Document:

ex_1036.htm

    
      
        DRAFT

         

         

        AGREEMENT

        

        between

        

        EL DORADO
CHEMICAL COMPANY

        

        and

        

        INTERNATIONAL
ASSOCIATION OF
MACHINISTS
AND AEROSPACE WORKERS,
AFL-CIO
LOCAL NO.
224

        

        Effective:
October 17, 2007

        

        

        EL DORADO
CHEMICAL COMPANY
El
Dorado, Arkansas

        

          
            
               

            

            
               

              
                

              

            

            
               

            

          

        
          TABLE
OF CONTENTS

          

          PREAMBLE   1

          

          ARTICLE
I                          APPLICATION
OF AGREEMENT                              1

          

          ARTICLE
II                         PERIOD
OF AGREEMENT                                  1

          

          ARTICLE
III                        MANAGEMENT
RIGHTS CLAUSE                                    1

          

          ARTICLE
IV                        CHECK-OFF
OF UNION DUES                                 2

          

          ARTICLE
V                            SENIORITY                                            2

          

          Section
1.                      Length
of Service                                2

          Section
2.                      Order
of Seniority                            2

          Section
3.                      Eligibility
for Seniority                              3

          Section
4.                      Filling
Vacancies                                    3

          Section
5.                      Qualifications
for Job                                4

          Section
6.                      Seniority
List                                       5

          Section
7.                      Seniority
Accrued                               5

          Section
8.                      Seniority
- Outside Assignments                            
5

          Section
9.                      Discharges
and Reemployment                         5

          Section
10.                    Status
of Employees Laid Off                           6

          Section
11.                    Loss
of Seniority                                 6

          

          ARTICLE
VI                         HOURS
OF WORK AND OVERTIME                                   7

          

          Section
1.                      Hours
of Work                                    
7

          Section
2.                      Overtime
and Call-Out Pay Rates                        7

          Section
3.                      Shift
Change Notice                                    
8

          Section
4.                      Meal
Time                                       8

          Section
5.                      No
Reduction of Work Week as Result of Overtime               9

          Section
6.                      Computation
of Overtime                              9

          Section
7.                      Distribution
of Overtime and Call-Out Time                      
9

          Section
8.                      Call-Out                                           
9

          Section
8A.                   Advance
Scheduling of Overtime                            
10

          Section
8B.                   Right
to Assign Qualified Personnel                           
10

          Section
9.                      Holiday
Pay  10

          Section
10.                    Reporting
for Work and Not Used                           11

          

          ARTICLE
VII                        WAGE
RATES AND CLASSIFICATIONS                                    11

          

          Section
1.                      Wages
and Pay Period                               11

          Section
2.                      Changes
in Classification of Work                         
11

          
            
               

            

            
              (i) 

              
                

              

            

            
               

            

          

        

         

         

                        Section
3.                       Mechanic Classifications,
Opportunites and
Training            12

        

        ARTICLE
VIII                       HANDLING
OF GRIEVANCES                                        13

        

        Section
1.                      Routine
Submission                                 13

        Section
2.                      Arbitration                                       13

        

        ARTICLE
IX                         SHOP
COMMITTEE AND STEWARDS                                   14

        

        Section
1.                      Shop
Committee                                     14

        Section
2.                      Stewards                                         14

        

        ARTICLE
X                           LEAVE
OF ABSENCE                                              15

        

        Section
1.                      Personal
Business                                     
15

        Section
2.                      Union
Business                                     15

        Section
3.                      Sickness
or Accident                                 15

        Section
4.                      Notice
to the Company                                 16

        Section
5.                      Military
Reserve Training                                16

        

        ARTICLE
XI                         VACATIONS 
16

        

        ARTICLE
XII                        MILITARY
LEAVE  18

        

        Section
1.                      Military
Selective Service Act                              18

        Section
2.                      Pay
in Lieu of Vacation                                  18

        

        ARTICLE
XIII                       PHYSICAL
EXAMINATIONS                                           
19

        

        Section
1.                      Periodical
Examinations                                  19

        Section
2.                      Certificate
of Physical Fitness                              19

        Section
3.                      Dispute
Resolution                                     19

        

        ARTICLE
XIV                       MISCELLANEOUS
AND GENERAL                                        19

        

        Section
1.                      Tool
Check-In Time                                     19

        Section
2.                      Bulletin
Board                                        19

        Section
3.                      Discrimination                                        20

        Section
4.                      Wage
Rate Changes                                     20

        Section
5.                      Safety
Provisions                                      20

        Section
6.                      Discharges                                          20

        Section
7.                      Recess
Period (Smoking)                                  20

        Section
8.                      Jury
Duty                                            
21

        Section
9.                      Termination
Pay                                        21

         

        
          
            
            

          

          
            (ii)

            
              

            

          

          
            
            

          

        

        Section
10.                     Contract
Work                                         21

        Section
11.                     Technical
and Supervisory Employees                         21

        Section
12.                     Minor
Maintenance                                     21

        Section
13.                     Minor
Operating Functions                                 22

        Section
14.                     Uniforms                                           22

        

        ARTICLE
XV                         VALIDITY
OF CONTRACT                                                22

        

        ARTICLE
XVI                         NOTICE                                                          22

        

        ARTICLE
XVII                        FUNERAL
LEAVE                                                    23

        

        ARTICLE
XVIII                       GROUP
INSURANCE                                         23

        

        

        ARTICLE
XIX                         NO
STRIKE OR LOCKOUT                                     25

        

        ARTICLE
XX                          SERVICE
WITH COMPANY                                     25

        

        ARTICLE
XXI                         RETIREMENT
AGE                                          26

        

        ARTICLE
XXII        CHANGE OR
MODIFICATION OF AGREEMENT                                   26

        

        ARTICLE
XXIII                     TERMINATION
OF AGREEMENT                                 26

        

        SIGNATURE
PAGE                                                                    27

        

        EXHIBIT
"A"                        BASIC
HOURLY WAGE RATE                                            28

        

        RATE CHANGES DURING TERM OF
AGREEMENT                       28

        

        CLOTHING ALLOWANCE                                     28

        

        EXHIBIT
“B”                        RECOGNIZED
MAINTENANCE WORK GROUPS                                 29

        

        
          
            
            

          

          
            (iii)

            
              

            

          

          
            
            

          

        

        

          PREAMBLE

        This Agreement is made and entered into
by and between EL DORADO CHEMICAL COMPANY (hereinafter referred to as the
“Company”), and the INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE
WORKERS, AFL-CIO, LOCAL NO. 224 (hereinafter referred to as the “Union”), which
the Company recognizes as the sole bargaining agent for the Maintenance
employees of the Company at its chemical plant located north of El Dorado,
Arkansas, who are eligible for membership in the Union in accordance with the
Labor Management Relations Act of 1947.

        

        Our future success and security
requires that we foster a plant culture which underscores the importance of
teamwork and focuses on customer satisfaction, methods improvement, demands
mutual respect and promotes high morale.  We must be prepared to meet
the needs of changing circumstances and seize opportunities
provided.  The Company, the Union and all employees are committed to
doing so.

        

        We appreciate qualities and values such
as pride in what we do, taking ownership of responsibility, dedication,
cooperation, efficiency and optimism. Everyone who depends upon EDC recognizes
the importance of creating and maintaining a safe and clean workplace and wants
a plant which promotes fair treatment, quality work, and productive, profitable
and efficient operations.  We each accept and share the responsibility
to do our parts to make that happen.

        

        ARTICLE I
APPLICATION
OF AGREEMENT

        

        The Company hereby recognizes the Union
as the exclusive bargaining agency for the employees of the Company at said
plant who work in the capacities hereinafter stated in this
Article I.

        

        (a)           All
Maintenance employees, as described in Exhibit "A", engaged in the installation,
maintenance and repair of machinery and equipment, but excluding all production,
chemical and operating employees, shipping attendants, office and clerical
employees, managers, supervisors and guards.

         

        ARTICLE
II

        PERIOD
OF AGREEMENT

        

        

        This Agreement shall remain in full
force and effect for a three year contract term commencing October 17, 2007, at
12:01 a.m., and ending 12:00 midnight, October 16, 2010.  At
reasonable times after August 1, 2010, the parties will meet to attempt to
negotiate a new contract to be effective for the period beginning after
midnight, October 16, 2010.

        

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

          ARTICLE
III

          MANAGEMENT
RIGHTS CLAUSE

        

        

        The Union expressly recognizes that the
Company has the exclusive responsibility for and authority over (whether or not
the same was exercised heretofore) the management, operation and maintenance of
its facilities and, in furtherance thereof, has, subject to the terms of this
Agreement, the right to determine policy affecting the selection, hiring, and
training of employees; to direct the work force and to schedule work; to
institute and enforce reasonable rules of conduct; to assure discipline and
efficient operations; to determine what work is to be done, what is to be
produced and by what means; to determine the quality and quantity of
workmanship; to determine the size and composition of the work force; to
determine the allocation and assignment of work to employees; to determine the
location of the business, including the establishment of new locations or
departments, divisions, or subdivisions thereof; to arrange for work to be done
by other companies or other divisions of the Company; to alter, combine, or
eliminate any job, operation, service, or department; to sell, merge or
discontinue the business or any phase thereof; provided, however, in the
exercise of these prerogatives, none of the specific provisions of the Agreement
shall be abridged.  The Company will not use the vehicle of
subcontracting for the sole purpose of laying off employees or reducing the
number of hours available to them.

         

        ARTICLE
IV
CHECK-OFF
OF UNION DUES and UNION MEMBERSHIP

        

        Upon receipt of a signed authorization
by an employee requesting deductions from his wages for his monthly union dues,
the Company agrees to honor such authorization according to its terms during the
life of this Agreement.  The form shall be furnished by the
Union.

        

        The Financial Secretary of Local 224,
IAM-AW, shall, from time to time, notify the Company in writing of the amount of
the monthly deduction to be made, from time to time, under this
authorization.  All money so deducted by the Company shall be paid to
the Union on or before the end of the month during which deductions are
made.  Upon receipt of written request by current employees as of
October 17, 2007, the Company shall, after thirty (30) days’ notice, discontinue
dues deduction.

         

        ARTICLE
V
SENIORITY

        

        Section 1.  Length
of Service.

        

        Length of service in the bargaining
unit and with the El Dorado Plant shall, in that order, govern the promotion,
demotion, and transfer of employees.

        

        Section 2.  Order
of Seniority.

        

        An employee's seniority shall be
determined as follows:

        

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

        Order of
Importance                                   Seniority

        

        1st                                                                
Bargaining Unit

        2nd                                                                Plant

        

        Section
3.  Eligibility for Seniority.

        

        An employee shall be first entitled to
seniority in the bargaining unit when he has been continuously employed in that
unit for 180 days; his seniority dating from the date of the beginning of such
employment.

        

        However, an employee who has been
employed in the bargaining unit, who has been laid off prior to his having been
employed therein for 180 days continuously, and who is reemployed in the
bargaining unit within 180 days from the date upon which he is laid off, shall,
upon such reemployment, be entitled to have the number of days which he has
worked in the bargaining unit, during the period of his most recent previous
employment herein, included in any subsequent computation of his seniority in
the bargaining unit and shall be entitled to seniority when he has accrued 180
days on that basis.

        

        The Company shall have the right to
layoff or discharge, without cause, any employee who has not worked in the
bargaining unit a sufficient length of time to gain seniority, and such action
on the part of the Company shall not be the subject of a grievance on the part
of the Union under any provision of this Agreement.

        

        Section
4.  Filling Vacancies.

        

        (a)           Temporary
and permanent vacancies will be filled only when the Company sees a need to fill
the vacancy.  In the event the Company sees a need to fill a vacancy,
it will be filled by the employee having the most bargaining unit seniority, who
desires the job, and who possesses a skill of the group in which the vacancy
occurs.  Any person so promoted must accept the duties and
responsibilities of the job.

        

        (b)           When
there is a permanent vacancy in a group and the Company sees a need to fill that
vacancy, the Company shall post promptly, and keep posted for fifteen (15) days,
notice on its bulletin board of the job vacancy.  It shall be the duty
of an employee who feels himself entitled to such job on account of his
seniority to file his sealed bid for such job with the Plant Manager or his
representative, and send a copy thereof to the Chairman of the Shop Committee
within said 15-day period.  In order to be considered valid, a bid
must be signed, dated, and deposited in a locked box marked "I.A. of M. and A.W.
Bids" located at the plant entrance gate.

        

        Immediately upon expiration of the
posting period of fifteen (15) days, the names of all bidders will be posted on
the bulletin board, and the bidder having the most seniority and who desires the
job shall be assigned to the group and receive the "C" Mechanic rate of pay if
he possesses the necessary skill.  In the event no qualified bidder
possessing the necessary skill bids on the vacancy, the Company may hire a
qualified employee from the outside.

        

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

        If he does not possess the skill, he
will be reduced to the rate that compares to his previous experience beginning
not later than the beginning of the work week following the week in which the
successful bidder is determined, provided the successful bidder is available to
report for work on that day.

        

        If the group vacancy is not filled by
the procedure set forth above and the Company sees the need to fill the vacancy,
a first-year "E" Mechanic job will be posted for filling outside the bargaining
unit.

        

        Notwithstanding any other provisions of
this subsection (b), it is agreed that the Company shall have the right at any
time during said 15-day posting period to withdraw the posting of a new job in
the event the Company decides that such job need not be filled.

        

        (c)           Should
an employee within a group who is entitled to a promotion desire to waive his
opportunity for that promotion, he shall do so by signing a waiver.

        

        (d)           In
the event that it becomes necessary to establish a permanent rotating shift the
Company will notify the Shop Committee to discuss the procedure and shift to be
implemented at least thirty (30) calendar days before establishing such
shift.

        

        (e)           In
addition to the hourly rates, employees who are regularly assigned to a specific
shift shall be paid a shift differential of forty cents ($.40) for each hour
worked on the evening shift and eighty cents ($.80) for each hour worked on the
graveyard shift.  For payroll purposes, employees who are regularly
assigned to a three shift rotating schedule shall receive shift pay averaged
over all three shifts (forty cents ($.40) per hour).

        

        NOTE:  Maintenance
personnel who are not regularly assigned on a rotating shift basis or to the
evening or graveyard shift will receive shift differential in accordance with
the August 3, 1989, Letter of Understanding (regarding turnarounds and major
mainte­nance projects).

        

        Section
5.  Qualifications for Job.

        

        (a)           It
is not the intention of the parties to this Agreement that any employee shall be
permitted to work on a job when he is not qualified to perform the work which
that job requires.  However, if, in the opinion of the Company, an
employee is not qualified for a particular job to which he would otherwise be
entitled by virtue of his seniority, and the Company determines that an
employee's application for the job shall be denied on the basis of his lack of
qualifications, the Company shall notify the Chairman of the Shop Committee and
the employee involved of their decision, at least five (5) days prior to the
date upon which any other employee is permanently assigned to the
job.

        

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

        Section
6.  Seniority List.

        

        Seniority lists will be compiled on
April 1 and October 1 and will be available to all employees.  One
copy of each seniority list will be furnished to the Shop
Committee.

        

        Section
7.  Seniority Accrued.

        

        Each employee shall retain the
seniority accrued to him based upon actual service at the El Dorado
Plant.

        

        Section
8.  Seniority - Outside Assignments.

        

        Any employee, after having established
seniority under the provisions of this Agreement, who is temporarily assigned to
another job by the Company (outside the bargaining unit) shall continue, for not
more than ninety (90) days per calendar year, on a cumulative basis, to accrue
seniority on his regular classification during such period of temporary
assignment.  If such employee works more than ninety (90) days per
calendar year on a cumulative basis, he shall forfeit one (1) day of bargaining
unit seniority for each day in excess of ninety (90) days worked outside of the
bargaining unit during that calendar year.

        

        Section
9.  Discharges and Reemployment.

        

        When there is a reduction in the number
of employees in the bargaining unit, the employee last employed in the
bargaining unit shall be the first employee laid off.  The employee
laid off through no fault of his own, who has the greatest bargaining unit
seniority, shall (subject to the following provisions of this Article) be the
person first reemployed in the event additional employees are employed, provided
that the person is qualified to perform the duties of the job to which he would
be assigned on reemployment.

        

        A person who has worked in the
bargaining unit sufficiently long to be entitled to seniority in that unit, and
who is laid off through no fault of his own, who has kept his current address on
file with the Company, and who continues to be entitled to seniority under the
terms of this Agreement shall (subject to the following provisions of this
Article) be given first consideration for reemployment.

        

        If reemployment is available for any
such person, the Company shall so notify him by letter (with a copy of such
letter to the Chairman of the Shop Committee), addressed to him at his address
then on file with the Company, and he shall be allowed fifteen (15) days from
the date upon which said letter was mailed, or until he no longer retains his
accrued seniority as provided in Section 10 of this Article V (whichever is the
shorter period), in which to notify the Company in writing of his desire to
return to work.  In the event he delivers such notice, he shall be
allowed seven (7) days from the date of the delivery thereof to report for work;
provided, however, if the employee involved is, on the date which he would
otherwise be required to report for work totally disabled to work, he shall, on
or before that date, deliver to the Company a statement in writing from a
licensed 

         

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

        physician
stating that he is so disabled, in which event the period within which he shall
be permitted to return to work shall be extended ninety (90) days.

         

        Section
10.  Status of Employees Laid Off.

        

        The accrued seniority of an employee
who has been laid off through no fault of his own shall continue to exist from
the date of his layoff for the following periods:

        

        Years of
Service                                     Period Seniority to
Exist

                0-180
days                                              -0-

        

        
          	
                   
      

                	
                  181
      days to 2 years

                	
                  Length
      of previously accrued seniority

                

        

        

        
          	
                   
      

                	
                  2
      years or more

                	
                  2
      years

                

        

        

        Section 11.  Loss
of Seniority.

        

        Seniority shall be lost and employment
terminated for any of the following reasons:

        

        (a)           Quitting.

        

        
          	
                   
      

                	
                  (b)

                	
                  Absence
      from work for three (3) consecutive days without having notified the
      Company, unless physically impossible to do
so.

                

        

        

        
          	
                   
      

                	
                  (c)

                	
                  Discharge
      for just cause.

                

        

        

        
          	
                   
      

                	
                  (d)

                	
                  Failure
      to return at the expiration of a leave of absence or
    vacation.

