Document:

Exhibit
4.7

 

AMENDED AND RESTATED

CERTIFICATE OF INCORPORATION

OF

ROLLER BEARING HOLDING COMPANY, INC.

 

The undersigned, for the
purpose of amending and restating the Certificate of Incorporation of Roller
Bearing Holding Company, Inc., a Delaware corporation (the “Corporation”),
does hereby certify that:

 

1.                                       The
date of filing of the Corporation’s original Certificate of Incorporation with
the Secretary of State of the State of Delaware was March 23, 1992;

 

2.                                       The
Amended and Restated Certificate of Incorporation has been duly adopted
pursuant to Sections 228, 242 and 245 of the Delaware General Corporation Law;

 

3.                                       Written
notice of the taking of action by written consent has been sent to all
shareholders who did not consent to the adoption of this Amended and Restated
Certificate of Incorporation; and

 

4.                                       The
Certificate of Incorporation of the Corporation is hereby amended and restated
in its entirety as follows:

 

FIRST:  Name.

 

The name of the
Corporation is:

 

Roller
Bearing Holding Company, Inc.

 

SECOND: 
Registered Office.

 

The address of the
registered office of the Corporation in the State of Delaware is 2711
Centerville Road, Suite 400, City of Wilmington, County of New Castle; and the
name of its registered agent at that address is Corporation Service Company.

 

THIRD: 
Purposes.

 

The purpose of the
Corporation is to engage in any lawful act or activity for which corporations
may be organized under the General Corporation Law of Delaware.

 

FOURTH: 
Capital Stock

 

A.                                   Authorized
Capital Stock. The Corporation is authorized to issue five classes of
capital stock to be designated, respectively, “Common Stock,” “Class A
Preferred Stock,” “Class B Preferred Stock,”  “Class C
Preferred Stock” and “Class D Preferred Stock,” each of
which shall have a par value of $.01 per share. The total number of shares
which the Corporation is authorized to issue is 10,395,500 shares, of which:
(i) 9,000,000  shares shall be designated as Common Stock, of which (a)
8,000,000 shares shall be designated Class A Voting Common Stock (the “Class A
Common Stock”) and (b) 1,000,000  shares shall be designated

 

 

Class B Supervoting
Common Stock (the “Class B Common Stock” and together
with the Class A Common Stock, the “Common Stock”); (ii) 15,500  shares
shall be designated as Class A Preferred Stock; (iii) 240,000 shares shall be
designated as Class B Exchangeable Convertible Participating Preferred Stock
(the “Class
B Preferred Stock” and each share thereof a “Class B Share”);
(iv) 900,000 shares shall be designated as Class C Redeemable Preferred Stock
(the “Class
C Preferred Stock” and together with the Class A Preferred Stock
and Class B Preferred Stock, the “Dividend Preferred Stock”);  and
(v) 240,000 shares shall be designated as Class D Preferred Stock (the “Class D
Preferred Stock” and together with the Class A Preferred Stock,
Class B Preferred Stock and Class C Preferred Stock, the “Preferred Stock”).  The Corporation shall have the authority to
issue fractional shares.

 

B.                                     Rights,
Preferences, Privileges and Restrictions of Preferred Stock.

 

(1)                                  General.  Except as otherwise provided in this Section
B of Article Fourth or as otherwise required by applicable law, all shares of a
particular class of Preferred Stock shall be identical in all respects and
shall entitle the holders thereof to the same rights, powers, preferences and
privileges, subject to the same qualifications, limitations, and restrictions.

 

(2)                                  Dividends.

 

(a)                                  Right
to Receive Preferential Dividends. When and as declared by the
Corporation’s Board of Directors (the “Board of Directors”) and to the
extent permitted under the General Corporation Law of the State of Delaware
(the “DGCL”),
the Corporation shall pay preferential dividends (the “Preferential Dividends”)
to the holders of the Preferred Stock as provided in this Section 2(a) and
Sections 2(b) and 2(c) below.  Such
dividends shall accrue on each share of Dividend Preferred Stock, until paid,
on a daily basis at a rate equal to 8.0% per annum on the sum of (x) the Stated
Value of such share and (y) the aggregate amount of all dividends that have
accumulated with respect to such share in accordance with Section 2(b) below,
from and including the Date of Issuance of such share to and including the
earlier to occur of (i) the date on which such share’s Liquidation Amount (as
described in Section 3 below) is paid to the holder thereof, and (ii) the
date on which such share is redeemed as provided herein.  Such dividends shall accrue whether or not
they have been declared and whether or not there are profits, surplus or other
funds of the Corporation legally available for the payment of dividends.  Such dividends (to the extent declared)
shall be payable in cash, quarterly in arrears, on the last day of March, June,
September and December of each year beginning September 30, 2002, and if such
date is not a Business Day, then on the next succeeding Business Day (the “Dividend
Reference Dates”).  As used herein,
the term “Stated
Value” shall mean (i) $3,000 per share in the case of the Class
A Preferred Stock, and (ii) $100 per share in the case of the Class B Preferred
Stock and the Class C Preferred Stock, in each case subject to adjustment to
reflect any stock split, stock dividend, reclassification, recapitalization or
other transaction having a similar effect. 
The date on which the Corporation initially issues any share of
Preferred Stock shall be deemed to be its “Date of Issuance” regardless of
the number of times transfers of such share are made on the stock records
maintained by or for the

 

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Corporation and
regardless of the number of certificates which may be issued to evidence such
share.

 

(b)                                 Accumulation
of Accrued and Unpaid Dividends. 
For purposes of clarity, to the extent not paid on a Dividend Reference
Date, all dividends which have accrued pursuant to Section 2(a) above on each
share of Preferred Stock shall be accumulated and shall remain accumulated
dividends with respect to such share until paid to the holder thereof.  As used herein, the term “Unpaid
Dividends” shall mean, with respect to any share of Dividend
Preferred Stock as of any date of determination, the aggregate amount of all
accrued and unpaid dividends thereon (if any), including all dividends which
have accumulated thereon pursuant to this Section 2(b), from the Date of
Issuance of such share to and including such date of determination.

 

(c)                                  Distribution
of Partial Dividend Payments. 
Except as otherwise provided herein, if at any time the Corporation pays
less than the total amount of dividends then accrued pursuant to Section 2(a)
above with respect to any class or series of Dividend Preferred Stock, such
payment shall be distributed pro rata among the holders thereof based
upon the aggregate Unpaid Dividends on such shares held by each such holder.

 

(d)                                 Participating
Dividend.  Subject to Section 2(e)
below, in the event that the Corporation declares or pays any dividends upon
the Common Stock (other than dividends payable in additional shares of Common
Stock), the Corporation shall also declare and pay to the holders of any
outstanding shares of Class B Preferred Stock at the same time that it declares
and pays such dividends to the holders of the Common Stock, the dividends which
would have been declared and paid with respect to the Common Stock issuable
upon conversion of such Class B Preferred Stock had all of the outstanding
Class B Preferred Stock been converted immediately prior to the record date for
such dividend, or if no record date is fixed, the date as of which the record
holders of Common Stock entitled to such dividends are to be determined.

 

(e)                                  Dividend
Preference.  The Preferential
Dividends on the Dividend Preferred Stock shall be payable before any dividends
or distributions or other payments shall be paid or set aside for payment in
respect of any Junior Stock (other than dividends payable in additional shares
of Common Stock).  The term “Junior
Stock” shall mean (i) with respect to the Class A Preferred
Stock, any other class or series of capital stock of the Corporation, (ii) with
respect to the Class B Preferred Stock and the Class C Preferred Stock, any
other class or series of capital stock of the Corporation other than the Class
A Preferred Stock, and (iii) with respect to the Class D Preferred Stock, any
other class or series of capital stock of the Corporation other than the Class
A Preferred Stock, Class B Preferred Stock or Class C Preferred Stock.  If at any time the Preferential Dividends on
the outstanding shares of the Dividend Preferred Stock at the rate set forth
herein shall not have been paid or declared and set apart for payment with
respect to all preceding and current periods, the amount of the deficiency
shall be fully paid or declared and set apart for payment, before any dividend,
distribution or payment shall be declared or paid upon or set apart for the
shares of any other class or series of Junior Stock.

 

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(3)                                  Liquidation;
Sale of the Corporation.

 

(a)                                  Liquidation.  Upon any liquidation, dissolution or winding
up of the Corporation, whether voluntary or involuntary (a “Liquidation
Event”), then the assets of the Corporation that are legally
available for distribution to the Corporation’s stockholders shall be paid as
follows:

 

(i)                                     first,
to the holders of Class A Preferred Stock pro rata based on their relative aggregate
Class A Liquidation Amount, as defined below, until such holders receive a
liquidation payment in respect of each share of Class A Preferred Stock equal
to the sum of (x) the Stated Value of such share and (y) an amount equal to all
Unpaid Dividends on such share (such sum, the “Class A Liquidation Amount”);

 

(ii)                                  second,
to the holders of Class B Preferred Stock pro rata based on their relative aggregate
Class B Liquidation Amount, as defined below, until such holders receive a
liquidation payment in respect of each share of Class B Preferred Stock equal
to the sum (x) the Stated Value of such share, (y) an amount equal to all
Unpaid Dividends on such share, and (z) the Preference Amount (as defined
below) payable in respect of such share as of the date of the applicable
Liquidation Event (such sum, the “Class B Liquidation Amount”);

 

(iii)                               third,
to the holders of Class C Preferred Stock pro rata based on their relative aggregate
Class C Liquidation Amount, as defined below, until such holders receive a
liquidation payment in respect of each share of Class C Preferred Stock equal
to the sum of (x) the Stated Value of such share and (y) an amount equal to all
Unpaid Dividends on such share (the “Class C Liquidation Amount”);

 

(iv)                              fourth,
to the holders of Class D Preferred Stock pro rata based on their relative aggregate
Class D Liquidation Amount, as defined below, until such holders receive a
liquidation payment in respect of each share of Class D Preferred Stock equal
to the Preference Amount (as defined below) payable in respect of such share as
of the date of the applicable Liquidation Event (the “Class D Liquidation Amount”) (the
aggregate amount of the Class A Liquidation Amount, the Class B Liquidation
Amount, the Class C Liquidation Amount and the Class D Liquidation Amount for
all outstanding shares of Preferred Stock as of any date of determination shall
be referred to herein as the “Preferred Stock Liquidation Preference”);
and

 

(v)                                 fifth,
to the holders of the Common Stock pro rata based on the number of shares of
Common Stock held by such holders determined on a fully diluted,
as-if-converted basis (provided, that any amount payable pursuant
to this clause (v) to a holder of options or warrants that are convertible into
or exerciseable for shares of Common Stock shall be adjusted to reflect the
payment by such holder of the aggregate exercise price of such options or
warrants).

 

(b)                                 Sale
of the Corporation.  In connection
with any: (i) consolidation or merger of the Corporation into or with any other
entity or entities which results in the exchange of outstanding shares of the
Corporation for securities or other consideration

 

4

 

issued or paid or caused
to be issued or paid by any such entity or affiliate thereof (except a
consolidation or merger into a subsidiary or merger in which the Corporation is
the surviving corporation and the holders of the Corporation’s voting stock
outstanding immediately prior to the transaction hold a majority of the voting
stock of the Corporation outstanding immediately following the transaction);
(ii) sale or transfer by the Corporation of all or substantially all its assets
(it being understood that, in addition to and not in limitation of applicable
law, any sale or series of related sales of assets representing 60% or more of
the (A) fair market value of the assets, (B) revenues or (C) earnings before
interest, taxes, depreciation and amortization of the Corporation and its
subsidiaries taken as a whole shall constitute a sale of “all or substantially
all” of the Corporation’s assets for purposes hereof); (iii) sale of a majority
of the outstanding Common Stock in a single transaction or a series of related
transactions; or (iv) sale of less than a majority of the outstanding Common
Stock in a single transaction or a series of related transactions where after
giving effect to such sale or series of sales more than a majority of
outstanding voting power of the Corporation would be held by individuals or
entities other than stockholders of the Corporation immediately before such
event or the first of such series of events (each a “Sale of the Corporation”),
the consideration to be paid in connection with such transaction shall be
allocated among the holders of Preferred Stock and Common Stock such that the
holders thereof receive the amounts to which they would be entitled pursuant to
Section 3(a) above as if such sale of the Company were a “Liquidation
Event.”  If any Sale of the Corporation
does not involve the sale of all of the Corporation’s assets or of all of the
outstanding capital stock of the Corporation, then the provisions hereof shall
also apply in the case of any subsequent sale of the Corporation.  The Corporation shall not approve, adopt or
enter into any agreement or arrangement relating to a Sale of the Corporation
(or amend or modify any such agreement) if such agreement or arrangement (or the
effect of any such amendment or modification thereto) does not allocate the
consideration to be paid in connection with such transaction in accordance with
the immediately preceding sentence.

 

(c)                                  Notice.  The Corporation shall provide written notice
of any Liquidation Event or Sale of the Corporation, stating a payment date and
the place where said payments shall be made, to the holders of record of
Preferred Stock by mail, postage prepaid, or by telex to non-U.S. residents,
not less than 10 days prior to the payment date stated therein, such notice to
be addressed to each such holder at its address as shown by the records of the
Corporation.  Any holder of Preferred
Stock may at any time waive its right to receive any such notice by providing
the Corporation with written notice thereof.

 

(d)                                 Liquidation
Payments.  If the assets and funds
of the Corporation available for distribution to the holders of the Preferred
Stock upon any Liquidation Event shall be insufficient to permit the payment to
holders of the Preferred Stock the full Preferred Stock Liquidation Preference,
the holders of each class of Preferred Stock shall share ratably (and ratably
as to cash, in-kind or other distributions) in any distribution of assets or
funds of the Corporation in proportion to the full respective Class A Liquidation
Amount, Class B Liquidation Amount, Class C Liquidation Amount and Class D
Liquidation Amount to which they are entitled; and the holders of the Preferred
Stock shall retain their preferential rights stated herein with respect to any
subsequent distribution of the Corporation’s assets and funds.

 

5

 

(e)                                  Certain
Definitions.  As used herein, the
following terms shall have the following meanings:

 

(i)                                     “Applicable
Percentage” means, for purposes of determining Net Equity Value
during the period of time set forth in the following table under the heading
“Time of Determination,” the percentage set forth in the following table
opposite such period of time under the heading “Applicable Percentage”:

 

	
  YEAR OF DETERMINATION

  	
   

  	
  APPLICABLE

  PERCENTAGE

  
	
  Prior
  to July 29, 2003

  	
   

  	
  20%

  
	
   

  	
   

  	
   

  
	
  From
  and after July 29, 2003 but prior to July 29, 2004

  	
   

  	
  40%

  
	
   

  	
   

  	
   

  
	
  From
  and after July 29, 2004 but prior to July 29, 2005

  	
   

  	
  60%

  
	
   

  	
   

  	
   

  
	
  From
  and after July 29, 2005 but prior to July 29, 2006

  	
   

  	
  80%

  
	
   

  	
   

  	
   

  
	
  From
  and after July 29, 2006 but prior to July 29, 2007

  	
   

  	
  100%

  
	
   

  	
   

  	
   

  
	
  From
  and after July 29, 2007

  	
   

  	
  120%

  

 

(ii)                                  “Funded
Debt” shall mean, as of any date of determination and always
without duplication, all indebtedness of the Corporation or its subsidiaries
for borrowed money evidenced by notes, bonds, debentures or similar evidences
of indebtedness.

 

(iii)                               “Preference
Amount” shall mean, with respect to each share of Class B
Preferred Stock and each share of Class D Preferred Stock (as the case may be)
as of any date of determination, the number computed by multiplying (x) the
Applicable Percentage as of such date by (y) the number computed by dividing
(A) the sum of (i) .0254 multiplied by the Net Equity Value determined
as of such date plus (ii) $6,800,000 by (B) 240,000 (subject to
adjustment to reflect any stock split, stock dividend, reclassification,
recapitalization or other transaction having a similar effect)

 

(iv)                              “Net
Equity Value” means, as of any date of determination, the
“enterprise value” of the Corporation and its subsidiaries (determined as
described below) less Funded Debt, in each case as of such date.  For purposes of the definition of Net Equity
Value, the “enterprise value” of the Corporation and its subsidiaries shall
equal (i) in the case of any Liquidation Event other than a Sale of the
Corporation, the amount jointly

 

6

 

determined by the Board
of Directors and the holders of a majority of the outstanding shares of Class B
Preferred Stock and shares of Class D Preferred Stock (taken together as a
single class), each acting in good faith, and (ii) in the case of a Sale of the
Corporation, the aggregate consideration payable in such transaction plus
the amount of cash and cash equivalents that would be required under generally
accepted accounting principles to be recorded on a consolidated balance sheet
of the Corporation and its subsidiaries prepared as of the applicable date of
determination.  In the case of clause
(i) above, if the Board of Directors and the holders of the Series B Preferred
Stock and Series D Preferred Stock are unable to reach agreement on the
determination of “enterprise value” within a reasonable amount of time, such
determination shall be made by a nationally-recognized independent appraiser
experienced in valuing securities.  Such
appraiser shall be jointly selected by the Corporation and the holders of a
majority of the outstanding shares of Class B Preferred Stock.  The determination of such appraiser shall be
final and binding upon the Corporation and the holders of the Class B Preferred
Stock, and the fees and expenses of such appraiser shall be borne by the
Corporation.

 

(4)                                  Conversion
of Class B Preferred Stock.

 

(a)                                  Conversion
Procedure.

 

(i)                                     Subject
to the terms of this Section 4, at any time and from time to time any holder of
Class B Preferred Stock may convert all or any portion of the Class B Preferred
Stock (including any fraction of a Class B Share) held by such holder into:

 

(x) a number of shares of
Class C Preferred Stock computed by multiplying the number of Class B Shares to
be converted by the sum of (A) the Stated Value of such shares and (B) the
amount of all Unpaid Dividends thereon as of such time and dividing the result
by the Stated Value of the Class C Preferred Stock,

 

(y) one (1) share of
Class D Preferred Stock (subject to adjustment to reflect any stock split,
stock dividend, reclassification, recapitalization or other transaction having
a similar effect) for each Class B Share being converted; and

 

(z) a number of shares of
Class A Common Stock computed by multiplying the number of Class B Shares to be
converted by the Stated Value of the Class B Preferred Stock and dividing the
result by the Conversion Price in effect immediately prior to such
conversion.  The Conversion Price shall
initially be $32.49576 and shall be subject to adjustment pursuant to this
Section 4.

 

(ii)                                  Except
as otherwise provided herein, each conversion of Class B Preferred Stock shall
be deemed to have been effected as of the close of business on the date on
which the certificate or certificates representing the Class B Preferred Stock
to be converted have been surrendered for conversion at the principal office of
the Corporation.  At the time any such
conversion has been effected, the rights of the holder of the Shares converted
as a holder of Class B Preferred Stock shall cease and the Person or Persons in
whose name or names any certificate or certificates for shares of Class C
Preferred Stock, Class D Preferred Stock and Class A Common Stock are to be
issued upon such conversion shall be

 

7

 

deemed to have become the
holder or holders of record of the shares of Class C Preferred Stock, Class D
Preferred Stock and Class A Common Stock represented thereby.

