**EXHIBIT10.20**

 

 

AGREEMENT

 

 

between

 

 

**CONN-SELMER,  INC.**

 

 

and

 

 

**U.A.W. LOCAL2359**

 

 

February 15,2008

 

Thru

 

February 15,2011

 

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TABLE OFCONTENTS

 
| A                                                       |
|---------------------------------------------------------|
|                                                    |
| Absence                                                 |   |
| Attendance Policies                                     |   |
|                                                    |   |
| B                                                       |
|                                                    |
| Benefits                                                |   |
| Dental  Plan                                            |   |
| Flexible  Spending Account                              |   |
| Hospitalization  Plan                                   |   |
| Life  Insurance and AD&D                            |   |
| Pension                                                 |   |
| Sickness &  Accident                           |   |
| Vision  Plan                                            |   |
| Benefits Waiting Period                                 |   |
| Bereavement Pay                                         |   |
| Bulletin Boards                                         |   |
|                                                    |   |
| C                                                       |
|                                                    |
| Call Back                                               |   |
| Claims Processing                                       |   |
| COBRA                                                   |   |
| Committee Changes                                       |   |
| Company Rules,  Regulations & Policies         |   |
|                                                    |   |
| D                                                       |
|                                                    |
| Dental Plan                                             |   |
| Departmental Stewards                                   |   |
| Discharge Procedures &  Grievances             |   |
| Disciplinary Action Shop  Committee & Stewards |   |
| Double Time                                             |   |

 

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| Duration of Agreement                      |   |
|--------------------------------------------|--------|
|                                       |   |
| F                                          |
|                                       |
| Family & Medical Leave            |   |
| Flexible Spending Accounts                 |   |
| Fringes & Scope of the  Agreement |   |
|                                       |   |
| G                                          |
|                                       |
| General Provisions                         |   |
| Grievance Procedure                        |   |
| Group Leader Pay                           |   |
|                                       |   |
| H                                          |
|                                       |
| Holiday Pay Qualifications                 |   |
| Holidays                                   |   |
| Hospitalization Plans                      |   |
|                                       |   |
| I                                          |
|                                       |
| Injury Reporting                           |   |
| Instructor Pay                             |   |
| Intent of Dispute Adjustments              |   |
|                                       |   |
| J                                          |
|                                       |
| Job Posting and Bidding                    |   |
| Job Classifications and Hourly  Rates      |   |
| Judy Duty                                  |   |
|                                       |   |
| L                                          |
|                                       |
| Lateness                                   |   |
| Lay-Off Procedure                          |   |
| Lay-Off Clause                             |   |
| Leave of Absence                           |   |
| Letters of Understanding(s)                |   |
| Life Insurance and AD&D                |   |
| Lost Time – Injury                    |   |
|                                       |   |
| M                                          |
|                                       |
| Major Attendance Policy                    |   |

 

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| Management                         |   |
|------------------------------------|--------|
| Medical Disqualifications          |   |
| Medical Examination                |   |
| Medicare Insurance Premium         |   |
| Memorandum of Agreement(s)         |   |
| Minor Attendance Policy            |   |
|                               |   |
| N                                  |
|                               |
| New Employee Classification        |   |
| Nondiscrimination                  |   |
| Normal Work Week                   |   |
| Nortification of Address Changes   |   |
| Notification of Job Status         |   |
| No Strike/No Lockout               |   |
| No Work                            |   |
|                               |   |
| O                                  |
|                               |
| Out Early                          |   |
| Opt-Out Program                    |   |
| Overtime                           |   |
|                               |   |
| P                                  |
|                               |
| Pension                            |   |
| Personal Holiday                   |   |
| Probationary Period.               |   |
|                               |   |
| Q                                  |
|                               |
| Quality, Cost, Delivery and Safety |   |
|                               |   |
| R                                  |
|                               |
| Reassignment to Bargaining Unit    |   |
| Recall Procedure                   |   |
| Recognition                        |   |
| Re-Negotiation                     |   |
| Representation                     |   |
| Rest Periods                       |   |

 

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| Retirement Agreement                         |   |
|----------------------------------------------|--------|
| Retiree Insurance Premium                    |   |
|                                         |   |
| S                                            |
|                                         |
| Seniority                                    |   |
| Seniority Forfeiture                         |   |
| Seniority Grievances                         |   |
| Seniority Rolls                              |   |
| Shift Differentials                          |   |
| Sickness & Accident Weekly  Benefit |   |
| Special Rates                                |   |
| Superseniority Status                        |   |
| Supervisors Working                          |   |
|                                         |   |
| T                                            |
|                                         |
| Telephone Usage                              |   |
| Temporary Employee                           |   |
| Temporary Reductions                         |   |
| Temporary Transfers                          |   |
| Time and One-Half                            |   |
| Time and Attendance, Labor  Reporting        |   |
| Traditional Hourly Rates                     |   |
| Transfer into Bargaining Unit                |   |
| Transportation to Company Doctor             |   |
|                                         |   |
| U                                            |
|                                         |
| Union Activities                             |   |
| Union Security                               |   |
| Union Shop Committee                         |   |
|                                         |   |
| V                                            |
|                                         |
| Vacation                                     |   |
| “Call-In”  Vacation                |   |
| Lost  Time Allowances                        |   |
| Lost  Time Qualifications                    |   |

 

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| Vacation  Pay               |   |
|-----------------------------|--------|
| Vacation  Requirements      |   |
| Vacation  Period            |   |
| Vision  Plan                |   |
|                        |   |
| W                           |
|                        |
| Wage  Rates                 |   |
| Work  Schedule              |   |
| Workers’  Compensation |   |

 

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** **

**COLLECTIVE BARGAINING AGREEMENT**

 

THEAGREEMENT, made and entered into as of the 15thday of February, 2008 through February 15, 2011 by and betweenCONN-SELMER, INC., whose office is located at 34199 Curtis Boulevard, Eastlake,Ohio, (hereinafter designated as the Company) and U.A.W. Local 2359(hereinafter designated as the Union).

 

**NONDISCRIMINATION.**  The company and theunion are committed to the optimum utilization of human resources and equalopportunity.  Job applicants andemployees are evaluated on the basis of job qualifications – not age,disability, gender, national origin, race, religion, or any other legallyprotected group characteristic.  Thecompany and the union are committed to maintaining a place of employment thatis safe, productive, and free from any form of harassment or violence.  The company and the union each agree thatthey shall not discriminate against any employee who exercises any legallyprotected rights.  The company will notdiscriminate against any employee because of membership in the union.

 

**ARTICLE I –MANAGEMENT**

 

**Section A.** Subject to the provision of this Agreement, it isexpressly understood and agreed that the right to manage the Plant and directthe work force is vested exclusively in Management. and that all rights notspecifically modified in the Agreement are retained by the Company includingthe rights to hire, suspend, or discharge for proper cause, or transfer, andthe right to relieve employee from duty because of lack of work, or for anyother legitimate reason are vested exclusively in the Company, provided that this will not be used for purpose ofdiscrimination against any member of the Union.

 

**ARTICLE II –RECOGNITION**

 

TheCompany recognizes the Union as the sole and exclusive bargaining agency forall its employees (except supervision, plant protection, and office workers)with respect to rates of pay, working conditions and hours or days of work.

 

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**ARTICLE III –REPRESENTATION**

 

**Section A.UNION SHOP COMMITTEE.** TheUnion shall be represented by a Shop Committee of not more than five (5) membersnor less than three (3) members, all of whom shall be employees of theCompany, shall have completed their probationary period with the Company asherein provided, and shall be chosen by members of the Union.

 

TheUnion Shop Committee shall negotiate in the manner as hereinafter provided withthe Company on grievances that may arise in the Plant.  International Union Officials may be calledin by the Shop Committee to assist in these negotiations.

 

**Section B.DEPARTMENTAL STEWARDS.** TheUnion, in addition to the Shop Committee, shall be represented by DepartmentalStewards who shall be employees of the Company, having completed theirprobationary period, and shall be chosen by and from members of the Union on abasis of one (1) Steward for each Supervisor, with the assurance of aminimum of one (1) Steward for each work shift scheduled by the Company.

 

In theapplication of the above, it is agreed, the Union shall be entitled to aSteward for each designated Department or group of Departments.

 

**Section C.COMMITTEE CHANGES.** The Unionagrees to keep the Company informed at all times of who constitutes the ShopCommittee and the Stewards’ Committee, also when changes in said Committees aremade.

 

**Section D. DISCIPLINARY ACTION: SHOP COMMITTEE AND STEWARDS.** A twenty-four hour graceperiod will be given to the Shop Committee and Department Stewards when theyare personally involved in disciplinary action that warrants suspension ordischarge, the Chairman will be advised of disciplinary action forinvestigation before disciplinary action takes effect~~.~~

 

**ARTICLE IV -  HOURS AND OVERTIME**

 

**Section A. NORMAL WORK WEEK.** For all hourly employees,the normal work week shall consist of five (5) days, Monday throughFriday, of eight (8) hours each. The work schedule for 

 

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certain employees, because of the nature of their duties maydeviate from the normal work week schedule – as needed for business purposes.

 

The normal work week is as follows:

 
| 1st Shift |   | 6:15 – 2:45        |
|-----------|--------|-------------------------|
| 2nd Shift |   | 2:45 –  11:15 |
| 3rd Shift |   | 10:15 – 6:45       |

 

**Section B. TIME AND ONE-HALF.** All work performed inexcess of eight (8) hours during any regular working day or work performedon Saturday, outside of the week as above defined,  work week, shall be paid for at the rate oftime and one-half their hourly rate of pay. Employees shall receive time andone-half for all overtime worked.  Thepay to be computed on the average~~~~hourly earnings for the week theovertime is worked.

 

**Section C. OVERTIME.** Employees shall be paid time and one-half for alltime worked prior to their scheduled starting time or after their scheduledquitting time, once they have completed eight (8) hours.

 

An employee’s scheduled starting and quitting time asscheduled on Monday for the week shall be considered the employee’s scheduledstarting and quitting times for the remainder of the work week unless mutuallyagreed upon between the Company and the Union.

 

TheCompany agrees to seek volunteers for available overtime by priority ofclassification, qualification, and overall seniority. For the purpose ofmaintaining efficient operations and complying with customer requirements, theCompany shall have the right to institute daily overtime or to extend the workweek.  Lacking enough volunteers,it shall assign as many junior qualified employees as needed in thatclassification or department to perform the work.  In the application of thisprovision, no employee shall be required to work in excess of ten (10) overtimehours per week and not for more than three (3) consecutive weeks.  A list of employees scheduled for Saturdayovertime will be solicited by Thursday, 11:15 a.m. (when feasible) , andwill be posted by 2:45 p.m.

 

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Thursday,and any disputes arising from the posted list must be communicated before 2:45 p.m.Friday,otherwise a grievance for a seniority claim may not be submitted.

 

**Section D.DOUBLE TIME -** Work performedon Sundays shall be paid for at the rate of double time.  Work performed on the thirteen (13) Holidaysin 2008, and the thirteen (13) Holidays in 2009, and the thirteen (13) Holidaysin 2010, shall be paid for at the rate of double time in addition to HolidayPay.

 

**Section E.NO WORK -** When employeesreport for work, not having been properly notified in advance that there willbe no work, and prevented from performing their jobs that day through no faultof their own, they shall be guaranteed four (4) hours work or four (4) hourspay at their hourly rate, if no other work is available for assignments; in noevent shall they be paid for less than four (4) hours.

 

However,this section shall not apply if the Company is unable to operate its plant orany portion thereof due to an act of Nature, utility failure, mechanicalbreakdown, government restriction, fire, flood, riot, civil commotion, or labordispute. , unless the mechanical breakdown or fire is caused by the company’snegligence.

 

**Section F.ABSENCE and ATTENDANCE POLICY**

 

**LATENESS.**  It has beenestablished that if an employee is going to be late for work, he/she must callhis/her Supervisor or leave a detailed message on the voice message system andadvise him/her at what time he/she will arrive. This must be done within two (2) hours from starting time.