                

        

        

        
          	
                   
      

                	
                  (e)

                	
                  If
      an employee misrepresents the reason for requesting a leave of
      absence.

                

        

        

        
          	
                   
      

                	
                  (f)

                	
                  If
      an employee fails to file for reinstatement within ninety (90) days
      following discharge from the U.S. Military
  Service.

                

        

        

        
          	
                   
      

                	
                  (g)

                	
                  Failure
      to return to work from layoff within the time specified in Section 9 of
      this Article.

                

        

        

        
          	
                   
      

                	
                  (h)

                	
                  At
      the end of the period specified in Section 10 of this Article, or upon
      earlier rejection after layoff of an offer of reemployment in a
      classification equal to the classification from which laid
      off.

                

        

        

        
          
            
            

          

          
            9

            
              

            

          

          
            
            
ARTICLE
VI
HOURS
OF WORK AND OVERTIME

        

        

        Section 1.  Hours
of Work.

        

        (a)           Regular
base hours of work shall be eight (8) hours per day and forty (40) hours per
week.

        

        (b)           The
work week shall begin at 12:01 a.m. each Monday and end at 12:00 midnight the
following Sunday.  The work day shall begin at 12:01 a.m. and end at
12:00 midnight.

        

        (c)           The
work week shall normally be five (5) consecutive 8-hour days, Monday through
Friday, and will normally begin work at 7:00 a.m. and end at 3:30 p.m. with a
30-minute lunch period from 12:00 noon to 12:30 p.m.

        

        (d)           No
employee shall be required to work more than twelve (12) hours during any normal
work day except in case of an emergency.

        

        (e)           All
employees shall be expected to report to work promptly at the scheduled
time.  No employee shall be permitted to work if such employee reports
for work more than one and one-half (1-1/2) hours after his regular scheduled
reporting time, unless such delay has been previously excused by the
Company.

        

        (f)           No
employee shall be allowed to work more than sixteen (16) continuous hours nor
more than sixteen (16) hours in any one day except in the case of an
emergency.  However, an employee will be allowed to complete his
regularly scheduled hours of work as provided in Sections 5, 8 and 10 of this
Article VI.

        

        (g)           Maintenance
overhauls may be staffed on 8-hour, 10-hour, or 12-hour shifts as may be
necessitated by the needs of the operation.

        

        The Company will specify and select the
number and classifica­tions of personnel on each shift by work group
classification for each particular overhaul on a shift
basis.  Preference to shifts will be governed by the employee's
bargaining unit seniority.  Shift change notice will be handled as
outlined in Article VI, Section 3.  In the event there are
insufficient qualified personnel on each shift, the Company shall have the right
to assign qualified personnel as needed.

        

        Section
2.  Overtime and Call-Out Pay Rates.

        

        (a)           Overtime
and call-out rates shall be one and one-half (1-1/2) times the regular rate and
shall be paid for all work performed in excess of forty (40) hours per week,
continuous actual work in excess of eight (8) hours, and for all work performed
as a result of call-out and for hours worked outside an employee's regularly
scheduled hours.

        

        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

        

        (b)           Any
employee who works over, beyond his regular scheduled work day, shall be paid a
minimum of three (3) hours at straight time.  If the employee is
required to stay over beyond his regular scheduled work day to attend meetings
or to receive training, and no production work is involved, he will receive pay
for actual time spent at one and one-half (1-1/2) times his regular rate of pay,
providing he has received a minimum of twenty-four (24) hours' notice in
advance.

        

        (c)           No
employee shall work overtime without the approval of his Foreman.

        

        Section 3.  Shift
Change Notice.

        

        (a)           The
Company shall pay each employee one and one-half (1-1/2) times his regular rate
of pay for the first shift of a rearranged work schedule if the employee whose
shift is changed shall not have been notified of the change at least twenty-four
(24) hours prior to the beginning of said first shift.  If notice of
employee's shift change shall be posted on his regular day off, notice of the
change shall be posted at least seventy-two (72) hours prior to the beginning of
said first shift.  Any notice required to be given to an employee
under the provisions of this Section 3 may be given by written notice posted on
the general bulletin board of the Company and the bulletin board of the Union,
and each employee named in any notice shall be deemed to have received the
notice at the time copies of said notices are posted on said
boards.

        

        (b)           The
changing of an employee's shift, incident to the return of an employee from
sickness or accident, shall not be considered a change in shift within the
meaning of this Section 3, unless the absent employee has given the Company at
least seventy-two (72) hours' notice of his intention to return to work and the
time at which he will return to work by notifying his supervisor.

        

        (c)           The
changing of an employee's shift from 7:00-3:30 to 7:00-3:00, or from 7:00-3:00
to 7:00-3:30 will not constitute a shift change.

        

        (d)           A
change in shift at the request of an employee shall not be considered a change
in shift for the purpose of this Section 3.

        

        (e)           No
employee shall lose any time from his normally scheduled 40-hour week occasioned
by any shift change.

        

        Section 4.  Meal
Time.

        

        (a)           If
a "Day Man" is instructed to and continues to work overtime past 6:00 p.m., he
shall be allowed a 30-minute period beginning at 6:00 p.m. for supper on Company
time; and if said "Day Man" then continues to work additional overtime, he shall
be allowed a 30-minute lunch period on Company time; each such period to begin
at the end of four (4) hours of additional continuous overtime worked after 6:30
p.m.

        

        (b)           Any
employee called for work outside of his regular working hours, who is required
to work more than four (4) consecu­tive hours outside his regular hours,
shall be allowed a 30-minute period for a meal on Company time at the end of the
fourth consecutive hour and at the end 

         

        
          
            
            

          

          
            11

            
              

            

          

          
            
            

          

        

        of each
consecutive 4-hour period thereafter that said employee continues to work
outside his regular hours.

        

        Section 5.  No
Reduction of Work Week as Result of Overtime.

        

        No employee will be required to take
any time off from his regular work week because of overtime worked in that or
any other week.  If an employee is required to work on his day off, he
shall not be forced to take another day off in lieu thereof.

        

        Section
6.  Computation of Overtime.

        

        For the purpose of computing overtime
under this Article, the exact time worked, rounded to the nearest quarter hour,
shall be accounted for, which shall be paid for at the overtime
rate.

        

        There shall be no duplicate payment for
daily overtime and weekly overtime.  If daily overtime is greater in
any one work week, only daily overtime shall be paid, or if weekly overtime is
greater in any one work week, only weekly overtime shall be
paid.  There shall be no pyramiding of overtime.

        

        Section
7.  Distribution of Overtime and Call-Out Time.

        

        Overtime work opportunities shall
initially be distributed, as equitably as practicable, within each work group
where the overtime is required in accord with the Company's distribution
policy.  The Company may then offer such work to employees in other
work groups who are qualified.

        

        For the purpose of distributing
overtime, the Company will submit a list, biweekly, to the work group steward
showing the overtime worked, refused and overtime standing of each employee
covered within the group.

        

        Each employee who is requested to
report for overtime duty shall report at the required time unless he shall first
obtain permission from his supervisor to be relieved of such duty.

        

        Section
8.  Call-Out.

        

        An employee who is called out and
reports for work outside his regular working hours shall work until excused by
the person then supervising his work; provided that no one shall be required to
work longer than is provided in Section 1(d) of this Article.  An
employee who is called out and reports for work shall be paid a minimum for four
(4) hours at time and one-half (1-1/2), even though the full four (4) hours may
not be worked because no work is available, or he does not work at all because
no work is available.  An employee called for such work, who works
continuously until the beginning of his regular hours of work and continues to
work during the regular hours of his scheduled work, shall not be considered to
have had a change in shift within the meaning of Section 3 of this Article
VI.

        

        
          
            
            

          

          
            12

            
              

            

          

          
            
            

          

        

        A description of the work or jobs to be
done, or the problem necessitating the call-out, is provided as accurately as
possible by the supervisor in order that the person being called may judge: (a)
whether or not he has the ability to do the work, and (b) about how long he may
have to work.  It is not intended to have a person come out on one
job, then surprise him with a list of additional jobs to be
done.  However, due to emergencies, it cannot be guaranteed that he
will only be required to do what he was called for.

        

        Notwithstanding the fact that an
employee has been called out for work, such employee shall perform his regular
work schedule during the remainder of the work week in which such call-out
occurs unless excused from such work.

        

        If an employee is called out for work
and works until the beginning of his regular work schedule, the call-out will be
considered as ending at the beginning of his regular schedule.

        

        Section
8A.  Advance Scheduling of Overtime.

        

        Overtime may be scheduled up to three
(3) weeks in advance of the actual time required.  In the event the
scheduled overtime is cancelled, eight (8) hours' notice will be given or a
call-out will be paid.

        

        Section 8B.  Right
to Assign Qualified Personnel.

        

        In the event overtime distribution and
call-out  procedures do not provide the Company with sufficient,
qualified personnel to perform the overtime work, the Company shall have the
right to assign such work to qualified personnel.  The performance of
such work is mandatory.

        

        Section
9.  Holiday Pay.

        

        The following days shall be considered
holidays and normally no work will be performed on the designated holidays
except in cases of emergency, around-the-clock shift work, and in those crafts
where work is necessary for continued operations:

        

        1.           New
Year's Day

        2.           Good
Friday

        3.           Memorial
Day

        4.           July
Fourth

        5.           Labor
Day

        6.           Columbus
Day

        7.           Thanksgiving
Day

        8.           Day
after Thanksgiving

        9.           Last
work day before Christmas holiday

        10.           Christmas
Day

        

        When any of these holidays fall on
Sunday, the following Monday will be observed as the holiday.

        

        
          
            
            

          

          
            13

            
              

            

          

          
            
            

          

        

        When any of these holidays fall on
Saturday, the preceding Friday will be observed as the holiday.

        

        Each employee who is not required to
work and who does not work on a holiday shall be paid a bonus equivalent to
eight (8) hours at his regular rate at straight time pay, providing he has
worked his last scheduled work day immediately preceding the holiday and his
first scheduled work day following the holiday unless the failure to work these
days is because of confirmed illness or accident no more than five (5) work days
before or after the holiday, unless the employee was excused in advance by the
Company.

        

        

        

        An employee who works on the holiday
will receive holiday pay equivalent to the actual hours worked on the holiday,
up to a maximum of twelve (12).  The Company retains the right to
schedule employees to work and the amount of hours worked on
holidays.

        

        Section
10.  Reporting for Work and Not Used.

        

        Except when no work is available due to
Act of God, such as fire, flood, explosion, or tornado, an employee who reports
for duty on his regular schedule shall be given the opportunity of working a
full 8-hour shift.

         

        ARTICLE
VII
WAGE
RATES AND CLASSIFICATIONS

        

        Section 1.  Wages
and Pay Period.

        

        The regular pay periods for employees
subject to this Agreement will cover every two (2) scheduled work weeks, and
checks will be available to the men on their regular shifts on the Friday
following completion of the 2-week period.

        

        Each employee who works during the
period beginning 12:01 a.m., October 17, 2007, and ending 12:00 Midnight,
October 16, 2010, shall be paid for his work in that classification on the basis
of the basic hourly wage rate for that classification shown on Exhibit "A" to
this Agreement.  Each employee will be paid the applicable clothing
allowances provided on Exhibit "A" to this Agreement.

        

        Section
2.  Changes in Classification of Work.

        

        (a)           Each
employee covered by any classification is expected to perform any duties to
which he may be assigned within his classification or lower
classification.

        

        
          
            
            

          

          
            14

            
              

            

          

          
            
            

          

        

        (b)           It
is understood and agreed by the parties hereto that two (2) work groups shall be
recognized under this Agreement.  A tabulation of the groups with
explanatory notes is made in Exhibit "B," Part 1, which is a part of this
Agreement.

        

        (c)           All
Maintenance personnel may be assigned to do any jobs that they have the ability
to perform subject to the provisions of Article V, Section 5, and Article XIV,
Section 5, of the current contract.

        

        (d)           The
Company reserves the right to increase or reduce, at any time and from time to
time, the number of individuals employed in any group mentioned in Exhibit "B",
Part 1, to that number of individuals which, in the opinion of the Company, are
required to perform work in that group for maintaining the plant.  Any
such increase or reduction of force in any group shall be made on the basis of
bargaining unit seniority in that group.  The Company shall advise the
employee(s) affected seventy-two (72) hours in advance of any permanent change
in the number of persons who shall work in any classification.

        

        Section
3.  Mechanic Classifications, Opportunities and
Training

        

        
          	
                  (a)  

                	
                  The
      Company wants to provide growth and skills enhancement opportunities for
      members of the bargaining unit.  In that regard, it will create
      new Mechanic classifications of Specialist I, Specialist II and Specialist
      III.  In addition, it will create a third classification of E
      & I Specialist which will fall between current Specialists I and
      II.

                

        

        

        
          	
                  (b)  

                	
                  The
      rates paid employees in the Mechanic Specialist I and III classifications
      will be the same as the hourly rates currently paid E & I Specialists
      I and II.  The rates for the Mechanic Specialist II and new E
      & I Specialist position will be the midpoint between the existing two
      rates.

                

        

        

        
          	
                  (c)  

                	
                  The
      mutual benefit/objective of the new, higher paying classification is to
      provide interested unit members with a chance to learn new skills or
      enhance existing ones and provide them with opportunity for additional pay
      for those in the classifications.  The Company expects to
      benefit by increased flexibility and efficiency, reduced reliance on
      outside contractors, and be in a better position to recruit and retain
      skilled personnel.

                

        

        

        
          	
                  (d)  

                	
                  The
      Company and the Union committee will have a collaborative discussion to
      determine the skill sets required for each new position.  Input
      from the Union will be solicited and carefully considered in an attempt to
      reach consensus on the appropriate standards and expectations for the new
      jobs.  In addition, the parties will work to reach agreement on
      the procedures which will be used for an interested individual to achieve
      certification in the new
classifications.

                

        

        

        
          	
                  (e)  

                	
                  The
      parties recognize and agree that the training component is critical to the
      success of this initiative and will meet to consider the best, fair
      methods of testing for 

                

        

         

        
          
             

            
              
                
                

              

              
                15

                
                  

                

              

              
                
                

              

            

            
 

            
              	
                       

                    	
                      competence
      in relevant skill areas. Tests ultimately used will be relevant to the job
      skills needed on site.

                    

            

             

          

        

        
          	
                  (f)  

                	
                  The
      Company will include the current Mechanic progression testing program as
      another focus of the training committee to be
  established.

                

        

        
          	 	 
	
                            (g)  
      

                	
                  The
      Company expects that the new positions, training and certification
      programs above will be implemented not later than October 17,
      2008.  If not implemented by then, the parties agree to meet and
      discuss reasons for the delay and attempt to complete the process as soon
      as possible.

                

        

         

        ARTICLE
VIII
HANDLING
OF GRIEVANCES

        

        

        Section
1

        

        Nothing in this section shall prohibit
the informal discussion and settlement of grievances between an individual
employee and his supervisor.  If so requested by the employee, a
representative of the Union, who may be an officer or steward, may be present at
such informal discussions.  The formal grievance procedure shall be as
follows:  The grievance will be reduced to the writing (on a form
supplied by the Company) and shall state clearly, contract violations or
causes.  The Company will respond in writing at all
steps.

        

        Step
1

        

        If the complaint is not settled
informally, it may be submitted to his Maintenance Supervisor or his designee by
the aggrieved employee and/or his Union Representative within 10 days excluding
Saturday, Sunday and Holidays, of the aggrieved act.  The supervisor
will give his answer within five days excluding Saturday, Sunday and
Holidays.  Grievances settled in step 1 shall be on a non-precedent
setting basis.

        

        Step
2

        

        If the grievance is not settled in Step
1, the grievance may be referred within ten days, (following receipt of the
Supervisor’s answer in Step 1) to the Maintenance Manager or his
designee.  Maintenance Manager or his designee will meet with the shop
steward for the discussion of the grievance and after meeting with the shop
steward the Maintenance Manager or his designee will give his answer within
seven days, excluding Saturday, Sunday and Holidays.

        

        Step
3

        

        If the grievance is not settled in Step
2, the grievance may be referred within ten days, excluding Saturday, Sunday and
Holidays (following receipt of the Maintenance Manager or his designee’s answer
in Step 2) to the General Manager who will meet with the Union Officers and the

         

        
          
            
            

          

          
            16

            
              

            

          

          
            
            

          

        

         

        International
or District Lodge Representative after the meeting with the Union Officers/DBR
the Company will answer within ten days, excluding Saturday, Sunday and
Holidays.

        

            a)          If
the grievance is not settled in Step 3, the grievance may be referred within 30
days, excluding
Saturday, Sunday and Holidays, (following receipt of the Company’s answer in
Step 3)
to arbitration.  If agreeable to both parties, mediation may be used
prior to arbitration to
resolve the grievance.

        

        The party desiring arbitration will
make application to the Federal Mediation and Conciliation
Service for a panel of seven arbitrators.  The Company and the Union
shall alternatively strike until one arbitrator is left.  The notice
to the FMCS shall contain a requirement that the arbitrator be available to hear
the case in 90 days.  Both the Company and the Union shall have the
right to reject two (2) panels submitted by the Federal Mediation and
Conciliation Service.  The decision of the arbitrator shall be final
and binding upon all parties to this agreement.  The arbitrator shall
have no power to add to or subtract from or modify any of the terms of this
agreement or any agreement made supplementary hereto, nor to establish or change
any rate, but shall interpret and adjust grievances in accordance, herewith, and
shall render his decision within 30 days from the close of the hearing or date
post hearing briefs may be filed.  Such decisions are to be put into
effect within 30 days of receipt.  The cost of the arbitrator shall be
borne equally by the parties.

        

            b)           Time
limits as provided herein may be extended by mutual agreement.

        

        If the Union considers that an employee
has been discharged unjustly, the Committee shall file such claim within 15
days, excluding Saturday, Sunday and Holidays, with the Company at Step 3 in
this procedure.

         

        ARTICLE
IX
SHOP
COMMITTEE AND STEWARDS

        

        Section 1.  Shop
Committee.

        

        The Shop Committee, composed of four
(4) members from the employee work force, and management representatives, shall
hold regular meetings on a bimonthly basis.  It shall be the
responsi­bility of the Shop Committee to submit a written agenda of each
subject it wishes to discuss with the Company no less than forty-eight (48)
hours before the day of any such meeting.  Only three (3) employees in
any one group at any one time shall be a member of the
Commit­tee.