 

(iii)                               The
conversion rights of any Class B Share subject to redemption or exchange
hereunder shall terminate on the date of redemption for such Class B Share
unless the Corporation has failed to pay to the holder thereof the Redemption
Price for such Class B Share.

 

(iv)                              Notwithstanding
any other provision hereof, if a conversion of Class B Preferred Stock is to be
made in connection with an Organic Change, a Sale of the Corporation or such
other transaction affecting the Corporation, the conversion of any Class B
Share may, at the election of the holder thereof, be conditioned upon the
consummation of such transaction, in which case such conversion shall not be
deemed to be effective until such transaction has been consummated.

 

(v)                                 As
soon as possible after a conversion has been effected (but in any event within
three (3) business days), the Corporation shall deliver to the converting
holder:

 

(A)                              a
certificate or certificates representing the number of shares of Class C
Preferred Stock, Class D Preferred Stock and Class A Common Stock issuable by
reason of such conversion in such name or names and such denomination or
denominations as the converting holder has specified; and

 

(B)                                a
certificate representing any shares of Class B Preferred Stock which were
represented by the certificate or certificates delivered to the Corporation in
connection with such conversion but which were not converted.

 

(vi)                              The
issuance of certificates for shares of Class C Preferred Stock, Class D
Preferred Stock and Class A Common Stock upon conversion of Class B Preferred
Stock shall be made without charge to the holders of such Class B Preferred
Stock for any issuance tax in respect thereof if issued in the name of such
holder or other cost incurred by the Corporation in connection with such
conversion and the related issuance of shares of Class C Preferred Stock, Class
D Preferred Stock and Class A Common Stock. 
Upon conversion of each Class B Share, the Corporation shall take all
such actions as are necessary in order to insure that the Class C Preferred
Stock, Class D Preferred Stock and Class A Common Stock issuable with respect
to such conversion shall be validly issued, fully paid and nonassessable, free
and clear of all taxes, liens, charges and encumbrances with respect to the
issuance thereof.

 

(vii)                           The
Corporation shall not close its books against the transfer of Class B Preferred
Stock or of any Class C Preferred Stock, Class D Preferred Stock and Class A
Common Stock issued or issuable upon conversion of Class B Preferred Stock in
any manner which interferes with the timely conversion of Class B Preferred
Stock.  The Corporation shall assist and
cooperate with any holder of Class B Shares required to make any

 

8

 

governmental filings or
obtain any governmental approval prior to or in connection with any conversion
of Class B Shares hereunder (including, without limitation, making any filings
required to be made by the Corporation).

 

(viii)                        The
Corporation shall at all times reserve and keep available out of its authorized
but unissued shares of Class C Preferred Stock, Class D Preferred Stock and
Class A Common Stock, solely for the purpose of issuance upon the conversion of
the Class B Preferred Stock, such number of shares of Class C Preferred Stock,
Class D Preferred Stock and Class A Common Stock issuable upon the conversion
of all outstanding Class B Preferred Stock. 
All shares of Class C Preferred Stock, Class D Preferred Stock and Class
A Common Stock which are so issuable shall, when issued, be duly and validly
issued, fully paid and nonassessable and free from all taxes, liens and
charges.  The Corporation shall take all
such actions as may be necessary to assure that all such shares of Class C
Preferred Stock, Class D Preferred Stock and Class A Common Stock may be so
issued without violation of any applicable law or governmental regulation or
any requirements of any domestic securities exchange upon which shares of Class
A Common Stock may be listed (except for official notice of issuance which
shall be immediately delivered by the Corporation upon each such
issuance).  The Corporation shall not
take any action which would cause the number of authorized but unissued shares
of Class C Preferred Stock, Class D Preferred Stock and Class A Common Stock to
be less than the number of such shares required to be reserved hereunder for
issuance upon conversion of the Class B Preferred Stock.

 

(ix)                                If
the shares of Class C Preferred Stock or Class A Common Stock issuable by
reason of conversion of Class B Preferred Stock are convertible into or
exchangeable for any other stock or securities of the Corporation, the
Corporation shall, at the converting holder’s option, upon surrender of the
Class B Shares to be converted by such holder as provided herein together with
any notice, statement or payment required to effect such conversion or exchange
of Class C Preferred Stock or Class A Common Stock, deliver to such holder or
as otherwise specified by such holder a certificate or certificates
representing the stock or securities into which the shares of Class C Preferred
Stock or Class A Common Stock issuable by reason of such conversion are so
convertible or exchangeable, registered in such name or names and in such
denomination or denominations as such holder has specified.

 

(b)                                 Conversion
Price.

 

(i)                                     In
order to prevent dilution of the conversion rights granted under this
Section 4, the Conversion Price shall be subject to adjustment from time
to time pursuant to this Section 4(b).

 

(ii)                                  If
and whenever after the original Date of Issuance of the Class B Preferred
Stock, the Corporation issues or sells, or in accordance with Section 4(c) is
deemed to have issued or sold, any share of Common Stock for a consideration
per share less than $30.00 (subject to adjustment to reflect any stock split,
stock dividend, reclassification, recapitalization or other transaction having
a similar effect), then immediately upon such issue or sale or deemed issue or
sale, the Conversion Price shall be reduced to the Conversion Price

 

9

 

determined by dividing
(x) the sum of (i) the product determined by multiplying the Conversion Price
in effect immediately prior to such issuance or sale by the number of shares of
Common Stock Deemed Outstanding immediately prior to such issuance or sale,
plus (ii) the consideration, if any, received by the Corporation upon such
issuance or sale, by (y) the number of shares of Common Stock Deemed
Outstanding immediately after such issuance or sale.

 

(iii)                               Notwithstanding
the foregoing, there shall be no adjustment to the Conversion Price hereunder
with respect to a Permitted Issuance.

 

(c)                                  Effect
on Conversion Price of Certain Events. 
For purposes of determining the adjusted Conversion Price under Section
4(b), the following shall be applicable:

 

(i)                                     Issuance
of Rights or Options.  If the
Corporation in any manner grants or sells any Options and the price per share
for which Common Stock is issuable upon the exercise of such Options, or upon
conversion or exchange of any Convertible Securities issuable upon exercise of
such Options, is less than $30.00 (subject to adjustment to reflect any stock
split, stock dividend, reclassification, recapitalization or other transaction
having a similar effect), then the total maximum number of shares of Common
Stock issuable upon the exercise of such Options or upon conversion or exchange
of the total maximum amount of such Convertible Securities issuable upon the
exercise of such Options shall be deemed to be outstanding and to have been
issued and sold by the Corporation at the time of the granting or sale of such
Options for such price per share.  For
purposes of this paragraph, the “price per share for which Common Stock is
issuable” shall be determined by dividing (A) the total amount, if any,
received or receivable by the Corporation as consideration for the granting or
sale of such Options, plus the minimum aggregate amount of additional
consideration payable to the Corporation upon exercise of all such Options,
plus in the case of such Options which relate to Convertible Securities, the
minimum aggregate amount of additional consideration, if any, payable to the
Corporation upon the issuance or sale of such Convertible Securities and the
conversion or exchange thereof, by (B) the total maximum number of shares of
Common Stock issuable upon the exercise of such Options or upon the conversion
or exchange of all such Convertible Securities issuable upon the exercise of
such Options.  No further adjustment of
the Conversion Price shall be made when Convertible Securities are actually
issued upon the exercise of such Options or when Common Stock is actually
issued upon the exercise of such Options or the conversion or exchange of such
Convertible Securities.

 

(ii)                                  Issuance
of Convertible Securities.  If the
Corporation in any manner issues or sells any Convertible Securities and the
price per share for which Common Stock is issuable upon conversion or exchange
thereof is less than $30.00 (subject to adjustment to reflect any stock split,
stock dividend, reclassification, recapitalization or other transaction having
a similar effect), then the maximum number of shares of Common Stock issuable
upon conversion or exchange of such Convertible Securities shall be deemed to
be outstanding and to have been issued and sold by the Corporation at the time
of the issuance or sale of such Convertible Securities for such price per
share.  For the purposes of this
paragraph, the “price per share for which Common Stock is issuable” shall be
determined by dividing (A)

 

10

 

the total amount received
or receivable by the Corporation as consideration for the issue or sale of such
Convertible Securities, plus the minimum aggregate amount of additional
consideration, if any, payable to the Corporation upon the conversion or
exchange thereof, by (B) the total maximum number of shares of Common Stock
issuable upon the conversion or exchange of all such Convertible
Securities.  No further adjustment of
the Conversion Price shall be made when Common Stock is actually issued upon
the conversion or exchange of such Convertible Securities, and if any such
issue or sale of such Convertible Securities is made upon exercise of any
Options for which adjustments of the Conversion Price had been or are to be
made pursuant to other provisions of this Section 4, no further adjustment of
the Conversion Price shall be made by reason of such issue or sale.

 

(iii)                               Change
in Option Price or Conversion Rate. 
If, in the case of Options and Convertible Securities issued on or after
the Original Date of Issuance, the purchase price provided for in any such
Options, the additional consideration, if any, payable upon the conversion or
exchange of any such Convertible Securities or the rate at which any such
Convertible Securities are convertible into or exchangeable for Common Stock
changes at any time, the Conversion Price in effect at the time of such change
shall be immediately adjusted to the Conversion Price which would have been in
effect at such time had such Options or Convertible Securities still
outstanding provided for such changed purchase price, additional consideration
or conversion rate, as the case may be, at the time initially granted, issued
or sold; provided,
that if such adjustment would result in an increase of the Conversion Price
then in effect, such adjustment shall not be effective until 30 days after
written notice thereof has been given by the Corporation to all holders of the
Class B Preferred Stock.  For purposes
of Section 4(c), if the terms of any Option or Convertible Security which was
outstanding as of the original Date of Issuance of the Class B Preferred Stock
are changed in the manner described in the immediately preceding sentence, then
such Option or Convertible Security and the Common Stock deemed issuable upon
exercise, conversion or exchange thereof shall be deemed to have been issued as
of the date of such change; provided, that no such change shall at any
time cause the Conversion Price hereunder to be increased.

 

(iv)                              Treatment
of Expired Options and Unexercised Convertible Securities.  Upon the expiration of any Option or the
termination of any right to convert or exchange any Convertible Security
without the exercise of any such Option or right, the Conversion Price then in
effect hereunder shall be adjusted immediately to the Conversion Price which
would have been in effect at the time of such expiration or termination had
such Option or Convertible Security, to the extent outstanding immediately
prior to such expiration or termination, never been issued; provided,
that if such expiration or termination would result in an increase in the
Conversion Price then in effect, such increase shall not be effective until 30
days after written notice thereof has been given to all holders of the Class B
Preferred Stock.  For purposes of
Section 4(c), the expiration or termination of any Option or Convertible
Security which was outstanding as of the original Date of Issuance of the Class
B Preferred Stock shall not cause the Conversion Price hereunder to be adjusted
unless, and only to the extent that, a change in the terms of such Option or
Convertible Security caused it to be deemed to have been issued after the
original Date of Issuance of the Class B Preferred Stock.

 

11

 

(v)                                 Calculation
of Consideration Received.  If any
Common Stock, Option or Convertible Security is issued or sold or deemed to
have been issued or sold for cash, the consideration received therefor shall be
deemed to be the amount received by the Corporation therefor (net of discounts,
commissions and related expenses).  If
any Common Stock, Option or Convertible Security is issued or sold for a
consideration other than cash, the amount of the consideration other than cash
received by the Corporation shall be the fair value of such consideration,
except where such consideration consists of securities, in which case the
amount of consideration received by the Corporation shall be the Market Price
thereof as of the date of receipt.  If
any Common Stock, Option or Convertible Security is issued to the owners of the
non-surviving entity in connection with any merger in which the Corporation is
the surviving corporation, the amount of consideration therefor shall be deemed
to be the fair value of such portion of the net assets and business of the
non-surviving entity as is attributable to such Common Stock, Option or
Convertible Security, as the case may be. 
The fair value of any consideration other than cash and securities shall
be determined by the Board of Directors in good faith; provided, that if the
holders of a majority of the outstanding shares of Class B Preferred Stock
disagree with such determination, the fair value of such consideration shall be
determined by an independent appraiser experienced in valuing such type of
consideration jointly selected by the Corporation and the holders of a majority
of the outstanding shares of Class B Preferred Stock.  The determination of such appraiser shall be final and binding
upon the parties, and the fees and expenses of such appraiser shall be borne by
the Corporation.

 

(vi)                              Integrated
Transactions.  In case any Option is
issued in connection with the issue or sale of other securities of the
Corporation, together comprising one integrated transaction in which no
specific consideration is allocated to such Option by the parties thereto, the
consideration for the Option shall be the Market Price thereof.

 

(vii)                           Treasury
Shares.  The number of shares of
Common Stock outstanding at any given time shall not include shares owned or
held by or for the account of the Corporation or any Subsidiary, and the
disposition of any shares so owned or held shall be considered an issue or sale
of Common Stock.

 

(viii)                        Record
Date.  If the Corporation takes a
record of the holders of Common Stock for the purpose of entitling them (a) to
receive a dividend or other distribution payable in Common Stock, Options or in
Convertible Securities or (b) to subscribe for or purchase Common Stock,
Options or Convertible Securities, then such record date shall be deemed to be
the date of the issue or sale of the shares of Common Stock deemed to have been
issued or sold upon the declaration of such dividend or upon the making of such
other distribution or the date of the granting of such right of subscription or
purchase, as the case may be.

 

(d)                                 Subdivision
or Combination of Common Stock.  If
the Corporation at any time subdivides (by any stock split, stock dividend,
recapitalization or otherwise) one or more classes of its outstanding shares of
Common Stock into a greater number of shares, the Conversion Price in effect
immediately prior to such subdivision shall be proportionately reduced (and any
other appropriate actions shall be taken by the Corporation) so

 

12

 

that the holder of any
share of Class B Preferred Stock thereafter surrendered for conversion (without
actually requiring such Class B Preferred Stock to be so converted and without
regard to any limitation on conversion set forth herein or otherwise) shall be
entitled to receive, in addition to the number of shares of Class C Preferred
Stock computed in accordance with Section 4(a), the number of shares of Common
Stock or other securities of the Corporation that such holder would have owned
or would have been entitled to receive upon or by reason of the events
described above, had such share of Class B Preferred Stock been converted
(without actually requiring such Class B Preferred Stock to be so converted and
without regard to any limitation on conversion set forth herein or otherwise)
immediately prior to the occurrence of such event.  If the Corporation at any time combines (by reverse stock split
or otherwise) one or more classes of its outstanding shares of Common Stock
into a smaller number of shares, the Conversion Price in effect immediately
prior to such combination shall be proportionately increased (and any other
appropriate actions shall be taken by the Corporation) so that the holder of
any share of Class B Preferred Stock thereafter surrendered for conversion
(without actually requiring such Class B Preferred Stock to be so converted and
without regard to any limitation on conversion set forth herein or otherwise)
shall be entitled to receive, in addition to the number of shares of Class C
Preferred Stock computed in accordance with Section 4(a), the number of shares
of Class A Common Stock or other securities of the Corporation that such holder
would have owned or would have been entitled to receive upon or by reason of
the events described above, had such share of Class B Preferred Stock been
converted (without actually requiring such Class B Preferred Stock to be so
converted and without regard to any limitation on conversion set forth herein
or otherwise) immediately prior to the occurrence of such event.

 

(e)                                  Reorganization,
Reclassification, Consolidation, Merger or Sale.  Any recapitalization, reorganization, reclassification,
consolidation, merger, sale of all or substantially all of the Corporation’s
assets or other transaction, in each case which is effected in such a manner
that the holders of Common Stock are entitled to receive (either directly or
upon subsequent liquidation) stock, securities or assets with respect to or in
exchange for Common Stock, is referred to herein as an “Organic Change”.  Prior to the consummation of any Organic
Change (other than an Organic Change that is also a Sale of the Corporation),
the Corporation shall make appropriate provisions (in form and substance
satisfactory to the holders of a majority of the Class B Preferred Stock then
outstanding) to insure that each of the holders of Class B Preferred Stock
shall thereafter have the right to acquire and receive, in lieu of or in
addition to (as the case may be) the shares of Class C Preferred Stock, Class D
Preferred Stock and Class A Common Stock immediately theretofore acquirable and
receivable upon the conversion of such holder’s Class B Preferred Stock, such
shares of stock, securities or assets as such holder would have received in
connection with such Organic Change if such holder had converted its Class B
Preferred Stock (without actually requiring such Class B Preferred Stock to be
so converted and without regard to any limitation on conversion set forth
herein or otherwise) immediately prior to such Organic Change.  In each such case, the Corporation shall
also make appropriate provisions (in form and substance satisfactory to the
holders of a majority of the Class B Preferred Stock then outstanding) to
insure that the provisions of this Section 4 shall thereafter be applicable to
the Class B Preferred Stock (including, in the case of any such consolidation,
merger or sale in which the successor entity or purchasing entity is other than
the Corporation, an immediate adjustment of the Conversion Price to the value
for the Common Stock reflected by the terms of

 

13

 

such consolidation,
merger or sale, and a corresponding immediate adjustment in the number of
shares of Common Stock acquirable and receivable upon conversion of Class B
Preferred Stock, if the value so reflected is less than $30.00 (subject to
adjustment to reflect any stock split, stock demand, reclassification,
recapitalization or other transaction having a similar effect).  The Corporation shall not effect any such
consolidation, merger or sale, unless prior to the consummation thereof, the
successor entity (if other than the Corporation) resulting from consolidation
or merger or the entity purchasing such assets assumes by written instrument
(in form and substance satisfactory to the holders of a majority of the Class B
Preferred Stock then outstanding), the obligation to deliver to each such
holder such shares of stock, securities or assets as, in accordance with the
foregoing provisions, such holder may be entitled to acquire.

 

(f)                                    Certain
Distributions.  In case the
Corporation shall at any time or from time to time, prior to conversion of
shares of Class B Preferred Stock, distribute to all holders of shares of the
Common Stock (including any such distribution made in connection with a merger
or consolidation in which the Corporation is the resulting or surviving Person
and the Common Stock is not changed or exchanged), cash, evidences of
indebtedness of the Corporation or another issuer, securities of the
Corporation or another issuer or other assets (excluding cash dividends in which
holders of Class B Shares participate, in the manner provided in Section 2(d),
dividends payable in shares of Common Stock for which adjustment is made under
another paragraph of this Section 4 and any distribution in connection with a
Permitted Issuance), or rights or warrants to subscribe for or purchase of any
of the foregoing, then, and in each such case, the Conversion Price then in
effect shall be adjusted (and any other appropriate actions shall be taken by
the Corporation) by multiplying the Conversion Price in effect immediately
prior to the date of such distribution by a fraction (x) the numerator of which
shall be the Market Price of the Common Stock immediately prior to the date of
distribution less the then fair market value (as determined by the Board of
Directors in the exercise of their fiduciary duties) of the portion of the
cash, evidences of indebtedness, securities or other assets so distributed or
of such rights or warrants applicable to one share of Common Stock and (y) the
denominator of which shall be the Market Price of the Common Stock immediately
prior to the date of distribution (but such fraction shall not be greater than
one); provided,
however,
that no adjustment shall be made with respect to any distribution of rights or
warrants to subscribe for or purchase securities of the Corporation if the
holder of shares of Class B Preferred Stock would otherwise be entitled to
receive such rights or warrants upon conversion at any time of shares of Class
B Preferred Stock into Class C Preferred Stock and Class A Common Stock.  Such adjustment shall be made whenever any
such distribution is made and shall become effective retroactively to a date
immediately following the close of business on the record date for the
determination of stockholders entitled to receive such distribution.