 

This is necessary in order for the Supervisor to organize thework load in his/her department so production is not lost for the day.

 

Should he/she not call in and advise the Supervisor thathe/she is going to be late, he/she will not be allowed in the Plant two (2) hoursfrom starting and will be marked absent for the day.

 

This rule shall not apply if the weather is a factor inpreventing the employee from arriving on schedule.

 

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**OUT EARLY:**

 

Employees will not be permitted to leave work early, and willbe charged with lost time except for the following reasons:

 

a)     Lack of work.

b)    Obviously ill and unable to continue to work.

c)     Emergency call from family, requiring employee to leave.  Verification may be requested.

d)    Workers’ Compensation injury or illness.

 

**ABSENCE.**  It has beenestablished that if an employee is going to be absent from work, they must calltheir Supervisor, Human Resources Resources, or leave a detailed message on thevoice message system and advise them that they will be absent.  This should be done within two (2) hoursfrom starting time.

 

1.        One day sickness will not be excused, unless:

 

a)     Physician’s slip is presented by employee upon return to work.

b)    Employee was sent home the day before because of obvious illness, andreturn on following day doubtful.

 

2.        Two day sicknesses will not be excused, unless physician’sslip is presented by employee upon return to work.

 

3.        Employees returning to work after missing three (3) ormore days because of illness will not be permitted to work without physician’sslip stating employee is able to perform regular duties.  Physician’s slip must be presented byemployee upon return to work.

 

4.        Absence from work for reason other than illness will not beexcused unless employee received permission from the Human Resources Manager orthe Plant Manager (or their alternate as needed) prior to absence.  Court and legal appointments that are relatedto an employee’s infraction of the law are not excused “whole day”absences.  All court and legalappointments, handled on a reporting late or an out early basis, will beexcused (with advance notification, provided documentation is submitted uponreturn to work).  “Whole day” absence,for court and legal appointments that are not related to an employee’sinfraction of the law,

 

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will be excused (with advance notification, provided documentationis submitted upon return to work).

 

5.        Death in family, jury duty, etc. will be excused absencesonce verification is presented.

 

6.        “Emergencies” that occur between work shifts will be handledon an individual basis.  The HumanResource Manager must be consulted before excusing absence.

 

7.        Previously scheduled overtime for a Saturday and/or Sunday(hereinafter called “weekend overtime”) will be assigned in accordance with theestablished procedure, however, any unexcused absence will fall under thefollowing guideline:

 

a.     All unexcused weekendovertime missed will be charged at scheduled time.  (i.e., 5 hrs. o.t. =  5 hrs missed.)

 

8.        Any jail time preventing an employee’s ability to report towork will not be viewed as an excused absence. The Company will not issue any leaves of absence towards time spent injail.  Each consecutive day in jail willbe charged against the 16 Hour Policy (Infractions of a Minor Nature, #1).  The number of days permitted will depend uponthe number of warnings the employee’s personnel record can support, to amaximum of nine (9) days.  Any timein jail beyond what the employee’s record can support will lead todismissal.  Should the employee not beconvicted, all jail time will not be charged against the 10 Hour Policy or the40 Hour Policy.

 

**MINOR ATTENDANCE POLICY**

 

**10-Hour Policy -**Accumulated10 hours or more unexcused absence during a four (4) week period

 

**Corrective Action:**

 

·      1st offense – file note

·      2nd offense – written warning

·      3rd offense - written warning withcounseling

·      4th offense – termination

 

**OR**

 

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**Lateness – four**(4) latenessesin a four (4) week period.

 

**Corrective Action:**

 

·      1st offense – file note

·      2nd offense – written warning

·      3rd offense - written warning withcounseling

·      4th offense – termination

 

**OR**

 

**Corrective Action total for above:**

 

·      Four (4) total Minor Attendance warnings =termination

 

**MAJOR ATTENDANCE POLICY**

 

**Excessive Absenteeism -**Includes the following missed work time:

 

·          40 hours accumulated lost time per three (3) months includes:

 

·      Out Early, excused and unexcused

·      Absences, excused and unexcused

·      All latenesses

·      Leave of absences, personal/medical/FMLA, if approvedwill not count toward hours included under the Excessive Absentee Policy.

 

**Corrective Action**:

 

·      1st Offense – File Note

·      2nd Offense – Written warning with counseling

·      3rd Offense – Termination

 

Allwarnings will remain in effect twelve (12) months from time of infraction.

 

**Section G.LEAVE OF ABSENCE:**

 

1.            An employee may be granted a leave of absence, by thecompany, upon written request to a Supervisor for a period not to exceed two (2) calendarweeks in any one year, for a minimum of two (2) days (single days willonly be approved when combined with remaining vacation days, or with a personalholiday request), but will not be granted a leave to work at any other job orbusiness. Earned but unused Vacation days must be used first.

 

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Insurance and Hospitalization benefits willcontinue.  Any grievance arising out ofthe application of the provision shall be subject to negotiation between theCompany and Union.

 

Examples of such absences are personal business,family matters, etc.  Company may requestverification.

 

2.             By agreement between the Company and the Union ShopCommittee, employees may be granted a leave of absence for a definite period oftime not to exceed one-half (1/2) their seniority length and in no event toexceed one (1) year without prejudice to seniority for one or more of thefollowing reasons:

 

a)             Death or serious illness in family.

 

b)            Personal affairs involving legal settlement.

 

During such leave of absence, the employee shall onlyaccumulate seniority and all benefits are temporarily withheld until employeereturns, at which time the benefits will be reinstated.

 

3.             Employees shall be granted a leave of absence, not toexceed 3 years,  for illness or injurycausing confinement to a Hospital or at home under physician’s care - provideda physician’s certificate is presented and proof of continued disability issupplied as requested.

 

4.             This could also include outpatient treatment asprescribed by an attending physician which qualifies under the medical plan.

 

5.             See Contract for Benefit schedule of Sickness andAccident Weekly Benefits.

 

6.              “S & A Benefit Medical” forms may beobtained from the Human Resources office.

 

7.             Leave of absences, personal/medical, if approved, willnot count toward hours included under the Excessive Absentee Policy.

 

8.             A “Leave of Absence” form may be obtained fromSupervisor or the Human Resources office.

 

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9.             During such leave of absence due to personal injury orillness, the employee shall accumulate seniority and all Sickness and Accidentpayments (based upon the direction of the third party administrator) and LifeInsurance benefits (based upon successful filing of a waiver of premium)  shall continue for their defined term.  During such leave for Workers’ Compensation, Life Insurancebenefits shall continue for their defined term (based upon successful filing ofa waiver of premium).   Coverage of Hospitalization/Dental Benefits,for Sickness and Accident Leaves, are paid for a period of six (6) months.  COBRA will be effective after the initial six(6) months at a subsidized rate equal to the normal payroll amount for anadditional six (6) months. Employees, for both Sickness and Accident and Workers’ CompensationLeaves, are responsible for Hospitalization/Dental Contribution amount duringleave period.  Benefit levels andcontributions will be consistent with the current collective bargainingagreement.  Contributions must be paid tothe designated third party administrator on a monthly basis, prior to the nexteffective month due, otherwise benefits will be cancelled (continuation couldotherwise be made available through the terms defined by COBRA).

 

10.           Family and Medical Leave Act (FMLA) -

 

An employee, under the terms specified for Family and MedicalLeave, with twelve (12) months of service and at least 1,250 hours worked, maybe granted up to twelve (12) weeks of unpaid leave based on a twelve monthrolling calendar for the following reasons:

 

1.         The birth or placement for adoption or foster care of a child.Leave taken for the birth of a child or the placement of a child for adoptionor foster care must be a consecutive twelve (12) week period completed withintwelve (12) months after the date of birth or placement.

 

2.         The need for the employee to care for a spouse, parent, childwith a serious health condition.

 

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3.         The employee’s own serious health condition.

 

Additionally, medical certification and continueddocumentation for intermittent absences will be required for such absence inaccordance with the Act, and the regulations promulgated thereunder.

 

A.        Status of Accrued Paid Time

 

Although FMLA leave is generally unpaid, employees on FMLAleave may receive workers’ compensaton benefits or disability benefits (fornon-occupational conditions), if the employee qualifies for either of thosebenefits.  These benefits will runconcurrent.

 

If the leave is for the care of a spouse, parent and/orchild, the employee may be required to take any remaining vacation days at thebeginning of the FMLA leave.

 

If theneed for FMLA is foreseeable (such as planned surgeries or normal births),thirty (30) day notice is requested.  Ifthe need for FMLA is unforeseeable (such as serious injury or illness, or apremature birth), you must notify the company as soon as possible, and in noevent, more than two (2) days after knowing of the need for a leave.  Formal notice is further accomplished bysubmitting a FMLA Application Form.  FMLAApplication Forms must be submitted within fifteen (15) calendar days of areturn from an unforeseeable serious health condition for either the employee,or a defined family member, or the absence will not be regarded as FMLA andwill be subject to the terms of the attendance rules.

 

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B.         Status of Benefits

 

Healthcare coverages (as defined by COBRA) will continue under the same terms andconditions as while actively at work. Employee will be responsible for continuing to make contributions tothese plans while on leave.

 

FMLA leave will not constitute a break in the employee’srecord of continuous service and the period of such leave of absence shall beincluded in the records as continuous service. Employees, following FMLA leave, will be restored to their original joband pay rate.  The only exception wouldbe changes that would have affected the employee if he / she had not gone onleave.

 

Theseterms are subject to review if the corresponding FMLA regulations are revisedor changed.

 

**Section H.WORK SCHEDULE -**The employeeis to be notified on Thursday, by 12:00 p.m. if the work schedule for thecoming week is going to be changed, so that the employee has enough time tomake arrangements if necessary.

 

If adepartment is advised ahead of time as required about the schedule change, theymust work eight (8) hours before overtime is paid.

 

Onlywhen the Company changes the schedule out of order does an employee receiveovertime for the time worked prior to set schedule or time after set scheduleno matter how many hours they work that day.

 

**Section I.CALL BACK.** Any employee beingcalled back to perform a task shall be paid four (4) hours at straighttime pay or which ever is higher, their hourly rate, in the event of overtimeor a Holiday.

 

**Section J.NOTIFICATION OF ADDRESS CHANGE.**It is the responsibility of each employee to keep the Human ResourcesDepartment informed of current address and telephone number.  

 

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Attemptsto reach the employee at the telephone number currently listed in the HumanResources Department’s files shall constitute proper notice.

 

**Section K.TIME AND ATTENDANCE, LABOR REPORTING.** Each employee shall be required to enter his or her own attendance andlabor transactions into the data collection system.  Employee shall be responsible for theaccuracy of the count and time entered for all transactions.  Employees should be at their appointed placeof work when signal is given for work to begin and should remain at their workuntil signal is given to quit.

 

**ARTICLE V -SENIORITY**

 

**Section A.SENIORITY.**  Will commence on the first day workedregardless of when employment was first offered by any Company representative.

 

**Section B.PROBATIONARY PERIOD.**   All new employees shall be considered as onprobation for a period of 6 months.  Theperformance of any new employee will be evaluated each month for the first 3months and will then follow the increase minimum/maximum guidelines as statedin the contract.   At 2 months, they areentitled to Holiday Pay.  At 3 months,they are entitled to Personal Holiday and Benefits.

 

Allprobationary employees having over 13 weeks of service with the company, andare being discharged for inability to perform job duties may take the matter upwith their department steward and apply the discharge procedures as outlined inthe CBA.  Employees who may be dischargedfor Minor Infractions related to absenteeism; and who may be discharged for anyMajor Infractions will not have consideration under the discharge and grievanceprocedures.