        

        Section
2.  Stewards.

        

        (a)           A
Steward and an assistant Steward may be elected in each work group by the
employees of that group, and the Union shall submit to the Company, in writing,
the names of each person so designated.  The Company shall consider
the person so designated as Steward and assistant Steward of each work group
until notified, in writing, to the contrary.

        

        
          
            
            

          

          
            17

            
              

            

          

          
            
            

          

        

        (b)           Duly-elected
Stewards or Committeemen shall be deemed to possess top ranking seniority for
purposes of layoff and recall rights within his respective work group or
classification while acting as such.

         

        ARTICLE
X
LEAVE
OF ABSENCE

        

        Section
1.  Personal Business.

        

        If an employee desires to be off on
personal business (not emergencies), he may do so with the consent of the
Company so long as he does not desire to be off over two (2) work weeks and
provided that he gives the Company forty-eight (48) hours' notice of his desire
to be absent and the length of time he desires to be off.  Upon
completion of such leave, he will resume employment on the basis of
uninterrupted service.

        

        Section 2.  Union
Business.

        

        (a)           The
Company shall, upon a minimum of thirty (30) days' prior written request from an
employee and the President of Local No. 224 of International Association of
Machinists and Aerospace Workers, grant a leave of absence, extending not longer
than fourteen (14) days, to the employee applying for such leave in order that
he may, during that leave, engage in work pertaining to the business of Local
No. 224 of International Association of Machinists and Aerospace
Workers.

        

        Such a leave shall not be granted to
more than one (1) employee at any one time.  Such employee shall not
be granted such a leave for more than an aggregate of thirty(30) days in any one
(1) calendar year.

        

        (b)           The
Company shall grant (upon a minimum of sixty (60) days advance prior written
request of an employee and the President or Vice President of International
Association of Machinists and Aerospace Workers) a leave of absence for a period
not to exceed one (1) year in order that the employee requesting such leave may,
during the period of such leave, work as any employee of Interna­tional
Association of Machinists and Aerospace Workers.  Not more than one
(1) employee shall be permitted to be absent from work at any one time on any
such leave.

        

        Section
3.  Sickness or Accident.

        

        If an employee who has established
seniority is out of service due to occupational injury or occupational disease
suffered or contracted while he is in the employment of the Company, he shall
retain his seniority accrued at the date of his disability and continue to
accrue seniority for a period of twenty-four (24) months or length of
previously-accrued seniority, whichever is less, during the period of his
disability as a result thereof.  If an employee who has established
seniority is out of service due to nonoccupational injury or disease suffered
while he was in the employment of the Company, he shall retain his accrued
seniority for a period of twenty-four (24) months and will accrue seniority in
the classification in which he was last regularly employed for a period of one
(1) year.

        

        
          
            
            

          

          
            18

            
              

            

          

          
            
            

          

        

        Under either of the above conditions,
if an employee should accept an equal or better job elsewhere, his seniority
shall be cancelled.

        

        Section 4.  Notice
to the Company.

        

        When an employee becomes aware of the
fact that he is going to be absent from work due to sickness, accident, or other
emergency, he must notify his supervisor as far in advance of his scheduled
shift as he/she has knowledge of such intended absence, but no less than one (1)
hour before the time he is due to report to work.  In the event the
employee cannot contact his Supervisor, it is permissible to contact any member
of Management.

        

        Section
5.  Military Reserve Training.

        

        (a)           Any
regular employee (not probationary) may be granted a special leave of absence
for a period not to exceed fourteen (14) days, plus a reasonable period to cover
travel time, when required for the purpose of engaging in a training program for
Enlisted Reserve, Reserve Officers, or National Guard Encampment,
provided:

        

        
          	
                   
      

                	
                  1.

                	
                  He
      furnishes the Company with a copy of orders from the military authorities
      calling him for duty; and

                

        

        

        
          	
                   
      

                	
                  2.

                	
                  He
      gives advance notice to his immediate supervisor so that arrangements may
      be made for his replace­ment during the period of his
      leave.

                

        

        

        (b)           Only
one (1) leave of absence for Military Reserve Training shall be granted to any
employee during a calendar year.

        

        When an employee is out of work for the
reasons set forth herein, FMLA and relevant insurance coverage will be applied
for the initial twelve (12) weeks of his leave.  After the initial
twelve (12) weeks, the employee will be entitled to continue health insurance
coverage and at costs pursuant to his COBRA rights which will begin upon
completion of the initial FMLA coverage.

         

        ARTICLE
XI
VACATIONS

        

        Section
1.

        

        Normal vacation accruals will be
computed in accordance with the following provisions:

        

        (a)           Two
weeks (80 hours) - after having accrued one (1) year's Company
seniority;

        

        (b)           Three
weeks (120 hours) - during the calendar year in which an employee accrues six
(6) year's plant seniority;

        

        
          
            
            

          

          
            19

            
              

            

          

          
            
            

          

        

        In computing length of service for
vacations, time spent working at the El Dorado Plant will be used.

        

        Section
2.

        

        Those employees who had previously
accrued or who will accrue, during the term of this Agreement, twelve (12) years
or more Company seniority shall be entitled to a vacation accrual of four weeks
(160 hours).  Thereafter, and for all other employees, the maximum
vacation accrual shall be as provided in Section 1.

        

        Section
3.

        

        (a)           Normally,
all vacations will begin with the first work day of the work week
schedule.

        

        (b)           Vacation
pay shall be based upon the straight time rate of an employee's regular
classification at the beginning of the vacation and will be taken in accordance
with his established work schedule.  If a holiday, as defined in
Article VI, occurs during an employee's vacation period, the employee will
receive pay for said holiday as defined in Article VI.

        

        (c)           Each
employee must take his vacation during the vacation year (January 1-December 31)
in which it falls due, subject to subsections (d) and (i) below.

        

        (d)           If
an employee is not permitted to take his vacation in any calendar year in which
it is due because the Company finds it not convenient to excuse him from work,
he shall be paid a sum equal to the sum to which he would have been entitled for
working at his regular job based on straight-time pay at normal working schedule
during the last part of that year equal to the number of weeks' vacation to
which he is entitled.

        

        (e)           Except
with special permission of the Company, no employee shall be permitted to begin
a vacation in any year within three (3) months of the date of the end of the
vacation taken by him during the preceding calendar year, and any employee who
has received pay in lieu of vacation for one (1) calendar year shall be entitled
to his next annual vacation before March 1 of the following year, if it is
practical for the Company to give him a vacation.

        

        (f)           An
employee who (a) resigns, (b) retires, (c) is laid off as part of a reduction in
forces, or (d) is granted a military leave under the provisions of Article XII,
at a time when he has earned vacation to that date but has not taken, nor
previously received pay in lieu of, shall be paid in lieu of any vacation he has
earned to that date but has not taken, nor previously received pay in lieu
of.

        

        Computation of vacation under this
section will be earned at the rate of one-twelfth (1/12th) for each month from
employee's anniversary date.  Sixteen (16) or more calendar days of
employment in any calendar month will be considered a full month in computing
vacation accruals.

        

        
          
            
            

          

          
            20

            
              

            

          

          
            
            

          

        

        (g)           An
employee will not be eligible for overtime or call-out during the period
beginning with the first day of his vacation and until his first scheduled work
day following completion of his vacation.

        

        (h)           In
the event of the death of any employee who was then otherwise eligible for a
vacation but who had not taken it, a sum of money equal to pay in lieu of such
vacation shall be paid to the person(s) who shall be entitled to the personal
property of such decedent.

        

        (i)           No
employee shall receive pay in lieu of vacation except as provided in Article XI,
Section 2(d).  However, when an employee is absent from work due to
authorized occupational injury or illness, or personal sick leave, and has not
returned to work by December 31, he may, at the Company's option, be permitted
to take his vacation or receive vacation pay between January 1, and April 1 of
the following year.

        

        Section
4.

        

        The vacation schedule will be initiated
January 2nd of each year for those eligible for vacation in that
year.  Employees shall choose their vacation periods in order of their
bargaining unit seniority.  The Company will, insofar as operations
permit, arrange by choice and by seniority the employee's request in the
vacation schedule.  An employee not submitting his vacation preference
within a reasonable time after being contacted will have his vacation scheduled
during the year at a time convenient to the plant operations.

        

        Normally, subject to operational
requirements, the Company will permit from each Maintenance Work Group, a
maximum of twenty (20%) percent of the active available employees to be on
vacation at the same time.

         

        ARTICLE
XII
MILITARY
LEAVE

        

        Section
1.  Military Service

        

        The rights of employees of the Company
who enter Military Service during the term of this Agreement will be governed in
all respects by applicable laws.

        

        Section 2.  Pay in
Lieu of Vacation.

        

        Each such employee who is entitled to a
vacation under the vacation policy of the Company at the time he leaves to enter
the Armed Forces, who elects not to take the vacation but to receive pay in lieu
thereof, shall, upon furnishing to the Company a certificate from his commanding
officer establishing the fact that he had been inducted into the military
service, be paid the amount of money he would have received had he taken his
vacation just prior to the beginning of his military leave.

        

        
          
            
            

          

          
            21

            
              

            

          

          
            
            

          

           

          ARTICLE
XIII
PHYSICAL
EXAMINATIONS

        

        

        Section
1.  Periodical Examinations.

        

        The Company may, from time to time,
require all employees to have periodical physical examinations by a doctor
selected by the Company.  However, such examinations shall not be used
for the purpose of discriminating against an employee.  Each employee
shall receive his regular rate of pay for all time required to be examined as
provided in this Section 1.

        

        Section
2.  Certificate of Physical Fitness.

        

        In the case of an employee being absent
from work due to illness or physical impairment, he may be required to present a
certificate of physical fitness, signed by a licensed physician, before being
readmitted to work.  This rule, however, shall not limit the right of
the Company to require physical examination by a physician in the Company's
service in exceptional cases of constantly recurring absence from
duty.

        

        Section
3.  Dispute Resolution.

        

        Notwithstanding any of the provisions
of Article VIII of this Agreement, in case a dispute arises over the physical
fitness of an employee to return to work or continue to work, a board of three
(3) physicians shall be selected; one by the Company, one by the employee, and
one selected by the two so named.  The decisions of the majority of
this board shall be final and binding.

         

        ARTICLE
XIV
MISCELLANEOUS
AND GENERAL

        

        Section 1.  Tool
Check-in Time.

        

        Employees will be allowed fifteen (15)
minutes time to clean and check in their tools before quitting time, if such
action is required by them.

        

        Section
2.  Bulletin Board.

        

        The Company shall maintain at the plant
entrance gate at the Chemical Plant a bulletin board which shall be designated
as "Local No. 224 Bulletin Board" and shall be for the use of the Union for
posting -- subject to the approval of the Company -- of any matters of interest
to or affecting the business of the Union.  It is understood and
agreed that the posting of notices by the Union within the plant area will be on
this bulletin board only and will be posted by the Chairman of the Shop
Committee or his recognized representative.  This bulletin board will
be locked with a key, released to the Chairman of the Shop Committee and to the
Company.

        

        
          
            
            

          

          
            22

            
              

            

          

          
            
            

          

        

        Section
3.  Discrimination.

        

        There shall be no discrimination by the
Company against any employee with respect to any conditions of employment on
account of his membership in this labor union, or on account of any activity
undertaken in good faith in his capacity as a representative of other
employees.  The Union shall not discriminate against any employee who
is not a member of the Union.

        

        Where the male gender is used in this
contract, it is intended to refer to both male and female.  It is a
continuing policy of the Company and the Union that the provisions of this
Agreement shall be applied to all employees without regard to race, color,
religion, sex, physical disability, national origin, or age.

        

        Section 4.  Wage
Rate Changes.

        

        There shall be no change in the basic
hourly wage rates set forth in Exhibit "A" to this Agreement, or in the clothing
allowance set forth in Exhibit "A" to this Agreement, during the term of this
Agreement.

        

        Section 5.  Safety
Provisions.

        

        The Company shall continue to make
reasonable provisions for the safety and the health of its employees at the
plant during hours of their employment.  Protective devices from
injury shall be provided by the Company.  Employees, subject to this
Agreement, will abide by safe practice rules and regulations of the Company, and
failure to do so may be considered grounds for dismissal.

        

        No employee shall be required to
perform services which, in the considered judgment of the Company and the Union,
seriously endanger his physical safety; his refusal to do such work shall not
warrant or justify discharge.  If any employee refused to perform such
work, representatives of the Company and the Union shall immediately attempt to
decide the safety factor.  Should they be unable to agree, the
decision of a representative of the Safety Department of the Company shall be
obtained.  If the employee still feels an unsafe condition exists, he
will not be required to perform that given job, and the Company will have the
work done by any means it elects.

        

        Section
6.  Discharges.

        

        It is agreed by and between the Company
and the Union that the Company may, without limitation upon its right to
discharge an employee for any other valid reason, discharge any employee,
subject to this Agreement, for the violation of any of the Company's rules or
regulations, which said rules and regulations heretofore have been approved by
both the Company and the Union.

        

        Section 7.  Recess
Period (Smoking).

        

        Where men are required to work
continuously in restricted and confined areas where smoking is not permitted,
the Foreman is authorized to grant a recess of not longer than ten (10)

         

        
          
            
            

          

          
            23

            
              

            

          

          
            
            

          

        

        minutes
to employees upon request, providing in his judgment, work conditions permit;
however, no employee shall be granted more than two (2) such recesses in any one
(1) normal work day.

        

        Section 8.  Jury
Duty.

        

        Each employee of the Company who is
called for service upon any grand jury, petit jury or coroner jury shall, after
furnishing to his Foreman, a certificate in evidence of his jury service, be
paid by the Company for each day which he serves upon said jury a sum equal to
the difference between the amount he would have earned if he had been required
to work for the Company on that day for the number of hours of his regular work
schedule and the jury pay he received, with the provision that no such payment
shall be made to an employee for jury service on any day during which, in
accordance with his regular work schedule, he would not have worked for the
Company.

        

        Section
9.  Termination Pay.

        

        An hourly employee whose work comes
within the scope of the Fair Labor Standards Act, and who has been continuously
employed by the Company for one (1) year, shall, if discharged through no fault
of his own, receive a sum equivalent to forty (40) hours' straight time pay at
his regular rate, based upon his normal schedule of work, and twice that amount
if he has been employed by the Company for a period of five (5)
years.  No employee shall receive such termination pay more than once
in any one (1) calendar year.

        

        Section
10.  Contract Work.

        

        It is agreed that any classified work
covering maintenance and repair of equipment and machinery now being done by
employees of the Company shall not be contracted out as long as the Company has
the necessary equipment and as long as there are qualified men available to do
the work.

        

        Section
11.  Technical and Supervisory Employees.

        

        The Company may use technical and
supervisory employees to install temporary test equipment to be used in
evaluating condi­tions and/or performance of plant facilities.

        

        Section 12.  Minor
Maintenance.

        

        It is agreed that Operating Department
personnel will perform minor maintenance functions.  Minor maintenance
functions shall be similar in scope but not limited to the following
examples:

        

        
          	
                   
      

                	
                  1.

                	
                  Tightening
      loose mechanical connections.

                

        

        

        
          	
                   
      

                	
                  2.

                	
                  Tightening
      leaking packing.

                

        

        

        
          	
                   
      

                	
                  3.

                	
                  Changing
      instrument charts.

                

        

         

        
          
            
            

          

          
            24

            
              

            

          

          
            
            

          

        

        
 

        
          	
                   
      

                	
                  4.

                	
                  Tightening
      piping fittings to stop minor
leaks.

                

        

        

        
          	
                   
      

                	
                  5.

                	
                  Changing
      light bulbs.

                

        

        

        6.           Hooking
up loading and unloading lines.

        

        Section 13.  Minor
Operating Functions.

        

        Maintenance personnel may perform minor
operating functions when requested by production supervision, but only when
accompanied by a qualified member of the operations group.  Typical
example: Assisting in closing or opening large block valves that are difficult
for one person to handle.

        

        Section
14.  Uniforms

        

        Employees are encouraged to elect to
use the contractor service to supply them with uniforms.  Those who
use the uniform service will be assured of the current level of shirts and pants
and the winter jacket at $0.16/hour cost to employees with no cost to repair for
the term of this Agreement, unless the employee terminates use of uniforms and
returns damaged goods.

         

        ARTICLE
XV
VALIDITY
OF CONTRACT

        

        In the event any of the provisions of
this agreement may conflict with State or Federal statutes now existing or
subsequently enacted or with legal executive orders or regulations or applicable
court decision, the requirements of law shall overrule such provisions of this
agreement, it being the intent thereof that neither the Company nor the Union
may insist upon the observance of any provision hereof where the other party to
the agreement is obligated by law to adopt a course in conflict with this
agreement.  The remaining provisions of this agreement not affected
thereby will remain in full force and effect.

         

        ARTICLE
XVI
NOTICE

        

        Any notice to the Company provided
herein may be given by depositing same in the U.S. Mail in a sealed envelope,
registered, postage prepaid, and addressed to:

        

        El Dorado Chemical Company

        P.O. Box 231

        El Dorado,
Arkansas  71731

        Attention: Plant Manager

        

        Any notice to be given to the Union may
be given by depositing same in the U.S. Mail in a seal envelope, registered,
postage prepaid, and addressed to:

        

        
          
            
            

          

          
            25

            
              

            

          

          
            
            

          

        

        Recording Secretary

        International Association of
Machinists

        and Aerospace Workers,
AFL-CIO,

        Local No. 224

        Box 1332

        El Dorado, Arkansas

        

        A copy of notices should be likewise
mailed to:

        

        President, International Association
of

          Machinists and Aerospace
Workers

        AFL-CIO Machinists
Building

        9000 Machinist Place

        Upper Marlboro,
Maryland  20772-2687

         

        ARTICLE
XVII
FUNERAL
LEAVE

        

        Any employee in the bargaining unit
shall be allowed to be absent from work to arrange for or attend the funeral of
any one of the relatives of the employee hereinafter stated:

        

        (a)           If
the deceased relative was the husband, wife, child, father, mother, brother,
sister, grandfather, grandmother, or grandchild of the employee or spouse, the
employee shall be permitted to be absent from work for a period not to exceed
two (2) continuous days.

        

        (b)           If,
to attend the funeral for the deceased relative, the employee travels to a point
more than 100 miles from El Dorado, Arkansas, he shall be allowed such leave for
an additional day with pay.