 

(g)                                 Certain
Events.  If any event occurs of the
type contemplated by the provisions of this Section 4 but not expressly
provided for by such provisions (including, without limitation, the granting of
stock appreciation rights, phantom stock rights or other rights with equity
features), then the Board of Directors shall make an appropriate adjustment in
the Conversion Price so as to protect the rights of the holders of Class B
Preferred Stock; provided, that no such adjustment shall increase the
Conversion Price as

 

14

 

otherwise determined
pursuant to this Section 4 or decrease the number of shares of Class A Common
Stock issuable upon conversion of each Class B Share.

 

(h)                                 Certain
Definitions.  As used herein, the
following terms shall have the following meanings:

 

(i)                                     “Common
Stock Deemed Outstanding” means, at any given time, the number
of shares of Common Stock actually outstanding at such time, plus the number of
shares of Common Stock deemed to be outstanding pursuant to Sections 4(c)(i)
and 4(c)(ii) of this Section B of Article Fourth whether or not the Options or
Convertible Securities are actually exercisable at such time, but excluding any
shares of Common Stock.

 

(ii)                                  “Convertible
Securities” means any stock or securities directly or indirectly
convertible into or exchangeable for Common Stock.

 

(iii)                               “Initial
Public Offering” means the first underwritten public offering by
either the Company or any of its subsidiaries of its common stock pursuant to a
registration statement (other than a registration statement on Form S-8 or S-4
or any successor form thereto) that has been filed under the Securities Act of
1933, as amended (the “Act”), and declared effective by
the Securities and Exchange Commission or any similar agency then having
jurisdiction to enforce the Securities Act; provided, however,
that for this purpose any offering under Rule 144A under the Securities Act or
any similar rule or regulation promulgated under the Securities Act shall not
be deemed to be an Initial Public Offering.

 

(iv)                              “Qualified
Public Offering” means an Initial Public Offering in which the
Corporation receives not less than $50 million in net proceeds and the per
share offering price is not less than $90 per share (subject to adjustment to
reflect any stock split, stock dividend, reclassification, recapitalization or
other transaction having a similar effect).

 

(v)                                 “Market
Price” of any security means the average of the closing prices
of such security’s sales on all securities exchanges on which such security may
at the time be listed, or, if there has been no sales on any such exchange on
any day, the average of the highest bid and lowest asked prices on all such
exchanges at the end of such day, or, if on any day such security is not so
listed, the average of the representative bid and asked prices quoted in the
NASDAQ System as of 4:00 P.M., New York time, or, if on any day such security
is not quoted in the NASDAQ System, the average of the highest bid and lowest
asked prices on such day in the domestic over-the-counter market as reported by
the National Quotation Bureau, Incorporated, or any similar successor
organization, in each such case (i) averaged over a period of 20 days
consisting of the day as of which “Market Price” is being determined and the 19
consecutive business days prior to such day, and (ii) averaged on a
volume-weighted basis based on the trading volume for each such business day.  If at any time such security is not listed
on any securities exchange or quoted in the NASDAQ System or the
over-the-counter market, the “Market Price” shall be the fair value thereof
determined by the Board of Directors in good faith; provided, that if the
holders of a majority of the outstanding shares of Class B Preferred Stock
disagree with such determination, such fair value shall be determined by a
nationally-recognized independent appraiser experienced in valuing such type of

 

15

 

consideration jointly
selected by the Corporation and the holders of a majority of the outstanding
shares of Class B Preferred Stock.  The
determination of such appraiser shall be final and binding upon the Corporation
and the holders of the Class B Preferred Stock, and the fees and expenses of
such appraiser shall be borne by the Corporation.

 

(vi)                              “Options”
means any rights, warrants or options to subscribe for or purchase
Common Stock or Convertible Securities.

 

(vii)                           “Permitted
Issuance” means any sale or issuance or deemed sale or issuance
of Common Stock: (i) issued or issuable upon the exercise, conversion or
exchange of Options or Convertible Securities of the Corporation outstanding on
the date hereof; (ii) issued or issuable in respect of any management equity
plans heretofore or hereafter approved by the Board to purchase Common Stock (provided,
that such Common Stock together with all shares of Common Stock issued or
issuable pursuant to this clause (ii) as to grants made after the date hereof
do not exceed 396,241.5 shares (subject to adjustment to reflect any stock
split, stock dividend, reclassification, recapitalization or other transaction
having a similar effect); and (iii) issued or issuable in connection with a
restructuring, including a cancellation or modification of the terms of any, of
the debt of the Corporation or any of its subsidiaries in which lenders or
owners of debt securities of the Corporation or its subsidiaries receive equity
interests in consideration of or in connection with such restructuring.

 

(i)                                     Mandatory
Conversion.  All outstanding shares
of Class B Preferred Stock shall be automatically converted in accordance with
the provisions of this Section 4 upon the consummation of (i) an Initial Public
Offering, and (ii) an Organic Change (other than an Organic Change which is
also a Sale of the Corporation).  In the
case of any conversion required in connection with (A) an Initial Public
Offering where such Initial Public Offering does not constitute a Qualified
Public Offering or (B) an Organic Change, the Corporation shall not give effect
to such conversion, and any such purported conversion shall be null and void,
if the Corporation does not contemporaneously enter into an agreement providing
the holders of the shares of Class A Common Stock issuable upon conversion of
the Class B Preferred Stock with anti-dilution rights with respect to such
shares of Class A Common Stock that are identical to the anti-dilution
protection provided for in this Section 4.

 

(j)                                     Notices.

 

(i)                                     Immediately
upon any adjustment of the Conversion Price, the Corporation shall give written
notice thereof to all holders of Class B Preferred Stock, setting forth in
reasonable detail and certifying the calculation of such adjustment.

 

(ii)                                  The
Corporation shall give written notice to all holders of Class B Preferred Stock
at least twenty (20) days prior to the date on which the Corporation closes its
books or takes a record (a) with respect to any dividend or distribution upon
Common Stock, (b) with respect to any pro rata subscription offer to holders of
Common Stock, or (c) for determining rights to vote with respect to any Sale of
the Corporation, Organic Change or Liquidation Event.

 

16

 

(iii)                               The
Corporation shall also give written notice to the holders of Class B Preferred
Stock at least twenty (20) days prior to the date on which any Initial Public
Offering, Organic Change or Sale of the Corporation shall take place.

 

(5)                                  Exchange
of Class B Preferred Stock.

 

(a)                                  Exchange.  At any time and from time to time the
Corporation may demand that the holders of Class B Shares surrender to the
Corporation all or any lesser portion of the outstanding Class B Preferred
Stock, and in exchange for each surrendered Class B Share, the Corporation
shall promptly issue to such holder the number of shares of Class C Preferred
Stock, Class D Preferred Stock and Class A Common Stock into which such Class B
Share is then convertible in accordance with Section 4 of this Section B of
Article Fourth (such number of shares of Class C Preferred Stock and Class A
Common Stock, the “Exchange Shares”). 
Any demand by the Corporation for the exchange of Class B Preferred
Stock pursuant to this Section 5 shall be made to the holders of the Class B
Preferred Stock pro rata based upon the number of Class B Shares held by
each such holder and the aggregate number of shares to be exchanged.  The Corporation shall not give effect to any
exchange pursuant to this Section 5, and any such purported exchange shall
be null and void, if the Corporation (i) does not have sufficient legally
available funds to redeem all of the Class C Preferred Stock issuable in
connection with such exchange in accordance with Section 6(b), or (ii) the
Corporation fails to redeem all of such shares of Class C Preferred Stock
in accordance with Section 6(b).

 

(b)                                 Exchange
Procedure.  Not more than 15 days
prior to any exchange of Class B Preferred Stock, the Corporation shall send
written notice (each such notice, an “Exchange Notice”) to each record
holder of Class B Shares, notifying such holder of (i) the exchange to be
effected, specifying the number of shares of Class B Preferred Stock to be
redeemed from each holder, (ii) the aggregate number of Exchange Shares to be
issued to such holder, (iii) the date on which such exchange shall be effected,
and (iv) the place at which the Exchange Shares to be issued to such holder may
be obtained and calling upon such holder to surrender to the Corporation, in
the manner and at the place designated, the certificate or certificates
representing such holder’s Class B Shares to be exchanged.  In case fewer than the total number of Class
B Shares represented by any certificate are exchanged, a new certificate
representing the number of unexchanged Class B Shares shall be issued to the
holder thereof without cost to such holder within three business days after
surrender of the certificate representing the exchanged Class B Shares.

 

(c)                                  Issuance
of Exchange Shares.  The issuance of
certificates for shares of Class C Preferred Stock, Class D Preferred Stock and
Class A Common Stock issuable upon the exchange of Class B Preferred Stock
shall be made without charge to the holders of the Class B Shares for any
issuance tax if issued in the name of such holder in respect thereof or other
cost incurred by the Corporation in connection with such exchange and the
related issuance of shares of Class C Preferred Stock, Class D Preferred Stock
and Class A Common Stock.  Upon the
exchange of each Class B Shares, the Corporation shall take all such actions as
are necessary in order to insure that the Exchange Shares issuable with respect
to such

 

17

 

conversion shall be
validly issued, fully paid and nonassessable, free and clear of all taxes,
liens, charges and encumbrances with respect to the issuance thereof.

 

(d)                                 Closing
of Books.  The Corporation shall not
close its books against the transfer of Class B Preferred Stock or of any Class
C Preferred Stock, Class D Preferred Stock and Class A Common Stock issued or
issuable upon the exchange of Class B Preferred Stock in any manner which
interferes with the timely exchange of Class B Preferred Stock.  The Corporation shall assist and cooperate
with any holder of Class B Preferred Stock required to make any governmental
filings or obtain any governmental approval prior to or in connection with any
conversion of Shares hereunder (including, without limitation, making any
filings required to be made by the Corporation).

 

(e)                                  Reservation
of Shares.  The Corporation shall at
all times reserve and keep available out of its authorized but unissued shares
of Class C Preferred Stock, Class D Preferred Stock and Class A Common Stock,
solely for the purpose of issuance upon the exchange of the Class B Preferred
Stock such number of shares of Class C Preferred Stock, Class D Preferred Stock
and Class A Common Stock issuable upon the exchange of all outstanding shares
of Class B Preferred Stock.  All shares
of Class C Preferred Stock, Class D Preferred Stock and Class A Common Stock
which are so issuable shall, when issued, be duly and validly issued, fully
paid and nonassessable and free from all taxes, liens and charges.  The Corporation shall take all such actions
as may be necessary to assure that all such shares of Class C Preferred Stock,
Class D Preferred Stock and Class A Common Stock may be so issued without
violation of any applicable law or governmental regulation or any requirements
of any domestic securities exchange upon which shares of Class C Preferred
Stock, Class D Preferred Stock and Class A Common Stock may be listed (except
for official notice of issuance which shall be immediately delivered by the
Corporation upon each such issuance). 
The Corporation shall not take any action which would cause the number
of authorized but unissued shares of Class C Preferred Stock, Class D Preferred
Stock or Class A Common Stock to be less than the number of such shares
required to be reserved hereunder for issuance upon exchange of the Class B
Preferred Stock.

 

(f)                                    Surrendered
Shares.  Any Class B Shares which
are exchanged pursuant to this Section 5 shall be canceled and retired to
authorized but unissued shares and shall not be reissued, sold or transferred.

 

(g)                                 Rights
After Issuance of Exchange Shares. 
Each exchange of Class B Preferred Stock shall be deemed to have been
effected as of the close of business on the date on which the certificate
representing the Class B Shares to be exchanged have been surrendered to the
Corporation for exchange as set forth in the applicable Exchange Notice.  At the time any such exchange has been
effected, the rights of the holders of the Class B Shares as holders of Class B
Preferred Stock shall cease and such holders shall be deemed to have become the
holders of record of the Exchange Shares issued in exchange therefor.  For the avoidance of doubt, dividends shall
accrue on each Class B Share up to the date on which the Exchange Shares
issuable pursuant to this Section 5 are issued.

 

18

 

(6)                                  Redemptions.

 

(a)                                  Optional
Redemption of Class C Preferred Stock. 
Subject to Section 6(b), at any time and from time to time the
Corporation may redeem all or any lesser portion of the outstanding Class C
Preferred Stock for a per share redemption price equal to the Class C
Liquidation Amount calculated as of the applicable Redemption Date (as defined
in Section 6(c) below).

 

(b)                                 Mandatory
Redemption of Class C Preferred Stock. 
Promptly (but in no event later than the following business day) after
the issuance of shares of Class C Preferred Stock in exchange for Class B
Shares surrendered to the Company in accordance with Section 5(a), the
Corporation shall redeem all of such shares of Class C Preferred Stock for a
per share redemption price equal to the Class C Liquidation Amount calculated
as of the applicable Redemption Date (as defined in Section 6(c) below).

 

(c)                                  Redemption
Procedure.  Not more than 15 days
prior to the date of any redemption of Series C Preferred Stock, the
Corporation shall send written notice to each record holder of shares of Series
C Preferred Stock notifying such holder of (i) the redemption to be effected,
specifying the number of shares of Series C Preferred Stock to be redeemed from
each holder (the “Redemption Shares”), (ii) the aggregate redemption
price required to be paid to such holder under Section 6(a) or 6(b), as
applicable (the “Redemption Price”), and (iii) the date on which such
redemption shall be effected (each such date, a “Redemption Date”),
and calling upon such holder to surrender to the Corporation, in the manner and
at the place designated, the certificate or certificates representing such
holder’s Redemption Shares.  In the case
of any redemption to be effected pursuant to Section 6(b) above, such notice
shall be delivered together with the Exchange Notice delivered to the holders
of Class B Preferred Stock pursuant to Section 5(b), and in such case the
holders of the Class B Preferred Stock to be exchanged shall be deemed,
for purposes of this Section 6(c) only, to be holders of the Class C Preferred
Stock issuable upon the surrender of such Class B Shares.  In case fewer than the total number of
Redemption Shares represented by any certificate are redeemed, a new
certificate representing the number of unredeemed Redemption Shares shall be
issued to the holder thereof without cost to such holder within three business
days after surrender of the certificate representing the redeemed Redemption Shares.

 

(d)                                 Rights
Upon Redemption.  After the payment
in full (in immediately available funds) of the Redemption Price with respect
to any Redemption Share (as the case may be), all rights of the holder of such
Redemption Share shall cease, and the Redemption Share shall not be deemed to
be outstanding.  For the avoidance of
doubt, dividends shall accrue on each share of Class C Preferred Stock up to
the date on which the Redemption Price of such share is paid in full in
immediately available funds.

 

(e)                                  Redeemed
or Otherwise Acquired Shares.  Any
shares of Series C Preferred Stock which are redeemed or otherwise acquired by
the Corporation shall be canceled and retired to authorized but unissued shares
and shall not be reissued, sold or transferred.

 

19

 

(f)                                    Other
Redemptions or Acquisitions.  The
Corporation shall not be entitled to redeem or otherwise acquire any Class B
Preferred Stock or Class D Preferred Stock. 
Neither the Corporation nor any of its subsidiaries shall redeem or
otherwise acquire any Preferred Stock, except as expressly authorized herein or
pursuant to (i) Section 9.05 of the Stock Purchase Agreement dated as of
November 20, 2000, among the Corporation, Dr. Michael J. Hartnett, Hartnett Family
Investments, L.P. and Whitney Acquisition II, Inc., or (ii) Section 8.05 of the
Preferred Stock Purchase Agreement dated as of the original Date of Issuance of
the Class B Preferred Stock among the Corporation, Roller Bearing Company of
America, Inc., Dr. Michael J. Hartnett and Whitney V, L.P.

 

(7)                                  Voting
Rights.  Except to the extent
required by the General Corporation Law of the State of Delaware, the holders
of outstanding shares of Preferred Stock shall not be entitled to vote on any
matters to be voted on by the Corporation’s stockholders.

 

(8)                                  Protective
Provisions.

 

(a)                                  Without
the prior written consent of the holders of a majority of the then outstanding
Preferred Stock, the Corporation shall not: (i) authorize or issue any shares
of capital stock having liquidation, dividend or distribution rights senior to
or pari
passu with the Class A Preferred Stock; (ii) authorize or issue any
shares of capital stock having liquidation, dividend or distribution rights
senior to the Class B Preferred Stock, the Class C Preferred Stock or the Class
D Preferred Stock (except that the Corporation may issues shares of
Class A Preferred Stock to the extent permitted under the following clause
(iii)); (iii) issue any shares of Class A Preferred Stock other than pursuant
to (A) Section 9.04 of the Stock Purchase Agreement dated as of November 20,
2000, among the Corporation, Dr. Michael J. Hartnett, Hartnett Family
Investments, L.P. and Whitney Acquisition II, Inc., or (B) Section 8.04 of the
Preferred Stock and Warrant Purchase Agreement dated as of the original Date of
Issuance of the Class B Preferred Stock among the Corporation, Roller Bearing
Company of America, Inc., Dr. Michael J. Hartnett and Whitney V, L.P.; (iv)
issue any shares of Class C Preferred Stock or Class D Preferred Stock other
than pursuant to Section 4 or Section 5 of this Section B of Article
Fourth; or (iv) amend, modify or restate the provisions of this Section B of
this Article Fourth in any respect.

 

(b)                                 Prior
to or concurrently with the effectiveness of any Sale of the Corporation or
Liquidation Event, the Board of Directors shall declare and authorize the
payment of all accumulated and accrued and unpaid but not yet accumulated
dividends on the outstanding shares of Preferred Stock.

 

C.                                     Rights
and Privileges of Common Stock. 
Except as otherwise provided herein, all shares of Class A Common Stock
and Class B Common Stock will be identical and will entitle the holder thereof
to the same rights and privileges.

 

(1)                                  General.  The voting, dividend and liquidation rights
of the holders of the Common Stock are subject to and qualified by the rights
of the holders of the Preferred Stock set forth in Section B of Article Fourth.

 

20

 

(2)                                  Voting
Rights.

 

(a)                                  The
holders of Class A Common Stock will be entitled to one vote per share on all
matters to be voted on by the Corporation’s stockholders.

 

(b)                                 Until
one of the events described in subsections (i) through (iv) below (each, a “Voting
Event”) shall have occurred, the holders of Class B Common Stock
will be entitled to that number of votes per share on all matters to be voted
upon by the Corporation’s stockholders as is required to entitle the holders
thereof, in the aggregate, to fifty-one percent (51%) of the voting power of
the issued and outstanding Common Stock. 
Following the occurrence of a Voting Event, the holders of Class B
Common Stock will be entitled to one vote per share on all matters to be voted
on by the Corporation’s stockholders.