 

**Section C.SUPERSENIORITY STATUS.** TheChairman of the Shop Committee and all members of the Shop Committee handlingall matters concerning the Grievance Procedure shall head the plant-wideseniority list during their terms of office. Any member of the shop committee who at the time of election is onsecond or third shift will be assigned to the first shift within theirrespective classification.  Such shopcommittee member transferred from other than first shift will 

 

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replacethe employee within their classification, with the lowest plant-wide seniority,unless they can be otherwise absorbed into their classification.  This would not apply to temporary transfersbetween shifts for up to thirty (30) days. If there is a reduction in the work force during the term of office ofthe Grievance Committeeperson, they will remain at work in their respectivedepartments regardless of seniority unless the entire department is laid off.

 

TheCommittee must be able to do the job in accordance with the bumpingprocedure.  This superseniority status isapplicable to layoffs only, and employees will return to their originalpositions on the seniority list at the termination of their terms inoffice.  The Department Stewards shallhead the seniority list in their respective departments during their term ofoffice.  This superseniority status isapplicable to layoffs only, and employees will return to their originalpositions at the termination of their terms of office.

 

**Section D.MEDICAL DISQUALIFICATIONS.**Medical conditions that create a permanent inability for an employee to performtheir present job will result in:

 

a.             return to job they have previously satisfactorilyperformed, providing there is an opening, providing they have seniority.

 

b.             seniority prevailing, accept an open job that meetsthe stipulated work restrictions (failure to accept an open job will be construedas a voluntary quit).

 

c.             a lay-off.

 

**Section E.LAY-OFF PROCEDURE.**  When it becomes necessary to reduce the workforce for an indefinite period in a department or within a work cell, thereduction will be made according to job classifications, and employees will benotified three (3) normal working days in advance.  It is understood and agreed that in all casesof reduction in workforce, seniority shall be the determining factor so long asthose employees remaining in affected job classifications have the skills and abilities to ensure continued efficient operations of theCompany.

 

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When a reduction inworkforce is implemented in a department, the following procedure will govern,seniority prevailing, provided that affected employees have the skills andabilities to perform available jobs:

 

1.                                   Probationary employeesin the department shall be laid off before any employee having seniority inthat department is affected.

 

a.             Employees on inactive status forsickness and accident, workers’ compensation, FMLA, or personal leave, whileother senior employees within their classification are moved to lay-off status,will be moved to layoff status.

 

2.                                   If further reduction isnecessary, employees having seniority shall be entitled to displace otheremployees within the department in accordance with the following:

 

a.                                       Displace the employeehaving the least seniority in an occupation he/she had previouslysatisfactorily performed while in the employ of the Company.

 

b.                                      If employees cannotdisplace employees in jobs previously satisfactorily performed, they shall beentitled to displace the employee having the least seniority in an occupationhe/she is able to perform without further training.

 

c.                                       Bumping rights for thoseinactive at the time of lay off, may be invoked at the time said employee isscheduled to return, or is released to return to work.  Bumping rights under these circumstances,expire the working day following the scheduled return date.  Recall rights will be extended for the normaldefined term (one-half seniority to a maximum of three (3) years)effective with the date of lay off; however, recall rights will not be extendeduntil the employee is scheduled to return or is released to return to work.

 

3.                                   Any employee havingseniority displaced from a department in accordance with the above procedureshall be entitled to displace employees in other departments in accordance withthe following:

 

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a.                                       Displace the employeehaving the least seniority in an occupation he/she had previouslysatisfactorily performed while in the employ of the Company.

 

b.                                      If employee cannotdisplace employees in jobs previously satisfactorily performed, they shall beentitled to displace the employee having the least seniority in an occupationhe/she is able to perform without further training.

 

c.                                       If employee is displacedfrom original bump by a senior employee with more seniority who can perform thejob without training, the employee may again exercise his/her bumpingprivileges.  Only the senior employeewill be considered for each multi-bump situation.

 

4.                                   In recognition of theCompany’s responsibility to maintain efficient operations, it is understood andagreed that the following criteria shall apply to employees displacing otheremployees in accordance with the above procedure:

 

a.                                       Employee will have five (5) workingdays (employee with fifteen (15) years seniority will be offered up to ten (10) workingdays) during which to demonstrate ability to satisfactorily perform the workwith the opportunity for familiarization of equipment and work area, withouttraining.  At the end of this period,employee must be performing at the established production standard.

 

5.                                   If an employee fails todisplace another employee, due to lack of skills or abilities, he/she shall beplaced on layoff status, with the right to recall only to:

 

a.                                       His/her regular job; or

 

b.                                      A job he/she previouslysatisfactorily performed; or

 

c.                                       Bottom of lay-off list.

 

6.                                   Should an employeechoose not to exercise his/her seniority rights under this Section, he/sheshall be placed on layoff status, relative to seniority.

 

21

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Employeesaccepting jobs in accordance with the above procedures shall be paid at thecurrent rate for the job.  Employeesaccepting jobs in accordance with the above procedures may, with seniorityprevailing, exercise shift preference.

 

**Section F.RECALL PROCEDURE.** When it becomes necessary to recall employees from layoff,or to re-man a department after a reduction, the following procedure shall beapplied:

 

1.                                       The Company shalldetermine with seniority prevailing whether there are displaced employeesworking elsewhere in the plant or on the layoff list who previously performedin the job classification.  Employee willbe reassigned to an open job in accordance to the following procedure:

 

a.               performed job within the past ten (10) years.

 

b.              satisfactorily performed the job fora minimum of a two (2) year period.

 

c.               employee will have five (5) daysfor familiarization and minimal training during which to demonstrate ability tosatisfactorily perform the work.  At theend of this period, employee must be performing at the established productionstandard.

 

d.              if an employee fails tosatisfactorily perform the work as required above due to lack of skills orabilities under this Section, the employee shall be placed on layoff status,with the right to recall only to his/her original job.

 

e.               employees accepting jobs inaccordance with the above procedures shall be paid at the current rate for thejob.

 

f.                 employees bypassed shall retain theirrelative positions on the lay-off list.

 

2.                                       Should open jobs becomeavailable and the employee was unable to qualify for the above, employee willbe recalled from the layoff list in accordance with their seniority, providedthat employee has the skills and abilities to perform the available jobs.  Displaced employee taking available job shallnot be reassigned to their original job once they have chosen to sign a JobBid, or 

 

22

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havecompleted one (1) year in their new job classification.  Employees bypassed shall retain theirrelative positions on the lay-off list.

 

3.                                       Should employees beunable to qualify for the above, they will be recalled to available jobsdenoted by an asterisk on the Job Classification list, by using plant wideseniority of those employees on the lay-off list.  If the employee’s original job shouldre-open, the employee must return to that original job.  Employees bypassed shall retain theirrelative positions on the lay-off list.

 

4.                                       Employees recalled fromthe layoff list to their original jobs refusing to return to such jobs, shallbe considered having quit, forfeiting all accumulated seniority.

 

5.                                       Employees recalled fromthe layoff list to available work refusing such job shall be placed at thebottom of the layoff list.  However, uponsecond refusal of recall to available work, employees shall be considered onlayoff until original job becomes available, or Article V, Section F.,#2., becomes applicable.

 

6.                                       It is understood andagreed that the recall and re-manning procedures contained in this Agreementwill be invoked only when full time, permanent jobs become available.  Should temporary jobs become available, theCompany shall exercise its prerogative to fill those vacancies, within thelimitations of this Agreement, after having first advised the Union.

 

**Section G.TEMPORARY REDUCTIONS.** The work week shall not be less than thirty-two (32)hours, consisting of four (4) eight (8) hour days, for a period ofnot longer than six (6) weeks and then the Company and the Union shallmeet to consider the advisability of continuing the thirty-two (32) hour weekor reducing the number of employees according to seniority.  This clause does not apply to a temporaryreduction in a certain department or work cell due to lack of work, shortage ofmaterial, overstock or temporary setback of production.  A temporary reduction in a department will beof definite duration, not to exceed one (1) week, in which case employeeswill be placed on layoff status, without invoking Article V, Section E.  Should the temporary reduction exceed one (1) week,the Company and Union shall meet to discuss the advisability of reducing thework force according to Article V, Section E.

 

23

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**Section H.SENIORITY FORFEITURE.** Employees shall forfeit seniority if:

 
| 1.                                                                                                                                                                                                                                                                                                                                                                                  |   | They  quit or retire.                                                                                                   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                    |
| 2.                                                                                                                                                                                                                                                                                                                                                                                  |   | Leave  of Absence in excess of 3 years                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                    |
| 3.                                                                                                                                                                                                                                                                                                                                                                                  |   | The  employee is laid off for a period in excess of one-half (1/2) of his/her  seniority but in no event shall he/she   |
| retain  his/her seniority after three (3) years continuous lay-off.                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                |
| 4.                                                                                                                                                                                                                                                                                                                                                                                  |   | They  are discharged for just cause.                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                    |
| 5.                                                                                                                                                                                                                                                                                                                                                                                  |   | They  are absent for three (3) consecutive working days without reasonable  cause. Questionable cause shall be     |
| negotiated  between the Company and the Union.                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                |
| 6.                                                                                                                                                                                                                                                                                                                                                                                  |   | They  fail to report for work within five (5) days, after receiving notice to  report where such failure to report |
| does  not arise from good causes, such as employment elsewhere (for a period not to  exceed two (2) weeks), illness, death in the immediate family, absence  from the city or military service, provided, however, in such cases that they  give the Company notice of the good cause preventing them from returning to  work within three (3) days of receipt of notice. |
|                                                                                                                                                                                                                                                                                                                                                                                |
| 7.                                                                                                                                                                                                                                                                                                                                                                                  |   | While  on leave of absence, they accept employment. with another concern without  approval of the Shop                  |
| Committee  and the Company.                                                                                                                                                                                                                                                                                                                                                         |

 

**Section I.SENIORITY ROLLS.** The Company shall furnish an accurate seniority roll showingthe status of all employees covered by this Agreement, a copy of said rollshall be given to the Shop Committee on request.  The Company will also notify the Union inwriting of hiring, discharging, rehiring, furloughing, and transferring of eachand every employee, in order to keep the above mentioned seniority roll up todate.

 

**Section J.JOB POSTING & BIDDING.** Notices of vacancies or new jobscreated will be posted on the job posting bulletin boards for a period of three(3) working days during which employees shall have the opportunity toadvance their status by filing an application for transfer to such jobs withthe Human Resources Manager.  If postedjobs are not filled in thirty (30) days, a one-day posting will be made beforea new employee is hired.

 

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Workcells, once developed, will be initially staffed with active employees from thetraditional job classifications that were merged by the given work cell.  Job openings, within a given work cell, willnot be posted until the staffing requirements within the work cell exceeds theavailable active employees that were merged from the traditional jobclassifications.  The traditional jobclassification will be the basis for posting an available work cellposition.  The existing job posting andbidding rules, contained within this section, will govern the evaluation of anysubsequent job vacancy or bid into a work cell.

 

Requestsfor transfer will be considered in accordance to the employee’s seniority,qualifications and curtailment of production, before any new employee is hiredfor such a job.  Before the job isawarded to a bidder, the lay-off list will be referred to for qualified senioremployees (See Article V., Section F.).  If a laid off employee accepts the job, thejob bid must be signed. If an employee on the lay-off list refuses the job, refer to Article V,Section F., #5 .  If there isreasonable doubt as to the employee’s qualifications, a reasonable trial periodshall be granted.  Should any employeedisqualify themself during the five (5) day trial period, they shall havereturn rights to their previous job. Once the employee is accepted for the job, and once the employeecompletes the five (5) day trial period, he/she relinquishes the rights tothe job he/she left.  Any employee whofails to successfully hire or transfer into a new job will be placed on layoffstatus, with no bumping rights.  Layoffstatus will be automatically invoked upon the issuance of the third infractionof a minor nature for failing to meet a reasonable measure of efficiency(Infraction of a Minor Nature #10). Employees who are disqualified in this manner will relinquish recallrights to any previously disqualified job, and all warnings on record willcontinue for the remainder of their terms once the employee returns fromlayoff.