        

        The pay for each day's leave which the
employee receives under the provisions of this Article shall be a sum equal to
straight time for his regular schedule of work on the day
involved.  There shall be no duplication of payment under provisions
of this Article for any other employee benefits such as vacation pay, holiday
pay, or sickness benefits payments.

        

        Any request for such time off with pay
based on false statements will subject the employee making the request to
immediate disciplinary action or discharge.

         

        ARTICLE
XVIII
GROUP
INSURANCE

        

        Group
Insurance and Pension.

        

        The Company and employees will share
the entire cost of group insurance benefits for employees and employee
dependents on the following basis, in the following employee enrollment
categories, payable bi-weekly:

        

        
          
            
            

          

          
            26

            
              

            

          

          
            
            

          

        

        a.           Employee

        b.           Employee
and Children

        c.           Employee
and Spouse

        d.           Family

        

        Medical claims utilization and fixed
costs will determine the cost share assigned to each enrolled employee by
enrollment category.

        

        
          	
                   
      

                	
                  (1)

                	
                  Effective
      January 1, 2008, the employee’s cost share of 22%, per pay period, will be
      based on the total claims utilization and fixed costs commencing November
      1, 2006, through October 31, 2007.

                

        

        

        The
specific cost share amounts to be effective January 1, 2008, will be constant
throughout that year.

        

        
          	
                   
      

                	
                  (2)

                	
                  Effective
      January 1, 2009, the employee cost share of 23%, per pay period, will be
      based on the total claims utilization and fixed costs during the period,
      commencing November 1, 2007, through October 31,
  2008.

                

        

        

        
          	
                   
      

                	
                  The
      specific cost share amounts, per pay period, to become effective January
      1, 2009, will be constant throughout that
year.

                

        

        

        
          	
                   
      

                	
                  (3)

                	
                  Effective
      January 1, 2010, the employee cost share of 23%, per pay period, will be
      based on the total claims utilization and fixed costs, during the period
      commencing November 1, 2008, through October 31,
  2009.

                

        

        

        The
specific cost share amounts, per pay period, to be effective January 1, 2010,
will be constant throughout that year.

        

        Effective January 1, 2008, 2009, and
2010, of each year, the maximum employee cost share amounts, per pay period, are
as follows:

        

        2008                                22%

        2009                                23%

        2010                                23%

        

        
          
            
            

          

          
            27

            
              

            

          

          
            
            

          

        

        If the total claims percentage cost
share, per pay period, exceeds the capped rates shown below, the capped rates
will apply.

        

        
          	 
      	
                  2008

                	
                  2009

                	
                  2010

                
	 
      	
                  22%

                	
                  23%

                	
                  23%

                
	
                  Capped
      Rates:

                	 
      	 
      	 
      
	
                  Employee

                	
                  $
      28.00

                	
                  $33.60

                	
                  $
      40.32

                
	
                  Employee
      & Children

                	
                  $
      52.00

                	
                  $
      62.40

                	
                  $
      74.88

                
	
                  Employee
      & Spouse

                	
                  $
      86.00

                	
                  $103.20

                	
                  $123.84

                
	
                  Family

                	
                  $110.00

                	
                  $132.00

                	
                  $158.40

                

        

        

        

        Employees should refer to Summary Plan
Descriptions for details of EDC Health Plan co-payments, deductibles,
co-insurance coverage and periodic amendments as may be made from to time to
time.

        

        Effective with the date of this
Agreement, the Company agrees to pay the cost of employee long-term disability
insurance and basic life insurance (twice an employee's annual
income).

        

        Dental insurance coverage will be made
available as an option.  The employee may elect to purchase the
insurance by paying the premium each month, or by increasing the deductible
amounts of the current group medical plan.

        

        The Savings Incentive Plan for
Employees, adopted effective December 1, 1985, shall be continued during the
term of this Agreement.

         

        ARTICLE
XIX
NO
STRIKE OR LOCKOUT

        

        There shall be no strike, sympathy
strike, or lockout during the term of this Agreement for any
reason.

         

        ARTICLE
XX
SERVICE
WITH COMPANY

        

        The Company shall honor previous
service at the El Dorado Chemical Company for purposes of seniority and vacation
eligibility only.  Previous service at the plant, or any predecessor
of the Company, shall not be credited for purposes of pension
benefits.

         

        
          
            
            

          

          
            28

            
              

            

          

          
            
            

          

        

        ARTICLE
XXI
RETIREMENT
AGE

        

        The mandatory retirement age for
employees shall be in accord with federal law.

        

        The seniority of each employee whose
services are terminated under the provisions of this Article shall cease as of
the date of such retirement.

        

        ARTICLE
XXII

        CHANGE
OR MODIFICATION OF AGREEMENT

        

        Section
1

        

        If either party shall desire to change
any provisions of the agreement; it shall give written notice of such desire to
the other party by certified mail at least 60 days in advance of its expiration
date.

        

        Section
2

        

        The giving of notice provided in
Section 1 shall constitute an obligation upon both parties to negotiate in good
faith all questions at issue, with the intent of reaching written agreement
prior to the expiration date.

        

        Section
3

        

        If the parties have not reached
agreement on or before the expiration date, all the provisions of the agreement
shall remain in effect unless specifically terminated in accordance with the
provisions of Article XXIII below.

         

        ARTICLE
XXIII
TERMINATION
OF AGREEMENT

        

        Section
1

        

        At any time after the expiration date,
if no agreement on the question at issue has been reached, either party may give
written notice to the other party of intent to terminate the Agreement in (not
less than) 10 days.  All the provisions of the Agreement shall remain
in full force and effect until the specified time has elapsed.  During
this period, attempts to reach an agreement shall be continued.

        

        Section
2

        

        In the event that parties fail to
resolve their differences within the specified time, all obligations under this
agreement are automatically canceled at the expiration
thereof.  Provided, 

         

        
          
            
            

          

          
            29

            
              

            

          

          
            
            

          

        

         

        however,
that nothing in the foregoing shall take away the right of the parties to
mutually agree to a written extension of this Agreement.

        

        This Agreement may be opened for change
by specific areas by mutual agreement of the parties without affecting the
remainder of the contract.  Any changes must be ratified by the Union
membership prior to implementation.

        

        IN WITNESS HEREOF, this instrument is
executed on the 17th
October, 2007, to be effective as of October 17, 2007, at 12:01
a.m.

        

        EL DORADO CHEMICAL
COMPANY

        

        

        By: ____________________________                                                                                    

              Greg
Withrow, General Manager

        
 

        

        

        
          	
                   
      

                	
                  INTERNATIONAL
      ASSOCIATION OF MACHIN­ISTS AND AEROSPACE WORKERS AFL-CIO, LOCAL
      NO. 224

                

        

        

        

        By: ____________________________                                                                                    

              Larry G.
Booth

              Directing
Business Repre­sen­tative

        

        

        MEMBERS OF THE SHOP
COMMITTEE:

         

                                  

        ____________________________

                                   Jim McKnight

         

        ____________________________

                                    Edward
Johnson

         

        ____________________________

                                    Steve
Taylor

         

        ____________________________

                                    Don
Fletcher

         

        ____________________________

                                    Jeff
Robison

        
          
            
            

          

          
            30

            
              

            

          

          
            
            

          

        

        EXHIBIT
"A"
BASIC
HOURLY WAGE RATE

        

        

        Classification                                                                           10/17/07                    10/17/08                  10/17/09

        

        "A"
Mechanic                                                                   $19.88                      $20.38                      $20.89

        "B"
Mechanic                                                                    $18.51                      $18.97                      $19.44

        "C"
Mechanic                                                                    $17.80                      $18.25                      $18.71

        "D"
Mechanic                                                                    $13.17                      $13.50                      $13.84

        "E"
Mechanic-New
Hire                                                                  **                        **                        **

        (First
180 Days)

        ** Rate
of pay determined by Company on basis of employees qualifications.

        

        The Company shall have the right to
select and appoint employee(s) as Lead.  In addition to the regular
work of their classification, a Lead may be assigned to train, assist, assign
employees, carry out the instructions of supervision, and to perform any other
duties pertaining to the maintenance department, which may be assigned by
management.  The selection of Lead personnel and the duration of their
appointment is within the sole discretion of management.  While so
assigned, Lead(s) shall receive a premium of one dollar ($1.00) above their
regular hourly rate.

        

        

        Specialist
I                                                                           $21.94                                $22.49                                $22.94

        

        Specialist
II                                                                          $23.82                                $24.42                                $24.91

        

        Specialist
III                                                                         $25.69                                $26.34                                $26.87

        

        

        
          
            
            

          

          
            31

            
              

            

          

          
            
            

          

        

        

        RATE
CHANGES DURING TERM OF AGREEMENT

        

        The parties agree that the Company
shall have the right to establish pay practices and rates which assure the
Company’s ability to attract and retain skilled/qualified bargaining unit
members.  Before implementation, the Company will discuss the rates
and/or changes with the Union.

        

        

        CLOTHING
ALLOWANCE

        In addition to the hourly rates set
forth in Exhibit "A", there shall be paid a clothing allowance of each hour
worked, as indicated below:

        Clothing
Allowance

        Per
Hour

        $.16

        

        
          
            
            

          

          
            32

            
              

            

          

          
            
            

          

        

         

        EXHIBIT
"B"

        

        RECOGNIZED
MAINTENANCE WORK GROUPS

        

        Group I -
Mechanical

        

        Includes work ordinarily done by the
following work groups:

        1
..Pipefitter, Plumber

        2.
Welder, Lead Burner

        3. Heavy
Duty Operator, Rigger

        4.
Machinist

        5.
General Mechanic

        6. Tank
Car Repairman,

        7.
Carpenter, Painter, Mason, Insulator, Concrete Finisher

        8.
Rotating Machinery

        

        

        

        

        Group II
- Electrical/Instrumentation

        

        Includes work ordinarily done
by:

        

        1.
Electrician

        2.
Instrument Repairman

        

        

        

        
          
            
            

          

          
            33ex_1037.htm

    
      

      

      DRAFT

       

      AGREEMENT

      

      

      

      between

      

      United
Steel, Paper and Forestry, Rubber, 
Manufacturing, Energy, Allied Industrial
and 
Service Workers 

      International
Union, AFL-CIO, CLC, on behalf of

       Local
Union No. 00417

      

      and

      

      Cherokee
Nitrogen Company

      

      

      November
12, 2007 to November 11, 2010

       

       

       

       

       

       

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      CONTENTS

      

      

                                                                                                                                     Page
No.

      
        	
                 

                AGREEMENT (Preamble)

              	
                 

                1

              
	
                 

                ARTICLE 1 – RECOGNITION

              	
                 

                1

              
	
                 

                ARTICLE 2 – PURPOSE

              	
                 

                1

              
	
                 

                ARTICLE 3 – MANAGEMENT RIGHTS
      CLAUSE

              	
                 

                2

              
	
                 

                ARTICLE 4 - WORK GROUPS

              	
                 

                2

              
	
                 

                ARTICLE 5 - SENIORITY

              	
                 

                4

              
	
                 

                ARTICLE 6 – POSTING AND FILLING JOB
      BIDS

              	
                 

                5

              
	
                 

                ARTICLE 7 – REDUCTION IN FORCE AND
      RECALL

              	
                 

                6

              
	
                 

                ARTICLE 8 – SCHEDULE CHANGE

              	
                 

                8

              
	
                 

                ARTICLE 9 – HOURS OF WORK

              	
                 

                8

              
	
                 

                ARTICLE 10 – OVERTIME

              	
                 

                8

              
	
                 

                ARTICLE 11 – 12-HOUR SHIFT
      AGREEMENT

              	
                 

                12

              
	
                 

                ARTICLE 12 – ABSENCES

              	
                 

                12

              
	
                 

                ARTICLE 13 - WAGES

              	
                 

                13

              
	
                 

                ARTICLE 14 – SHIFT
    DIFFERENTIAL

              	
                 

                14

              
	
                 

                ARTICLE 15 - VACATIONS

              	
                 

                14

              
	
                 

                ARTICLE 16 - HOLIDAYS

              	
                 

                16

              
	
                 

                ARTICLE 17- FUNERAL LEAVE
    PAY

              	
                 

                17

              
	
                 

                ARTICLE 18 – JURY DUTY

              	
                 

                17

              
	
                 

                ARTICLE 19 – PAYDAY

              	
                 

                18

              
	
                 

                ARTICLE 20 – MEAL ALLOWANCE
      PROVISIONS

              	
                 

                18

              
	
                 

                ARTICLE 21 – WORKERS
    COMMITTEE

              	
                 

                19

              
	
                 

                ARTICLE 22 – GRIEVANCE
      PROCEDURE

              	
                 

                19

              
	
                 

                ARTICLE 23 – LEAVE OF
    ABSENCE

              	
                 

                21

              
	
                 

                ARTICLE 24 – MILITARY
    SERVICE

              	
                 

                22

              
	
                 

                ARTICLE 25 – SAFETY AND
    HEALTH

              	
                 

                22

              
	
                 

                ARTICLE 26 – DISCRIMINATION

              	
                 

                23

              

      

      
        
           

        

        
          i 

          
            

          

        

        
           

        

      

      
        	
                 

                ARTICLE 27 – BULLETIN
BOARDS

              	
                 

                23

              
	
                 

                ARTICLE 28 – SICKNESS
    BENEFITS

              	
                 

                24

              
	
                 

                ARTICLE 29 – DISCIPLINE AND
      DISCHARGE

              	
                 

                25

              
	
                 

                ARTICLE 30 – GENERAL

              	
                 

                25

              
	
                 

                ARTICLE 31 – AUTHORIZED
      DEDUCTION

              	
                 

                26

              
	
                 

                ARTICLE 32 – SAVINGS CLAUSE

              	
                 

                26

              
	
                 

                ARTICLE 33 – STRIKES AND
      LOCKOUTS

              	
                 

                27

              
	
                 

                ARTICLE 34 –TERM

              	
                 

                27

              
	 
      	 
      
	
                 

                APPENDIX
      "A"   (Wage Rates)

              	
                 

                29

              
	
                 

                APPENDIX
      "B"   (12-Hour Continuous Shift
      Operations)

              	
                 

                31

              
	
                 

                APPENDIX
      "C"   (401(k) Savings Plan)

              	
                 

                36

              
	
                 

                APPENDIX
      "D"   (Alcohol and Drug Control
    Policy)

              	
                 

                37

              
	
                 

                APPENDIX “E” (USW Check-off
      Authorization)

              	
                 

                38

              
	
                 

                LETTER OF
      UNDERSTANDING   (Red Circle Personnel)

                 

              	
                 

                39

                 

              
	
                LETTER OF UNDERSTANDING
      (Board Operator Premium)

              	
                40

              

      

      

      
        
           

        

        
          ii 

          
            

          

        

        
           

        

      

      

      AGREEMENT

      

      This
Agreement was made and entered into this twelfth day of November, 2007, by and
between Cherokee Nitrogen Company, Cherokee, Alabama, hereinafter called the
“Company” and The United Steel, Paper and Forestry, Rubber, Manufacturing,
Energy, Allied Industrial and Service Workers  International Union
AFL-CIO, CLC (USW) on behalf of its Local Union No. 00417, hereinafter called
the "Union."

      

      ARTICLE
1

      RECOGNITION

      

      Due to
the Company's hiring individuals, all of which were previously employed in the
Cherokee Nitrogen facility, where the Company currently operates, the Company
has recognized the "Union" for purposes of pay, wages, hours of work, and other
terms and conditions of employment for employees in the following unit: all
hourly-paid production and maintenance employees at the Company's Cherokee,
Alabama plant, but excluding journeyman electricians and instrument person,
their apprentices and/or electrician or instrument mechanics helpers, clerical
employees, professional, technical, managerial, and confidential employees,
guards, and supervisors as defined in the Act.

      

      Whenever
reference is made to a particular gender in this Agreement, it is understood
that the reference applies equally to both male and female
employees.

      

      ARTICLE
2

      PURPOSE

      

      A.           The
parties hereto mutually agree that there is concern for the future of the
Company and its ability to compete in a the nitrogen fertilizer industry because
of factors over which neither the Union nor the Company have control, including
but not limited to foreign competition, excess domestic production capability,
natural gas prices, and the cyclical nature of product utilization by
consumers.  Each agrees that our mutual goal is to provide the highest
quality product and service at a competitive price, and to assure the effective
flexibility in the utilization and skills of all employees.

      

      B.           It
is the intent and purpose of the parties hereto that this Agreement shall
promote and improve the industrial and economic relationship between the Company
and the Union, and shall set forth herein rates of pay, hours of work, and
working conditions of employment to be observed between the parties
hereto.

      

      C.It is recognized by both
parties that they have a mutual interest and obligation in maintaining friendly
cooperation between the Company and the Union which will permit safe,
economical, and efficient operation of the plant.

      

      D.All written Letters of
Agreement which are dated prior to the effective date of this contract are null
and void unless specifically added to this contract.

      

      

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      

      ARTICLE
3

      MANAGEMENT RIGHTS
CLAUSE

      

      The Union
expressly recognizes that the Company has the exclusive responsibility for and
authority over (whether or not the same was exercised heretofore) the
management, operation, and maintenance of its facilities and, in furtherance
thereof, has, subject to
the terms of this agreement, the right to determine policy affecting the
selection, hiring, and training of employees: to direct the work force and to
schedule work: to institute and enforce reasonable rules of conduct, to assure
discipline, and efficient operation: to determine what work is to be done, what
is to be produced and by what means; to determine the quality and quantity of
workmanship; to determine the size and composition of the work force; to
determine the allocation and assignment of work to employees; to determine the
location of business, divisions, and subdivisions thereof; to arrange for work
to be done by other companies or other divisions of the Company; to alter,
combine, or eliminate any classification, operation, service, or department; to
sell, merge, or discontinue the business or any phase thereof; provided,
however, in the exercise of these prerogatives, none of the specific provisions
of the Agreement shall be abridged.

      

      The
Company will not use the vehicle of subcontracting for the sole purpose of
laying off employees or reducing the number of hours available to
them.

      

      ARTICLE
4

      WORK
GROUPS

      

      A.           Grandfathering
and red circle personnel are covered in a Letter of Understanding.

      

      B.           OPERATIONS PRODUCTION
DEPARTMENT SKILL ADVANCEMENT/ON-THE-JOB TRAINING.

      

      1.           In
the interest of maintaining and improving operating efficiencies, the following
is the standard for inception and advancement.