 

(i)                                     The
Corporation (A) shall commence any proceeding under any bankruptcy,
reorganization, arrangement, readjustment of debt, dissolution or liquidation
law or statute of any jurisdiction, whether now or hereafter in effect; or (B)
shall have had any such petition or application filed or any such proceeding
shall have been commenced, against it, in which an adjudication or appointment
is made or order for relief is entered, or which petition, application or
proceeding remains undismissed for a period of 60 days or more;

 

(ii)                                  (A)
Michael J. Hartnett shall (1) die, (2) be discharged from employment
with the Corporation for Cause (as defined in any Employment Agreement between
the Corporation and Michael J. Hartnett (the “Employment Agreement”))
or (3) terminate his Employment Agreement during the stated term thereof
for other than Good Reason (as defined in the Employment Agreement) or (B)
ninety (90) days shall have passed after there shall have occurred a Permanent
Disability with respect to Michael J. Hartnett.  For the purposes hereof, a “Permanent Disability” shall mean any
physical or mental disability that permanently prevents Michael J. Hartnett
from performing the essential functions, taken as a whole, of his position as
Chief Executive Officer of the Corporation and/or of its wholly owned
subsidiaries;

 

(iii)                               At
such time that Michael J. Hartnett and his Permitted Transferees shall have the
power to vote with respect to, or the power to dispose of, less than 50% of the
shares of the Common Stock, on a fully diluted basis (i.e., assuming full
exercise of all such holders’ warrants, options and other rights to purchase
shares of Common Stock), owned by Michael J. Hartnett and Hartnett Family
Investments, L.P. on December 18, 2000 (subject to adjustment to reflect
any stock split, stock dividend, reclassification, recapitalization or other
transaction having a similar effect); and

 

(iv)                              the
first underwritten public offering of equity securities of the Corporation
pursuant to an effective registration statement under the Securities Act of
1933, as amended (the “Act”), for which the Corporation shall
have received not less than $50 million in net proceeds and following which
there is a public market for the securities so offered.

 

21

 

For the purposes of
subsection (iii), “Permitted Transferee” shall mean, with
respect to any Person, (a) if such Person is an individual, (i) a member of the
Immediate Family of such Person, (ii) a trust or other similar legal entity for
the primary benefit of such Person and/or one or more members of his Immediate
Family, or (iii) a partnership, limited partnership, limited liability company,
corporation or other entity in which such Person alone or together with members
of his Immediate Family possess 100% of the outstanding voting securities, (b)
a Person to whom Securities are Transferred in compliance with Rule 144 under
the Act, so long as Holdings is furnished with evidence reasonably satisfactory
to it that such Transfer complied with such rule, and (c) if such Person is not
a natural person, (i) any Affiliate of such Person or (ii) any of such Person’s
or its Affiliates’ stockholders, general partners, limited partners, members,
directors, officers, or employees or their respective Affiliates to whom
Securities are Transferred.  For the
purposes of this definition, “Immediate Family”, with respect to an
individual, shall mean his brothers, sisters, spouse, children (including
adopted children), parents, parents-in-law, grandchildren, great grandchildren
and other lineal descendants and spouses of any of the foregoing, and “Affiliate”
shall mean a person controlled by, in control of, or under common control with,
another person.

 

(3)                                  Dividends.  Subject to the preferential rights of the
holders of Preferred Stock, when, as and if dividends are declared, whether
payable in cash, property or securities of the Corporation, the holders of both
Class A Common Stock and Class B Common Stock will be entitled to receive such
dividends, ratably according to the number of shares of Common Stock held by
them.

 

(4)                                  Rights
Upon Liquidation or Sale of the Corporation. In the event of any
liquidation, dissolution or winding up of the Corporation, the assets of the
Corporation shall be distributed in accordance with Section B(3)(a) of
this Article Fourth, and the rights of the holders of Common Stock to
participate in any such distribution shall be subject to the rights and
preferences of the holders of the Preferred Stock set forth therein.  In connection with a Sale of the
Corporation, the rights of the holder of Common Stock to receive consideration
to be paid in connection with such transaction shall be subject to
Section B(3)(b) of this Article FOURTH.

 

(5)                                  Conversion
of Class B Common Stock.

 

(a)                                  At
any time and from time to time, each record holder of Class B Common Stock will
be entitled to convert any and all of the shares of such holder’s Class B
Common Stock into shares of Class A Common Stock on a one to one basis at such
holder’s election.

 

(b)                                 At
any time and from time to time that Michael J. Hartnett or any Permitted
Transferee of Michael J. Hartnett shall transfer any shares of Class B Common
Stock other than to a Permitted Transferee such shares of Class B Common Stock
so transferred will automatically and without any further action be deemed to
have been converted into shares of Class A Common Stock on a one-to-one
basis.  Upon any such transfer, such
holder of shares of Class B Common Stock shall be obligated to effect the
procedures described in paragraphs (c)

 

22

 

through (f) below; provided,
however,
that such conversion shall be deemed to have occurred regardless of such
holder’s compliance therewith.

 

(c)                                  Each
conversion of shares of Class B Common Stock into shares of Class A Common
Stock will be effected by the surrender of the certificate or certificates
representing the shares to be converted at the principal office of the
Corporation (or such other office or agency of the Corporation as the
Corporation may designate by notice in writing to the holder or holders of the
Class B Common Stock) at any time during normal business hours, together with a
written notice by the Holder of such Class B Common Stock stating that such
holder desires to convert the shares, or a stated number of the shares, of
Class B Common Stock represented by such certificate or certificates into Class
A Common Stock.  Such conversion will be
deemed to have been effected as of the close of business on the date on which
certificate or certificates have been surrendered and such notice has been
received, and at such time the rights of the holder of the converted Class B
Common Stock as such will cease and the person or persons in whose name or
names the certificate or certificates for shares of Class A Common Stock are to
be issued upon such conversion will be deemed to have become the holder or
holders of record of the shares of Class A Common Stock represented thereby.

 

(d)                                 Promptly
after such surrender and the receipt of such written notice, the Corporation
will issue and deliver in accordance with the surrendering holder’s
instructions (i) the certificate or certificates for the Class A Common Stock
issuable upon such conversion and (ii) a certificate representing any Class B
Common Stock which was represented by the certificate or certificates delivered
to the Corporation in connection with such conversion but which was not
converted.

 

(e)                                  The
Corporation will at all times reserve and keep available out of its authorized
but unissued shares of Class A Common Stock or its treasury shares, solely for
the purpose of issue upon the conversion of the Class B Common Stock as
provided in this Section (C)(3), such number of shares of Class A Common Stock
as shall then be issuable upon the conversion of all then outstanding shares of
Class B Common Stock.

 

(f)                                    The
issuance of certificates for Class A Common Stock upon the conversion of Class
B Common Stock will be made without charge to the holders of such shares for
any issuance tax in respect thereof or other cost incurred by the Corporation
in connection with such conversion and the related issuance of Class A Common
Stock.  The Corporation will not close
its books against the transfer of Class B Common Stock or of Class A Common
Stock issued or issuable upon the conversion of Class B Common Stock in any
manner which would interfere with the timely conversion of Class B Common
Stock.

 

(6)                                  Preemptive
Rights.  No holder of shares of
Common Stock shall be entitled to the preemptive right to subscribe to any or
all additional issues of stock of the Corporation of any or all classes or
series thereof, or to any securities of the Corporation convertible into, or
exchangeable or exercisable for, such stock, except to the extent set forth in
the Amended and Restated Stockholders’ Agreement, dated as of the date hereof
(the

 

23

 

“Stockholders’ Agreement”), by and
among the Corporation and certain of its stockholders, as the same may be
amended from time to time.

 

(7)                                  Business
Combinations With Interested Stockholders. 
The Corporation shall not be governed by the provisions of Section 203
of the Delaware General Corporation Law.

 

FIFTH: 
Amendment of Bylaws.

 

In furtherance and not in limitation of the powers
conferred by statute, the Board of Directors is expressly authorized to make,
repeal, alter, amend and rescind the bylaws of the Corporation, subject to the
receipt of the requisite vote of the stockholders, if any, pursuant to Article
Fourth above.

 

SIXTH: 
Election of Directors.

 

Elections of directors need not be by written ballot
unless the bylaws of the Corporation shall so provide.

 

SEVENTH: 
Amendment of Certificate of Incorporation.

 

Subject to the receipt of the requisite vote of the
stockholders, if any, pursuant to Article Fourth above, the Corporation
reserves the right to amend, alter, change or repeal any provision contained in
this Certificate of Incorporation, in the manner now or hereafter prescribed by
statute, and all rights conferred on stockholders herein are granted subject to
this reservation.

 

EIGHTH: 
Liability and Indemnification.

 

A.                                   The
Corporation shall indemnify, in the manner and to the full extent permitted by
law, any person (or the estate of any person) who was or is a party to, or is
threatened to be made a party to any threatened, pending or completed action,
suit or proceeding, whether or not by or in the right of the Corporation, and
whether civil, criminal, administrative, investigative or otherwise, by reason
of the fact that such person is or was a director, officer, employee or agent
of the Corporation, or is or was serving at the request of the Corporation as a
director, officer, employee, agent or fiduciary of another corporation,
partnership, joint venture, trust or other enterprise.  The Corporation may, to the full extent
permitted by law, purchase and maintain insurance on behalf of any such person
against any liability which may be asserted against him.  To the full extent permitted by law, the
indemnification provided herein shall include expenses (including attorneys’
fees), judgments, fines and amounts paid in settlement, and, in the manner
provided by law, any such expenses shall be paid by the Corporation in advance
of the final disposition of such action, suit or proceeding upon receipt of an
undertaking by or on behalf of the person seeking indemnification to pay such
amounts if it is ultimately determined that he is not entitled to be
indemnified.  The indemnification
provided herein shall not be deemed to limit the right of the Corporation to
indemnify any other person for any such expenses to the full extent permitted
by law, nor shall it be deemed exclusive of any other rights

 

24

 

to which any person
seeking indemnification from the Corporation may be entitled under any
agreement, vote of stockholders or disinterested directors or otherwise, both
as to action in his official capacity and as to action in another capacity
while holding such office.

 

B.                                     A
director of the Corporation shall not be liable to the Corporation or its
stockholders for monetary damages for breach of fiduciary duty as a director,
except to the extent such exemption from liability or limitation thereof is not
permitted under the Delaware General Corporation Law as the same exits or may
hereafter be amended.

 

C.                                     Any
repeal or modification of Section B of this Article EIGHTH shall not adversely
affect any right or protection of a director of the Corporation existing hereunder
with respect to any act or omission occurring prior to such repeal or
modification.

 

IN WITNESS WHEREOF, the undersigned has executed this
Amended and Restated Certificate of incorporation on behalf of the Corporation
and does hereby verify and affirm, under penalty of perjury, that this Amended
and Restated Certificate of Incorporation is the act and deed of the
Corporation and that the facts stated herein are true as of March   ,
2003.

 

	
   

  	
   

  	
  ROLLER BEARING HOLDING
  COMPANY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Michael J. Hartnett

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Michael J.
  Hartnett

  
	
   

  	
   

  	
   

  	
  Title: President

  

 

25Exhibit 10.5

 

AGREEMENT

 

Between

 

BREMEN BEARINGS OF RBC USA, INC.

PLYMOUTH, INDIANA PLANT

And

 

INTERNATIONAL UNION, UNITED

 

AUTOMOBILE, AEROSPACE AND

 

AGRICULTURAL IMPLEMENT WORKERS OF AMERICA,

 

THE

U. A.W.

 

And Its

Local 1368

 

 

Effective August 10, 2002

 

 

AGREEMENT

 

Between

 

BREMEN BEARINGS OF RBC USA, INC.

BREMEN, INDIANA PLANT

 

And

 

INTERNATIONAL UNION, UNITED

 

AUTOMOBILE, AEROSPACE AND

 

AGRICULTURAL IMPLEMENT WORKERS OF AMERICA,

 

THE

U. A.W.

 

And Its

Local 1368

 

 

Effective August 10, 2002

 

 

INDEX

 

	
  Article

  
	
   

  
	
  I

  	
  Agreement

  
	
   

  	
   

  
	
  II

  	
  Union Recognition

  
	
   

  	
   

  
	
  III

  	
  Agency Shop and Check-Off

  
	
   

  	
   

  
	
  IV

  	
  Cooperative Union Management

  
	
   

  	
   

  
	
  V

  	
  Rights and Functions of Management

  
	
   

  	
   

  
	
  VI

  	
  Strikes and Lockouts

  
	
   

  	
   

  
	
  VII

  	
  Production Standards and Incentive Pay

  
	
   

  	
   

  
	
  VIII

  	
  Job Evaluation Plan

  
	
   

  	
   

  
	
  IX

  	
  Hours of Work and Overtime Pay

  
	
   

  	
   

  
	
  X

  	
  Vacations and Vacation Pay

  
	
   

  	
   

  
	
  XI

  	
  Holidays

  
	
   

  	
   

  
	
  XII

  	
  Seniority

  
	
   

  	
   

  
	
  XIII

  	
  Settlement of Differences

  
	
   

  	
   

  
	
  XIV

  	
  Wages and Rates of Pay

  
	
   

  	
   

  
	
  XV

  	
  Insurance
  Benefits and Pensions

  
	
   

  	
   

  
	
  XVI

  	
  Jury Duty, Bereavement and Military Reserve
  Pay

  
	
   

  	
   

  
	
  XVII

  	
  Safety and Health

  
	
   

  	
   

  
	
  XVIII

  	
  Plant Rules

  
	
   

  	
   

  
	
  XIX

  	
  Leave of Absence

  
	
   

  	
   

  
	
  XX

  	
  Amendments and Modifications

  
	
   

  	
   

  
	
  XXI

  	
  Termination and Notice

  
	
   

  	
   

  
	
   

  	
  Appendix
  “A” Rates of Pay Tier I Employees

  
	
   

  	
   

  
	
   

  	
  Appendix
  “B” Rates of Pay Tier II Employees

  
	
   

  	
   

  
	
   

  	
  Appendix “C” Labor Units & Grade

  
	
   

  	
   

  
	
   

  	
  Appendix
  “D” Statement of Cooperation – Alcohol and Drug Abuse

  

 

2

 

Article I
AGREEMENT

 

Section
1.

 

This agreement, dated the 10th of August, 2002, is entered into between
Bremen Bearings, RBC, INC. of Plymouth, Indiana plant, (hereinafter called the
“Company”) and the INTERNATIONAL UNION, UNITED AUTOMOBILE, AEROSPACE AND
AGRICULTURAL IMPLEMENT WORKERS OF AMERICA (UAW) and its Local 1368 (hereinafter
called the “Union”), effective the 10th of August, 2002.

 

Section
2.

 

In consideration of this Agreement, the parties agree that it is the
intent and purpose of the parties hereto that this Agreement is the complete
Agreement covering rates of pay, hours of work and working conditions to be
observed between the parties, and to provide orderly relationships between the
Company and the Union, and to secure prompt disposition of difference between
the parties pertaining to the compliance with or application of this agreement.

 

Section
3.

 

In recognition of its responsibility as the exclusive agent of the
employees, the Union agrees that it will actively cooperate in discouraging
absenteeism and tardiness, and that it will actively support proper Company
efforts to eliminate waste, improve quality, prevent accidents, and strengthen
good will between the Company, the employees, the customers, the Union, and the
public.  The Union also confirms that it
subscribes to the concept of a fair day’s work for a fair day’s pay.

 

Section
4.

 

The rights provided in this Agreement shall apply only to employees who
have completed their 90-day probationary period, provided, however, that the probationary
period may be extended an additional 30 days by mutual agreement of the Company
and the Union.  Employees who have not
completed their probationary period shall have no rights under Article XIII,
Sec. 1, Step 3 of this Agreement.

 

3

 

Article II

 

Union Recognition

 

Section
1.

 

The Company recognizes the Union as the sole collective bargaining
agency with respect to rates of pay, hours of work, and conditions of
employment for employees engaged on jobs in Bremen Bearings, at its Plymouth,
Indiana plant.

 

Section
2.

 

The term “employee” as used in this Agreement, shall apply to all
production and maintenance workers engaged on jobs at the Plymouth, Indiana
plant who are on an hourly or incentive basis, but excludes watchmen, salaried
employees and supervisory employees with authority to hire, promote, discharge,
discipline or otherwise effect changes in the status of employees or
effectively to recommend such action.

 

4

 

Article III

 

Agency Shop and
Check-off

 

Section
1.

 

Each employee who on the effective date of this Agreement is a member
of the Union in good standing and each employee who becomes a member after that
date shall, as a condition of employment, maintain his membership in the Union.

 

Each employee hired on or after August 12, 1972, shall as a condition
of employment, beginning on the 30th day following the beginning of
such employment acquire and maintain membership in the union.

 

Section
2.

 

The Company, for those employees who have heretofore, or hereafter by
written authorization so directed, shall deduct from the first pay of each
month the proper Union dues for the previous month, an initiation fee for new
members, the assessments and promptly remit same to the International
Secretary-Treasurer of the Union. 
Changes in dues and assessments will be made only as authorized in
writing by the International Secretary-Treasurer of the Union to the Company

 

Section
3.

 

If an employee is on vacation the week that Union dues are withheld,
the Company agrees to provide the Union with the names along with the hourly
rate that they were paid.

 

5

 

Article IV

 

Cooperative Union
Management

 

Section
1.

 

The Company and the Union agree that they will not discriminate in the
hiring of employees, or in their training, upgrading, downgrading, promotion,
transfer, layoff, discipline, discharge or otherwise because of race, creed,
color or national origin, age, union affiliations, sex, marital status or
non-disqualifying disability.

 

Section
2.

 

The Company and the Union recognize the advisability of making every
effort to constantly improve relationships between the Company, the Union and
all employees.  To this end, a committee
composed of two members of the Union and two members of management shall meet
for one hour at least once a month on Company time to discuss problems and/or
grievances which may cause a disruption in relationships or to suggest means of
improving relationships.  The General
Manager and the International Representative may attend these meetings.  The purpose of these meetings is to prevent,
where possible, the use of the Arbitration Clause of this Agreement, as such is
both costly to the parties and further, bilateral good faith collective
bargaining is ineffective when a third party is called for the purposes of
determining the intent of the Agreement.

 

Section
3.

 

a)                            It
is the duty of every employee to apply himself diligently to his work during
all of his working hours and to this end the Union will support the Company’s
efforts to curb absenteeism and the practices which curtail production; to
eliminate waste and inefficiency; to improve the quality of workmanship; to
prevent accidents, and to promote good will between the Company and the
employees.

 

b)                           The
Union will cooperate wholeheartedly with the Company in a concerted drive for
better quality and quantity of production. 
It should be the responsibility of each employee to see that the work
performed is up to required standards and that no defective work is concealed.

 

6

 

Article V

 

Rights
and Functions of Management

 

Section
1.

 

The control of all matters relative to the management and operation of
the plant and the operation of the Company’s business are vested exclusively in
the Company and shall constitute a management right, except as these matters
may be expressly limited by the terms of this Agreement.  The Company and the Union in the exercise of
their rights shall observe the provisions of this Agreement.

 

Section
2.

 

The violation by either party of any provision of this Agreement shall
not render the Agreement inoperative, and the sole and exclusive method of
remedying any dispute which may arise hereunder shall be Article XIII,
Settlement of Differences.

 

Section
3.