 

Employeesinterested in being considered for rough assembly should first bid into therough assembly training classification.  The horn slide training classification will be comprised of two (2) separatetiers; Trainee B - Grade 2, and Trainee A - Grade 5.  Available positions will be posted as TraineeB - Grade 2.  Existing employees whotransfer into this classification will have the customary five (5) daytrial period.  Employees in Trainee B will be evaluated on a monthly basis, and transfer to Trainee A will only occur after the employee has reached a skill levelequivalent to the established standards for hornslideassembly.  Transferfrom Trainee B to Trainee A must be

 

25

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accomplished within six (6) months, if not, Article V.,Section J., would apply.  Existinghorn slide assemblers will retain their current classification, and employeeswithin the Trainee A will be considered part of the horn slide assemblycapacity.  Under this program, the trainingclassifications may not be considered a permanent position.  Any employee within Trainee A can bid onRough Assembly jobs within departments 35 and 38, and will not be required tocomplete one year of service.   However,any subsequent transfer to rough assembly (either by bid or placement) willrequire employees to complete one year of service.

 

Anysubsequent job openings in rough assembly will be filled predominantly byemployees from this training classification. This, however, is not intended to prevent any of the current roughassemblers from bidding into a new rough assembly opening.  Providing no eligible bids are received fromcurrent rough assemblers, the Trainee A can bid with seniority prevailing.  If no eligible bids are received from TraineeA, then placement of a Trainee A will be done at the discretion of thecompany.  Plantwide seniority rules willapply to layoff within this training classification (e.g. a senior Trainee Awill remain over a junior horn slide assembler, or a junior Trainee A can bebumped by a senior rough assembler).

 

Anemployee transferred from one department to another shall immediately becredited with his/her total seniority in the new department.  The Maximum dayrate will replace “Traditional”hourly rates for all downward job transfers and lateral job transfers (outsideof their department only).  Employeeswith a “Traditional” hourly rate, who are approved for an upward transferrequest, or a lateral transfer request (within their department), or are laidoff for lack of work or for medical disqualification (excluding jobdisqualifications), will preserve their “Traditional” hourly rate or theMaximum dayrate (whichever is higher). The most senior employee may exercise shift preference from one shift toanother, within a work cell, within a job classification, within a department,provided a vacancy exists.  The companyreserves the right to temporarily postpone shift preference, to a maximum of one(1) year, within classifications that require extended training orsupervision (specifically 5A41 – Polisher, 5A42– Buffer, and 5A35 – Color Buffer). All transfer requests shall be answered if rejected for seniority,qualifications, or curtailment of production.

 

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In theapplication of this provision, requests for transfer to another job, in thedepartment wherein the vacancies occur or the new job is created, shall beconsidered before any such requests made by employees from other departments.

 

Once anemployee accepts a transfer, or once an employee disqualifies themself during atrial period and returns to their previous job, that employee will not beallowed to submit another request for transfer for for a period of six (6) months.  This applies to intra-departmental, as wellas inter-departmental transfers.

 

Requestsfor transfers submitted by employees in Labor Grades 1 and 2, with less thanone (1) year seniority or probationary employees, will be considered andpossibly accepted, providing that an employee with one (1) year or moreseniority did not bid the job.

 

Employeesin Labor Grades 3 and above with less than one (1) year seniority shallnot be entitled to place transfer requests.

 

It is understood that requests for transfer will beconsidered on an individual basis, taking in account all the factors presentedat the time the request for transfer is submitted.

 

When anabnormal condition exists that may result in the curtailing of production inother parts of the Plant, Management reserves the right to hire experiencedindividuals in preference to present employees who do not have previousexperience.

 

Unionand the bidders will be notified within five (5) working days of the finalposting date.

 

**Section K.SENIORITY GRIEVANCES.** Any grievances arising out of seniority shall besubject to negotiations between the Union and the Company.

 

27

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**Section L.NOTIFICATION OF JOB STATUS.** In laying off, furloughing, ortransferring any employee, the Company Representative shall notify the Chairmanof the Shop Committee and the employee in such layoff, furlough or transfer assoon as practical.

 

**Section M.TRANSFER INTO BARGAINING UNIT.** Employees who were not employed inthe bargaining unit at any time during their period of employment with theCompany and who are transferred into the bargaining unit shall be credited withseniority from the date of transfer into the bargaining unit after havingserved their probationary period.

 

**Section N.REASSIGNMENT TO BARGAINING UNIT.** Employees who were, or may betransferred or promoted from jobs within the bargaining unit to jobs outsidethe bargaining unit shall retain their seniority but shall not accumulateseniority while working on such jobs.  Inthe event such employees are transferred into the bargaining unit, they shallbe placed on available jobs where they are best qualified in line with theirseniority, but shall not be entitled to exercise their seniority to displaceany regular full-time employee within the bargaining unit for a period ofninety (90) days from the date of transfer.

 

**Section O.DISCHARGE PROCEDURE AND GRIEVANCES.** Should an employee be subject todischarge, he/she shall be advised of the reason for such action.  The Company shall then request the presenceof the Chairman of the Shop Committee to discuss the cause with him/her beforehe/she is required to leave the Plant.

 

Shouldthe employee or his/her representative consider the action to be improper, awritten protest must be presented to the Company within five (5) workingdays after the action was taken, or the action taken will be considered asaccepted.  Such protest will be handledin accordance with the established grievance procedure.  If it is determined that the discharge wasunjustified, the employee shall be reinstated to his/her former position and tohis/her former standing on the seniority list, without any loss of pay.

 

28

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**ARTICLE VI -GRIEVANCE PROCEDURE**

 

**Section A. INTENT OF DISPUTE ADJUSTMENTS.** It is the intent of theparties to this Agreement that the procedure herein set forth serve as apeaceful means for the adjustment of all disputes that may arise between them.

 

**Section B. NO STRIKE / NO LOCKOUT.**  The union agrees thatit will not encourage, sanction, or approve any strike, handbilling, sympathystrike, or other interruption of work growing out of any dispute.  On the contrary, the union will activelydiscourage and endeavor to prevent or terminate any strike, stoppage, slowdown,or other interruption of work.

 

Thecompany agrees that neither it nor its representatives will put into effect anylockout during the term of this agreement.

 

**Section C.** Any grievance relatingto the issuance of a warning must be submitted to the following grievanceprocedure within fourteen (14) calendar days following the issuance of saidwarning to the employee(s), otherwise the action is regarded as accepted.  The union, whenever a warning is issued, willbe immediately furnished a copy of the written warning upon issuance to theemployee.  Whenever a grievance arises,the following steps shall be taken to ensure proper and timely handling, exceptin the case of a termination, which will go directly to Step 4.:

 

**Step 1.**

 

Anemployee with a problem, complaint or question will discuss the details of thecomplaint with the Supervisor and the Department Steward.  Who, after investigating complaint orproblem, will determine if there is cause. The Supervisor, within a 24 hour period, will give a formal answer tothe employee in the presence of the Department Steward.

 

**Step 2.**

 

Failingsatisfactory settlement with the Supervisor, a grievance shall be written, atwhich time employee and Department Steward shall present the written grievanceto the Supervisor who will submit the grievance to a Company Representativeselected by the Company, who will within 10 working days, conduct a meeting ofall parties involved in an attempt to resolve the issue.

 

29

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**Step 3.**

 

If theissue is still not resolved, the written grievance will be taken up in ameeting with the Grievance Committee and a Representative of the Company withinten (10) working days of the notice of rejection to settlement in Step 2.

 

**Step 4.**

 

In the event satisfactory settlement is not made, and afterthe above procedure has been exhausted, the grievance shall be referred to thePlant Manager or his/her representative and the Union’s International Representativeand the Company Legal Advisor.  Shouldsuch a meeting be necessary, it will be held at 2:00 p.m. within two (2) weeksnotice of rejection in step three or on a date agreed upon by both. The Step 4meeting may be delayed beyond the above mentioned timetable by mutual consentof the Company representative and the Union. If (a) the company fails to meet, or (b) the union fails tosubmit written rejection to the 3rd step outcome, within thespecified time limits in the 4th step of the grievance procedure,then the grievance shall be considered settled on the basis of the lastposition – in favor of the union in situation (a), or in favor of the companyin situation (b).

 

**Step 5.**

 

If thegrievance is not settled pursuant to the steps in the grievance provisions ofthis agreement, then either party shall, within thirty (30) calendar days afterany Step 4 grievance answer submit the grievance to arbitration.  Both the company and the union agree toutilize expedited arbitration as a preferred method.  Post hearing briefs will be permitted only byagreement of the parties or by direction of the arbitrator if one party sorequests.

 

Ifparties are not available, written notification will be presented to the otherparty within the time frames as indicated above.

 

If theunion fails to meet the above listed time tables, the grievance will beconsidered null and void without the opportunity to file another grievance forthat action for that employee.  If  the company fails to meet the above listedtime tables, the grievance will be considered as closed with the the actionrequested on the grievance going into effect.

 

30

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The employer and the union shall agree upon a list of three (3) arbitratorsto serve for the duration of this agreement. When either party requests arbitration pursuant to Section C., Step5., the parties shall meet within seven (7) working days to select anindividual from this panel to hear said matter. The arbitrator will be selected by process of rotation.  As soon as the parties select the arbitrator,they shall jointly request a hearing date be set as soon as possible subject tothe availability of the parties.  If theparties and the arbitrator are unable to agree upon a date within thirty (30)days of contact with the arbitrator, then the parties, by mutual agreement, mayimmediately select another arbitrator. No more than thirty (30) days after submission of the case to thearbitrator, the arbitrator will issue his / her award.  The parties agree to accept the arbitrator’saward as final and binding upon them; however, the arbitrator shall have nopower to add to, subtract from, or modify any of the terms of this agreement.

 

The cost of the arbitrator, andmeeting room shall be shared equally by the parties.  Any other expense (such as attorney,transcript, or witness or advocate fees) must be paid by the party incurringsuch expense.

 

Noaggrieved party shall have any right to invoke the grievance procedure providedabove, or the arbitration procedure provided above, unless the matter of suchgrievance has been presented as provided above.

 

**ARTICLE VII -WAGES**

 

**Section A.NEW EMPLOYEE CLASSIFICATION.**Any new employee may be employed in any bracket or classification to bedetermined by their past experience.

 

**Section B.  “TRADITIONAL” HOURLY RATES.**  All existingunion hourly employees (with a hire date on or before February 21, 2005will preserve the higher of their overall hourly average, or their currentDayrate (for the period between 02/16/04 and 02/18/05) as their straight-timehourly rate for all hours worked. (excluding the stated exceptions See Article VII.,Section D.).  Employees already establishedwith an interim work cell hourly rate will receive the higher of their currentwork cell rate, their overall hourly average, or their current Dayrate (for theperiod between

 

31

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02/16/04and 02/18/05) as their straight-time hourly rate for all hours worked(excluding the stated exceptions See Article VII., Section D.).

 

**Section C.SPECIAL RATES.**

 

a.                                       **INSTRUCTOR PAY.** The Company may appoint newinstructors to train one or more employees for the job.  For the time spent instructing, they willreceive will receive twenty five cents ($.25) per hour over their hourly rate.

 

b.                                      **GROUP LEADER PAY.** The company may appoint group leaders in a particulararea of the plant.  For the time spent ina group leader role, group leaders will receive a minimum of twenty five cents($.25) per hour over their hourly rate.

 

c.                                       **TEMPORARY TRANSFERS.** When an employee’s work is in two (2) or moreLabor Grades, he/she shall carry the higher rate.  Temporary transfers can be made as an interimwork assignment during temporary periods of no work, for up to six (6) weeks,leaving the affected employee an opportunity to return to their normal job.Temporary transfers, under these circumstances, will be further extended ifmutually agreed by the company and the union.

 

d.                                      **SHIFT DIFFERENTIALS.** Employees working on the second shift shall receiveadditional compensation of fifty cents ($.50) per hour.  Employees working on the third shift shallreceive additional compensation of seventy-five ($.75) per hour.