      

      2.           Levels
of advancement are as follows:

      

      
        	
                 
      

              	
                a.

              	
                Trainee - If a new hire
      cannot complete the qualifications according to the following schedule,
      they will be terminated.  If an existing employee bids to the
      job but despite his/her best efforts he/she cannot complete the
      qualifications according to the schedule, the Company will consider
      alternatives to termination including an extension of the training period
      or reassignment to his/her prior position for which he/she is
      qualified.

              

      

      

      
        	
                 
      

              	
                b.

              	
                Chemical Operator 1 -
      Required to pass necessary requirements as determined by management, for
      one (1) assignment which will include written and oral examinations and
      demonstration of job proficiency.  Must qualify within 240 hours
      of training on day shift.

              

      

      

      
        	
                 
      

              	
                c.

              	
                Chemical Operator 2 –
      Required to qualify by passing the second assignment by written and oral
      examinations, and demonstration of job proficiency.  Must
      qualify within one (1) year after passing Operator 1
      qualifications.

              

      

       

      
        

        
          	
                   
      

                	
                  d. 

                	Chemical Operator 3 -
      Required to pass all area assignment written and oral examinations within
      an area, and by demonstrating job proficiency on all
      assignments.  Must qualify within one (1) year after passing
      Operator 2 qualifications.

        

         

        
           

          
            
              
              

            

            
              2

              
                

              

            

            
              
              

            

          

           

           

          
            	
                     
      

                  	
                    e.

                  	Chemical Operator 4 -
      Required to pass all area assignment written and oral examinations
      within an area, and by demonstrating job proficiency on all
      assignments.  Must qualify within eighty (80) calendar days
      after passing Operator 3 qualifications and be certified as having
      completed Cherokee Nitrogen training
programs.

          

                 

        

      

      C.           ROUTE OF ADVANCEMENT –
OPERATIONS PRODUCTION DEPARTMENT.

      

      
        	 
      	 
      	 
      	
                Switch

              	 
      
	 
      	
                Ammonia

              	
                Acid

              	
                Urea

              	
                Nitrate

              	
                Crews

              
	
                Chemical
      Operator 4

              	
                X

              	
                X

              	
                X

              	
                X

              	
                (1)*

              
	
                Chemical
      Operator 3

              	
                X

              	
                X

              	
                X

              	
                X

              	
                (1)*

              
	
                Chemical
      Operator 2

              	
                X

              	
                X

              	
                X

              	
                X

              	
                X

              
	
                Chemical
      Operator 1

              	
                X

              	
                X

              	
                X

              	
                X

              	
                X

              
	
                Trainee

                New
      Hire after 8/31/94

              	
                X

              	
                X

              	
                X

              	
                X

              	
                X

              
	
                (1)*To
      qualify for this level, the switching and rail crew members must qualify
      for the shipping, bagging, and load-out of products in the Nitrate and
      Urea areas.

              

      

      

      D.           MAINTENANCE  DEPARTMENT
WORK GROUPS.

      

      1.           In
the interest of maintaining and improving plant on-stream time, the following is
the standard for maintenance inception and advancement:

      

      2.           The
Company will provide on-the-job training necessary to acquire job skills at each
level.  Levels of advancement are as follows:

      

      a.           Maintenance Trainee - A new
hire or bidder will be required to pass the skill levels established August 31,
1994 (document entitled "Training Program - General Mechanic") in order to
advance to Maintenance Level 1.  A new hire who does not complete the
qualifications will be terminated.  Must successfully complete and
pass written and practical factors tests, as determined by
Management.  If an existing employee bids to the job but despite
his/her best efforts he/she cannot complete the qualifications according to the
schedule, the Company will consider alternatives to termination including
extension of the training period or reassignment to his/her prior position for
which he/she is qualified.

      

      b.           Maintenance Level 1 - Must be
qualified and proficient in one (1) major skill as determined by management, and
must pass written and practical factors tests, as determined by Management,
(i.e. General Mechanic, Certified Welder, Machinist, Auto Mechanic, Millwright,
etc.).

      

      c.           Maintenance Level 2 - Must be
qualified and proficient in two (2) major skills, and written and practical
factors tests, as determined by Management.

      

      d.           Maintenance Level 3 - Must be
qualified and proficient in three (3) major skills, and written and practical
factors tests, as determined by Management.

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      e.           Maintenance Level 4 - Required
to be a Level 3 and certified by written and practical factors tests, as
determined by Management.

      

      

      E.           ROUTE OF ADVANCEMENT –
MAINTENANCE DEPARTMENT.

      

      
        	
                Ø  

              	
                Maintenance
      Level 4

              

      

      

      
        	
                Ø  

              	
                Maintenance
      Level 3

              

      

      

      
        	
                Ø  

              	
                Maintenance
      Level 2

              

      

      

      
        	
                Ø  

              	
                Maintenance
      Level 1

              

      

      

      
        	
                Ø  

              	
                Mechanic
      3rd Year Trainee

              

      

      

      
        	
                Ø  

              	
                Mechanic
      2nd Year Trainee

              

      

      

      
        	
                Ø  

              	
                Mechanic
      1st Year Trainee

              

      

      

      
        	
                Ø  

              	
                Maintenance
      Trainee

              

      

      

      Training
program guidelines to become a general mechanic shall be those as described in
4D 2(a) identified in the document, Training Program “General Mechanic”
established August 31, 1994, and updated August 15, 1999.

      

      MAINTENANCE
DEPARTMENT AREAS

      

      The
current operating practice is to assign employees to one of the following
areas:

      

      Ammonia/Nitric
Acid/Utilities

      Nitrate/Urea

      Central

      

      ARTICLE
5

      SENIORITY

      

      The
purpose of this Article is to define and describe the seniority provisions which
will govern the seniority status of employees within the bargaining
unit.

      

      A.           Employees
who were hired by Cherokee Nitrogen Company on November 1, 2000 shall have their
plant seniority date based on date of original employment at the
plant.  Such seniority may be used for vacation eligibility and
seniority rights.

      

      B.           The
only type of seniority, which will be considered under this Agreement, is plant
seniority.

      

      C.           A
new employee screened and hired to become a regular full-time employee shall not
acquire seniority rights until he/she has been employed by the Company for a
period of sixty-five (65) continuous active work days within a period of six (6)
months.  Until such time as an employee has acquired seniority rights,
he/she shall be considered a probationary employee and may be laid off or
terminated without recourse, and the Company shall be under no obligation to
rehire him/her.  When 

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      employees
have identical plant seniority, the order of seniority placement shall be
determined alphabetically.

      

      D.           The
seniority of an employee shall be considered broken, all rights forfeited, and
there shall be no obligation to rehire him/her for any one of the following
reasons:

      

      1.           If
the employee voluntarily quits.

      

      2.           If
the employee is discharged for just cause.

      

      
        3.    If the
employee is away from work for a period of 24 months or length of previously
accrued service, whichever is less, for any reason other than illness or
injury.  In those cases the period of time will be a maximum of three
(3) years or length of previously accrued service, whichever is
less.

      

      

      4.           Subject
to paragraph 3 above, if an employee who has been laid off does not return to
work within (10) ten calendar days after the postmark date of a registered or
certified letter form the Company, addressed to his / her last known address as
shown on the Company’s records.  It is the employee’s obligation to
keep the Company informed of his / her correct current address.

      

      Employees
who are unable to report within this ten (10) calendar day period because of
sickness or accident will, subject to paragraph 3 above and in that event be
recalled to any vacancy during any subsequent recall action.

      

      E.           If
a member of the bargaining unit is promoted to a supervisory or salaried
position from an hourly-paid job, he/she shall lose all of his/her seniority in
the bargaining unit.

      

      F.           A
complete seniority list of all active employees shall be posted in each
department on the bulletin board within thirty (30) days after signing of this
Agreement, and revised quarterly.

      

      ARTICLE
6

      POSTING AND FILLING JOB
BIDS

      

      When a
job vacancy occurs, it shall be posted on the Bulletin Board for six (6)
calendar days for bid, plant-wide.  The job posting shall indicate the
primary job assignment and shift.  The senior employees will be
awarded the job by plant seniority.  The senior bidder will be awarded
the job as a trainee or based on Article 4, Section B.2 or D.2
qualifications.  An employee will be allowed only one (1) successful
bid per six (6) month period unless the bid is to a new job which carries a
higher rate of pay at the time of the bid.

      

      An
employee who is being laid off from his/her job at the time
that a posting is in effect can bump to the job which is posted without bidding
in accordance with Article 7, and he/she can keep the job if he/she is senior to
the bidder and he/she qualifies.  An employee called in from layoff to
fill a job while it is posted for bidding must go to the open job when the
bidding is completed unless he/she bid for the job and is the senior
bidder.  If there are no bidders for the job he/she will remain in the
job.  When employees are being recalled from a layoff, which was
caused by a unit production cutback (or shutdown), all employees who have
adequate seniority to be recalled are eligible to bid for job
openings.  If an employee took a voluntary layoff at the time of the
shutdown, but he/she has enough seniority to be on the recall list, he/she will
have bid rights just as others in the seniority group being recalled, provided
that the job for which he/she holds recall right is open. However, filling of a
job in either of the above manners will be regulated by the
following:

      

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      A.           No
employee will be granted a trial period if he/she does not have a reasonable
expectancy of demonstrating the qualifications required by the
job.  If within the preceding six (6) months an employee has refused
training on the job, or he/she has been disqualified on this job, he/she shall
not be permitted to bid.

      

      B.           The
successful bidder shall be given up to 240 hours of
training.  Fulfillment of assignment requirements by the successful
bidder will be determined by the Company.  If an employee has been
previously qualified in the job, he/she will be provided 84 hours of refresher
training.  In determining whether an employee has become qualified,
the results of written and/or practical tests (which meet Federal guidelines)
will be among the factors given consideration.  If an employee is
already qualified or becomes qualified in less than fifteen (15) work days,
he/she will be so informed by management.

      

      C.           During
the period of posting, the Company will fill the job on a temporary basis, not
to exceed 35 working days, unless prevented from doing so by extenuating
circumstances.  If a successful bidder cannot be moved within 35 days
to the new job which would call for a higher rate, the employee will receive the
higher rate beginning with the 36th day
until he/she can be moved.

      

      D.           When
a temporary job is posted in operations, the employee who gets the job will
share overtime in that area.  When the permanent employee returns, all
temporary employees will return to their regular (last permanent classification)
jobs.

      

      When a
temporary job is posted and the regular employee does not return to the job, the
temporary

      employee
shall become permanent in that classification.

      

      E.           When
a permanent vacancy exists in the maintenance department, it shall be filled by
plant seniority based on mechanical skills required.

      

      

      ARTICLE
7

      REDUCTION IN FORCE AND
RECALL

      

      
        	
                A.

              	
                Should
      it become necessary to lay off employees, the Company shall advise the
      Union of such layoff at least seventy-two (72) hours in
      advance.  It is understood that this provision shall not apply
      if the layoff is caused by emergencies or by conditions beyond the
      Company's control.

              

      

      

      
        	
                B.

              	
                It
      is understood the Company shall have the right to retain sufficient
      numbers of qualified personnel and in such event may assign personnel to
      particular shifts where required, temporarily, for training, not to exceed
      240 hours after assuming the job.

              

      

      

      C.           Reductions-in-force
and recalls shall be on the basis of plant seniority as outlined
below:

      

      1.           If
a layoff is for twenty-one (21) days or less, the employee can take a voluntary
layoff with recall rights or bump to any job for which he/she is qualified;
however, if no junior employee is available to bump, the employee cannot take a
voluntary layoff.

      

      2.           Employees
who took a voluntary layoff for recall or were laid off, and the reduction in
force exceeds twenty-one (21) days, the employee shall be recalled and exercise
his/her bump rights as outlined in paragraph (7) below.

      

      3.           Employees
who choose to take a layoff rather than bump to another job can only be recalled
to the job the employee was working at the time of the layoff.  The
different classifications in production constitute usual jobs as referred to in
Article 7, Section C.5.  Shift 

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      assignments
are not recognized in considering usual job.  In maintenance, the
classifications, as listed in Appendix "A" Maintenance, are
the basis for determining usual job, with no consideration given to area of
assignment.

      

      
         4.   When the
number of shifts in a particular job are being reduced, the junior employee(s)
will be given a bump notice and the remaining senior employee(s) will select
shift preference based on seniority.

      

       

      
        5.          The
employee's "usual job" is the only job for which the employee can be recalled
and only a job different from the employee's present "usual job," by the same
definition as is used for recall, can be used as a basis for refusing to
bump.  For example, a control operator on "A" shift could not refuse
to bump a control operator on "C" shift.  The same operator could not
refuse recall to any control operator job, regardless of
shift.

      

      

      6.           An
employee who has taken a voluntary layoff shall have the option to be recalled,
to an entry level vacancy, if the employee's usual job has not reopened within a
period of six (6) months from the date the layoff began.  The employee
must be qualified for the work and pass a physical examination to be eligible to
return.  If the employee's usual job has not reopened for a period of
twelve (12) months from the date that employee was placed on layoff, the
employee shall have option to bump the lowest seniority employee who is in a job
for which the employee on layoff was previously qualified, and assume that
employee's job.  To be eligible to bump to this job, the employee must
pass a physical examination.  If the employee elects not to return
after twelve (12) months, the seniority of this employee shall be considered
broken, all rights forfeited and there shall be no obligation to rehire the
employee, consistent with Article 5 of this agreement.

      

      
        7.   If a
layoff is for twenty-one (21) days or more, the employee can either take a
voluntary layoff with recall rights in accordance with (1) above, or bump to a
job for which he/she is qualified or he/she may bump a junior employee and
receive a twenty (20) -work-day qualification period or 84 hours if previously
qualified in the job.  To receive the twenty (20)-day qualification
period the employee must demonstrate within the first three (3) work days the
ability to learn this job within the twenty (20)-day qualification
period.  The employee will only be expected to qualify on the job that
he/she bumps to in the twenty (20) work day qualification
period.  Such training will be provided on the day shift when
practical.  If the employee does not demonstrate the ability within
three (3) work days or fails to qualify within twenty (20) days, he/she shall be
disqualified and laid off and the incumbent employee shall remain in the
job.

      

      

      
        8.   During
the qualification period, the bumping employee shall receive the rate for the
last job on which the employee was qualified.

      

      

      9.           It
is understood that in Maintenance, if the bumping employee is a Maintenance
Level 4, the bumping employee must have the mechanical skills of the employee
he/she bumped after the qualification period.

      

      10.           In
accordance with paragraph (7), in a given layoff, if a senior employee is laid
off without an opportunity to bump and a junior employee is left in the plant at
the end of the bump/qualification period, the senior employee will be recalled
with bump rights.

      

      11.           No
bumping between Departments shall be allowed.  Employees are only
allowed to move from Department to Department under the terms of Article
6.

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      ARTICLE
8

      SCHEDULE
CHANGE

      

      The
Company shall give an employee thirty-six (36) hours notice of change in the
regular work schedule (this notice shall be posted by 2:00 p.m. on the first day
of the thirty-six (36) hours notice), and sixteen (16) hours' notice of return
to the employee's regular work schedule, except where rescheduling is required
due to lack of raw materials, labor difficulty, acts of God, or any other
occurrence beyond the Company's control.  If the Company fails to give
such notice, except where excused in the preceding sentence, the Company shall
pay one and one- half (1-1/2) times the affected employee's regular
straight-time rate for hours worked on the first day after such change in
schedule.  If there are any changes in present work schedules for
non-shift workers, assignments will be made on the basis of seniority, where
practical.  The foregoing in no way precludes the Company from making
changes in the work schedules according to operational and maintenance
needs.

      

      ARTICLE
9

      HOURS OF
WORK

      

      A.           The
established workweek begins at 6:00 a.m. on Monday and ends at 6:00 a.m on the
following Monday.  For the purpose of computing overtime, the normal
workweek shall be forty (40) hours and the normal workday shall be eight (8)
hours.  This is not to be considered a guarantee of eight (8) hours a
day or forty (40) hours a week.

      

      B.          Under
the present operating requirements, the normal schedule for eight (8) hour shift
workers shall be organized into three (3) consecutive eight (8) hour shifts as
follows:

      

      First shift 6:00 a.m. to 2:00
p.m.

      Second shift 2:00 p.m. to 10:00
p.m.

      Third shift 10:00 p.m. to 6:00
a.m.

      

                    Under
the present operating requirements the normal schedule for maintenance workers
shall be:

      

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

      11:30 a.m. to 3:30 p.m.

      

      When an
employee is instructed or scheduled to report for work and so reports and
reports on time, the employee shall be guaranteed four (4) hours of work if
he/she is put to work, and if no work is available for them to perform, the
employee shall receive pay for four (4) hours' work at their regular hourly rate
of pay, except in case of fire, flood, power breakdown, or other conditions
beyond the control of Management.  At the Company's discretion, an
employee instructed or scheduled to report for work may be assigned to any work
available which the employee is capable of performing in lieu of their being
released if there is no work for them to do in their usual
occupation.

      

      ARTICLE
10

      OVERTIME

      

      A.           The
basic work day shall be eight (8) hours.  The basic work week shall be
forty (40) hours.  Overtime shall be paid at the rate of one and
one-half (1-1/2) times the regular rate of pay for all hours worked in excess of
forty (40) hours per week, or in excess of eight (8) hours in a twenty-four
(24)-hour period beginning at the start of the employee's regular scheduled
shift, except that this provision shall not apply in the case of a regularly
scheduled shift change.  Overtime payment shall be made on the basis
of either daily or weekly overtime, whichever results in the greater pay, but
there shall be no pyramiding or duplication of daily and weekly
overtime.

      

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      B           Any
employee who is called out to perform work outside their scheduled working hours
shall be paid for all time worked pursuant to such call-out, at one and one-half
(1-1/2) times his regular rate of pay and will be guaranteed a minimum of four
(4) hours' work.  An employee on call-out shall not be required to do
work other than the job or jobs they were called out to perform unless there is
additional emergency work that occurs.  The employee will be paid time
and one- half (1-1/2) for the actual hours worked on this additional
work.  To be eligible for call-out, an employee must have a telephone
in their residence and notify their foreman of any changes in their telephone
number.  The Company has no obligation to call an employee at any
telephone number other than their residence telephone for call-outs, changing of
working schedule, or for any other reason.

