,800 | $7,800 | $7,800 | $9,300 | $9,300 |
| EE+1   | n/a | $15,600 | $15,600 | $15,600 | $18,600 | $18,600 |
| Family | n/a | $23,400 | $23,400 | $23,400 | $27,900 | $27,900 |

 

viii. Under any option the employee’s spouse must elect coverage            (at least single) under their separate employer’s medical plan as primary            coverage if the employer offers a medical plan with a single coverage monthly cost of            less than:

Plans A, B & C

 

|   | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 |
|--------|------|------|------|------|------|------|
|   | $139 | $139 | $139 | $139 | $139 | $139 |

 

| b. | Dental |
|----|--------|

Monthly premiums

             

|   | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 |
|--------|------|------|------|------|------|------|
| EE     | $2   | $4   | $6   | $6   | $6   | $8   |
| EE+1   | $4   | $8   | $12  | $12  | $12  | $16  |
| Family | $6   | $12  | $18  | $18  | $18  | $25  |

Deductible – applies to other than Class A Expenses for Preventive            and Diagnostic Care

 

|   | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 |
|--------|------|------|------|------|------|------|
| EE     | $0   | $50  | $50  | $50  | $50  | $50  |
| EE+1   | $0   | $100 | $100 | $100 | $100 | $100 |
| Family | $0   | $150 | $150 | $150 | $150 | $150 |

 

| c. | Vision |
|----|--------|

Monthly Premiums

 

|   | 2007   | 2008   | 2009   | 2010   | 2011   | 2012   |
|--------|--------|--------|--------|--------|--------|--------|
| EE     | $6.76  | $6.76  | $6.76  | $6.76  | $6.76  | $6.76  |
| EE+1   | $11.76 | $11.76 | $11.76 | $11.76 | $11.76 | $11.76 |
| Family | $17.06 | $17.06 | $17.06 | $17.06 | $17.06 | $17.06 |

 

 

56

 

 

----

 

 

| d. | Employee Life Insurance/Optional Life Insurance                        /Dependent Optional Life Insurance |
|----|-----------------------------------------------------------------------------------------------------------|

             Anticipate            that Employee premiums will not increase for years 2008 -2010 but they may increase in            years 2011 and 2012 pending identification of the insurance carrier. The amount has not            yet been determined.

| e. | Long Term Disability Insurance |
|----|--------------------------------|

 

The following amendments will be added to the coverage:

|   | 1.                                   | Family social security offset.      |   |
|--------|--------------------------------------|-------------------------------------|--------|
|   | 2.                                   | Disability to Social Security age   |   |
|   | 3.                                   | Accept the 99 enhancement provision |
| f.     | Accidental Death & Dismemberment |                                |
|        |                                      |                                     |        |  |  |

Monthly Premiums for contract years 2008 – 2012:

 

| Options                                                                                                                                                                 | Employee | Emp.                        and Spouse | Emp.                        and Child(ren) | Family |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|----------------------------------------|--------------------------------------------|--------|
| Option                        50                        $50,000 for you                        $25,000 for your spouse                        $10,000 for each child    | $1.15    | $1.58                                  | $1.68                                      | $2.04  |
| Option                        100                        $100,000 for you                        $50,000 for your spouse                        $25,000 for each child  | $2.30    | $3.15                                  | $3.50                                      | $4.20  |
| Option                        250                        $250,000 for you                        $150,000 for your spouse                        $50,000 for each child | $5.75    | $8.40                                  | $8.40                                      | $10.80 |

 

| g. | Flexible Spending Accounts |
|----|----------------------------|

Healthcare Flexible Spending Account: Effective January 1, 2008, the            annual limit on Flexible Spending Accounts will be increased to $3,000.

Dependent Care Flexible Spending Account

| h. | Employee Assistance Program |
|----|-----------------------------|

 

57

 

 

----

 

 

| i. | Retiree medical |
|----|-----------------|

As of September 11, 1997, the EMPLOYER will not provide either retiree            medical or dental benefits and not offer participation in the Remington Arms Company,            Inc. Pension and Retirement Plan to any Employees hired after that date and the            Remington Arms Company, Inc. Pension and Retirement Plan shall be amended to so            state.

Furthermore, the EMPLOYER continues to retain the right to modify,            including reduce, the existing retiree medical or dental benefits in its sole and            exclusive discretion.

 

 

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