 

**ARTICLE VIII –QUALITY, COST, DELIVERY, AND SAFETY**

 

Employeesare expected to safely produce quality instruments in the most efficientmanner.  Conforming to safetyrequirements, improving quality standards, and improving manufacturingefficiencies is every employee’s responsibility.

 

Manufacturingoperations, not contained within a work cell, must meet or exceed 110% of thejob standard.  Any voids in quality,efficiency, or safety will be subject to the established warning system.

 

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Safety standards, quality standards, and manufacturingefficiencies (compared to the standards established by the former individualincentive system), must be maintained or improved with each subsequent workcell that is developed.  Work cells willbe organized according to established lean manufacturing principles, and willbe based upon standard time observations. Work cell cycle times, following the removal of all non-value addedoperations, will be determined to be the combination of the lowest repeatabletimes for each remaining job element. The resulting job elements, given the customer TAKT time, will bedivided between the employees that are assigned to each given work cell.  Job elements, depending on the customer TAKTtime, may be changed or altered, and employees assigned to each given work cellwill be required to assume the most leveled and balanced combination of jobelements.  Quality, cost, delivery, andsafety deficiencies, identified within a work cell, will be handled on anindividual basis, and may be subject to the established warning system.

 

**ARTICLE IX -WAGE RATES**

 

Allemployees hired after February 15, 2005 through February 18, 2008,will receive a one time $.15 adjustment to their wages.

 

EffectiveFebruary 18, 2008, all employees will receive $.30 increase to theirhourly rate.

EffectiveFebruary 17, 2009, all employees will receive $.30 increase to theirhourly rate.

EffectiveFebruary 16, 2010, all employees will receive $.30 increase to theirhourly rate.

 

**JOB CLASSIFICATIONS AND HOURLY RATES:**

 

**#1 Grade**

 
| ** **           | ** ** | **2/18/08** | ** ** | **2/17/09** | ** ** | **02/16/10** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | 13.116     |        | $          | 13.416       |       | $ | 13.716 |   |
| Minimum Hourly  Rate |       | $           | 11.216     |        | $          | 11.516       |       | $ | 11.816 |   |

 

----

*Sweepers

 

**#2 Grade**

 
| ** **           | ** ** | **2/18/08** | ** ** | **2/17/09** | ** ** | **02/16/10** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | 13.245     |        | $          | 13.545       |       | $ | 13.845 |   |
| Minimum Hourly  Rate |       | $           | 11.326     |        | $          | 11.626       |       | $ | 11.926 |   |

 

33

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----

*CaseSizing Boring Machine Operator

*Degreaser/ Parts Cleaner

*Harperizer &Tumbling Machine Operator

*Laborer

*Laborer- Air/Water Check Horns

*Vibratory &Tumbling Machine Operator

*Operator- Cut and Shrink

*Operator- Drill Press & Milling

*Trucker- Stock Handler

*TraineeB

*Laborer- Rinse Tank

** **

**#3 Grade**

 
| ** **           | ** ** | **2/18/08** | ** ** | **2/17/09** | ** ** | **02/16/10** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | 13.365     |        | $          | 13.665       |       | $ | 13.965 |   |
| Minimum Hourly  Rate |       | $           | 11.428     |        | $          | 11.728       |       | $ | 12.028 |   |

** **

Bender- Crooks

Leadand Silver Solderer

FurnaceOperator

Braze/PasteApplicator

Operator- Punch Press

Packers

Pantograph/SchmidtEngraver Set-Up Oper.

 

 

*PicklingTank Operator

*Shippers

StraightenTrombone Slide Tubes

AqueousSystem Set-Up Operator

LeadPot Operator

 

**#4 Grade**

 
| ** **           | ** ** | **2/18/08** | ** ** | **2/17/09** | ** ** | **02/16/10** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | 13.514     |        | $          | 13.814       |       | $ | 14.114 |   |
| Minimum Hourly  Rate |       | $           | 11.555     |        | $          | 11.855       |       | $ | 12.155 |   |

 

34

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AutomaticTube Buffing Mch.

Brazer

CNCAutomatic Spinning Machine Operator

CNCDrill Operator

CNCLaser Operator

DrawBench Operator

EngineLathe Operator

FinalAssembly Horns

Honer- Trombone Slides

MaintenanceHelper

OperatorTurret Lathe, Hand Screw

Set-UpOpr. Vertical Draw Mch.

 

 

*StockClerk

RotaryValve Finisher

Auto.Buff. Mach. Set-up Opr.

CellTechnician

 

**#5 Grade**

 
| ** **           | ** ** | **2/18/08** | ** ** | **2/17/09** | ** ** | **02/16/10** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | 13.580     |        | $          | 13.880       |       | $ | 14.180 |   |
| Minimum Hourly  Rate |       | $           | 11.610     |        | $          | 11.910       |       | $ | 12.210 |   |

 

AssemblerValves & Crooks

Bender

OperatorAutomatic Screw Mch.

Piston/ValveFinisher

PlaterC

RoughAssembly - Cornets, Trumpets

RoughAssembly - Horn Slides and Trombone Bells

RoughAssembly - Large Horns & Rotary Valves

RoughAssembly - Trombone Slides

RoughAssembler

WasteWater Pretreatment Operator

 

35

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TraineeA

 

AnnealingFurnace Operator

 

**#5A Grade**

** **
| Maximum Hourly  Rate |   | $ | 13.774 |   | $ | 14.074 |   | $ | 14.374 |   |
|----------------------|--------|---|--------|--------|---|--------|--------|---|--------|--------|
| Minimum Hourly  Rate |   | $ | 11.888 |   | $ | 12.188 |   | $ | 12.488 |   |

** **

RotaryValve Maker

Set-UpOperator – Punch Press

 

ColorBuff and Color Rag

Polisher/Buffer

Polisher

Buffer

LacquerSprayers

 
| ** **              | ** ** | **2/18/08** | ** ** | **2/17/09** | ** ** | **2/16/10** | ** ** |
|-------------------------|------------|-------------|------------|-------------|------------|-------------|------------|
| TU/SU                   |       | $           | 18.404     |        | $          | 18.704      |       | $ | 19.004 |   |
| FG/FTM/MI/FH            |       | $           | 17.031     |        | $          | 17.331      |       | $ | 17.631 |   |
| BA/EU/Pro ST  TM/Pro TR |       | $           | 15.657     |        | $          | 15.957      |       | $ | 16.257 |   |
| St TR/CR/TM             |       | $           | 14.284     |        | $          | 14.584      |       | $ | 14.884 |   |
| Components              |       | $           | 12.911     |        | $          | 13.211      |       | $ | 13.511 |   |

#  

**#6 Grade**

 
| ** **           | ** ** | **2/18/08** | ** ** | **2/17/09** | ** ** | **02/16/10** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | 13.794     |        | $          | 14.094       |       | $ | 14.394 |   |
| Minimum Hourly  Rate |       | $           | 11.793     |        | $          | 12.093       |       | $ | 12.393 |   |

 

AutomaticHydraulic Spinning Machine Operator

BenderSkilled

InspectorB

SheetBrass Workers

PlasmaArc Welder

PistonLiner, Assembler, and Ball-Out

 

36

----

 

**#6B Grade**

 
| ** **           | ** ** | **2/18/08** | ** ** | **2/17/09** | ** ** | **02/16/10** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | $13.850    |        | $          | 14.150       |       | $ | 14.450 |   |
| Minimum Hourly  Rate |       | $           | 11.840     |        | $          | 12.140       |       | $ | 12.440 |   |

 

Spinner- Metal

 

**#6A Grade**

 
| ** **           | ** ** | **2/18/08** | ** ** | **2/17/09** | ** ** | **02/16/10** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | 13.966     |        | $          | 14.266       |       | $ | 14.566 |   |
| Minimum Hourly  Rate |       | $           | 11.939     |        | $          | 12.239       |       | $ | 12.539 |   |

 

Maintenance B

 

**#6A-1 Grade**

 
| ** **           | ** ** | **2/18/08** | ** ** | **2/17/09** | ** ** | **02/16/10** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | 14.095     |        | $          | 14.395       |       | $ | 14.695 |   |
| Minimum Hourly  Rate |       | $           | 12.048     |        | $          | 12.348       |       | $ | 12.648 |   |

 

Maintenance &Welder A

Plater B

 

**#6A-2 Grade**

 
| ** **           | ** ** | **2/18/08** | ** ** | **2/17/09** | ** ** | **02/16/10** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | 14.278     |        | $          | 14.578       |       | $ | 14.878 |   |
| Minimum Hourly  Rate |       | $           | 12.204     |        | $          | 12.504       |       | $ | 12.804 |   |

 

OperatorCenterless Grinder

TurretLathe & Hand Screw - Set-Up Oper.

CNC Turning CenterSet-Up Operator

 

**#7 Grade**

 
| ** **           | ** ** | **2/18/08** | ** ** | **2/17/09** | ** ** | **02/16/10** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | 14.633     |        | $          | 14.933       |       | $ | 15.233 |   |
| Minimum Hourly  Rate |       | $           | 12.505     |        | $          | 12.805       |       | $ | 13.105 |   |

 

Tool Maker Trainee

Plater A

Horn Tester

 

**#7B Grade**

 
| ** **           | ** ** | **2/18/08** | ** ** | **2/17/09** | ** ** | **02/16/10** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | 14.976     |        | $          | 15.276       |       | $ | 15.576 |   |
| Minimum Hourly  Rate |       | $           | 12.797     |        | $          | 13.097       |       | $ | 13.397 |   |
|                 |       |        |       |        |       |         |       |

 

Horn Repair

 

37

----

 

**#8 Grade**

 
| ** **           | ** ** | **2/18/08** | ** ** | **2/17/09** | ** ** | **02/16/10** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | 15.719     |        | $          | 16.019       |       | $ | 16.319 |   |
| Minimum Hourly  Rate |       | $           | 13.428     |        | $          | 13.728       |       | $ | 14.028 |   |

 

ToolRoom Machinist B

 

**#9 Grade**

 
| ** **           | ** ** | **2/18/08** | ** ** | **2/17/09** | ** ** | **02/16/10** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly Rate  |       | $           | 16.372     |        | $          | 16.672       |       | $ | 16.972 |   |
| Minimum Hourly  Rate |       | $           | 13.984     |        | $          | 14.284       |       | $ | 14.584 |   |

 

Maintenance A

ToolRoom Machinist A

 

**#9A Grade**

 
| ** **           | ** ** | **2/18/08** | ** ** | **2/17/09** | ** ** | **02/16/10** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | 16.688     |        | $          | 16.988       |       | $ | 17.288 |   |
| Minimum Hourly  Rate |       | $           | 14.253     |        | $          | 14.553       |       | $ | 14.853 |   |

 

Tool &Die Maker

 

**#10 Grade**

 
| ** **           | ** ** | **2/18/08** | ** ** | **2/17/09** | ** ** | **02/16/10** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | 17.265     |        | $          | 17.565       |       | $ | 17.865 |   |
| Minimum Hourly  Rate |       | $           | 14.743     |        | $          | 15.043       |       | $ | 15.343 |   |

 

Maintenance &Electrician

 

**#10A Grade**

 
| ** **           | ** ** | **2/18/08** | ** ** | **2/17/09** | ** ** | **02/16/10** | ** ** |
|----------------------|------------|-------------|------------|-------------|------------|--------------|------------|
| Maximum Hourly  Rate |       | $           | 17.452     |        | $          | 17.752       |       | $ | 18.052 |   |
| Minimum Hourly  Rate |       | $           | 14.902     |        | $          | 15.202       |       | $ | 15.502 |   |

 

CNC Programmer,Complex

Tool &Die Maker Complex

 

38

----

 

Allnew hires will be eligible for wage increases (up to the maximum contract ratefor that grade), once time/skill/ performance based thresholds have beenachieved.

 

**ARTICLE X – VACATIONS**

 

The Union and theCompany agree that the purpose of vacations is that of relaxation of the individualfrom the requirements of his/her work and that such relaxation is earned bytotal years of service and hours worked. Total years of service will include any former years of service with theformer King Musical, United Musical Instruments, or Conn-Selmer, Inc. inaddition to current continuous years of service.