      

      C.           When
an employee moves from one overtime group to another, the number of their
overtime hours will be adjusted up or down to equal the average of the new
group.  Previously qualified employees will also retain eligibility
for overtime in previously qualified groups for one (1)
year.  Employee will receive the higher rate of pay of the two jobs
when filling the overtime in another area.

      

      D.           Premium
pay provided for herein shall not be pyramided on premium pay payable under any
other article or section of this
Agreement.

      

      E.           All
overtime hours refused will be charged or added to an individual's overtime
hours on the basis of twice (2) the number of hours actually paid to the
employee who accepted the work.  If charged overtime on a double-time
shift is worked, only the overtime paid will be charged.

      

      F.           It
is considered inappropriate in the scheduling of employees to hold over more
than eight (8) hours after any regular eight- hour shift, or to plan work where
employees must be scheduled more than twelve (12) hours per day, or holdover
more than 4 hours on a 12 hour shift.  Every effort should be made to
anticipate relief requirements of employees in advance of the time
required.

      

      G.           If
an employee believes he or she has been bypassed for overtime, at the employee’s
or union’s request, the employee or union and his or her supervisor will examine
the overtime records and if they agree that a bypass occurred, preference for
overtime will be given to the employee, as soon as it is practical.

      

      H.           All
temporary vacancies will be offered to the qualified operator lowest in overtime
hours in that area.  It is the Work Group’s responsibility to fill the
vacancies.  Employees who are on duty who refuse to accept holdover
overtime assignments to vacancies shall be subject to disciplinary
action.  Such assignments shall be deemed as mandatory.  The
Company shall have the right to implement a pager policy or a disciplinary
policy to assure that it will have the services of its qualified employees to
perform the necessary work.

      

      I.           All
overtime will be reduced to zero at the end of each calendar year
period.

      

      J.           OVERTIME
COVERAGE PROCEDURE. Overtime hours shall be
shared equally by all employees in the Work Group, as far as practical for the
efficient operation of the plant, or on the following basis:

      

      1.           Maintenance

      

      a.           All
Maintenance overtime shall be posted by area and Work Group.  This
time, hours paid for straight-time basis, and two (2) times hours paid but
turned down, will be posted by the Company.  It shall be the
responsibility of the Company to keep this time accurate
daily.  Overtime will be grouped by area Work Group.

      

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      b.           Holdovers. The Work Group will
offer (holdover) overtime to employees who are already working on the job
according to the following procedure:

      

      The
personnel already working on the job will be offered the work first, regardless
of their normal overtime group.

      

      In the
event the assignment involves work in process, and continuity of the work is
required, Company may assign the employees already working the
job.  If a group consists of both central and resident personnel, the
resident personnel on the job will be offered the work first. If additional
personnel are needed, the work will be offered to the central personnel on the
job prior to offering it to the resident personnel who are not working the job
at the time the overtime occurs.

      

      If the
job has not been started, the first employee held over shall be the lowest
qualified mechanic from the group involved, and all succeeding personnel
required for the job shall be obtained by beginning with the lowest qualified
employee in the group (ML4, 3rd year mechanic, 2nd year mechanic, 1st year
mechanic, or utility person), until the job is manned.  In the event
that additional help outside the group is needed, the Work Group will contact
the lowest qualified employee (ML4, 3rd year mechanic, 2nd year mechanic, 1st
year mechanic, and utility person) from the central maintenance group until the
job is filled.  If for some reason the job still cannot be manned, the
Work Group shall call the other  resident group in the same order
until all are called.  All holdovers should be notified as early as
possible before quitting time.

      

      In the
event sufficient volunteers are not obtained, employees may then be mandatory
assigned.

      

      The Work
Group will start to fill hold-over requirements as well in advance of 2:00 p.m.
as practicable.  If by 2:30 p.m. the required hold-over personnel have
not been obtained, the Company will notify the junior qualified employee that
they may be required to stay over.  The Work Group will continue to
try to obtain the personnel requirements through the established overtime
procedure until 2:30 p.m.  At this time, personnel requirements not
already fulfilled will be obtained by assigning the junior qualified employee in
the maintenance department to stay over.

      

      c.           Call-outs. On call-outs the Company
will first call the qualified ML4 who has worked to the lowest in number of
overtime hours worked from the group concerned.  All succeeding
personnel required for the job shall be obtained as in the preceding
paragraphs.

      

      d.           Planned
Overtime. The group concerned will
be assigned to planned overtime first, beginning with the lowest qualified ML4
and continuing as above until all personnel in the group have been
assigned.  When additional personnel are required, they will be
assigned from the Central Maintenance group by assigning the lowest qualified
employee first, and so on until the job is properly staffed.

      

      When
out-of-classification work in the Automotive Shop must be offered to mechanics,
and it is known by 2:00 p.m. the day before the work is assigned, the Company
agrees to offer the work to the junior qualified employee(s) at the time the
work is offered.  There may be some instances when special skills are
involved and would preclude following this procedure.  Such cases will
be discussed with appropriate Union Officials.  It is 

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      understood
and agreed that this arrangement will not be extended to other jobs or work
assignments.

      

      e.           Scheduled
Shutdowns.   Work performed on straight days, or on
around-the-clock shifts shall be handled as in the past, i.e., by the area
people involved, and whatever additional help is needed may be obtained from any
overtime group.

      

      f.           Prior
to major scheduled turn-around, the Company will advise the Union of work
arrangements.

      

      g.           When
Central Maintenance employees are scheduled to work during a shutdown or
start-up of at least four (4) working days duration, they shall share overtime
on an alternating basis with maintenance people in the area, with an employee
from the area scheduled first.

      

      Example:                 1st
Person - Area

      2 People    - Area,
Central

      3 People    - Area,
Central, Area

      4 People    - Area,
Central, Area, Central

      

      h.           When
work needs are great and cannot be met by personnel from the area concerned and
Central Maintenance, the other resident area is to be called starting with the
lowest qualified employee, and so on until the job is staffed.

      

      

      2.           Production
Department.

      

      The
following overtime procedure is to be used by each area work group in the
Production Department:

      

      
        	
                 
      

              	
                a.

              	
                If
      a section in a department is not in operation, then the operators from
      that section may be moved, if qualified, to fill vacancies or to perform
      other duties.

              

      

      

      
        	
                 
      

              	
                b.

              	
                The
      overtime in each production area will be grouped into the usual job
      classification that the employee normally works.  All temporary
      vacancies will be filled by the usual job classification that the overtime
      occurs.  If the vacancies cannot be filled in this manner, they
      will be offered to the qualified operator lowest in overtime hours in that
      area.  It is the work group on duty’s responsibility to fill the
      vacancies.  If the vacancies cannot be filled in this manner,
      and the employees who are on duty refuse to accept holdover overtime
      assignments, they shall be subject to disciplinary action.  Such
      assignments shall be deemed
mandatory.

              

      

       

      
         

        
          	
                   
      

                	
                  c.

                	
                  If
      an operator informs the plant at least three (3) hours before his
      scheduled shift begins, any overtime worked as result of this absence will
      be offered first to the qualified employee lowest in overtime in the
      classification.  In the event of an unscheduled absence before
      shift change, the employee who is presently staffing the job (except when
      employee is in training, regardless of their classification will be
      required to continue working until properly relieved or may accept the
      overtime opportunity.  If an operator does not inform the plant
      of their absence at least three (3) hours before their shift change, then
      the employee who is presently staffing the job (except when the employee
      is in training), regardless of their classification, will be given the
      choice of the overtime.

                

        

        
        

        
           

        

      

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      

        d.         If
the operator contacted desires the full eight (8) hours, he/she may work the
entire shift.  If the operator wishes to work only one-half (1/2) of
the shift, he/she will be required to remain on duty until properly relieved by
another qualified operator who can be obtained.  Operators who are
contacted may be mandatory assigned to perform the overtime work if other
volunteers cannot be reached.  If any operator is contacted and
declines the overtime, then he will be charged twice (2) the number of hours
actually paid to the employee who accepted the work.

        

        e.        If
it appears that vacancy will be for an extended period, the operators in that
classification may be pre-scheduled to work the overtime.

        

        f.        When
a temporary job is posted in operation, the employee who gets the job will share
overtime in that area.

         

        g.    It is the
Work Group on Duty’s responsibility to post daily overtime hours on the overtime
board. This time, hours
paid on a straight-time basis, and two (2) times  hours paid but turned
down will be posted daily in each area, unless there are unusual circumstances
which make a delay in posting necessary.

        

        
          h.   It is
realized that the Work Group is responsible for filling a shift.  In
every case, operators are required to fill the job while the Work Group proceeds
to fill vacancies by means of this procedure.

        

        

        
          i.   It is
understood that employees may swap a shift or part of a shift by mutual consent;
however, it is further understood that shift swapping will not trigger an
obligation to pay any overtime premium pay.

        

        

        In the
event, overtime distribution and/or call-out procedures do not provide the
Company with sufficient qualified personnel to perform the overtime work, the
Company shall have the right to assign qualified personnel.  Failure
to work such mandatory overtime shall constitute just cause for disciplinary
action.

        

        ARTICLE
11

        12-HOUR SHIFT
AGREEMENT

        

        Some
employment conditions which apply to employees who work on 12-hour continuous
shift operations may be different than those described in various Articles of
this Agreement.  A special Letter of Agreement concerning 12-hour
shift employees is attached as APPENDIX "B" to this
Agreement.

        

        ARTICLE
12

        ABSENCES

        

        A.           Employees will give his/her foreman
or designee notice no less than twenty-four (24) hours in advance for all
absences from work for personal reasons except in cases of personal illness,
illness or death in the employee's immediate family, or other emergency making
such advance notice impossible. In case of such emergency, the employee will
provide the Company as much advance notice as possible.

        

        B.           An
employee absent for two (2) days or more shall not be permitted to return to
work unless they notify the Company at least four (4) hours prior to the start
of their shift that he/she is returning to work. This notification shall not
serve to excuse unexcused absences.  The Company shall
have the right to require an employee to submit a medical certificate justifying
his absence.

        
          
             

          

          
            12

            
              

            

          

          
             

          

        

C.           When
an employee is absent for thirty (30) or more consecutive calendar days for any
reason, including layoff, the number of their overtime hours will be increased
by the number of hours the average of their work group has increased during
their absence.

      

      D.           When
an employee is absent from their assigned schedule for a definite period of time
(eight hours, one day, one week, etc.) their name will not be called for
overtime work to be performed during their time off.

      

      E.           When
an employee is absent from their assigned schedule for an indefinite time, their
name will be removed from the overtime list until the employee calls in to
report that they are available for work.

      

      ARTICLE
13

      WAGES

      

      A.           The
hourly wage rates shall be as shown in APPENDIX "A" attached hereto
and made a part of this Agreement.

      

      B.           The
Company shall advise the Union of the proposed basic hourly rate for any new
work established after the date of this Agreement.  Upon request of
the Local Union representatives, the Company will negotiate with them concerning
such rate, provided that the Union so requests within thirty (30) days from the
establishment of such rate.  If agreement is not reached on the new
rate, the matter will be appealed to the fourth (4th) step of the Grievance
Procedure.

      

      C.           When
an employee is temporarily assigned to a job paying a lower rate of pay, he/she
shall be paid his regular hourly rate.

      

      D.           When
an employee is temporarily assigned to a higher rated job for a purpose other
than that of training or instruction, he/she shall receive the rate for the job
to which he/she is so assigned for all hours worked on such higher rated
job.

      

      E.           An
employee who actually works for four (4) hours or more on seven (7) consecutive
days in the regularly established work week shall receive double (2) their
regular straight-time hourly rate for all hours worked on the seventh (7th)
consecutive day.

      

      F.           A
maximum of ten (10) employee members who have been trained and certified to
perform Hazardous Material Emergency Response shall receive twenty-five ($.25)
cents per hour, (maximum 40 hours per week) while so assigned.

      

      G.           An
employee required to work on his/her normal scheduled day or days of rest or on
hours outside of his/her normal work schedule will be paid at one and one-half
(1-1/2) times their regular hourly rate, provided that they shall not be
entitled to premium pay for such day or days in any week in which he/she has
been absent without a satisfactory excuse on one or more scheduled
workdays.

      

      H.           Premium
pay provided for, herein, shall not be pyramided on premium pay payable under
any other articles of this Agreement.

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

      ARTICLE
14

       SHIFT
DIFFERENTIAL

      

      A.           Employees
who are scheduled on multiple shift operations shall be paid a shift
differential of fifty cents ($0.50) per hour for all time worked during the
hours of 2:00 p.m. to 10:00 p.m. shift.  Employees shall be paid a
shift differential of seventy cents ($0.70) per hour for all time worked during
the hours of 10:00 p.m. to 6:00 a.m. shift.

      

      B.           The
shift differential is not paid to employees scheduled on regular, single-day
shift operations who may work overtime into another shift; however, such
employees will be paid shift differential for scheduled hours worked during the
times listed in paragraph A above.  All employees not scheduled on
regular, single-day shift operations are considered to be on scheduled
multiple-shift operations.

      

      

      ARTICLE
15

      VACATIONS

      

      A.           All
regular employees of the Company shall be granted a vacation of one (1) week
after one (1) year of continuous active service, two (2) weeks after three (3)
years of continuous active service, three (3) weeks after five years of
continuous service, and four (4) weeks after fifteen (15) years of continuous
active service.  It is understood an employee shall receive his/her
next level of vacation effective January 1st of the
year his/her hire date for service is due.  However, an employee who
is separated for any reason before his/her service anniversary date must repay
the Company for all vacation time taken/paid but not earned.

      

      B.           Employees
who have one (1) or more years of continuous service as of January 1st (except
for new employees provided for below) will be granted vacations during the
calendar year January 1st to December 31st, provided that they have worked a
minimum of one thousand (1,000) continuous active hours during the preceding
calendar year.  The following hours will be counted in determining
whether or not employees have worked a minimum of one thousand (1,000)
continuous active hours during the preceding calendar year:

      

      1.           Hours
actually worked;

      

      2.           Holidays
paid for but not worked;

      

      3.           Forty
(40) hours for each week of paid vacation;

      

      4.            All hours lost due to
compensable, job-related injuries, maximum 800 consecutive hours lost in the
first calendar year of such injury; and

      

      5.           All
hours lost by Union officials for Local Union business pertaining to Cherokee
Nitrogen as approved by the Plant Manager.

      

      C.           A
new employee shall become eligible for his/her first vacation with pay upon
his/her first anniversary date, provided that he/she has worked a minimum of one
thousand (1,000) continuous active hours during his/her first anniversary year,
counting as hours worked those set forth in paragraph B above.  An
employee will qualify for his/her second vacation to be taken not earlier than
January 1st following his/her first anniversary date, by fulfilling the
contractual requirements set forth in paragraph B above, provided that the
second vacation cannot be taken earlier than six (6) months after the employee's
completion of his/her first vacation.

      

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      D.           Pay
for each week of vacation to which an employee is entitled shall be computed on
the basis of forty (40) hours at the particular employee's regular straight-time
rate of pay.

      

      E.           Vacations
will be granted only during the year in which they are due, and they may not be
carried over or taken advantage of during subsequent years.

      

      F.           Allocation
of the individual's time for taking the vacation during the vacation season from
January 1st to December 31st shall be subject to the approval of the Company in
order to ensure orderly efficient operation of the plant.  Vacation
scheduling shall be from January 1st until March 1st.

      

      G.           In
the event of termination of service due to death, provided that at the time of
death of such employee he/she had become eligible to receive a vacation that had
not been granted, payment in the amount equal to that which would have been paid
to the employee for such vacation shall be made to the beneficiary of the group
insurance carried by the employee.  Also, if the employee had worked
one thousand (1,000) hours in the present year, the same beneficiary will
receive payment for the vacation the deceased employee would have been eligible
for if he/she had been on the payroll during the following year.  This
payment of the following year's vacation will be made during January of the
following year.

      

      H.           Vacation
pay for any employee entitled to a vacation, will, upon request to management,
be paid to the employee.  Requests must be on time cards two weeks
prior to vacation.

      

      I.           Employees
entitled to a vacation will not be allowed to take money in lieu thereof except
that the Company may, with the employee's consent, pay him/her vacation pay in
lieu of time off for vacation for any weeks of vacation due him/her in excess of
one (1) week in any eligibility vacation period.  It is understood
that the preceding in no way diminishes the Company's right to schedule a
vacation shutdown.

      

      J.           If
an employee takes his/her vacation during a week in which a holiday occurs, the
amount of his/her vacation pay shall be increased by the amount of eight (8)
hours' pay at his/her basic hourly rate, in order to compensate for the holiday
pay to which he/she would have been entitled had they not been on
vacation.  If a holiday falls during an employee's vacation, it may be
mutually agreed to that he/she may receive an additional day off.

      

      K.           Employees
joining the Armed Forces of the United States shall receive their previously
earned vacation pay provided they have fulfilled all of the contractual
requirements for a vacation.

      

      L.           Vacations
will be granted only for continuous periods starting on Monday and ending on
Sunday, except by an employee's choice, he may take two (2) weeks  one
(1) day at a time, or as he/she so desires, with approval from the Foreman or
designee and at least a twenty-four (24)-hour notice.

      

      M.           Employees
who have become eligible to receive a vacation under the provisions set forth in
this Agreement and who thereafter leave the service of the Company shall, upon
request, be entitled to receive vacation pay in lieu of the vacation they
otherwise would have been eligible to receive.

      

      N.           Deductions
from vacation pay will be consistent with the earning period.  For
example, if an employee received two (2) or more weeks of vacation pay, one or
more checks may be issued but the deductions will be calculated as if a separate
check was issued for each week.

      

      O.           In
the calendar year in which an employee terminates due to retirement, the
employee will receive what would have been the Employee's subsequent year's
vacation on a pro-rata basis.  For every full calendar month the
employee works on an active basis, the employee will receive 1/12 of the
following year's vacation.