 

While it is understood that the Company may experiment with equipment,
it is not the intent of the Company to replace any bargaining unit employee
with a salaried employee through the exercise of this right.  Salaried employees may perform such work
under their jurisdiction as instructing, experimenting, or relieving
impediments in production, but no bargaining unit employee shall lose a work
opportunity as a result.

 

Section
4.

 

When work which the bargaining unit normally performs is to be
subcontracted, it will be done on the basis of time or money or special
equipment or expertise.

 

When work is contracted out, the Company will inform the Union and
explain the necessity prior to the subcontracting.

 

7

 

Section
5.

 

The Company may utilize temporary employees to do the work of those on
leaves of absences, vacations, and other absences, and for unpredicted customer
demands, to keep the operations running smoothly, but the Company can only use
temporary employees when there are no regular employees available who will fill
the need in the department on the shift. 
A temporary employee shall not work in excess of 90 days per year per
employee, unless the temporary employee is filling in for a regular employee on
medical leave, in which case the temporary employee may work for the duration
of the medical leave.  The temporary
employee will be paid at the second tier rate and will not be eligible for
benefits.  Temporary employees will be
utilized only in positions of labor grades 1, 2, 3, 4, 5.

8

 

Article VI

 

Strikes and Lockouts

 

Section
1.

 

During the existence of this Agreement, the Union agrees that neither
it nor any employee shall engage in any strikes, sympathy strikes,  work
stoppages, or slowing down of work, or any other interference with the normal
production of the plant, or shipments from the plant products produced therein,
or shipments of necessary materials to the plant.  Any violation of this Section by any employee shall be cause for
dismissal or suspension.

 

In the event there is an interruption of production because of a
concerted action, the Union, through the International Representative and Local
president, shall immediately direct cessation of such interruption.

 

Section
2.

 

The Company, for itself, its supervisors and authorized
representatives, agrees that during the term of this Agreement there shall be
no lockouts in the Company’s plant.

 

9

 

Article VII

 

Production
Standards and Incentive Pay

 

Section
1.

 

It is understood that the Company may make, at any time; motion, time
or methods studies required for the efficient operation of its business, and
may establish standards and levels of performance, and may audit its standards
when it deems this to be necessary in the interest of its business.  During the start-up and development period
for equipment the employee operating machine will be paid his/her average
earned rate based on earnings during the prior week for a period not to exceed
eight weeks.  Thereafter, the employee
will be paid average hourly earnings up to 120% of his/her base wage until the
equipment is rated.  The Company has a
right to assign any employee to operate a machine during the first eight weeks
of the start-up and development period for the equipment.  Thereafter, departmental seniority will be
used to determine the operator of this equipment until the equipment is
rated.  The Company will make reasonable
efforts to establish a rate for new equipment within 120 days after the
equipment has been released for consistent production.

 

Section
2.

 

Once a production standard has been established, the equity of such a
standard may be challenged under the procedure set forth in Article XIII,
Settlement of Differences.  Should the
Union dispute the equity or fairness of a production standard, the Company will
review with a proper Union steward, upon his request, the data relating to the
production standard.

 

Section
3.

 

A production standard may be changed whenever a substantial and
continuing change in material, method, specifications, or equipment, or an
accumulation of such changes, or an obvious clerical or mechanical error has
occurred, that has a substantial effect on the productivity of the job.

 

10

 

Section
4.

 

It is recognized that the Company has the right to institute incentive
standards, with the understanding that such incentive standards shall be set in
such a manner so that qualified operators working at a normal pace can produce
work at 100% of standard.  Incentive
jobs include:

 

Assembly

 

Incentive pay for second tier employees hired after 8/10/02 is capped
at 140% of standard plus 1⁄2% for each 1% above 140% of standard.

 

The Company guarantees that the incentive standard for the assembly job
shall be paid off of the base rate for the assembly department.

 

Section
5.

 

When an employee performs any work that does not meet the required
specifications, he shall not receive any pay or credit for the work except for
his guaranteed base rate on a weekly basis. 
However, when the cause for rework is beyond the operator’s control,
this provision will not apply.

 

Section
6.

 

The Company and the Union will discuss and implement a performance
incentive program that is acceptable to both parties.

 

11

 

Article VIII

 

Job Evaluation Plan

 

Section
1.

 

Jobs shall be classified in their appropriate work grades by the
Company, using the National Metal Trades Association’s Job Evaluation
Plan.  Job descriptions, labor grades,
and rates of pay have been prepared and are in effect for all present
jobs.  When conditions warrant such
action, the Company will establish new job classifications, change or add to
and remove jobs or job descriptions. 
When new jobs are established, or changes or additions made to existing
jobs, new job descriptions will be drawn and evaluated by the Company in
accordance with the NMTA Job Evaluation Plan. 
Union must be furnished a current copy of the NMTA Job Evaluation Plan
being used by the Company.  Where an incentive
and non-incentive job are combined, the remaining job will be an incentive job
if the preponderance (over 50%) of the job functions are functions of the
incentive job.  Otherwise, the job will
be deemed a non-incentive job.

 

Section
2.

 

All job rates of pay in effect at the time of this Agreement are
effective and properly evaluated and shall not be the subject to process under
the grievance procedure section of this contract.  Any new or changed job or job rate may be subject to processing
under Article XIII, Settlement of Differences. 
Such processing shall be confined to the result of the application of
the NMTA Job Evaluation Plan.  The Plan
itself shall not be subject to processing under Article XIII, Settlement of
Differences, nor shall it be, in any manner or detail, subject to arbitration
under this agreement.

 

Section
3.

 

The following method will be used in determining the work grade to be
assigned to a job:  The job will be
analyzed and reviewed by the Company’s Job Analyst who will write up the
description of the general details considered necessary to describe the principal
functions of the job identified, which description shall not be construed as a
detailed description of all of the work requirements that may be inherent in
any given job.  A copy of all job
descriptions shall be made available to the Union for their inspection and
review.

 

12

 

Article IX

 

Hours of Work and
Overtime Pay

 

Section
1.

 

This Article is intended only to provide a basis for calculating
overtime.  It shall not be construed by
the Union or any of its members as limiting or guaranteeing the number of hours
to be worked by an individual employee or group of employees per day or per
week.

 

Section
2.                       Work
Week

 

A normal work week shall consist of five consecutive eight hour days
from Monday through Friday except where off standard work weeks are
established, in which event the work week shall consist of five consecutive
days followed by two days of rest.

 

Section
3.

 

A day shall be defined as a consecutive 24-hour period beginning with
the starting time of an employee’s shift. 
Eight continuous hours of work, interrupted by regularly scheduled lunch
periods shall constitute a day’s work.

 

Section
4.

 

Employees on temporary transfer to another department will work the
hours as scheduled in that department during the transfer.  If they receive less than 16 hours notice of
a temporary transfer, they shall have the option of working either the hours
scheduled in their own department or those scheduled in the department to which
the temporary move was made.

 

13

 

Section
5.

 

Except where an off-standard workweek is established, the standard
three and four shift schedules listed below shall be the hours of work, unless
by agreement between the Union and the Company they are altered.

 

	
  Company Shifts:

  	
   

  	
  7:00 a.m. to 3:00 p.m.

  
	
   

  	
   

  	
  3:00 p.m. to 11:00 p.m.

  
	
   

  	
   

  	
  11:00 p.m. to 7:00 a.m.

  

 

Four Shift operation:

 

	
  WORKDAY

  	
   

  	
  A

  	
   

  	
  B

  	
   

  	
  C

  	
   

  	
  D

  
	
  Sunday

  	
   

  	
  Off

  	
   

  	
  Off

  	
   

  	
  Sat. 11:00 p.m.

  	
   

  	
  3-11

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Sun. 7:00 a.m.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Monday

  	
   

  	
  7-3

  	
   

  	
  Off

  	
   

  	
  Sun. 11:00 p.m.

  	
   

  	
  3-11

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Mon. 7:00 a.m.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tuesday

  	
   

  	
  7-3

  	
   

  	
  3-11

  	
   

  	
  Mon. 11:00 p.m.

  	
   

  	
  Off

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Tues. 7:00 a.m.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Wednesday

  	
   

  	
  7-3

  	
   

  	
  3-11

  	
   

  	
  Tues. 11:00 p.m.

  	
   

  	
  Off

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Wed. 7:00 a.m.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Thursday

  	
   

  	
  7-3

  	
   

  	
  3-11

  	
   

  	
  Off

  	
   

  	
  Wed. 11:00 p.m.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Thurs. 7:00 a.m.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Friday

  	
   

  	
  7-3

  	
   

  	
  3-11

  	
   

  	
  Off

  	
   

  	
  Thurs. 11:00 p.m.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Fri. 7:00 a.m.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Saturday

  	
   

  	
  Off

  	
   

  	
  3-11

  	
   

  	
  Fri. 11:00 p.m.

  	
   

  	
  7-3

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Sat. 7:00 a.m.

  	
   

  	
   

  

 

When a department is placed on a 4-shift operation, all employees in the
affected department will be assigned to that schedule only.  The holiday schedule for the 4-shift
operation shall be determined by the Company and union and posted by the
beginning (January) of each year.

 

It is understood that the Company will not resort to a four-shift basis
because of lack of available equipment due to disrepair.  Employees working on the B shift shall be
paid at time and 1/8 for hours worked on Saturday.  Employees working on the C and D shift shall be paid at time and
1/8 for hours worked on Saturday and time and 1⁄4 for hours worked on Sunday.

 

14

 

Employees on the B shift will be paid the second shift premium and
employees on the C and D shifts will be paid the third shift premium.  In order to ensure cross training and ensure
new equipment/processes, the Company has the right to schedule employees to
work shifts other than their regularly scheduled shift for a period not to
exceed 4 weeks for training purposes.

 

Section
6.                       Division
of Overtime and Overtime Pay.

 

All overtime shall be
distributed as equally as practicable within the department, classification and
shift.  Overtime scheduling shall be
compulsory for 50 hours and where scheduled absences and vacations must be covered.  In the case of scheduled vacations and
scheduled absences, employees will be polled by seniority to fill in.  If there are no volunteers, the least senior
employees in the classification may be assigned.  On a daily basis, notification for scheduled overtime will be at
least two (2) hours prior to the end of the shift.  Notification for sixth and seventh day overtime will be posted as
follows:

 

	
  1st shift

  	
   

  	
  3 p.m.

  	
   

  	
  Wednesday

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2nd shift

  	
   

  	
  11 p.m.

  	
   

  	
  Wednesday

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3rd shift

  	
   

  	
  11 p.m.

  	
   

  	
  Wednesday

  

 

A.                                   Except as provided
in B, below, time and one-half shall be paid for all hours or parts of hours
worked:

(1)                                  In excess of eight
(8) hours in any one workday.

(2)                                  In excess of forty
(40) hours in any one workweek.

(3)                                  On Saturday, except
for off standard work weeks.

(4)                                  On the sixth day of
their scheduled workweek for employees on off standard work weeks.

 

B.                                     Double time shall
be paid for all hours or parts of hours worked:

(1)                                  On Sundays, except
for off standard work weeks.

(2)                                  On the seventh day of
their scheduled work week for employees on off-standard work weeks.

 

C.                                     Overtime rates and
premium rates shall not be paid to employees on more than one overtime or
premium basis whether hourly, daily, or weekly.

 

D.                                    Company liability
with respect to mis-scheduling of overtime shall be limited to a make-up
turn.  In the event that an employee is
bypassed for a make-up turn the Company will be liable for payment.  An employee who is not notified for an
overtime turn within contractual limits shall not be charged with a turn.  An employee scheduled to work on his/her 6th
or 7th day shall have a 24-hour notice of cancellation of such work
except in emergencies.  If notice is not
given, the employee scheduled will receive 4 hours pay at the appropriate rate.

 

15

 

E.                                      If a holiday
falls on Friday or Monday and overtime is scheduled on the succeeding or
preceding Saturday, it will be on a voluntary basis.

 

F.                                      Where a work
opportunity is lost, the Company shall be liable for four hours at a time and
one half for work performed by salaried non-bargaining unit employees normally
performed by bargaining unit employees.

 

Section
7.                       Call in Pay

 

Employees called into work within a twenty-four (24) hour period from
the starting time of their shift shall be guaranteed a minimum of four (4)
hours at their regularly assigned rate. 
This is provided that they report in within a reasonable amount of time
from the call out.

 

Section
8.                       Report
in Pay.

 

Employees who report for work as scheduled or who report for work upon
notification to report shall, regardless of whether or not work is available
for them be guaranteed a report in pay of no less than four (4) hours at their
regularly assigned personal rate.

 

Employees will not be paid under this section if:

(1)                                  They
are unfit to work;

(2)                                  Work
is unavailable as a result of causes beyond the control of management;

(3)                                  They
are notified not to report for work within 24 hours notice;

(4)                                  They refuse to
perform work available within their department unless such work is not
available or they refuse to perform other work for which they are qualified.

 

16

 

Article X

 

Vacations and
Vacation Pay

 

Section
1.

 

The vacation year shall begin on January 1 and end on December 31.  The period for taking vacation time off
shall begin with the first full week in January and end with the last full week
in December, with the understanding that this period shall not detract from the
Company’s right to establish a vacation shutdown period.  Plant shutdown shall be posted by the end of
the last full month of the year.  The
vacation shutdown shall not be more than two weeks per year.

 

Section
2.

 

Each employee who is actively on the payroll on December 31, or the
Sunday closest to December 31, shall be entitled to his full vacation benefits
notwithstanding the fact that his services may have been terminated for any
reason in the ensuing year prior to the receipt of vacation pay.

 

Section
3.

 

Employees who were not on the active payroll on December 31 or the
Sunday closest to December 31, but who become active thereafter as a result of
recall or return from a leave of absence will receive vacation pay on a
prorated basis computed at one-twelfth (1/12th) of his benefit for
each full month of service in the current vacation year.  Employees recalled on or before the 15th
of any month shall be given credit for the full month.

 

Employees whose benefits are computed under this Section 3 shall
forfeit such benefits if:

(a)                                                     They
are discharged; or

(b)                                                    They
resign without giving five (5) days written notice to the Company.

 

17

 

Section
4.

 

Effective July 17, 1999, vacation benefits for eligible first tier
(hired on or before August 10, 2002) full time employees shall be as follows:

 

	
  Accredited Service Prior to

  December 31 of Vacation Year

  	
   

  	
  Vacation
  Time

  	
   

  	
  Vacation

  Pay Hours

  	
   

  
	
  1 year to 2 years

  	
   

  	
  1 week and 1 day

  	
   

  	
  68

  	
   

  
	
  2 years to 10 years

  	
   

  	
  2 weeks and 1 day

  	
   

  	
  108

  	
   

  
	
  10 years to 15 years

  	
   

  	
  3 weeks and 1 day

  	
   

  	
  148

  	
   

  
	
  15 years to 20 years

  	
   

  	
  3 weeks and 4 days

  	
   

  	
  172

  	
   

  
	
  20 years and over

  	
   

  	
  4 weeks and 1 day

  	
   

  	
  188

  	
   

  

 

A first tier (hired on or before 8/10/02) employee will receive
vacation pay at his/her average hourly earnings over either the first or second
of the two preceding six month periods (January 1 thru June 30 or July 1 thru
December 31), beginning January 1, 2000.

 

A second tier (hired on or after August 10, 2002) will receive vacation
time and pay at his/her straight time base hourly rate as follows:

 

	
  Accredited Service Prior to

  December 31 of Vacation Year

  	
   

  	
  Vacation
  Time

  	
   

  	
  Vacation

  Pay Hours

  	
   

  
	
  1 year to 3 years

  	
   

  	
  1 week

  	
   

  	
  40

  	
   

  
	
  3 years to 10 years

  	
   

  	
  2 weeks

  	
   

  	
  80

  	
   

  
	
  10 years and over

  	
   

  	
  3 weeks

  	
   

  	
  120

  	
   

  

 

Section
5.

 

Vacations are planned absences. With the exception of prior approval by
Human Resources, at least one-half of employees’ vacation must be taken in
one-week increments and requested in writing for the calendar year by January
31st.  Vacation requests
after January 31st must be applied for two weeks in advance in
writing.  A maximum of four single days
may be taken for absences provided that one-hour prior notification to the
beginning of their shift has been given. 
All vacation will be approved or denied by Human Resources based on the
following criteria:

(a)                                  No more than 20% of a
department will be allowed to take vacation unless specifically identified as a
department or plant shutdown;

(b)                                 Peak performance times
or customer demands;

(c)                                  Seniority within the
department;

(d)                                 Article
XIX Leave of Absence.

 

18

 

Article XI

 

HOLIDAYS

 

Section
1.

 

The following days are those to which the provisions of this Article
apply:

 

	
  Day Before New Year’s Day

  	
   

  	
  New Year’s Day

  
	
  Good Friday

  	
   

  	
  Memorial Day

  
	
  Independence Day

  	
   

  	
  Labor Day

  
	
  Thanksgiving Day

  	
   

  	
  Day after Thanksgiving

  
	
  Day before Christmas

  	
   

  	
  Christmas

  

 

All employees with ninety (90) days continuous full time employment
shall be eligible to receive holiday pay provided they are on a working status
at the time of the holiday, and work the scheduled hours on the working days
before and after the holiday or the day in which the holiday is
celebrated.  Employees on leave of
absence, layoff or otherwise unavailable or ineligible to work the day before
or after the holiday are not eligible for holiday pay.  No more than 8 hours will be scheduled on
those days and the Company will be liable for the hours scheduled if it does
not provide the work.

 

Section
2.                       Holiday
Pay

 

A.                                   Any work performed
on a holiday shall be on a voluntary basis and the employees shall be paid
double time for all hours worked on a holiday  in addition to the regular
holiday pay.

 

B.                                     If a holiday falls
during a paid vacation, the employee will receive an extra day off with pay or
may be paid in lieu of the holiday.

 

C.                                     Pay for the
above-mentioned holidays shall be on a one-pay basis only.  There shall be no pyramiding of overtime pay
for holidays.  Regular holiday pay shall
be on the basis of eight (8) hours at the employee’s personal base rate.

 

19

 

Article XII

 

Seniority

 

Section
1.

 

The Company hereby recognizes the principle of seniority, and all
seniority provisions shall operate on a departmental basis in accordance with
the procedures hereinafter listed in this Article.  Seniority shall accumulate from the original date of employment
for every employee covered in this Agreement and said seniority rights shall
cease upon the occurrence of any of the following acts or conditions.

 

(1)                                  A voluntary resignation
or quit.

(2)                                  A discharge for
cause.

(3)                                  A layoff of more than
30 months or a leave of absence of more than one (1) year’s duration, however,
in the case of a medical leave such leave may be extended by mutual agreement.

(4)                                  Failure to report for
work within five (5) working days from the date of recall from lay-off or leave
of absence.

(5)                                  Three working days of
no call, no show.

(6)                                  When an employee with
less than one (1) year’s service is laid off, such employee shall have recall
rights not to exceed one (1) year.

(7)                                  The Company will
inform the Union President and the employee three days prior to the event of a
layoff and/or recall to and from the street. 
An employee who is initially bumped will also  be notified three (3) days
in advance.