 

**Section A. VACATION PERIOD.** Effective June 1, 2008, employees will beearning 1/12th of their vacation per month of the current year forthe current year.  Employees are able touse their entire vacation time, per vacation schedule below, even though it maynot have been earned when taken.  If anemployee has taken this vacation time prior to it being earned – and then leavethe company, for any reason, this vacation pay (taken but not yet earned) wouldbe required to be reimbursed to the company.

 

ThePlant will be closed for a one-week vacation period the week of the July 4thholiday starting

(4 vacation days plus 1 holiday ):

 

·       Monday, June 30, 2008

·       Monday, June 29, 2009

·       Monday, July 5, 2010

 

Theemployee’s seniority status for the purpose of vacations will be determined asof May 31st of the vacation year. New vacation time becomes available each subsequent June 1st.

 

Thedesignated Shutdown period will be staffed as follows:

 

a.                           For plant-wide maintenance, a Volunteer Sign-Up Sheetfor employees required during the shutdown will be posted two months~~~~prior to the shutdown for a period of ten (10) workingdays.

 

39

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b.                          Those junior employees who cannot entirely cover thevacation period will be the first volunteers selected for the above postedposition(s).  However, these junioremployees may only volunteer for the time not covered by vacation.

 

c.                           Should there be a need for additional manpower,seniority prevailing, all other employees may volunteer

 

d.                          The list of employees scheduled to work the shutdownwill be posted five (5) days after the posting period is completed.  Those scheduled to work during the shutdownperiod will be subject to the same Company Rules that govern any regularworkday.

 

**Section B. VACATION PAY.** Shall be the employees hourly rate when vacation is taken, based on thefollowing schedule:

 
| **Length of Service**                              | ** ** | **Days of Vacation** | ** ** |
|--------------------------------------------------------------|------------|--------------------------------|------------|
|                                                         |       |                           |       |
| Six  (6) months to one (1) year seniority          |       | 2                              |       |
| One  (1) year to two (2) years seniority           |       | 5                              |       |
| Two  (2) years to five (5) years seniority         |       | 10                             |       |
| Five  (5) years and up to ten (10) years seniority |       | 12                             |       |
| Ten (10) years and up to fifteen (15) years seniority   |       | 15                             |       |
| Fifteen  (15) years to twenty (20) years seniority           |       | 17                             |       |
| Twenty  (20) years or more seniority                         |       | 20                             |       |

 

Vacationpay shall be paid, in the normal payroll cycle, the week following when thevacation time was taken.  Deductions for Medicalcontribution to be deducted from vacation pay. Calculated the same as if employee was working.

 

**Section C. SECOND, THIRD AND FOURTH WEEK VACATION REQUIREMENTS.**

 

a.)           Employee must have either five, ten (10), fifteen (15) or twenty (20)years of service prior to May 31st to qualify.

 

b.)          One (1) week notice must be submitted prior to the day(s) beingrequested.

 

c.)           Vacation day(s) will be paid the following Friday of the workweekrequested.

 

d.)          Second, Third and Fourth week cannot be added to the following year’svacation.

 

40

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e.)    Individual vacation requests,outside of the determined shutdown period, when possible, will be awarded basedupon seniority.

 

f.)    **“Call-in”vacation days**, nottaken during the scheduled shutdown period, may be taken on a “call-in”basis.  This option will be limited tosixteen (16) hours in 1⁄2-day increments, and sixteen (16) hours in full-dayincrements. Employees with twenty-five (25) years of service as of May 31st,will have sixteen (16) hours in 1⁄2-day increments, and sixty-four (64) hours in full-day increments. These “call-in” days cannot be used consecutively,cannot be used the day before or the day after a regularly scheduled holiday,and cannot be applied retroactively. Exception: 1⁄2-day “call-ins” may be used, with 2-week notice, seniorityprevailing, when combined with other regularly scheduled holidays.

 

**Section D. LOST TIME QUALIFICATIONS.** Employees who are formally approved for retirement orwho are or have been on a sickness or personal leave of absence or have losttime due to permanent lay-off, shall receive, at the time of separation, theiraccumulated vacation pay for the regular hours actually paid with 1,700 hoursas the 100% basis.

 

a.         Employees must work no less than 1,700 hours to qualify for 100% vacationtime due.

 

b.         Employees who work less than 1,700 regular work hours will have vacationtime due pro-rated with 1,700 hours as the 100% qualifying figure against theiractual hours paid.

 

**Section E. LOST TIME ALLOWANCES.** Deductions will not be made for any approved FMLA,military reserve duty, or union business within the vacation year.

 

When production is suspended because of fifty percent(50%) or more of the Plant is shutdown due to lack of orders for instruments,employees laid off because of the Plant shutdown will be allowed an additional160 hours credit before deductions are made.

 

**ARTICLE XI -HOLIDAYS**

 

TheCompany shall pay all employees with seniority covered by this Agreement attheir hourly rate for the following Holidays, to be observed on designateddates:

 

41

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|   | a.     | 2008:                                                                             |   |                                                                                                                                                |
|--------|--------|-----------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                              |   |                                                                                                                                                |
|   |   | Friday, March 21 –  Good Friday                                         |   |                                                                                                                                                |
|   |   | Monday, May 26 - Memorial Day                                                |   |                                                                                                                                                |
|   |   | Friday, July 4- Independence Day                                             |   |                                                                                                                                                |
|   |   | Monday, September 1 - Labor Day                                              |   |                                                                                                                                                |
|   |   | Thursday/Friday, November 27 & 28 - Thanksgiving  Holidays          |   |                                                                                                                                                |
|   |   | Wednesday/Thursday/Friday, December 24,25 &  26 - Christmas Holiday |   |                                                                                                                                                |
|   |   | Wednesday/Thursday/Friday, December 31,  January 1 & 2         |   |                                                                                                                                                |
|   |   |                                                                              |   |                                                                                                                                                |
|   | b.     | 2009                                                                              |   | :                                                                                                                                                   |
|   |   |                                                                              |   |                                                                                                                                                |
|   |   | Friday, April 10 - Good Friday                                               |   |                                                                                                                                                |
|   |   | Monday, May 25 - Memorial Day                                                |   |                                                                                                                                                |
|   |   | Friday, July 3 - Independence Day                                            |   |                                                                                                                                                |
|   |   | Monday, September 7 - Labor Day                                              |   |                                                                                                                                                |
|   |   | Thursday/Friday, November 26 & 27 -  Thanksgiving Holidays          |   |                                                                                                                                                |
|   |   | Thursday/Friday, December 24, 25 - Christmas Holidays                        |   |                                                                                                                                                |
|   |   | Tuesday, Wednesday, Thursday, December 29, 30, 31                            |   |                                                                                                                                                |
|   |   | Friday, January 1 - New Year’s Day                                      |   |                                                                                                                                                |
|   |   |                                                                              |   |                                                                                                                                                |
|   | c.     | 2010:                                                                             |   |                                                                                                                                                |
|   |   |                                                                              |   |                                                                                                                                                |
|   |   | Friday, April 2 - Good Friday                                                |   |                                                                                                                                                |
|   |   | Monday, May 31 - Memorial Day                                                |   |                                                                                                                                                |
|   |   | Monday, July 5 - Independence Day                                            |   |                                                                                                                                                |
|   |   | Monday, September 6 - Labor Day                                              |   |                                                                                                                                                |
|   |   | Thursday/Friday, November 25 & 26 -  Thanksgiving Holidays          |   |                                                                                                                                                |
|   |   | Friday/Monday, December 24 & 27 - Christmas  Holidays               |   |                                                                                                                                                |
|   |   | Tuesday, Wednesday, Thursday, December 28,  29 & 30                 |   |                                                                                                                                                |
|   |   | Friday - December 31st – New Years Day (Observed)                       |   |                                                                                                                                                |
|   |   |                                                                              |
|   | d.     | Personal  Holiday to be used as requested by employee:                            |
|   |   |                                                                              |
|   |   |                                                                              | 1.     | Two  weeks notice must be submitted prior to the day being requested, seniority  prevailing, when combined with other regularly scheduled holidays. |
|        |        |                                                                                   |        |                                                                                                                                                     |  |  |

 

42

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|   |   |   | 2.     | Must be approved by Human Resource Manager.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------|--------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |   |   | 3.     | The Personal  Holiday, if used at any other time, can be merely taken with advance or  “call-in” notice. However, the Personal Holiday cannot be applied  retroactively to a day already missed. The Personal Holiday, if arranged on a  call-in basis, must be reported to your Supervisor or Human Resources within  two (2)  hour of your scheduled starting time. This holiday must be  taken by the end of each contract period. Employees who have not used their  personal holiday shall be paid for the holiday at the end of the contract  year. |

 

**Section A.HOLIDAY PAY QUALIFICATIONS **Employees must have worked 6 hours on the lastregularly scheduled work day prior to and the next regularly scheduled work dayafter such holiday.  Employees notactively working (e.g. layoff, leave of absence, etc.) who are not in paystatus shall not be eligible for holiday pay, provided however, that an FMLAcovered absence on the day before or the day after a holiday shall not resultin an employee being ineligible for holiday pay.

 

Exceptions:

 

ExcusedAbsence as outlined in the Attendance Policies and Personal Emergencies. Emergenciesthat occur the day before or the day after a holiday will be handled on anindividual basis.  The employee mustreport the emergency to the Human Resource Manager, and the employee mustfurnish documentation proving the legitimacy of such emergency upon return towork.  Human Resources will determine ifpayment for the holiday(s) is to be made under these conditions.

 

**ARTICLE XII - UNION SECURITY**

 

Allemployees who are covered by the representation clause in the contract and arepresent members of the Union, must as a condition of employment, remain membersin good financial standing except for assessments and fines during the life ofthe contract.

 

43

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Allemployees hired into the bargaining unit described in the representation clauseof the contract must, as a condition of employment, join the Union withinthirty (30) days from their hiring date and remain members in good financialstanding throughout the life of the contract.

 

TheCompany does agree, subject to applicable Federal and State Laws, to avoluntary check-off of Union dues, provided such voluntary check-offauthorization meets with the approval of the Company.

 

Thischeck-off by the Company of monthly dues does not cover any assessment over andabove the mandatory monthly dues as determined by the National AdministrativeCommittee of the Union.

 

**ARTICLE XIII - MEDICAL EXAMINATION**

 

**Section A. INJURY REPORTING.** All employees must report all injuries when theyoccur to their Supervisor, so it can be recorded and sent to the dispensary,doctors or hospital.

 

**Section B. TRANSPORTATION TO COMPANY DOCTOR.** The Company will provide, transportation to and fromthe Company recognized Medical Facility for those employees injured on the jobwhen necessary on the day of the injury only.

 

**Section C. LOST TIME-INJURY**. An employee will be compensated at their hourly ratefor lost time on the day of the injury when sent to Doctors or Hospital, butwill not exceed past the normal quitting time, providing a slip indicating theis turned back to their Supervisor, who will forward it to Human Resources.

 

**Section D. WORKERS’ COMPENSATION**. If the treating physician for an established workers’compensation claim requires the employee to visit his/her office or hospitalduring working hours for follow-up treatment, he/she shall be compensated forloss of time up to a maximum of two (2) hours for each visit at theirhourly rate.  However, this provisiononly applies to appointments relating to treatment, or when the companyrequires and schedules an independent medical exam during work hours.  Claims in excess of this amount shall bedetermined between the Company and the Union Shop Committee

 

44

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Shouldan injury not be reported as per requirements, and a claim filed by employee,the Company has no choice but to deny such claim at the hearing.

 

**ARTICLE XIV - GENERAL PROVISIONS**

 

**Section A. UNION ACTIVITIES.** The Company recognizes and will not interfere withthe right of its employees to become members of the Union.  The Union agrees that neither it nor any ofits officers or members will engage in any Union activity while such employeesare on Company time, unless it is mutually agreed by the Company.