      

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

      

      ARTICLE
16

      HOLIDAYS

      

      A.           The
following shall be considered as holidays:

      

      1.           New
Year's Day (January 1st)

      

      2.           Good
Friday (Last Friday Preceding Easter)

      

      3.           Memorial
Day (Last Monday in May)

      

      4.           Fourth
of July

      

      5.           Labor
Day (First Monday in September)

      

      6.           Thanksgiving
Day (Fourth Thursday in November)

      

      7.           Thanksgiving
Friday (Fourth Friday in November)

      

      8.           December
24th

      

      9.           Christmas
Day (December 25th)

      

      B.           The
term "holiday" is defined to mean the twenty-four (24)-hour period between 6:01
a.m. and 6:00 a.m. of the holiday.  When a holiday falls on Saturday,
the preceding Friday shall be considered as the holiday, except when Friday is a
holiday also, then the preceding Thursday shall be considered as the
holiday.  When a holiday falls on Sunday, the following Monday shall
be considered as the holiday, except when Monday is a holiday also, in which
case the following Tuesday shall be considered as the holiday.  Shift
workers shall be paid for holidays on the day the holiday falls.

      

      C.           One
and one-half (1-1/2) times the regular hourly wage rate will be paid for all
work performed on the holidays listed in paragraph A above, in addition to such
holiday pay as the employee may be entitled to under the provisions of paragraph
D below.

      

      D.           All
regular full-time employees on the payroll shall receive holiday pay for eight
(8) hours at their basic hourly rate for each of the holidays set forth in
paragraph A above, provided that they report to work and work the hours as
scheduled on the last scheduled work day preceding and the first scheduled work
day following the holiday.  In the event that a holiday occurs during
the initial calendar week in which an employee becomes laid off, or during the
calendar week in which an employee is recalled from layoff status, the employee
will be entitled to receive holiday pay if he/she is otherwise
eligible.

      

      E.           If
an employee fails to report or fails to work the hours as scheduled on the
holiday, or fails to work the hours as scheduled on the last scheduled work day
preceding and the first scheduled work day following the holiday, he/she will
not receive holiday pay as provided for herein.

      

      F.           If
a regular employee is excused from work for all or any part of his/her last
scheduled work day preceding, or for all or any part of his/her work day
following a holiday, or both, he/she shall be regarded as having worked on such
day or days (for the purpose of qualifying for holiday pay), and they shall be
eligible to receive holiday pay if they otherwise qualified for holiday pay
under the terms of this 

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      Agreement,
provided that the Company shall excuse absences on such days on the same basis
and for the same reasons as would apply on any other day during the
year.  Employees not excused under the foregoing circumstances will
not qualify for holiday pay.  Employees reporting off will not
automatically constitute an excused absence.  Employees on short-term
disability, or long-term disability, or workers compensation will qualify for
holiday pay not to exceed six months (6).  Eligibility begins the
first full workday away from work.

      

      G.           There
shall be no pyramiding of daily, weekly and holiday overtime.

      

      ARTICLE
17

      FUNERAL LEAVE
PAY

      

      A.           In
the case of the death of a member of the immediate family of a regular employee,
the employer will, when requested in advance, grant a maximum of three (3) days
(twenty-four hours) paid leave of absence, and in no case will the paid leave of
absence extend beyond the day immediately following the day of the
funeral.

      

      B.           The
term "immediate family" as used herein is defined as consisting of the following
members of the employee's family only: mother, father, spouse, children,
brother, sister, mother-in-law, father-in-law, son-in-law, daughter-in law,
stepfather, stepmother, stepson, stepdaughter, grandparents, grandchildren,
brother-in-law, sister-in-law, and spouse’s grandparents.

      

      C.           When
a death occurs to any such member of an employee's family, the employee shall
notify his/her Foreman or designee for such paid leave.  Such paid
leave will not be granted in instances when the employee otherwise eligible does
not attend the funeral.  The employee absent on a paid funeral leave
shall not be eligible for any overtime which is scheduled during the period of
such employee's leave.  If a holiday falls during the paid leave of
absence, the employee will not receive both holiday pay and paid leave of
absence.

      

      D.           The
employee will not be entitled to funeral leave pay for any day falling within
the three (3) day leave of absence which is not a scheduled work day for the
employee or when the employee is on vacation.

      

      E.           The
rate of pay shall be the regular hourly rate of the employee and for regular
scheduled work.

      

      

      ARTICLE
18

      JURY
DUTY

      

      A.           All
regular full-time employees (not including casual or part-time employees) who
have been in the continuous service of the Company for six (6) months or more,
shall be paid wages amounting to the difference between the amount paid to them
for jury service and the amount they would have earned at their basic hourly
rate had they worked on such days with their regular work group.

      

      B.           No
difference shall be paid if the employee received a greater amount for jury
service than he/she would have earned working in his/her work group at the basic
hourly rate.

      

      C.           Employees
who are absent due to layoff, vacation, sickness or injury, or other leaves of
absence shall not be entitled to receive difference payments under this article
during such periods of absence.

      

      D.           No
difference payments for jury service shall be paid in the case of an employee
who is absent on the last scheduled work day prior to starting jury
service.

      

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

      E.           No
difference payments for jury service shall be paid to employees who fail to
report to work and work the hours on any scheduled work day on which their
service was not required in court

      

      F.           In
order to receive difference payments as above provided, each such employee must
furnish to the Company a certificate of service duly signed by the Clerk of the
Court.

      

      G.           Employees
scheduled to work after 10 PM for eight (8) hours on days of required jury duty
will be excused from work for this time period and will receive the difference
between the amount paid to them for jury service and the amount they would have
earned at their basic hourly rate had they worked on such days.

      

      H.           Employees
that have received a subpoena or summons from a court of law shall be excused
without pay and he/she shall present a certificate to his/her Foreman or
designee with as much notice as possible.

      

      ARTICLE
19

      PAYDAY

      

      The
parties agree to the present payday which is every other Thursday at 3:30 p.m.
to 5:45 p.m. and Friday at 6:00 a.m.  Employees whose scheduled shift
ends at 2:00 PM will be permitted to get their checks at 2:00 PM.

      

      ARTICLE
20

      MEAL ALLOWANCE
PROVISIONS

      

      A.    Whenever an
employee is required to work overtime, six dollars ($6.00) meal money or a meal
will be provided at the end of two (2) hours' work and each four (4) hours
thereafter, provided that said employee has completed an eight (8)-hour shift
immediately preceding such overtime assignment.

      

      B.    The Company will not
furnish a lunch for an employee called in to work a regular eight (8)-hour shift
for anyone who is sick or absent provided that more than two (2) hours' notice
is given.  If less than two hours' notice is given, the Company will
provide a meal.

      

      C.    If an employee is
called out on an emergency basis, he/she  will be furnished a meal
after completing four (4) hours' work and each four (4) hours thereafter as long
as he/she  is required to stay on the job.

      

      D.    Whenever
maintenance work is scheduled on a twelve (12)-hour relief basis, that is, one
crew relieving another each twelve hours, the Company will provide the second
meal and allow both meals to be eaten on Company time.  It is mutually
understood that these meal periods will be held as short as possible in order to
keep the work going.

      

      E.           Whenever
maintenance work is scheduled on an extended day or holdover basis and one crew
does not relieve another, the first meal period will be for thirty (30) minutes
and shall be on the employee's own time. The Company will furnish additional
meals as required, and these will be on Company time.

      

      
        F.     A
non-shift worker required to work any part of his/her meal period shall receive
pay for his/her

      

      entire
meal period unless he/she is given a full-length lunch period later in the shift
at the employee's option.

      

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

      G.         Production
employees working 8-hour shifts will eat their lunch on Company time at such
hours as their duties permit.

      

      

      ARTICLE
21

      WORKERS
COMMITTEE

      

      A.          There
shall be an employee Workers Committee comprised of the Local Union President,
Vice-President, Recording Secretary and not more than two (2) other Committee
persons.  The Union shall certify to the Company from time to time the
names of the Workers Committee persons who shall be employees of the Company,
and the Company shall not recognize any committee person until his / her name
has been so certified. The Workers Committee as a committee, shall negotiate and
settle grievances in Steps 3 and 4 of the Grievance Procedure.

      

      B.    Time spent by
employees in the investigation and settlement of grievances shall be on the
employee’s own time.

      

      C.           During
contract negotiations the number of committee members may be increased to six
(6) active employees.

      

      ARTICLE
22

      GRIEVANCE
PROCEDURE

      

      Should
any difference arise between the Company and the Union, or between the Company
and employees, or between employees of the Company, or should trouble of any
kind arise in the plant, there shall be no strike, stoppage, slowdown,
suspension of work or boycott on the part of the Union or its members or the
employees, or lockout on the part of the Company on account of such
dispute.

      

      First
Step

      

      The
employee shall first take his grievance up with his foreman, and, only if the
aggrieved employee requests, a committeeman shall be given an opportunity to be
present.

      

      If the
grievance is not settled, it shall, within five (5) working days thereafter, be
reduced to writing on a form provided by the Union, signed by the employee, and
presented to the foreman, who shall, within five (5) working days after receipt
thereof, give his written answer to the grievance.

      

      No
grievance will be considered unless it has been submitted to his foreman within
five (5) working days from the date the employee knew or should have known of
the occurrence giving rise to the dispute.

      

      Second
Step

      

      The
grievance shall be considered settled unless within five (5) working days after
receipt of the foreman's written answer, a Union committeeman notifies the Area
Superintendent that he desires additional processing of the
grievance.  Management will arrange a meeting with the grievant and
one committeeman.  Such meeting will be held no later than ten (10)
working days after receipt of the Union's appeal.

      

      The Area
Superintendent or his designated representative shall provide a written answer
to the grievance within ten (10) working days after the close of the Second Step
meeting.

      

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

      Third
Step

      

      In the
event the Union is not satisfied with management's Second Step answer, an
officer of the Union, may, within five (5) working days after receiving the
Second Step answer, notify the Plant Manager and/or his designated
representative, in writing, that he wishes to submit the matter for further
consideration.  At the same time, the Union shall provide a written
statement of the contractual reasons the Company's Second Step answer was not
accepted.  The Plant Manager, and/or his designated representative
will discuss the matter with the Workers Committee and, if the Union requests,
an International Union Representative or the President of Local 417 G, at a time
to be mutually agreed upon.  The Plant Manager and/or his designated
representative shall provide a written answer to the grievance within ten (10)
working days after the close of the discussions.

      

      Fourth
Step

      

      If the
answer of the Plant Manager, or his designated representative, does not settle
the grievance, the International Representative of the Union may request that
the grievance be submitted to an impartial arbitrator, providing the grievance
is one which does not involve matters in which arbitration is specifically
prohibited, under the terms of Article II of this Agreement.  The
Union must then notify the Plant Manager of that fact, in writing, within thirty
(30) days after the date the Third Step answer was rendered.

      

      The
International Union Representative and the Company shall make written
application to the Federal Mediation and Conciliation Service requesting a nine
(9) member panel from which the parties shall select an
arbitrator.  The parties shall alternately strike eight (8) names, one
at a time.  The remaining panelist shall serve as
arbitrator.  It is understood that, starting with the first
arbitration case, following the date of execution of this Agreement, the Union
shall strike the first name.  Thereafter the determination of which
party strikes first will be made by the toss of a coin.  Both the
Company and the Union shall have the right to reject one entire panel submitted
by the Federal Mediation and Conciliation Service.

      

      When the
arbitrator has been selected, he shall meet for the consideration of the
grievance as soon thereafter as is practical.  Any such meeting of an
arbitrator shall be held in a location the parties unanimously decide
upon.

      

      Any such
arbitrator shall decide only the grievance submitted to him, upon testimony
presented to him, by the Union and the Company, and shall render his decision in
writing.

      

      The
jurisdiction of the arbitrator shall be limited to a grievance involving the
interpretation or application of the specific provisions of this
Agreement.

      

      Except as
otherwise specifically provided in this Agreement, the arbitrator shall have no
power to change the wages, hours, or conditions of employment set forth in this
Agreement; he shall have no power to add to, subtract from, or modify any of the
terms of this Agreement; he shall deal only with the grievance which occasioned
his appointment.  He will require that the Union has the burden of
establishing its position on behalf of the employee, except in discipline or
discharge cases, where the burden will be on management.

      

      The
parties hereto shall fully comply with the award or decision made by any such
arbitrator, and the decision of the arbitrator will be final and binding on both
parties.  The fee and expenses of the impartial arbitrator shall be
borne equally by both parties.  The expense of witnesses for either
side shall be paid by the party requesting the witness.  The total
cost of the stenographic record which may be made and all transcripts thereof
shall be paid for by the party ordering the same.  If a stenographic
record is made by 

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

      either
party, the other party shall receive a copy thereof only if the other party
states at the outset of the hearing that he is requesting a copy of such
stenographic record and agrees to pay one-half (1/2) of the cost
thereof.

      

      No
provision of Article VIII or any other Article of this Agreement shall deprive
any employee covered by the terms of this Agreement of any right to which it may
be entitled under Section 9(A) of the Labor Management Relations Act of 1947, or
any other statute of the United States.

      

      In cases
involving verbal or written reprimands, a grievance may be filed and processed
through Step Three, but may not be submitted to arbitration.  The
Union has authority to process, abandon, or settle grievances on behalf of
employees.  The arbitrator may herein determine only one grievance at
a time without the express agreement of the Company and the Union.

      

      The
grievance and arbitration provisions provided for herein, in addition to any
other right or obligation under the Agreement, are limited to grievances and
claims arising and actually filed in writing during the term of this
Agreement.  The parties recognize the principle that the Company's
action governs until and unless modified by an arbitration award which is in
conformity with the provisions of this Agreement, and that the Union may not,
and will not, apply to any court for interim relief of any kind pending such an
arbitrator's award.

      

      In any
case involving discharge or a disciplinary suspension, a grievance may be filed
in Step Three, but the grievance must be submitted no later than three (3)
working days following notice of the action, or the action becomes
final.

      

      In cases
involving written discipline up to and including discharge, a copy of the action
notice will be given to the employee involved and a copy furnished to the
on-site committeeman.

      

      The
parties agree to follow each of the foregoing steps in the processing of a
grievance and, if in any step the Union fails to proceed within the time limits
therein set forth, the grievance shall be considered settled, based on the
Company's answer in the last step through which it was processed.  The
parties further agree that if in any step the Company's representative fails to
give his written answer within the time limit set forth, the Union may advance
the grievance to the next step at the expiration of the time
limits.  All time limitations set forth herein shall be exclusive of
Saturdays, Sundays, and holidays.  Time limits set forth in Step Four
may be extended in writing only by mutual agreement between the International
Representative and the Plant Manager.

      

      ARTICLE
23

      LEAVE OF
ABSENCE

      

      A.           The
Company will grant leave of absence, without pay, not to exceed one (1) year to
one (1) employee who is elected or appointed to a full-time position with the
Union, upon ten (10) days' written request.  Upon ten (10) days'
notice of his /her desire to return to work for the Company, given not later
than one (1) week after he/she ceases to occupy such full-time position or after
the termination of this Agreement, whichever is earlier, he/she shall be
returned to the Company's employment in line with his/her original seniority
rights unimpaired. The Union shall notify the Company promptly when an employee
of the Company on leave of absence under this paragraph B ceases to occupy such
full-time position.  A leave of absence granted under this paragraph B
shall become void and the employee's seniority rights shall be forfeited if such
employee accepts other employment or engages in other work.

      

      B.           The
Company may within its sole discretion grant a leave of absence, without pay,
not to exceed thirty (30) days in any one year, for personal reasons, without
loss of seniority.

      

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

      C.           Requests
for leaves of absence must be in writing no less than fourteen (14) working days
in advance of to the start of the absence.  Leaves of absence will not
be granted for the purpose of allowing an employee to take another position
temporarily, try out new work, or venture into business for
himself.

      

      D.           A
medical leave provided due to workers’ compensation illness or injury will not
be considered leave time offset against the annual amount required by the Family
and Medical Leave Act (FMLA) as long as the injury or illness would otherwise be
covered by the FMLA.

      

      ARTICLE
24

      MILITARY
SERVICE

      

      A.           Except
as otherwise provided by law, an employee who is inducted into (or joins
voluntarily during a national emergency) the armed services of the United States
shall be granted a leave of absence during the period of such service, during
which period his/her seniority shall accumulate, provided, however, that if
he/she voluntarily re-enlists for an additional period, he/she shall not
accumulate seniority during such additional period of service and shall not be
entitled to the re- employment rights and privileges hereinafter set out. Upon
termination of his/her military service in the first instance, the employee
shall be offered re-employment in line with his/her seniority as may be
available, which he/she is capable of doing, at the current rate of pay for such
work, provided that he/she meets the following requirements:

      

      1.           He/she
has been honorably discharged.

      

      2.            He/she is physically
able to do the work.

      

      3.           He/she
reports for work within ninety (90) days after the date of his/her discharge, or
ninety (90) days after hospitalization continuing after discharge, for not more
than one (1) year.

      

      

      B.           A
regular employee having more than one (1) year of continuous service who is
granted a leave of absence to perform summer military training under the
National Armed Forces Reserves, including Army, Navy or Marine Corps Reserves or
State National Guard, shall be paid for the period of such leave, not to exceed
two (2) weeks in any calendar year, the difference between his/her pay while
performing such training and the compensation he/she would have received at
his/her regular hourly straight-time rate had he/she  worked the
number of straight-time hours which his/her  regular crew worked
during such two (2)-week Period.

      

      C.           This
provision does not apply to employees who perform such training duties during
periods of layoff, vacation, or during any other periods of recognized leave of
absence, nor does this provision apply unless the employee works on his/her last
scheduled work day prior to the leave granted and his/her first scheduled work
day thereafter.

      

      ARTICLE
25

      SAFETY AND
HEALTH

      

      A.           The
Company recognizes a Health and Safety Committee consisting of two (2) members
selected by the Union, and one representative from Management.  The
Company will make reasonable provisions for the safety and health of the
employees during their hours of employment consistent with all governmental
regulations.  Such protective devices and other safety equipment as
may be necessary to properly protect employees from injury shall be provided by
the Company without cost to the employee.

      

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

      B.           Adequate
ventilation, drinking coolers, showers, and safety equipment such as respirators
goggles, gloves, and any other safety devices as may be determined from
time-to-time shall be provided by the Company without cost to the
employees.

      

      C.           The
Union agrees that in order to protect the employees from injury and to protect
the facilities of the plant, it will cooperate to the fullest extent in seeing
that the safety rules and regulations are followed and that it will lend its
whole-hearted support to the safety program of the Company.