 

All employees with less than ninety (90) days of continuous service
shall be considered probationary employees, provided the probationary period
can be extended an additional 30 days by mutual agreement of the Company and
the Union.  After completion of the probationary
period, the employee’s record of continuous service will date back to the
original date of his employment.

 

20

 

Section
2.

 

A.                                   Seniority shall at
all times be recognized for the purposes of upgrading and layoff and recall
provided the employee possesses the necessary skill and ability to perform the
job in question.

 

B.                                     The lead position
committee for the specific department will review all bidders for leader
positions.  Bidders will be selected by  the
lead position committee based on their skill, knowledge, and abilities.  If all bidders are equally qualified, then
seniority shall prevail.  These criteria
will apply to any newly created lead positions. 
The lead position committee will be made up of two (2) union
representatives and two (2) management representatives.  The shop committee will determine the (2)
union representatives.  The person
selected for the lead position shall be by majority vote of the committee.

 

Section
3.                       Job
Openings and Upgrading Procedure

 

When the Company declares a job open there shall be shift preferences
right, which will operate within the department and classification, involved
before the open job is posted.

(1)                                  If no employee in the
plant has recall rights to the open job, it will be posted plant wide so that
any employee previously qualified on the job may bid before an employee laid
off from the Company who has rights to that job is recalled.  If no person on layoff fills the open job,
it will be posted plant wide so that any employee will have the chance to bid
before hiring from outside.  This is not
applicable to grades 10, 11, and 12.

 

(2)                                  In the event a junior
worker in a department is transferred to another shift and the transfer exceeds
forty-five (45) days, a bid for a shift preference must be posted when the
vacancy is filled.  If the transfer does
not exceed forty-five (45) days, the employee that was transferred will have to
return to the shift.

 

When a job is posted for bid, it shall remain on the bulletin board for
a period of four (4) working days including Saturdays and Sundays if a four
shift operation is instituted. 
Employees will also have the right to designate in advance with the
Company personnel office, their desire to upgrade to specific jobs.

 

A.                                   Any successful
applicant for a job who moves into a new department shall take all his
seniority into that department upon demonstrating sufficient skill and ability
to perform the job equal to the department average, not to exceed a period of
ninety (90) continuous days of work within the new department.  In the event of work force reduction,
probationary employees will be considered as without rights and will be laid
off prior to other employees in the department.  With respect to those employees who have less than ninety (90)
days in a department and are not probationary employees, Company seniority will
determine which employee will be affected in case of layoff.

 

21

 

B.                                     Any employee who
fails to meet job requirements on any job where he/she is a successful bidder
shall be returned to his/her former job, department, and shift.

 

C.                                     After any
upgrading or award of a bid, an employee will be restricted from bidding again
for another job for a period of nine (9) months.  The restriction will be waived in the event that an opening
occurs in maintenance or in the tool room for L.G. six and above.  If after bidding on a posted job an employee
is disqualified by the Company, he/she may bid on another posted job at any
time, provided all means for filling that job have been exhausted in
conformance with Article XII of the Agreement. 
After an employee has bid on a job he/she may disqualify him/herself on
that job at any time prior to the passage of twenty (20) consecutive working
days or the Company may disqualify him/her in a ninety (90) day period.

 

After an employee has been disqualified from a job by the Company, he
may bid on that job again after a one-year period; however, if he is again
disqualified from the job he/she will not be permitted to bid on it in the
future.  This restriction may be removed
if employee has successfully demonstrated improved skills.

 

D.                                    Downward moves will
only be permitted once a suitable replacement has been found, for up to a
maximum of one hundred twenty (120) days.

 

E.                                      Consistent with
the terms of this contract, an employee will have the right to move laterally
on an open job.

 

F.                                      The following
will prevail for employees who are successful bidders on open jobs but
circumstances prevent them from moving:

 

1.                                       If after two (2)
weeks from date of bidding the employee is still within department, he/she will
receive make up pay equal to his present step in the Labor Grade in which he
was the successful bidder.  Seniority
will commence in the new department at this time.

Note:  Incentive earnings for
assembly will not be calculated on the make up pay; overtime will not be paid
on make up pay, but will be paid on hours worked at straight time.

2.                                       Successful
bidders shall not be detained for any time in excess of six (6) weeks from
their bidding date unless approved by the employee.

3.                                       At the time of
the actual transfer the employee will automatically be placed at a rate on the
progression rate scale per company policy.  Ninety
(90) day Company qualification will begin upon actual transfer to position.

 

G.                                     If an opening
occurs within 120 days of the award of the bid, the next eligible bidder will
fill the position.  If there are no
eligible bidders, the job will be reposted before the Company may hire from the
outside.

 

22

 

Section 4.                       Lay Off and Recall

 

When an employee is laid off from his/her department and job
classification he shall have the option of retrograding in compliance with (B)
below or he/she may displace the least senior employee in his labor grade in
his unit.  If his seniority precludes
the displacement of any employee in his labor grade, he may bump the least
senior employee on a lower base rate job within the unit.

 

A.                                   When a move has been
effectuated under the seniority provisions of the contract, the affected
employee will be allowed to exercise a shift preference so long as it is
consistent with his seniority.

 

B.                                     In the event of a
lay-off, the affected employee will be given the opportunity, seniority
permitting, to retrograde into any job previously qualified on while in the
employee of the Company.  Retrograde may
mean upward, downward or lateral movement.

 

C.                                     After an employee
has exhausted all seniority moves under the provisions of the contract he will
be given the opportunity to bump a less senior employee in labor grade 6 and
below, provided he can perform that job proficiently within a three (3)  week
period.

 

D.                                    After an employee
has exhausted all seniority moves under the provisions of the contract, he will
be recalled to any job by seniority in Labor Grade 9 or below provided he hasn’t
waived his rights to that job and he will be given up to three weeks to
demonstrate proficiency on the job. 
This section is not applicable to maintenance and tool room jobs.

 

23

 

E.                                      When an employee
is laid off, he/she will be asked whether he/she will accept recall to any job
or just his/her own.  If the employee
waives recall to other jobs, he will be recalled only to his own job.  If the employee accepts recall to jobs other
than his own, he may not refuse those jobs when offered.  An employee, on layoff, may revise his/her
status concerning the job or jobs to which he/she’ll return by notifying the
Company in writing.  Such notification
may be made no more than twice a year during any given layoff.  Recall rights are for 30 months.

 

F.                                      If an employee is
recalled by the Company and subsequently disqualifies himself or is
disqualified by the Company, his subsequent placement will be in accordance
with Section 4, A, B, C, and D in the event of work force reduction,
probationary employees will be considered as without seniority rights and will
be laid off prior to any other employees in the department.

 

G.                                     When an employee
is laid off from his/her job and replaces an employee with less seniority in
another job, said employee will have the option of going back to his/her
original job or stay on present job after 90 days.

 

 

H.                                    When an employee with
less than one (1) year’s service is laid off, such employee shall have recall
rights not to exceed (1) year.

 

Section 5.

This Article does not limit or guarantee the number of hours to be
worked by any department or any employee. 
In the event of a curtailed workweek the days worked shall be
consecutive beginning on Monday except for off-standard work schedules.  If curtailment is necessary beyond four (4)
weeks, the Union may discuss alternatives with the Company.

 

Section 6.

Bulletin Boards shall be provided for all seniority lists and other
Union purposes as well.  It is
understood that the Union officers shall submit any document to be posted on
the bulletin boards to the appropriate representative of management for his
approval prior to posting.

 

Section 7.

It is understood that the following Union officers shall have top
seniority during their respective terms of office:

 

	
  1.

  	
   

  	
  President

  
	
  2.

  	
   

  	
  Vice President

  
	
  3.

  	
   

  	
  Financial Secretary

  
	
  4.

  	
   

  	
  Recording Secretary

  
	
  5.

  	
   

  	
  Bargaining Committee Members

  

 

This seniority shall be for the purpose of layoff and recall only.  The four top Union officers shall be
assigned to the first shift.

 

24

 

Section
8.

 

The committeeman on each shift shall hold top seniority on his respective
shift for the purpose of layoff and recall only.  This seniority shall not take precedence over the officers as
listed in Section 7.  This provision
protects Union officers from the vagaries of bumping/layoff during the terms of
office.  Therefore they are to remain on
the shift to which they are assigned until the abolition of that shift or upon
voluntary removal to another shift.  On
the other hand, this provision in no way permits a Union officer to use his
privileges for purposes of vacation or promotion preference, etc.  To allow the bumping of Union committeemen
or officers without respect to shift retention, it is technically possible to
have them all confined to one shift while the other shifts have no
representation.  This was never the intention,
since such an eventuality would leave Company-Union contracts in an unworkable
state.

 

Section
9.

 

It is understood that any employee promoted from the bargaining unit
will have 60 days to return with his accumulated seniority except for 30
days.  If the employee does not return
to the bargaining unit in that time, he will lose all his seniority and may
return thereafter only as a new employee. 
Any return to the bargaining unit must be to a posted job.  If there is not posted job, the affected
employee may bump the least senior employee whose job he can perform.  The job in question must be labor grade 7
and below.

 

Section 10.

 

Employees applying for jobs in Labor Grade 8 and above shall be
required to pass a job test in connection with job openings in such labor
grades.  The following procedure will
apply:

 

A.                                   The Company will
reimburse 100% of tuition for any required courses providing completion of
course with a grade “C” or at least a 72%.

 

B.                                     Testing will be
administered and evaluated by an independent agency.

 

C.                                     Openings will be
filled from within on a seniority basis providing applicants pass the test with
a grade “C” or at least a 72%.  If no
one qualifies, the Company may seek outside applicants.  A joint Union-Company trades committee will
be established to oversee the program.

 

D.                                    It is the policy of
the Company to encourage its employees to prepare themselves voluntarily for
increased responsibility by studying accredited semi-technical, and
professional subjects related to the Company’s business.  To aid the employee, the Company has
instituted a Tuition Refund Plan by which 75% of the tuition paid by each
employee will be refunded on approved and satisfactorily completed subjects.

 

E.                                      If an opening
occurs in the Tool room and it cannot be filled with a qualified employee
either in or out of the plant, the Company may establish a training program to
fill the job.

 

25

 

Section
11.

 

Shift preference may be exercised twice  per year, and an employee
must stay on the shift for six months after exercising this right.  It is the obligation of the employee to
notify the Company two weeks in advance if he wishes a shift preference, and
transfers will occur only on a Monday, unless otherwise agreed to.  In exercising the shift preference, the
employee will bump the last senior employee in the same job on the shift he
desires to transfer to provided his seniority is greater.  The displaced employee will then bump the
least senior employee in the same job on the next shift of priority, provided
his seniority is greater.

 

26

 

Article XIII

 

Settlement of
Differences

Section 1.

 

A grievance shall be defined as any dispute which arises between the
Company and the Union over the compliance with or application of this Agreement
as it pertains to any bargaining unit employee, and all such differences shall
be settled in the following manner.

 

Step
I.                                      The
employee shall first attempt to resolve any grievance dispute with his/her
immediate supervisor.  The employee may
request to have his/her committee-person present when he/she talks with the
supervisor.  If the dispute is not
settled in accordance with an oral discussion between the supervisor, the
employee and/or the committeeman, then the dispute must be reduced to written
grievance and submitted to the Supervisor or his/her designee  within
five (5) working days from the date of the initial discussion with the
supervisor.  The supervisor will provide
written response within (5) working days upon receipt of the written
grievance.  If the dispute still remains
unsettled, it will be submitted to Step II.

 

Step
II.                                  Within
five (5) working days from the date of receipt of a written grievance by the  Human
Resources Manager, it shall be heard by the Step II committee.  The Step II Committee  shall consist of two
representatives of management and two representatives of the local Union and
the Grievant.  If the parties
cannot conduct a Step II hearing within five (5) working days from the date of
receipt ofthe  written grievance, the parties, by mutual agreement, may
extend the time limit.  If
the grievance in Step II is not heard within the five (5) working days time
limit or the extended time agreed upon by the parties, it will be placed
immediately on the Third Step Agenda.  If the dispute still remains unsettled  after
the Step II hearing, it will be placed on a Third Step Agenda
within five (5) working days following the hearing in Step II.

 

27

 

Step
III.                              The
Union must schedule the Step III meeting within five (5) working days.  If the grievance in Step III is not
scheduled within the five (5) working day limit or extended by mutual agreement
it will be dropped by the Union.  The
Step III committee shall hear all cases which have been unresolved in Step II.
The Step III committee  shall consist of two representatives of
management and the President, Vice President, Financial Secretary and Recording
Secretary of the local Union.  In
addition, the General Manger and a representative of the International Union
may sit in on any third step hearing. 
The Company shall present its Step III response within five (5) working
days of the third step hearing. In the event that the dispute is not resolved
in the third step, the Union may file the said difference for arbitration
within ten (10) working days after the date of the third step response. If the
union does not request arbitration within the ten (10) working day period, the
grievance shall be dropped by the Union. 
But the said ten (10) working days may be waived by mutual agreement in
writing  between
the Union and the Company so as to further discuss the subject of the dispute
under the cooperative management clause of this Agreement.

 

The parties by mutual agreement may submit any grievance to non-binding
mediation before a mediator assigned by the Federal Mediation and Conciliation
Service without waving the right of the Company or the Union to submit the
grievance to binding arbitration in the event non-binding mediation does not
resolve the grievance.

 

Section 2.

If a grievance hereunder is referred to arbitration, the parties will
use the arbitration procedures of the Federal Mediation and Conciliation  Service.  The parties will alternate as to which party
will strike its first name in an arbitration panel.  If a grievance is submitted to arbitration, the decision of the
arbitrator shall be final and binding on both parties and any costs with
respect to said arbitration shall be borne equally between the parties.  The cost of the court reporter and
transcript shall borne by the requesting party(ies).

 

Section 3.

No issue in dispute under this Labor Agreement shall be arbitrable
unless the said issue involves the meaning, application of, or compliance with
a specific provision of this Agreement or the intent thereof and  unless
the grievance has been timely filed. 
The arbitrator shall not add to, subtract from, or modify any of the
provisions of this Agreement, and shall not reverse management’s decision in
cases involving discipline or discharge except when, in the judgment of the
arbitrator, management has acted without just cause.  The arbitrator’s award shall in no case be retroactive beyond 30
days prior to the filing of the written grievance which constituted the issue
in question.

 

Section 4.

All grievances must be filed within five (5) working days from the date
of its known occurrence.  In no case,
however, shall the Company’s liability for retroactive pay exceed a period of thirty
(30) days prior to the date on which the grievance is filed.  Grievances not so filed shall be deemed to
have been waived and shall not be raised thereafter.  Grievances resolved in either Step I, II, or III above shall be
considered satisfactorily settled, closed on the record, and shall not be
reopened.

 

28

 

Section 5.

Grievances that shall arise between the Union and the Company
concerning employee discipline shall have priority over all other cases under
this Article XIII of the Labor Agreement.

 

29

 

Article XIV

 

Wages and Rates of
Pay

Section 1.

 

Wage rates for Tier I employees are listed in Appendix A.

Tier I rates apply to employees hired before August 10, 2002.

 

Wage rates for Tier II employees are listed in Appendix B.

Tier II rates apply to employees hired August 10, 2002 and after.

 

Section 2.

 

New employees without previous experience will be hired at the
appropriate rate as shown on the progression rate scales outlined in Appendix
“B” of this Agreement.

 

The first step of the four steps on the Progression Scale will not
apply to employees bidding to another labor grade.

 

The four-step Progression Scale will only apply to new employees hired
after July 22, 1978

 

Section 3.

Employees who have some experience will be placed at a rate on the
progression rate scale commensurate with their experience and ability to
perform the job between the minimum hiring rate for the labor grade up to and
including the full job rate if the employee is fully qualified.  In no case shall any employee receive less
than his present rate when he is accepted for training on another job provided
the move is lateral or up.

 

30

 

Section 4.

Any employee on a progression rate shall be reviewed periodically and
appropriate adjustments shall be made on the basis of the review period until
the employee reaches the full rate of the job. 
Employees in all labor grades shall be reviewed a minimum of every
thirty- (30) days and progressive adjustments will be granted provided the
employee demonstrates appropriate progression in skill, ability and performance
on the job.

 

Section 5.

Employees working on a scheduled second shift shall be paid a night
shift premium of $.25 per hour. 
Employees working on a scheduled third shift shall be paid a night shift
premium of $0.27 per hour.  Employees
assigned to one shift shall not receive a premium applicable to another shift
for any reason.

 

Section 6.

Any employee on transfer to another job shall be paid the rate of
his/her job or the rate of the job to which he/she is transferred, whichever is
higher.  An incentive employee will be
paid five (5) labor grades higher than his/her base rate in those cases where
the job to which he/she is transferred causes a loss of earnings.  Temporary transfers will not exceed ninety
(90) days in a year unless otherwise agreed to.  If a transfer exceeds ninety (90) days, the job will be
posted.  The Company may temporarily
transfer an incentive employee to another job based on skill and ability in
cases of absence and vacation and to expedite work.  If the transferred employee is the non-junior employee, the
employee will be paid average hourly earnings up to 120% of base rate.  If the transfer exceeds 30 continuous days,
then the employee will be paid average his/her hourly earnings thereafter.  In addition, the Company may temporarily transfer
an employee to another department to train another employee, in which case the
transferred employee will be paid average earned rate from the last full week
worked.

 

Section 7.

Effective immediately, employees operating on machine-controlled
incentive standards who are training new operators will be paid three (3) labor
grades higher than their present classifications.      Training will be conducted
in accordance with the Company’s Training Plan.  Training time will be considered as time spent with a new
operator. When assembly operators train other employees they will be paid the top
step of labor grade 4.

 

31

 

Article XV

 

Insurance, Benefits,
Pensions and 401(k) Plan

 

Section 1.

Pension, 401(k) plan, health, and dental insurance benefits are set
forth in documents that are separate and apart from this contract booklet.

 

Section 2.

First tier employees (hired before 8/10/2002) coverage will pay $14.00
per week in health insurance premium payments  during the first year of
this contract (8/10/2002 – 6/30/2003); $14.00 per week during the second year
of this contract (7/1/2003 – 6/30/2004) plus 50% of any premium increase up to
a maximum of $10.00.

 

Second tier employees (hired after 8/10/2002) coverage will pay $20.00
per week in health insurance premium payments  during the first year of this
contract (8/10/2002 – 6/30/2003); $20.00 per week during the second year of
this contract (7/1/2003 – 6/30/2004) plus 50% of any premium increase up to a
maximum of $10.00.

 

First tier employees (hired on or before 8/10/2002) who elect dental
coverage will pay $2.00 per week in premium payments during the first year of
this contract (8/10/02002 – 6/30/2003); $2.25 per week during the second year
of this contract (7/1/2003 – 6/30/2004).

 

Second tier employees (hired on or before 8/10/2002) who elect dental
coverage will pay $5.00 per week in premium payments during the first year of
this contract (8/10/2002 – 6/30/2003); $6.00 per week during the second year of
this contract (7/1/2003 – 6/30/2004).

 

Section 3.

All Employees who are covered under their spouse’s medical insurance
policy and who opt out of coverage under the Company’s medical insurance policy
will be paid $100.00 monthly for single (spouse covered under separate policy
provided by spouse’s employer) and $200.00 monthly for family coverage.  Employees who opt out of coverage under the
Company’s policy must provide evidence of medical insurance under another
insurance policy.