 

TheShop Steward, Departmental Stewards and Shop Committee shall be paid at theirhourly rate for all time spent in mutually agreed upon meetings with Managementduring scheduled working hours.

 

Inaddition to pay for time spent in mutually agreed upon meetings with Managementduring scheduled working hours, the Chairman of the Shop Committee shallreceive pay for up to ten (10) hours perweek and theDepartmental Stewards shall receive pay for up to three (3) hours per weekfor the time spent on problems arising under this Contract which affect themutual interest of the Union and the Company.

 

**Section B. TELEPHONE USAGE.** It is agreed that the President of the Union or theChairman of the Shop Committee shall have use of the Company’s telephone at anytime to consult with the UAW, or Government agencies’ representatives in regardto matters covered by this Agreement.

 

**Section C. BULLETIN BOARDS.** Are to be used solely for the purpose of exhibitingofficial announcements of the Union and the Company.  The dedicated bulletin board for the union isto be used solely for the purpose of posting official union business, and maynot include any personal announcements or statements.

 

**Section D. REST PERIODS.** In effect during working hours and the wash-up period at quitting timeshall be continued (a constant allowance of 25 minutes per day for rest periodsand wash-up 

 

45

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time,except for the Polishing / Buffing / Color Buffing Departments, where anadditional 5 minutes wash-up time is allowed).

 

**Section E. SUPERVISORS WORKING.** No employee outside the bargaining unit shall performany work customarily performed by employees within the bargaining unit.  It is agreed, however, the Supervisors mayperform such work while acting as instructors or assisting in solving aproduction problem.  It is furtherrecognized that it is part of the normal procedure of supervision to test and inspect.  During the period in which a shortage ofstaffing exists due to absenteeism or assignment of personnel to other jobs,the Shipping Department, Maintenance and Tool Room, Machine Shop, and RepairDepartment Supervisors are excluded from this limitation.

 

**Section F. TEMPORARY EMPLOYEE.** Is one engaged by the Company for a definite periodof time, not in excess of ninety (90) days, to perform a specific type of workthat does not occur with regularity.  TheCompany agrees not to call in temporary employees, if regular employees areavailable to do the work.

 

**ARTICLE XV - FRINGES AND SCOPE OF THE AGREEMENT**

 

**Section A. BENEFITS.** The Company agrees to an insurance plan for its employees under a policyor policies issued by an insurance company, association or medical group asselected by the Company, subject to the right of the Company to amend, cancelor reinsure the policies or change the underwriters thereof, provided thebenefits indicated herein are maintained for the life of this Agreement.

 

The Company shall affordthe employees an annual opportunity to enroll in the company sponsoredhealthcare programs.

 

**1.****        ****HOSPITALIZATION PLANS.**

 

**Opt Out Program**

Employeesmay be eligible for a quarterly payment during the period of coverage providedthey remain covered under an alternative health care plan.  This quarterly payment of $400 will be made 

 

46

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atthe end of each quarter.  If an employeeis married to another Conn-Selmer employee, it is considered a family unit andthus not eligible to participate in the opt out program.  Employees must have been a prior participantin a Conn-Selmer Health Plan to qualify.

 

Employeeswill be eligible as of the 1st of the quarter following enrollmentin the opt out program and must be actively employed with Conn-Selmer on thelast day of the quarter in order to receive the quarterly opt out payment.  All payments made will be less required taxwithholding.

 

Employeesunder a court order to provide healthcare coverage for their dependents areineligible to participate under this plan.

 

Ifan employee opts out of Conn-Selmer Health Care Plans and wishes to re-enterthe plan, they may only do so during open enrollment or upon a change in statusas defined by ERISA.  Once employeere-enters the Plan, all quarterly payments will end.  Employee will not receive a quarterly opt outpayment if they enter the Health Insurance Plan during the middle of a quarter.

 

**Self-Insured or Kaiser HMO Medical Insurance.**  Effective May 1, (or the first pay cyclefor each subsequent calendar year). Spousal carve-out to apply on all plans.

 
| **Contribution: **(Per Week) |   | **2008** | ** ** | **2009** | ** ** | **2010** |   |
|----------------------------------------|--------|----------|------------|----------|------------|----------|--------|
| **Kaiser  HMO:**                       |   |     |       |     |       |     |   |
| Employee only:                         |   | $        | 29.00      |     | $          | 32.00    |   | $ | 34.00 |   |
| Employee and  Family:                  |   | $        | 39.00      |     | $          | 44.00    |   | $ | 49.00 |   |
|                                   |   |     |       |     |       |     |   |
| **Base  Plan:**                        |   |     |       |     |       |     |   |
| Employee only:                         |   | $        | 19.00      |     | $          | 20.00    |   | $ | 22.00 |   |
| Employee and  Family:                  |   | $        | 37.00      |     | $          | 40.00    |   | $ | 42.00 |   |

 

47

----

 

**2.****        ****FLEXIBLE SPENDING ACCOUNTS:**

 

**Healthcare:**** **Allows you to use before-tax dollars to payfor typical out-of-pocket health care expenses such as deductibles, copayments,and non-covered expenses.

 

Up to $2,500.00

 

**Dependent Care:**  Allows you to use before-tax dollars to payfor child care or for an elderly or disabled family member.

 

Up to $5,000.00 can be contributed if married, or up to $2,500.00 can becontributed if single.

 

**3.****        ****VISION PLAN:**

 

Eyeexam and glasses or contacts every 24 months:

 
| Exam:       |   | $      | 35.00  |   |
|-------------|--------|--------|--------|--------|
| Frames:     |   | $      | 55.00  |   |
| Lenses:     |   |   |   |
| Single:     |   | $      | 40.00  |   |
| Bifocal:    |   | $      | 50.00  |   |
| Trifocal:   |   | $      | 70.00  |   |
| Lenticular: |   | $      | 80.00  |   |
| Contacts:   |   |   |   |
| Cosmetic:   |   | $      | 105.00 |   |
| Medical:    |   | $      | 210.00 |   |

 
| ** **                             | ** ** | **2008** | ** ** | **2009** | ** ** | **2010** | ** ** |
|----------------------------------------|------------|----------|------------|----------|------------|----------|------------|
| **Contribution:** (Per Week) |       |     |       |     |       |     |       |
| Employee only:                         |       | $        | 1.25       |     | $          | 1.25     |       | $ | 1.25 |   |
| Employee and  Family:                  |       | $        | 3.75       |     | $          | 3.75     |       | $ | 3.75 |   |

 

**4.****        ****DENTAL PLAN.**

 

$1,000Annual Maximum Benefits

 
| Preventative Services: |   | 100%, no deductible                                  |
|------------------------|--------|------------------------------------------------------|
| Basic Restorative:     |   | 85%, $50 deductible                                  |
| Major Restorative:     |   | 50%, $50 deductible                                  |
| Orthodontia:           |   | 50%, $50 deductible, $1000 lifetime limit per child. |

 

48

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| ** **                             | ** ** | **2008** | ** ** | **2009** | ** ** | **2010** | ** ** |
|----------------------------------------|------------|----------|------------|----------|------------|----------|------------|
| **Contribution:** (Per Week) |       |     |       |     |       |     |       |
|                                   |       |     |       |     |       |     |       |
| Employee only:                         |       | $        | 2.50       |     | $          | 2.50     |       | $ | 2.50 |   |
| Employee and  Family:                  |       | $        | 4.00       |     | $          | 4.00     |       | $ | 4.00 |   |

 

**5.****        ****SICKNESS AND ACCIDENT WEEKLY BENEFITS.** Beginning with the first day of an accident orhospitalization or the eighth day of a sickness, benefits will be payable for amaximum of 26 weeks for any one continuous period of disability in any oneyear.  If a period of illness exceeds two(2) weeks (14 days) for a non-occupational sickness, the initial two (2) week(14 days) waiting period will be waived. The employee will be paid from the first day of illness according to thefollowing schedule:

 

| $360 per  week effective February 16, 2008 |   |
|-------------------------------------------------|--------|
| $375 per week effective February 17, 2009  |   |
| $375 per week effective February 16, 2010  |   |

 

**6.****        ****LIFE INSURANCE and AD&D.**$35,000 effective February 15, 2008.  Effective February 16, 2010, increasedto $37,000.

 

**7.****        ****PENSION****.**  Employees whoretired after February 15, 2008 shall receive a monthly benefit increaseto $25.00 per service year.  Employeeswho retired after February 17, 2009, shall receive a monthly benefitincrease to $26.00 per service year. Employees who retire after February 16, 2010, shall receive amonthly benefit increase to $27.00 per service year.

 

**Section B.  MEDICARE INSURANCE PREMIUM. **The Company will pay theentire cost for those employees covered under Medicare Part B, reimbursingthose employees on a quarterly basis.

 

**Section C. RETIREE INSURANCE PREMIUM.** All payments of premium by the Company for insuranceor hospitalization for employees, retired under the provisions of theRetirement Plan for 

 

49

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HourlyEmployees because of disability or otherwise, shall terminate during the firstof the month following the month of retirement.

 

**Section D. CLAIMS PROCESSING.** The Company shall bear all necessary administrativeexpenses and agrees that in the administration of the insurance plan, allclaims shall be processed as expediently as possible.  All matters concerning benefits provided underthe insurance plan shall be governed by the terms and conditions of theinsurance policy or policies purchased by the Company.

 

**Section E. BENEFITS WAITING PERIOD.** Employees shall become eligible for sickness andaccident insurance, life insurance and hospitalization/dental coverage afterthey have completed three (3) months of accumulated service, provided theyare still actively at work and have enrolled.

 

**Section F. ONE MONTH LAY-OFF CLAUSE.** All insurance coverage of an employee shall becancelled one (1) month following the month after lay-off date.  The employee may exercise the COBRA privilegeas described in Section G of this Article.

 

**Section G. COBRA.**If employment terminates for any reason other than gross misconduct, or if thehours worked are reduced so that medical coverage terminates, the employee andcovered dependents may continue coverage under the Company plan as outlined inthe Summary Plan Description, provided the employee and dependents are notcovered under any other plan.  For thepurpose of this provision, “gross misconduct” means any violation of State orFederal laws.  Any employee who elects tocontinue coverage under the Plan must pay the full cost of the coverage.

 

Ifan employee becomes divorced or legally separated, or if the employee’s  dependent child is no longer an eligibledependent under the plan, the employee or another family member must notify theCompany within thirty (30) days.

 

**Section H. PLAN 125.** All employee contribution for Hospitalization/Dental Coverage arededucted on a pre-tax basis toward their share of the cost of thebenefits.  The employee should refer tothe Summary Plan Description of the Benefit Plan for the Employees ofConn-Selmer, Inc. for details regarding this program.

 

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**Section I. JURY DUTY.**An employee who has completed his/her probationary period and who serves as ajuror during his/her regular work week, Monday to Friday, inclusive, shall beexcused from work for the days required to serve, and will be paid eight (8) hoursat their hourly rate (excluding shift differential) for each day of juryservice.  The employee must presentsatisfactory evidence.  If an employeeworks his/her regular shift in addition to performing jury duty, he/she shallnot qualify for payment under the provisions of this paragraph.

 

Inorder to qualify for Jury Duty pay, an employee must present the Company withNotice to Report within two (2) working days following receipt of suchnotice.

 

**Section J. BEREAVEMENT PAY.** An employee who is actively on payroll and hascompleted their probationary period will be granted an excused absence,following the death of an immediate family as follows:

 

·    4 working daysoff with pay:  parent, spouse, child orstep-child

 

·    3 working daysoff with pay:  sibling, in-law,step-parent, grandparent, or grandparent in-law.

 

Bereavementdays occuring during an employees vacation will displace vacation days (Example:  Employee is on a two (2) week vacationand a death occurs in the immediate family, employee returning to work asscheduled will only be charged with seven (7) vacation days.  Bereavement days occuring during a holidaywill be taken immediately after the holiday.

 

**Section K. RE-NEGOTIATION.** It is understood and agreed between the partieshereto that all economic issues, including, but not limited to wages andso-called fringe benefits have been fully negotiated between the parties andshall not be subject to further negotiation during the life of this Agreementbut all other matters not specifically set forth in this Agreement shall besubject to negotiation during the term of the Agreement.

 

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**ARTICLE XVI - COMPANY RULES, REGULATIONS**

 

Inevery business where many people work together, some specific rules andregulations are necessary to define acceptable conduct and to promote thesmooth functioning of the business as a whole.

 

The purpose of the following rules is to insure allemployees safety and fairness in their cooperative effort, rather than to placerestrictions on any one individual.

 

TheCompany feels that a great majority of its employees want to play the gamefairly and will abide by the rules where they are known.  For this reason, we have set forth acts ofmisconduct which, if committed, will result in appropriate disciplinary action.

 

Whenan employee is being counseled in line with a discipline problem, the stewardwill be involved at the department level and the Chairman of the Shop Committeeat the Human Resources level.

 

**Section A. MINOR WORK RULES**

 

1.         Loafing, neglect or failure to perform assigned duties.

 

2.         Improper use of Company property.

 

3.         Violation of safety rules.

 

4.         Failure to be in assigned area or at station at required time.

 

5.         Leaving Department or job prior to authorized time.

 

6.         Leaving Department to use phone without obtaining required pass.

 

7.         Creating or contributing to unhealthful or unsanitary condition, ordisplaying signs, obscene pictures or literature or distributing them.

 

8.         Neglect of duty or failure to meet reasonable measure of efficiency orproductivity or negligence resulting in inferior work, scrap, or waste.

 

9.         Running or in any other way creating a condition hazardous to theindividual or fellow employee.

 

10.       Failure to wear assigned safety garments or use of assigned safetyequipment.

 

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11.       Solicitation of employees for donations or memberships in outsideorganizations, circulation of petitions or magazines in the Plant area withoutspecific approval of the Human Resources Department.

 

12.       Being in an area unauthorized in the Plant or on Plant property.

 

13.       Gambling of any type.

 

14.       Changing a certain phase of a set operating procedure without properauthorization.

 

15.       Posting of notices or signs or writing in any form on official bulletinboards or removal of approved notices without approval of the Human ResourcesDepartment.

 

16.       Leaving the Plant at break or lunch period and not returning withoutpermission or notification.

 

17.       Entering or leaving the Plant by other than the authorized area assigned.

 

18.       Subtle forms of harassment, intimidation, or inappropriate language orbehavior.

 

19.       Failure to enter or improper entering of labor reporting.

 

19.       Leaving the grounds at lunch without clocking out/in.

 

**Section B. MAJOR WORK RULES**

 

1.         Insubordination (willful disobedience of authority).

 

2.         Theft.

 

3.         Bringing, having or consuming intoxicating beverages or narcotics in thePlant or on Plant property.

 

4.         Smoking inside the walls of the facility.

 

5.         Willful damage to or unauthorized removal or appropriation of or defacingproperty belonging to the Company or another employee.

 

6.         Walking off the job.

 

7.         Punching another employee’s time card in or out resulting in pay for timenot worked.

 

8.         Falsification of personnel records.

 

9.         Possession of firearms or any type of weapon on company property.

 

10.       Physical violence, aggressive retaliatory actions, verbal threats,patterns of continued intentional harassment, sexual harassment, or any seriousviolation of discrimination laws.

 

11.       Flagrant violation or reckless disregard of any safety rule orpolicy which places the employee or others in danger.

 

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12.       Being on company property while under the influence of alcohol, or anyother illegal or controlled substance.

 

**Section C. PROGRESSIVE DISCIPLINE**.  For all workrules, with the exception of Rules of a Major nature, which may includedisciplinary measures up to and including termination.

 

·    1stoffense, Written Warning

 

·    2ndoffense, Final Written Warning

 

·    3rdoffense, 3 day suspension

 

·    4thoffense, termination

 

**Section D. DURATION**. All warnings will remain in effect until the one (1) yearanniversary date from the date of infraction.

 

**ARTICLE XVII - DURATION OF AGREEMENT**

 

**Section A.**  The Union and the Company mutually agree thatall of the provisions of the Agreement shall remain in full force and effectwithout change up to and including February 15, 2011, unless changes bymutual agreement and shall continue from year to year thereafter unless atleast sixty (60) days prior to February 15, 2011, or sixty (60) days priorto any anniversary date thereafter, either party notifies the other, in writingof its desire to terminate, modify, or change the Agreement.

 

**Section B. RETIREMENT AGREEMENT**. It is agreed that all the provisions of theRetirement Agreement for Hourly Employees will be continued to February 15,2008, in order to coincide with the expiration of that Contract.

 

INWITNESS WHEREOF, the parties have executed the foregoing Agreement this 15thday of February, 2008.

 

U.A.W.LOCAL 2359

DwayneKlier

BryantHarvey

 

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JoeShoda

RandyLang

BobMadda

RoryKrause

 

INTERNATIONALREPRESENTATIVE OF U.A.W.

LindaK. Romanik

 

CONN-SELMER, INC.

BobSpeed

JohnStifel

BobbiImel

LindaIliano

 

**Memorandum of Agreement**

 

EffectiveFebruary 17, 1997, by mutual consent, the job classifications for Polisher(5A41) and Buffer (5A42) will be recognized as separate jobs from this dayforward.  All previous relatedmemorandums of agreement will be considered null and void, and will not berecognized from this day forward.  Thisagreement does not change any portions of the current bargaining agreement, nordoes it change any other established employment practice not specificallydiscussed.

 

**Memorandum of Agreement**

 

EffectiveFebruary 17, 1997, by mutual consent, the overtime hours for a five (5) hourSaturday clean-up schedule, within departments 50 and 52, will be rotatedbetween those that volunteer for the available positions.  Only employees from departments 50, and 52will be eligible to volunteer for the available positions.  The set positions on this clean-up crew willbe assigned by the company.

 

Thispolicy will not apply to a three (3) hour Saturday clean-up schedulewithin departments 50, and 52, or to any other overtime schedule in other areasof the shop.

 

Thisagreement does not change any portions of the current bargaining agreement, nordoes it change any other established employment practice not specificallydiscussed.

 

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**Letter of Understanding**

 

If“public authorities” declare a “State of Emergency” in Lake County, absent dayswill be excused.

 

**Letter of Understanding**

 

Anemployee with the job classification of buffing, polishing, color buffing andsheet brass, that has reached 30 years or more of service in that jobclassification will be able to submit a bid (downward, lateral or upward)  for an open position without loss of theirtraditional pay rate.

 

**Letter of Understanding**

 

TheUnion Committee and International Union Representative, if available, andmembers of the management staff and Sr. V.P. of Operations, if available, willmeet every month to discuss issues related to the efficient operations of thefacility.

 

**Letter of Understanding**

 

TheCompany will change from an accrued vacation period to a current vacationperiod effective June 1, 2008.  Inorder to bring employees current in this process, a one-time vacation payoutwill be made by the end of June, 2008 for vacation that was earned from June 1,2007 through May 31, 2008.  Thevacation rate will be the rate that was calculated on July 1, 2007.

 

**Letter of Understanding**:

 

In the event the company determines to outsource or subcontract workperformed at the facility, it will meet with the union to discuss the matterfurther.  While the company will endeavorto preserve work at the facility, all outsourcing or subcontracting optionswill only be used to improve the competitiveness of student trumpets, studentcornets, and student trombones, and also specifically the 3⁄4 Baritone (Model623).  Other instruments may be addedwith mutual agreement with the company and the union.

 

**Letter of Understanding**:

 

Thecost of “emergency” medical treatment, for what was considered to be a “certified”work related incident, that was later denied payment by the OBWC and theemployee’s medical 

 

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insurance,will be reimbursed by the company.  “Non-emergency”injuries or illnesses, that may not be work related, or that will not begranted “certification” by the company, will be referred to the employee’sphysician; and, if denied will not be eligible for reimbursement.

 

**Letter of Understanding**:

 

Inthe event the company determines to insource production operations normallyperformed at other manufacturing facilities, or develop and refine productionoperations for other manufacturing facilities, these same operations will notbe construed as permanently assigned to this manufacturing facility.  This understanding, under these terms,permits the company to restore, implement, or move these same productionoperations to other alternative manufacturing facilities.

 

**Letter of Understanding**:

 

Anemployee promoted to a supervisory or managerial position, or appointed orelected to an assignment with the international union, shall be granted suchleave, and shall be guaranteed reemployment in the same or like position, inline with his or her seniority at the prevailing rate of pay.  Seniority shall accumulate during such leaves;however, all benefits provided under the terms of this collective bargainingagreement shall terminate effective with the commencement of the said leave,and shall reinstate upon return from said leave (based upon the benefit levels,plans, and contributions in effect at that time).  Return rights, for either assignment, will belimited to one occurrence per individual for future leave requests.  Any current leaves will not be accommodatedunder these defined terms.

 

**Letter of Understanding**:

 

Thecompany agrees to maintain the payroll cycle on a weekly basis, and to providecontinued access to direct deposit. Voluntary, after-tax deductions may be combined with the normal uniondues deduction (when processed each month). Any additional, voluntary after tax deductions must be summarized andsubmitted with the monthly union dues check-off list.

 

**Letter of Understanding**:

 

Employees, asked to perform work on regularly scheduledholidays, will postpone holiday pay to an equivalent number of additionalpersonal holiday(s).  Any additionalpersonal holidays, 

 

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accumulated in this manner, will be subject to the samedefined terms as identified under Article VII., Section C., d., #3.

 

**Letter of Understanding**:

 

Employeesthat were previously disqualified from the job being recalled, will bebypassed, and will retain their relative position on the recall list.  Internal job bids will only be compared tothe relative seniority, qualifications, and job factors that are presented bythe next employee eligible for recall from the layoff list.

 

**Letter of Understanding**:

 

Duringthe term of this agreement, if the company should permanently close theEastlake Facility or if the company should take action resulting in thepermanent displacement of at least 25% of the employees actively working as of February 15,2005, upon request by the union the company will engage in negotiations withthe union over the effects of permanent closure or permanent displacement onthose affected employees.

 

**Letter of Understanding**:

 

Thecompany has reviewed the feasibility of installing showers for the polishing,buffing, and color buffing departments and has agreed to install three (3) showerswithin one (1) of the existing restrooms.

 

**Letter of Understanding**:

 

Tobetter facilitate lean manufacturing in the rough assembly departments thecompany and union have agreed to combine Departments 35 and 38.

 

**Letter of Understanding**:

 

Thecompany has agreed to conduct periodic air quality monitoring of the Eastlakefacility.

 

**Letter of Understanding**:

 

In an endeavor to improve quality, the company and the unionhave agreed to develop a response team(s) to address issues impacting /impeding the facility in meeting production requirements.

 

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U.A.W.LOCAL 2359

 

 

| /s/  Bryant Harvey |   | /s/  Dwayne Klier |
|--------------------|--------|-------------------|
| Bryant  Harvey     |   | Dwayne  Klier     |
|               |   |              |
| /s/  Rory Krause   |   | /s/  Randol Lang  |
| Rory  Krause       |   | Randol  Lang      |
|               |   |              |
| /s/  Bob Madda     |   | /s/  Joe Shoda    |
| Bob  Madda         |   | Joe  Shoda        |

 

 

INTERNATIONALREPRESENTATIVE OF U.A.W.

 

 

| /s/  Linda Romanik |   |
|--------------------|--------|
| Linda  Romanik     |   |

 

 

CONN-SELMER,INC.

 

 

| /s/  Bob Speed  |   | /s/  John Stifel  |
|-----------------|--------|-------------------|
| Bob  Speed      |   | John  Stifel      |
|            |   |              |
| /s/  Bobbi Imel |   | /s/  Linda Iliano |
| Bobbi  Imel     |   | Linda  Iliano     |

 

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