 

Section 4.

With respect to pension service credits, all active employment time
accrued prior to the acquisition of the Bremen Bearing Company by RBC, Inc.
shall be counted as years of service for pension eligibility purposes.

 

Section 5.

The Company will pay the cost of Medicare supplemental insurance
premiums, up to $100.00 monthly for employees retiring during the term of this
agreement.

 

32

 

Section 6.

The pension payment for employees (hired before 8/10/2002) shall be
$28.75 per month per year of service for employees who retire after June 30,
2002.  The payment shall increase
another $.25 (from 28.75 to 29.00) per month per month per year of service for
employees who retire after June 30 2003.

 

Effective January 1, 2003, all second tier bargaining unit employees
with six full months of service shall be eligible to participate in the (401)k
plan provided by RBC Corporation (hereafter the “RBC 401k Plan”) subject to all
the terms and conditions of that plan. 
The RBC 401k plan may be changed from time to time, consistent with
corporate-wide changes made to the RBC 401(k) plan, without further
consultation or bargaining with the Union, provided that the Union is given
notice of such changes at least four (4) weeks in advance of such changes.  The employee may contribute 1% to 15% of his/her
salary pretax. The Company will make a 50% matching contribution of the pretax
amount of the employee’s contribution up to a maximum of 5%.  The employee’s contribution shall be 100%
vested immediately, and the Company’s contributions shall be vested 100% after
three (3) vesting years.

 

Section 7.

Weekly accident and health benefit will be $240  from Aug 10, 2002 to July
31, 2003; $250 from Aug. 1, 2003 to July 31, 2004.

 

Section 8.

The amount of group life and accidental death and dismemberment
insurance for active first tier employees (hired before 8/10/02) will be
$10,000.  Second tier life insurance
will be $8,000.  Life and accidental
death and dismemberment insurance for active employees age 66 or over will be
$6,500.  Life insurance is continued
upon retirement under the Pension Plan  but is reduced to $1,800 upon attainment
of age 66, $1,600 upon attainment of age 67, and $1,500 upon attainment of age
68 and thereafter.

 

Section 9. 
Payroll deductions

The Company agrees to make weekly payroll deductions to up to three
accounts.  The Company assumes no
obligation other than three deductions per employee, per payroll period.

 

Section 10. 
Eye Exam

Approved safety glasses must be worn by all employees in the
manufacturing operation.  The Company
will provide safety glasses as described below.

 

The Company will provide annual eye exams for the employees in jobs
where accurate vision is a requirement, such as Inspectors.  Eye exams will also be provided where the
employee is not covered under the Company provided or another insurance policy.

 

The Company will schedule annual visual exams as follows:

•                  Full exams when
an employee starts in Inspection and every two years thereafter,

•                  Progressive
exams the year between full exams

 

33

 

The Company will pay for the following:

•                  One pair of
approved safety glasses (frames and lenses), every 24 months for employees
requiring prescription glasses.

•                  Replacement
lenses every 12 months if eye exam warrants the corrected lenses.

 

Non-prescription safety glasses are issued to employees by the
supervisor.  Damaged glasses should be
returned to the supervisor to receive a replacement.

 

Section 11. 
Miscellaneous

The Company will supply coveralls for use by the maintenance
department.

 

34

 

Article XVI

 

Jury Duty, Bereavement and Military Reserve Pay

 

Section 1.  Jury Duty Pay.

Any employee who is called for Jury Duty service shall be excused from
work for the days on which he serves. 
He shall receive for each such day of jury service on which he otherwise
would have worked, the difference between eight (8) hours of pay at his/her
assigned base rate and the payment he/she receives for jury service.  The employee will present proof of service
and the amount of pay received therefore.

 

Section 2.  Bereavement Pay.

Employees will be paid by the Company for time lost due to death in the
immediate family.  Such pay to be no
more than their assigned rate for a period not in access of three (3) work
days.  Immediate family includes mother,
father of employee, husband or wife, children, brother or sister,
mother-in-law, father-in-law, grandchildren, stepchildren, stepparents,
grandparents, son-in-law and daughter-in-law. The three days allowed must be
taken.  In other words, no pay can be
taken in lieu of the time allowed off. 
If a person decides they only want one or two days off and wishes to
work, this is his/her option.  The days
off must be consecutive and only at the time of the funeral.  The employee cannot take one day at the time
of the funeral and two days two months later for the same bereavement.  In case the three days include Saturday and
Sunday, the employee will not lose two paid days, but will take two additional
days for Saturday and Sunday.  For
example, the employee would take off Friday, Monday and Tuesday with pay.  If the bereavement occurs during the
employee’s vacation, the three days allowed should be taken immediately after
the termination of the vacation time. 
The vacation time does not count against the three days allowed.  If a holiday falls on one of the three days
allowed, an extra day can be taken with pay.

 

Employees will be allowed one day off with no pay due to the death of a
spouse’s grandparents.

 

Section 3.  Military Reserve Training Pay

An active employee who is required to attend Military Reserve Training
Encampment will receive the difference in pay between his assigned base rate
and payment received for his military service. 
Payment hereunder shall be based on proof of service and shall not
exceed a period of eighty (80) hours.

 

35

 

Article XVII

 

Safety and Health

 

Section 1.

The Company as prescribed under the Laws of the State of Indiana and
the United States shall provide heating, lighting, toilet, locker, and sanitary
facilities and all protective devices necessary to protect the health of
employees.  The Union will at all times
cooperate with and assist the Company in maintaining and improving safety and
health conditions in the plant.

 

Section 2.

The Company will make every effort to avoid scheduling only one
employee per shift.

 

Section 3.

The Company has the right to conduct Drug & Alcohol testing for
cause and reasonable suspicion in accordance with the Company’s drug and
alcohol policy, attached as Appendix D. 
Positive test results will result in disciplinary action up to and
including termination.

 

36

 

Article XVIII

 

Plant Rules
& Disciplinary Action

 

Section 1.

The Company shall have the right to issue rules and reasonable
regulations from time to time governing the conduct of employees in the
workforce, and it is the duty of each employee to familiarize himself/herself
with such rules and regulations and to comply herewith.  This does not constitute acceptance by the
Union of any specific rules not in compliance with the provisions of this
Agreement.

 

The union reserves the right to grieve the rule.

 

Section 2.

Disciplinary action will be conducted as follows:

 

	
  Step 1.

  	
   

  	
  Verbal warning

  	
   

  	
  Step 3. Suspension 1-5 days

  
	
  Step 2.

  	
   

  	
  Written warning

  	
   

  	
  Step 4. Termination

  

 

Steps may be skipped due to the seriousness of the event up to an
including immediate termination.  All
steps will be documented and remain in employee’s file.  However, actions will become inactive as
follows (providing no other disciplinary action is taken):

 

	
  Step 1

  	
   

  	
  6 months

  	
   

  	
  Step 3

  	
   

  	
  12 months

  
	
  Step 2

  	
   

  	
  12 months

  	
   

  	
  Step 4

  	
   

  	
  Will not be removed

  

 

Management has the right to administer disciplinary action in
accordance with company policy.

 

37

 

Article XIX

 

Leave of Absence

 

Section 1.

A.                                   Employees who are to
be absent for more than five working days for personal illness or physical
disability and who have acquired one (1) year of service with the Company, will
be granted a leave of absence up to one (1) year.  Employees with sixty days seniority, but less than once (1) year
of service will be granted a leave of absence for the period equal to their
length of service.  Leaves of absence
will only be granted upon written request and when accompanied by a physicians
statement justifying the reason.  Such
leaves will be granted without pay except seniority will accumulate for the
duration of the leave.

 

Requests for personal leaves of unusual reasons may be made through the
Human Resources Manager.  Such leaves,
if granted, shall not be in excess of two weeks.  Paid time available, such as vacation, may be used at the
employee’s request.

 

B.                                     Employees applying
for a medical leave of absence or returning from a leave of absence may be
subject to a medical examination and approval by a Company appointed physician.

 

C.                                     An employee with a
physician’s statement must renew medical certification every thirty–(30) days.

 

D.                                    Family Medical
Leave Act

                                                Time
off for medical leaves of absences will run concurrently with Family Medical
Leave (FML) if the employee is eligible under the provisions of Family Medical
Leave Act (FMLA).  The Company will
administer FML with a 12-month rolling period. 
Paid time available, such as vacation, may be used at the employee’s
request. Required documentation must be completed as required by the Act.

 

Section 2.

Any employee who is elected or appointed to a position with the
International Union (UAW) will be granted a leave of absence for the duration
of his assignment upon written request by the International Union.  Seniority will accumulate during such leave
but without pay or other benefits except for pension purposes.

 

Section 3.

A.                                   Failure to report to
work within five days after the expiration of a leave of absence or extension
thereof shall constitute a voluntary resignation

 

38

 

B.                                     Employees
returning to work after a leave of absence will be placed on the same job held
at the beginning of the leave based on their seniority and provided they are
able to perform the full job requirements.

 

Section 4.

A.                                   Any employee who has
been granted a leave of absence and who while on leave of absence, seeks or
accepts other employment or who engages in any business or occupation shall be
considered as having voluntarily quit. 
Exceptions to this Section may be made by mutual agreement.

 

Section 5.  Other Leave of Absences

Other leave of absences include illness or injury of a family member
that may be eligible under FMLA, military duty, jury duty, bereavement, and
personal leave.  Proper documentation
and approval is needed as required by the Company.  Paid time available, such as vacation, may be used at the
employee’s request.

 

Section 6.  Payment of Insurance Premiums during Leave of
Absences

Employees will be required to pay their share of insurance premiums,
and may elect to pay them in two different ways.

1.                                       Employee may
elect to pay by the 25th of the month while they are out on leave of
absence; or

2.                                       Employee may
designate payment upon return to work on a basis of 1.5 times regular weekly
premium until the premiums are recouped.

 

39

 

Article XX

 

Amendments and Modifications

 

Section 1.

Neither party shall be obligated to negotiate further on any matter
during such term.  This Agreement may,
however, be modified by mutual agreement of the parties, provided that all such
modifications are in writing and properly executed.  This Agreement supersedes and voids all prior agreements, if any,
written or oral, or established by custom, practice, or precedent.  In the event of the provisions of this
Agreement shall become invalid or unenforceable by reason of any federal or
state law or executive order now existing or hereafter enacted, such invalidity
or unenforceability shall not have any effect on the remaining provisions of
this Agreement.

 

Section 2.

No amendments or modifications of this Agreement shall be valid except
when committed to writing and signed by the authorized representatives of both
parties.  The authorized representatives
of the Union shall include the duly authorized representatives of the
International Union and the duly authorized representatives of the Local Union
No. 1368.

 

40

 

Article XXI

 

Termination and Notice

 

Section 1.

This agreement between the parties shall remain in force for the period
commencing on August 10, 2002 and ending 12:00 midnight on August 9, 2004.  It shall automatically renew itself from
year to year thereafter unless written notices of the desire to terminate or
amend any portion of any of the terms hereof is given by either party to the
other, at least sixty (60) days prior to August 9, 2004, or in the event this
Agreement is renewed such notice shall then be given at least sixty (60) days
prior to any subsequent annual expiration date.

 

If notice of the desire to terminate or amend shall be given, as
provided in the preceding paragraph, negotiations for the new or amended
Agreement shall being not later than ten (10) days subsequent to such notice,
and shall continue until agreement has been reached; and during such
negotiations this Agreement shall remain in full force and effective provided,
however, that if negotiations continue beyond the terminal date of this
Agreement, either party then terminate this Agreement upon ten (10) days
written notice to the other party.

 

41

 

	
  Appendix “A”

  	
   

  
	
  Rates
  of Pay Effective

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  8/10/2002

  	
   

  
	
  Employees Hired Before
  August 10, 2002

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Labor

  Position

  	
   

  	
  Training

  Level 1

  	
   

  	
  Training

  Level 2

  	
   

  	
  Training

  Level 3

  	
   

  	
  Training

  Level 4

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Assembly LG 1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  12.82

  	
   

  	
  12.97

  	
   

  
	
  Inspection LG 2

  	
   

  	
   

  	
   

  	
  12.85

  	
   

  	
  12.95

  	
   

  	
  13.10

  	
   

  
	
  Shift
  Helper/Sorter  LG 3

  	
   

  	
  12.96

  	
   

  	
  13.06

  	
   

  	
  13.16

  	
   

  	
  13.31

  	
   

  
	
  Shipping/Receiving  LG 4

  	
   

  	
  13.07

  	
   

  	
  13.17

  	
   

  	
  13.27

  	
   

  	
  13.42

  	
   

  
	
  Assembly Leader  LG 6

  	
   

  	
  13.32

  	
   

  	
  13.42

  	
   

  	
  13.52

  	
   

  	
  13.67

  	
   

  
	
  Quality Assurance  LG 6

  	
   

  	
  13.32

  	
   

  	
  13.42

  	
   

  	
  13.52

  	
   

  	
  13.67

  	
   

  
	
  Production
  Attendant  LG6

  	
   

  	
  13.32

  	
   

  	
  13.42

  	
   

  	
  13.52

  	
   

  	
  13.67

  	
   

  
	
  Quality Assurance
  Lead  LG 8

  	
   

  	
  17.42

  	
   

  	
  17.55

  	
   

  	
  17.68

  	
   

  	
  17.87

  	
   

  
	
  Shipping Lead  LG 8

  	
   

  	
  17.42

  	
   

  	
  17.55

  	
   

  	
  17.68

  	
   

  	
  17.87

  	
   

  
	
  Cell Operator  LG 8

  	
   

  	
  17.42

  	
   

  	
  17.55

  	
   

  	
  17.68

  	
   

  	
  17.87

  	
   

  
	
  Storeroom Lead  LG 9

  	
   

  	
  17.51

  	
   

  	
  17.64

  	
   

  	
  17.77

  	
   

  	
  17.97

  	
   

  
	
  Maintenance
  Apprentice  LG 10

  	
   

  	
  17.63

  	
   

  	
  17.76

  	
   

  	
  17.89

  	
   

  	
  18.08

  	
   

  
	
  Maintenance  LG 10

  	
   

  	
  17.63

  	
   

  	
  17.76

  	
   

  	
  17.89

  	
   

  	
  18.08

  	
   

  
	
  Tool Room  LG 12

  	
   

  	
  17.84

  	
   

  	
  17.97

  	
   

  	
  18.10

  	
   

  	
  18.29

  	
   

  
	
  Skilled Trades Master
  Mechanic

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  20.65

  	
   

  
	
  Team Leader

  	
   

  	
  20.53

  	
   

  	
  20.68

  	
   

  	
  20.83

  	
   

  	
  21.05

  	
   

  

 

 

	
  Appendix “A”

  	
   

  
	
  Rates of Pay Effective

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  8/10/2003

  	
   

  
	
  Employees Hired Before
  August 10, 2002

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Labor

  Position

  	
   

  	
  Training

  Level 1

  	
   

  	
  Training

  Level 2

  	
   

  	
  Training

  Level 3

  	
   

  	
  Training

  Level 4

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Assembly LG 1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  13.17

  	
   

  	
  13.32

  	
   

  
	
  Inspection  LG 2

  	
   

  	
   

  	
   

  	
  13.20

  	
   

  	
  13.30

  	
   

  	
  13.45

  	
   

  
	
  Shift
  Helper/Sorter  LG 3

  	
   

  	
  13.31

  	
   

  	
  13.41

  	
   

  	
  13.51

  	
   

  	
  13.66

  	
   

  
	
  Shipping/Receiving  LG 4

  	
   

  	
  13.42

  	
   

  	
  13.52

  	
   

  	
  13.62

  	
   

  	
  13.77

  	
   

  
	
  Assembly Leader  LG 6

  	
   

  	
  13.67

  	
   

  	
  13.77

  	
   

  	
  13.87

  	
   

  	
  14.02

  	
   

  
	
  Quality Assurance  LG 6

  	
   

  	
  13.67

  	
   

  	
  13.77

  	
   

  	
  13.87

  	
   

  	
  14.02

  	
   

  
	
  Production
  Attendant  LG 6

  	
   

  	
  13.67

  	
   

  	
  13.77

  	
   

  	
  13.87

  	
   

  	
  14.02

  	
   

  
	
  Quality Assurance
  Lead  LG 8

  	
   

  	
  17.77

  	
   

  	
  17.90

  	
   

  	
  18.03

  	
   

  	
  18.22

  	
   

  
	
  Shipping Lead  LG 8

  	
   

  	
  17.77

  	
   

  	
  17.90

  	
   

  	
  18.03

  	
   

  	
  18.22

  	
   

  
	
  Cell Operator  LG 8

  	
   

  	
  17.77

  	
   

  	
  17.90

  	
   

  	
  18.03

  	
   

  	
  18.22

  	
   

  
	
  Storeroom Lead  LG 9

  	
   

  	
  17.86

  	
   

  	
  17.99

  	
   

  	
  18.12

  	
   

  	
  18.32

  	
   

  
	
  Maintenance
  Apprentice  LG 10

  	
   

  	
  17.98

  	
   

  	
  18.11

  	
   

  	
  18.24

  	
   

  	
  18.43

  	
   

  
	
  Maintenance  LG 10

  	
   

  	
  17.98

  	
   

  	
  18.11

  	
   

  	
  18.24

  	
   

  	
  18.43

  	
   

  
	
  Tool Room  LG 12

  	
   

  	
  18.19

  	
   

  	
  18.32

  	
   

  	
  18.45

  	
   

  	
  18.64

  	
   

  
	
  Skilled Trades Master
  Mechanic

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  21.00

  	
   

  
	
  Team Leader

  	
   

  	
  20.88

  	
   

  	
  21.03

  	
   

  	
  21.18

  	
   

  	
  21.40

  	
   

  

 

42

 

	
  Appendix “B”

  	
   

  
	
  Rates of Pay Effective

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  8/10/2002

  	
   

  
	
  Employees Hired After
  August 10, 2002

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Labor

  Position

  	
   

  	
  Training

  Level 1

  	
   

  	
  Training

  Level 2

  	
   

  	
  Training

  Level 3

  	
   

  	
  Training

  Level 4

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Assembly LG 1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  9.82

  	
   

  	
  9.97

  	
   

  
	
  Inspection LG 2

  	
   

  	
   

  	
   

  	
  9.85

  	
   

  	
  9.95

  	
   

  	
  10.10

  	
   

  
	
  Shift Helper/Sorter  LG 3

  	
   

  	
  9.96

  	
   

  	
  10.06

  	
   

  	
  10.16

  	
   

  	
  10.31

  	
   

  
	
  Shipping/Receiving  LG 4

  	
   

  	
  10.07

  	
   

  	
  10.17

  	
   

  	
  10.27

  	
   

  	
  10.42

  	
   

  
	
  Assembly Leader  LG 6

  	
   

  	
  10.32

  	
   

  	
  10.42

  	
   

  	
  10.52

  	
   

  	
  10.67

  	
   

  
	
  Quality Assurance  LG 6

  	
   

  	
  10.32

  	
   

  	
  10.42

  	
   

  	
  10.52

  	
   

  	
  10.67

  	
   

  
	
  Production
  Attendant  LG 6

  	
   

  	
  10.32

  	
   

  	
  10.42

  	
   

  	
  10.52

  	
   

  	
  10.67

  	
   

  
	
  Quality Assurance
  Lead  LG 8

  	
   

  	
  13.52

  	
   

  	
  13.65

  	
   

  	
  13.78

  	
   

  	
  13.97

  	
   

  
	
  Shipping Lead  LG 8

  	
   

  	
  13.52

  	
   

  	
  13.65

  	
   

  	
  13.78

  	
   

  	
  13.97

  	
   

  
	
  Cell Operator  LG 8

  	
   

  	
  13.52

  	
   

  	
  13.65

  	
   

  	
  13.78

  	
   

  	
  13.97

  	
   

  
	
  Storeroom Lead  LG 9

  	
   

  	
  13.61

  	
   

  	
  13.74

  	
   

  	
  13.87

  	
   

  	
  14.07

  	
   

  
	
  Maintenance
  Apprentice  LG 10

  	
   

  	
  13.73

  	
   

  	
  13.86

  	
   

  	
  13.99

  	
   

  	
  14.18

  	
   

  
	
  Maintenance  LG 10

  	
   

  	
  13.73

  	
   

  	
  13.86

  	
   

  	
  13.99

  	
   

  	
  14.18

  	
   

  
	
  Tool Room  LG 12

  	
   

  	
  13.94

  	
   

  	
  14.07

  	
   

  	
  14.20

  	
   

  	
  14.39

  	
   

  
	
  Skilled Trades Master
  Mechanic

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  17.65

  	
   

  
	
  Team Leader

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Appendix “B”

  	
   

  
	
  Rates of Pay Effective

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  8/10/2003

  	
   

  
	
  Employees Hired After
  August 10, 2002

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Labor

  Position

  	
   

  	
  Training

  Level 1

  	
   

  	
  Training

  Level 2

  	
   

  	
  Training

  Level 3

  	
   

  	
  Training

  Level 4

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Assembly LG 1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  10.17

  	
   

  	
  10.32

  	
   

  
	
  Inspection  LG 2

  	
   

  	
   

  	
   

  	
  10.20

  	
   

  	
  10.30

  	
   

  	
  10.45

  	
   

  
	
  Shift
  Helper/Sorter  LG 3

  	
   

  	
  10.31

  	
   

  	
  10.41

  	
   

  	
  10.51

  	
   

  	
  10.66

  	
   

  
	
  Shipping/Receiving  LG 4

  	
   

  	
  10.42

  	
   

  	
  10.52

  	
   

  	
  10.62

  	
   

  	
  10.77

  	
   

  
	
  Assembly Leader  LG 6

  	
   

  	
  10.67

  	
   

  	
  10.77

  	
   

  	
  10.87

  	
   

  	
  11.02

  	
   

  
	
  Quality Assurance  LG 6

  	
   

  	
  10.67

  	
   

  	
  10.77

  	
   

  	
  10.87

  	
   

  	
  11.02

  	
   

  
	
  Production
  Attendant  LG 6

  	
   

  	
  10.67

  	
   

  	
  10.77

  	
   

  	
  10.87

  	
   

  	
  11.02

  	
   

  
	
  Quality Assurance
  Lead  LG 8

  	
   

  	
  13.87

  	
   

  	
  14.00

  	
   

  	
  14.13

  	
   

  	
  14.32

  	
   

  
	
  Shipping Lead  LG 8

  	
   

  	
  13.87

  	
   

  	
  14.00

  	
   

  	
  14.13

  	
   

  	
  14.32

  	
   

  
	
  Cell Operator  LG 8

  	
   

  	
  13.87

  	
   

  	
  14.00

  	
   

  	
  14.13

  	
   

  	
  14.32

  	
   

  
	
  Storeroom Lead  LG 9

  	
   

  	
  13.96

  	
   

  	
  14.09

  	
   

  	
  14.22

  	
   

  	
  14.42

  	
   

  
	
  Maintenance
  Apprentice  LG 10

  	
   

  	
  14.08

  	
   

  	
  14.21

  	
   

  	
  14.34

  	
   

  	
  14.53

  	
   

  
	
  Maintenance  LG 10

  	
   

  	
  14.08

  	
   

  	
  14.21

  	
   

  	
  14.34

  	
   

  	
  14.53

  	
   

  
	
  Tool Room  LG 12

  	
   

  	
  14.29

  	
   

  	
  14.42

  	
   

  	
  14.55

  	
   

  	
  14.74

  	
   

  
	
  Skilled Trades Master
  Mechanic

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Team Leader

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

43

 

APPENDIX
“D”

 

STATEMENT OF COOPERATION

 

ALCOHOL AND DRUG ABUSE

 

Both the Company and Union express their collective determination to
deal effectively and constructively with the problem of alcohol and drug abuse
among the Bargaining Unit employees. 
The Company and Union recognize that excessive use of alcohol or drugs
by employees impairs their ability to function in an effective and safe manner
and contributes to increased absenteeism, tardiness, and potential safety
problems.  Further, that use of either
on the premises or reporting to work in an intoxicated state is in violation of
the plant work and safety rules.  Both
the Company and Union agree that a joint effort by both parties will be
extended to help Bargaining Unit employees afflicted and develop a system for
early identification and detection. 
Thereafter, arrangements will be made to refer afflicted employees for
proper treatment and appropriate follow-ups.

 

Both the Company and Union agree that neither the Management nor Union
officials are always able to provide the level of motivation required by an
employee affiliated by either alcohol or drug dependency.

 

As a result, both parties recognize that mutual cooperation is
necessary to encourage each afflicted employee to recognize his or her problem
and seek professional treatment.  And
further to adopt the personal conviction to respond to treatment and to
maintain a resolve to avoid future alcohol and drug abuse after completing a
recognized program of treatment.

 

Both the Company and Union agree to implement the program stated above
with the Alcohol and Drug Abuse Committee, and will work cooperatively outside
of the grievance procedure of the contract on these problems.  The responsibilities of this Committee will
be as follows.

 

1.                                       To
assure any afflicted employee that discussions that take place will be held in
the strictest of confidence.

 

2.                                       To communicate
to all employees that they may consult on a confidential basis with plant
medical personnel, or an outside qualified facility or agency, concerning their
problem without fear or disciplinary action being based on such a discussion or
program of treatment being initiated.

 

3.                                       To attend such
meetings and seminars to evaluate and determine the appropriateness of programs
or treatment offered by various community agencies, as well as establish
programs for educational and informational use by both Union members and
Management at a plant level.

 

44

 

Both the Company and Union agree that nothing contained herein is to be
construed or constitute any waiver of the Management’s right to maintain or
invoke discipline in such cases of misconduct which may result from, or be
associated with, the use of alcohol or drugs at Union reserves the right to
exercise its rights to process any grievances concerning such matters as may be
permitted in accordance with the contract.

 

During the following initiation of a program of treatment, an afflicted
employee shall not receive nor expect any special privileges or exemptions from
all of the conditions required of employees of the Company.

 

Both the Company and Union will encourage employees with either of the
problems described above to voluntarily participate without the necessity of
disciplinary action being taken.

 

When a leave of absence is necessary so that an afflicted employee may
undergo treatment for either alcoholism or drug dependency from a recognized
program, provided the employee has voluntarily submitted for such treatment,
they will be granted such a leave of absence and will be eligible to receive
the benefits provided in accordance with the contract during said leave.  An employee may be granted only one such
leave under these provisions, except that an additional leave may be granted
only with prior approval of the Alcohol and Drug Abuse Committee.

 

The Alcohol and Drug Abuse Committee shall consist of two (2) members
from the Management and two (2) members appointed by the Union and, should the
performance of their duties require that time be spent during regularly
scheduled working hours, the Union Committee Member will be paid his/her
regular rate of pay up to a maximum of four (4) hours per month.  Any time spent at furthering the objectives
of this program or attending seminars offered by various community agencies
with respect to alcoholism or drug abuse outside the Committee Member’s
regularly scheduled working hours shall not be compensated.

 

Prior to attending any outside community or professional programs which
will necessitate the absence of the Union committee member during his/her
regularly scheduled hours, permission to do so must be obtained from the Human
Resources Manager.

 

45

 

8/10/02

Alcohol & Drug
Policy

 

POLICY STATEMENT

It is the policy of our Company to create a drug-free, alcohol-free
workplace in accordance with the statement of cooperation for Alcohol and Drug
Abuse.  The use of controlled substances
and/or alcohol in the workplace or working under the influences of alcohol or
controlled substances is inconsistent with the behavior expected of employees,
subjects all employees and visitors to our facilities to unacceptable safety
risks, and undermines the Company’s ability to operate effectively and
efficiently.  The manufacture,
distribution, possession, sale, or use of a controlled substance or alcohol in
the workplace or while engaged in company business off our premises is strictly
prohibited and will lead to disciplinary action up to and including
termination.  Use of drugs or alcohol is
also prohibited during nonworking time to the extend that it impairs an
employee’s ability to perform on the job.

 

PROCEDURE

1.                                       Employees will
be required to submit to a drug/alcohol test under the following circumstances:

 

A.                                   Post Accident
Testing:  An employee shall be tested
for the use of controlled substances, as soon as possible, after a reportable
accident occurring while on Bremen Bearings, Inc. time or business or on any
work site.  A “reportable accident”
means an accident resulting in property damage or resulting in any person, as a
result of the accident, receiving medical treatment away from the scene of the
accident.

 

B.                                     Whenever there is
a reasonable cause to believe that an employee’s ability to perform his/her job
is impaired due to the use of drugs/alcohol, as indicated hereafter.

 

2.                                       Any employee
whose drug/alcohol test result is positive will be subject to three day
suspension pending investigation.

 

3.                                       Refusing to take
a drug/alcohol test or any behavior intended to interfere with the valid
results of that test will be considered as a positive test and a violation of
this drug/alcohol policy warranting disciplinary action up to and including discharge.

 

4.                                       After
notification of a positive test, the employee will have 24 hours to decide if
he/she elects to have the same sample re-tested by a different laboratory at
his/her own expense.

 

5.                                       Employees taking
medication must report such use to their immediate supervisor if the medication
is likely to interfere with the employee’s ability to function safely on that
job.  The employee may be removed from
his/her job or reassigned to another job until return to that position is
deemed appropriate.  The unauthorized
use of prescription drugs that were prescribed for another person will be
considered a violation of this drug policy.

 

46

 

REASONABLE CAUSE
TESTING

 

The Company shall have reasonable cause for drug/alcohol testing if an
employee is having work performance problems or displaying behavior described
below (not all inclusive):

 

•                  Abnormally
dilated or constricted pupils

•                  Glazed stare -
redness of eyes

•                  Flushed face

•                  Changing or
slurring of speech

•                  Constant
sniffing

•                  Needle marks
(Not applicable if a diabetic)

•                  Change in
behavior

•                  Forgetfulness or
poor concentration

•                  Constant fatigue
or hyperactivity

•                  Smell of alcohol

•                  Difficulty
walking

•                  Slowed reactions

 

Except for smell of alcohol and needle marks, an employee must show two
or more indications to establish probably cause.

 

If a supervisor observes an employee engaging in such behavior
affecting an employee’s job performance, the supervisor will advise the Human
Resources Manager or designee and a union representative of the behavior.  The Human Resources representative and the
union representative will talk with and observe the employee to determine if
the employee is likely to be under the influence of alcohol and/or drugs.

 

If the human resources representation and the union representation
determine that it is likely the employee is under the influence of alcohol or
drugs, the employee will be required to submit to a breath-alcohol test and/or
urine drug test.  If the employee tests
positive or refuses to be tested, he/she will be subject to discipline, up to
and including, discharge.  If the human
resources representative concludes that it is likely the employee is under the
influence of alcohol and drugs and the union representation disagrees, the
employee will be given an opportunity to voluntarily submit to testing to
exonerate him/herself.  If the employee
declines, the Company may take such disciplinary action it deems appropriate up
to and including discharge, subject to the employee’s right to grieve the
disciplinary action.

 

If an employee requests assistance prior to any demand that the
employee submit to post accident or probable cause drug/alcohol testing, the
Human Resources Manager or Administrator will arrange for assessment by an
appropriate substance abuse professional (SAP).  If the SAP determines that treatment would be appropriate, the
employee will be offered an opportunity to participate in a drug/alcohol
rehabilitation program with or without a leave of absence as deemed appropriate
by the Alcohol and Drug Awareness Committee.

 

47

 

DEFINITIONS

 

1.                                       Alcohol use means
the consumption of any beverage, mixture, or preparation, including any
medication containing alcohol which, when consumed, causes an alcohol
concentration in excess of those established by the State of Indiana for
driving while intoxicated.

 

2.                                       Controlled
Substance use means a positive test at the established government
standards as defined by HCFA/DOT 49 CFR Part 40 for any of the following
substances.

 

•                  Marijuana

•                  Cocaine

•                  Opiates

•                  Amphetamines

•                  Phencyclidine
(PCP)

 

48

 

6/28/99

Disciplinary Action
Policy

 

POLICY STATEMENT

It is the intent of management to promote safety, quality,
productivity, and good human relations by following an improvement plan to
provide fair and equal treatment to all employees and to promote understanding
of acceptable conduct and encourage corrective improvement in behavior where required.

 

PROCEDURE

This procedure is for disciplinary action related to work performance
and conduct-related problems.  Union
employees have the right to union representation at all levels of discipline.

 

The progressive discipline process for absenteeism is separate from
this system in accordance with the attendance policy.

 

The disciplinary action steps are initiated by the employee’s
supervisor and/or management representative and may be built on a combination
of different types of violations.

 

Step 1. Verbal

Counsel the
employee and issue a verbal warning. 
Attempt to determine and resolve the cause of the problem.  At the same time, state specifically that
the employee is receiving a formal verbal warning.  Place a discipline document in the employee’s file describing the
incident and the discussion.  Verbal
warnings will be active for a six (6) month period before becoming inactive.

 

Step 2. Written

Hold a meeting
with the employee, at which time you explain the nature of the offense and warn
the employee that any further misconduct could lead to a suspension, or
discharge.  Issue a written warning of
the offense.  Written warnings will be
active for a twelve (12) month period before becoming inactive in employee’s
file.

 

Step 3. Suspension

Hold a meeting
with the employee, at which time you explain the nature of the offense and warn
the employee that any repetition could lead to discharge.  Issue a written document of the offense,
including a reference to the prior offense(s). 
A one (1) to five (5) day suspension (without pay) may occur as part of
this step and will be active for a twelve (12) month period before becoming
inactive.

 

Step 4. Discharge

A further
instance of misconduct within twelve (12) months of suspension may result in
discharge.

 

49

 

IMMEDIATE SUSPENSION
AND/OR DISCHARGE may take place at any time, without
regard to the preceding steps, if the employee commits an offense for which
immediate suspension and/or discharge is specified as a penalty or if, in the
judgment of Management, the employee’s continued presence would be contrary to
the best interests of the Company or any of its employees.  Immediate discharge may be justified for
these types of offenses:

 

•                  Theft of company
property or that of other employees

•                  Insubordination
or refusing to follow instructions

•                  Violation of the
Company’s Substance Abuse Policy

•                  Deliberate
destruction of company property

•                  Deliberate
injury to another person

•                  Violating a
confidence; unauthorized release of confidential information

•                  Violation of the
Company’s harassment policy

•                  Threatening
another employee with physical harm

•                  Deliberately
endangering another employee

•                  Any other
violation of the plant rules which, in the judgment of Management, seriously
threaten the welfare of the Company or any employee

 

Distribution of documentation of disciplinary action steps to include:

Human Resources Manager- original to be placed in employee’s file

Employee

Union Office

 

50

 

	
  ATTENDANCE POLICY

  	
   

  	
  BREMEN BEARINGS

  
	
  8/10/02

  	
   

  	
  Effective 8/10/02

  

 

It is the Company’s philosophy that employees should be responsible for
their attendance and absenteeism from work. 
Effective August 10, 2002, an absenteeism policy will become effective
utilizing a point system that tracks both full and partial day absences on a
12-month rolling calendar.

 

All absences will be documented; however, points will not be assessed
for the following:  Approved leave of
absences (Medical, FMLA, Workers’ Compensation, Bereavement, Military, Jury
Duty, Personal Leaves, Union), Snow Emergency Days, Disciplinary Suspensions,
Holidays, Vacations, time when employee is sent home by the Company due to no
work, and if employee goes home because no work is available in his/her
department.

 

Points will be assessed as follows:

 

	
  •

  	
   

  	
  One point (1)

  	
   

  	
  Each full day absent (more than 4 hours)

  
	
  •

  	
   

  	
  One/half point (1/2)

  	
   

  	
  Partial day absent (less than 4 hours

  (tardy in excess of 6 minutes. leave/return, leave early)

  
	
  •

  	
   

  	
  One/half point (1/2)

  	
   

  	
  Failure to call in to supervisor or call in voice mail at least 60
  minutes before beginning of shift or notify supervisor previously with a
  written notification (form)

  
	
  •

  	
   

  	
  8 points

  	
   

  	
  3 consecutive days no call-no show

  

 

Each period of illness involving consecutive days will be assessed one
(1) point, provided proper medical documentation is presented upon return to
work.

 

The following corrective action will be taken in any 12 consecutive
month period in which an employee has accumulated the following points for
unexcused absences:

 

	
  2 points

  	
   

  	
  —

  	
   

  	
  Verbal warning

  
	
  4 points

  	
   

  	
  —

  	
   

  	
  Written warning

  
	
  6 points

  	
   

  	
  —

  	
   

  	
  3-day Suspension without pay

  
	
  8 points

  	
   

  	
  —

  	
   

  	
  Termination

  

 

The Company will recognize and reward employees who have 6 months of
perfect attendance with a $100.00 payment.

 

51

 

Training Plan

6/28/99

 

Training employees on jobs is the responsibility of the supervisor in
the department; however, the use of experienced operators as instructors is
critical to the success and effectiveness of the training process.  The Company will utilize the following
outline to ensure effective training.

 

1.                                       Supervisor
assigns the trainee to an operator who will review the following with the
employee:

 

•                  Work instructions

•                  Personal
protective equipment required

•                  Safety measures

•                  Quality and
inspection requirements

•                  Forms and
reports to be completed

•                  Equipment
operation

•                  Product
characteristics of good and bad quality

•                  Incentive
criteria (if applicable)

•                  Other information
and skills needed for success of training

 

2.                                       The
supervisor and/or trainer will review training status with trainee a minimum of
once every week to identify progression and areas that need special attention.

 

3.                                       Training
criteria will be established for each job through a coordinated effort of
supervisors and operators.

 

4.                                       A
time-line will be identified and established to monitor normal training time.

 

A training committee will be established to establish training criteria
and time lines as well as training techniques and methods.  The committee will consist of 2 supervisors,
2 operators, and a member of the bargaining committee.

 

Human Resources and the Plant Manager will monitor the program to
ensure completeness and effectiveness.

 

52

 

It is agreed that the foregoing language represents the terms and
conditions of a new labor agreement between the Bremen Bearings of RBC, USA,
and Local 1368 of the U.A.W.

 

	
  For the Union

  	
   

  	
  For the Company

  

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  

Agreed to this 10th day of August, 2002.

 

53

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00053-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00053-of-00352.parquet"}]]