      

      D.           All
active employees will be reimbursed (up to $100) for one (1) pair of safety
boots annually.  The Company will reimburse active employees regularly
assigned to the Nitrate/Urea area for the actual cost (up to $100 each) of two
(2) pairs of safety boots annually.  Employees may purchase the boots
from any source and will be reimbursed by the Company upon providing the
receipt.  However, if the employee’s boots are damaged and become
ineffective or unsafe due to conditions of the work environment, the employee
will be eligible to receive reimbursement (up to $100) for a second pair that
year upon demonstration to the Company.

      

      The
Company recognizes a Health and Safety Committee consisting of two (2) members
selected from the by the Union, and one representative from
management.  This committee will be maintained for purposes of making
monthly inspections of the plant facilities and making recommendations to
improve safety and housekeeping.  Such members of the bargaining unit
who serve on the team will be excused from work, with pay, on the day of the
committee inspection.  Recommendations of the Health and Safety
Committee will not be subject to the provisions of Article 22 - Grievance
Procedure.

      

      ARTICLE
26

      DISCRIMINATION

      

      Neither
the Company nor the Union shall discriminate against any employee with regard to
the terms and conditions of employment on the basis of race, color, creed,
national origin, sex, age, handicap, religion, or because of membership or
non-membership in a Union.

      

      ARTICLE
27

      BULLETIN
BOARDS

      

      A.           The
Company will provide one bulletin board in each of the four (4) areas for the
purpose of posting official Union notices restricted to the
following:

      

      1.           Notices
of Union recreational and social affairs;

      

      2.           Notices
of Union elections;

      

      3.           Notices
of Union appointments and results of Union elections; and

      

      4.           Notices
of Union meetings.

      

      B.           The
bulletin boards shall not be used by either party for disseminating propaganda
of any kind, posting or distributing pamphlets or political matter, advertising,
or for notices adversely reflecting upon the Union or the Company.

      

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

      ARTICLE
28

      SICKNESS
BENEFITS

      

      GROUP
INSURANCE

      

      For
the plan year beginning January 1, 2008, employees will be offered the
opportunity to enroll in a program provided by High Mark Group insurance with
the terms and benefits agreed upon.

      

      For
2008, the group insurance program will include three alternative coverage tier
options—employee only, employee plus one, and family.  Dental and
vision coverage will be offered those who enroll in the health insurance in 2008
and may not be elected separately by anyone not enrolled.

      

      The
employee share of the cost of the GROUP INSURANCE BENEFITS will be 25% of the
premium costs in each year of the Agreement.  However, the Company is
not responsible for any part of the cost of dental and vision coverage, the
premium for which is fully paid by the employee.

      

      For
plan years 2009 and 2010, the plan participants will elect whether coverage that
year will be under a plan provided by High Mark or a self-funded one with tiers,
benefits and premium costs determined exclusively by the Company.  The
Union will authorize High Mark to provide the Company with complete and detailed
experience and cost information which will enable it to prepare terms for
potential coverage under a Cherokee, self-funded plan for the next
year.  High Mark will also provide terms of alternative coverage its
plan would provide.  All plan participants then will have an
opportunity to decide which program to adopt for the following plan
year.  If the program changes to a Company self-funded one in 2009,
the Company will provide the necessary experience to High Mark in similar
fashion the next year so it can quote its alternative program for consideration
and election by 2009 participants in 2010.  The information exchange
and decision shall be done as soon as practical each year.

      

      It
is agreed that in the event some form of “universal” healthcare is initiated by
the government during the term of this Agreement, the then current group program
may no longer be appropriate and a conversion to an alternative system may be
necessary.  The parties will meet to discuss the implications at such
time.

      

      

      

      LONG TERM
DISABILITY

      

      the
Company agrees to pay the cost of a basic employee long-term disability plan
with a maximum benefit of 50% of the monthly pay up to $1,000.00 per
month.

      

      SHORT TERM
DISABILITY

      

      Effective with the date of
this Agreement, the weekly benefit provided eligible employees under the
existing plan will increase to $250.

      

      LIFE
INSURANCE

      

      the
Company agrees to pay the cost of basic life insurance equal to one (1) times an
employee’s annual income, maximum of $50.000.00.

      

      

      MEDICAL
EVIDENCE AND RETURN TO WORK. The employee's
disability and its continuation must be affirmed by acceptable medical evidence
showing the result of examinations made at appropriate 

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

      intervals
throughout the period of absence, such intervals to depend upon the nature of
the disability.  The Company will provide a form on which such
statements may be submitted by the employee's doctor.

      

      If a
disagreement arises between the Company's doctor and the employee's doctor as to
the employee's ability to return to work, the Company's doctor and the
employee's doctor shall agree upon a third doctor who shall make a determination
as to the employee's physical ability to work and the decision of such third
doctor shall be final and binding.  Any fee or expenses of such third
doctor shall be divided equally between the Company and the employee
involved.

      

      RETURN TO
WORK PROGRAM.  For employees who have suffered work related
illnesses/injuries, the company will continue its practice, when possible, of
providing modified duties in an effort to help employees in the transition from
non-ability to work, to full capacity work.  The company also reserves
the right to limit the number of employees in this program.  In such
case, seniority and qualifications will prevail.  When applicable, the
Company will use occupational function capacity evaluations, developed by
certified physicians and therapist, to determine an employee's ability to return
to full capacity work or modified work duty.  A modified duty work
arrangement is intended to be a temporary accommodation and not to exceed four
(4) to eight (8) weeks; however, in the event that an employee cannot return to
full capacity work after said period, the Company will consider establishing a
second modified duty work arrangement, but not to exceed an additional four (4)
to eight (8) week duration.  An employee returning to work on a
modified work duty program will be entitled to his/her normal wage rate as
recorded in Appendix "A" of this Agreement.  In such event there is no
guarantee for overtime work; but any overtime assignments will be offered to the
employee only if he/she possesses the physical and endurance requirements of the
assignment.

      

      The
Company agrees to administer the Return - To - Work program on a
non-discriminatory basis, and the employees at this work location agree not to
abuse the opportunities provided under this program.  This Return - To
- Work program is not intended to adversely affect any other bargaining unit
employee.

      

      ARTICLE 29

      DISCIPLINE AND
DISCHARGE

      

      In the
event that an employee is discharged and the employee considers such discharge
to be without just cause, such action must be appealed to the fourth step of the
grievance procedure within forty-eight (48) hours of the time of such discharge,
excluding Saturdays, Sundays and holidays.

      

      Any
disciplinary action administered and related documentation will remain as part
of the employee’s formal personnel file.  However, the following will
not be used in determining the level of appropriate discipline to be
administered:

      Verbal warning issued active employee
more than 12 months before;

      Written warning issued active employee
more than 24 months before;

      Suspension issued active employee more
than 36 months before.

      

      ARTICLE
30

      GENERAL

      

      A.           MANAGEMENT
EMPLOYEES WORKING. It is agreed that
supervisors are not to perform production or maintenance work to the extent that
it would deprive any worker of his/her  regular job, or would result
in the layoff of a regular employee, or would prevent the hiring of additional
employees, if the amount of work warranted it.  This, of course, does
not preclude a supervisor from helping out in emergencies or from giving
instructions to employees.

      

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

      B.           NOTIFICATION
OF CURRENT HOME ADDRESS. An employee must notify
his/her supervisor whenever he/she changes his/her home address.

      

      C.           CONTRACTORS.  The
Company may contract out work at its discretion as long as bargaining unit
employees are not laid off as a result of contracting out bargaining unit
work.

      

      D.           MAINTENANCE
PERSONNEL ON 12 – HOUR SHIFTS. The Company may staff Maintenance on
12-hour shifts as it deems necessary.  Maintenance employees with the
required skills will be assigned by canvassing the maintenance employees with
those skills, by seniority.

      

      ARTICLE
31

      AUTHORIZED
DEDUCTION

      UNION
SECURITY

      

      Membership
in the Union is not compulsory by state and federal law.  Employees
have the right to join, not join, maintain, or drop their membership in the
Union as they see fit.  Neither the Union, its agents, or any employee
shall exert any pressure on, or discriminate against an employee as regards to
such matters.

      

      Union
Security and Check-off.  (a) Upon receipt of written authorization of
any employee who is a member of the union, all in accordance with the
requirements of the Labor Management Relations Act of 1947, as amended, from
time to time, the Company agrees to deduct from the earnings of such employees
who are members of the Union, assessments and weekly membership
dues.  It is agreed that the Company shall check off weekly dues and
assessments, each as designated by the International Secretary-Treasurer of the
Union.

      

      Said
deductions shall be made from such respective employee’s pay in the calendar
month following the month in which the effective date of the employee’s
membership in said Union occurs.  The authorization will be on forms
furnished by the Union and approved by the Company.  A copy which
appears in the Appendix “E” of the agreement.  All such initiation
fees, weekly dues and assessments, that are deducted in this manner, shall be
remitted by the Company to the International Secretary-Treasurer. Pittsburgh,
Pennsylvania, so long as the authorization is validly in effect and not revoked
by the employees.

      

      A check
for deductions shall be to the International Secretary-Treasurer, Pittsburgh,
Pennsylvania each current month, together with an itemized list of all
collections.

      

       (b)
The Union agrees to indemnify, hold, and save the Company harmless of, from and
against all claims, demands, suits, liabilities and expenses or other forms of
liability that may arise out of or by reason of action taken by the Company for
the purpose of complying with any of the provisions of this Article or in
reliance on any notice, authorization, or assignment furnished pursuant to said
provisions.

      

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

      

      ARTICLE
32

      SAVINGS
CLAUSE

      

      If any
term or provision of this Agreement is, at any time during the life of this
Agreement, in conflict with any applicable valid federal or state law, such term
or provision shall continue in effect only to the extent permitted by such
law.  If, at any time thereafter, such term or provision is no longer
in conflict with any federal or state law, such term or provision, as originally
embodied in this Agreement, shall be restored in full force and
effect.  If any term or provision of this Agreement is or becomes
invalid or unenforceable, such invalidity or unenforceability shall not affect
or impair any other term or provision of this Agreement.

      

      

      ARTICLE
33

      STRIKES AND
LOCKOUTS

      

      During
the term of this Agreement, neither the Union, its officers, agents, members,
nor any employee will authorize, instigate, aid, condone, participate in, or
engage in a strike, work stoppage, slow-down, boycott, sympathy strike, overtime
ban, or any other interruption or interference with work or any impeding of
production or business of the Company regardless of whether there is a claim by
the Union of a breach of this Agreement or of State or Federal law by the
Company.  Any employee or employees who violate the provisions of this
Article may, at the sole discretion of the Company, be discharged or otherwise
disciplined.  If an employee is disciplined or discharged for a
violation of this Article, the arbitrator’s jurisdiction is limited to a
determination of whether the employee engaged in activity prohibited by this
Article.

      

      The
employer specifically has a right to proceed directly to court for an injunction
and any and all other legal relief for any breach of this Article.

      

      The
Company agrees that there shall be no lockout during the term of this
Agreement.

      

      ARTICLE
34

      TERM

      

      This
Agreement shall be effective as of the 12th day of November, 2007 and shall
remain in effect until and including 12:00 midnight on November 11, 2010 and
shall continue in full force and effect from year-to-year thereafter, unless
either party to this Agreement desires to change or modify the term or terms of
the Agreement. The party desiring the change or modification must notify the
other party to this Agreement, in writing, not less than sixty (60) days and not
more than seventy-five (75) days prior to the termination date or to any
subsequent anniversary date thereof.

      

      
        
           

        

        
          27

          
            

          

        

        
           

        

      

      EXECUTED
AT CHEROKEE, ALABAMA THIS TWELFTH DAY OF NOVEMBER, 2007:

      

      
        	
                CHEROKEE
      NITROGEN COMPANY

                Cherokee, Alabama Plant

              	 
      	
                UNION

              
	________________________________________ 
      	 
      	________________________________________ 
      
	
                S/Don
      Phillips

                Plant
      Manager

              	 
      	
                S/Leo
      W. Gerard

                International
      President

              
	
                 

                ________________________________________ 
      

              	 
      	
                 

                _______________________________________ 
      

              
	
                S/John
      Nix

                Plant
      Controller

              	 
      	
                S/Jim
      English

                International
      Secretary-Treasurer

              
	 
      	 
      	
                 

                ________________________________________ 
      

              
	 
      	 
      	
                S/Thomas
      Conway

                International
      Vice-President (Administration)

              
	 
      	 
      	
                 

                ________________________________________
      

              
	 
      	 
      	
                S/Fred
      Redman

                International
      Vice-President (Human Affairs)

              
	 
      	 
      	
                 

                ________________________________________ 
      

              
	 
      	 
      	
                S/Stan
      Johnson

                District
      9 Director

              
	 
      	 
      	
                 

                ________________________________________ 
      

              
	 
      	 
      	
                S/Claude
      Karr

                Staff
      Representative

              
	 
      	 
      	
                 

                ________________________________________ 
      

              
	 
      	 
      	
                S/Terry
      Daniel

                President
      417-G

              
	 
      	 
      	
                 

                ________________________________________ 
      

              
	 
      	 
      	
                S/R.
      Longmire, Vice President

              
	 
      	 
      	
                 

                ________________________________________ 
      

              
	 
      	 
      	
                S/B.
      Black, Negotiating Committee

              
	 
      	 
      	
                 

                ________________________________________ 
      

              
	 
      	 
      	
                S/M.
      Koger, Negotiating Committee

              
	 
      	 
      	
                 

                ________________________________________ 
      

              
	 
      	 
      	
                S/S.
      O. Davis, Negotiating Committee

              
	 
      	 
      	
                 

                ________________________________________ 
      

              
	 
      	 
      	
                S/J.
      D. Thomason, Negotiating Committee

              
	 
      	
                 
      

              	 
      
	 
      	 
      	 
      

      

      

       

      
        
           

        

        
          28

          
            

          

        

        
           

        

      

      APPENDIX
“A”

      

      The
hourly rates at the Cherokee, Alabama plant of Cherokee Nitrogen shall be as
follows:

      

      

      Maintenance
Table

      

      
        	 
      	
                 

                Rates
      Effective November 12, 2007

              	
                 

                Rates
      Effective November 12, 2008

              	
                 

                Rates
      Effective November 12, 2009

              
	
                 

                Knowledge
      / Skill Level

              	
                 

                Grandfathered
Rates

              	
                 

                 

                Pay Rate

              	
                 

                Grandfathered
Rates

              	
                 

                 

                Pay Rate

              	
                 

                Grandfathered

                Rates

              	
                 

                 

                Pay Rate

              
	
                 

                Maintenance

                Level
      4

              	
                 

                $17.94

              	
                 

                $19.84

              	
                 

                $18.48

              	
                 

                $20.44

              	
                 

                $19.03

              	
                 

                $21.05

              
	
                 

                Maintenance

                Level
      3

              	 
      	
                 

                $17.69

              	 
      	
                 

                $18.22

              	 
      	
                 

                $18.77

              
	
                 

                Maintenance

                Level
      2

              	 
      	
                 

                $17.45

              	 
      	
                 

                $17.97

              	 
      	
                 

                $18.51

              
	
                 

                Maintenance

                Level
      1

              	 
      	
                 

                $16.97

              	 
      	
                 

                $17.48

              	 
      	
                 

                $18.01

              
	
                 

                1st
      Yr. Mechanic

              	 
      	
                 

                $15.56

              	 
      	
                 

                $16.03

              	 
      	
                 

                $16.51

              
	
                 

                2nd
      Yr. Mechanic

              	 
      	
                 

                $15.83

              	 
      	
                 

                $16.30

              	 
      	
                 

                $16.79

              
	
                 

                3rd
      Yr. Mechanic

              	 
      	
                 

                $16.12

              	 
      	
                 

                $16.60

              	 
      	
                 

                $17.10

              
	
                 

                Utility
      Person

              	 
      	
                 

                $15.56

              	 
      	
                 

                $16.03

              	 
      	
                 

                $16.51

              
	
                 

                Trainee

              	 
      	
                 

                $11.66

                 

              	 
      	
                 

                $12.01

                 

              	 
      	
                 

                $12.37

                 

              

      

       

       

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

       

      APPENDIX "A"
(continued)

       

      

       

      Operations
Table

       

      

      
        	 
      	
                 

                Rates
      Effective November 12, 2007

              	
                 

                Rates
      Effective November 12, 2008

              	
                 

                Rates
      Effective November 12, 2009

              
	
                 

                Knowledge
      /

                Skill
      Level

              	
                 

                Grandfathered"
Rates

              	
                 

                 

                Pay Rate

              	
                 

                Grandfathered
Rates

              	
                 

                 

                Pay Rate

              	
                 

                Grandfathered

                Rates

              	
                 

                 

                Pay Rate

              
	
                 

                Chem.
      Oper. 4

              	
                 

                $17.94

              	
                 

                $19.84

              	
                 

                $18.48

              	
                 

                $20.44

              	
                 

                $19.03

              	
                 

                $21.05

              
	
                 

                Chem.
      Oper. 3

              	 
      	
                 

                $17.69

              	 
      	
                 

                $18.22

              	 
      	
                 

                $18.77

              
	
                 

                Chem.
      Oper. 2

              	 
      	
                 

                $17.45

              	 
      	
                 

                $17.97

              	 
      	
                 

                $18.51

              
	
                 

                Chem.
      Oper. 1

              	 
      	
                 

                $16.97

              	 
      	
                 

                $17.48

              	 
      	
                 

                $18.01

              
	 
      	 
      
	
                 

                Trainee

                (Probationary)

              	
                 

                ----

              	
                 

                $11.66

              	
                 

                ----

              	
                 

                $12.01

              	 
      	
                 

                $12.37

              

      

       

      

       

      If an
employee bids to a new area, he/she will receive Trainee rate of pay until
he/she qualifies as Operator 1.

      

      Each
fully qualified regularly assigned Board Operator will receive an additional
fifty cents ($.50) per hour for such hours worked in recognition of additional
duties assigned.

      
        
           

        

        
          30

          
            

          

        

        
           

        

      

      

      APPENDIX
"B"

      

      12-HOUR
CONTINUOUS SHIFT OPERATIONS

      

      

      This
agreement establishes the terms and conditions which are applicable when
production employees are scheduled on 12-Hour Continuous Shift Operations at the
Cherokee, Alabama facility.  Explained herein are the procedures which
apply to bargaining-unit employees who work a modified "4-3-4-3" rotating-shift
schedule over a twenty-eight (28)-day period, consisting of the
following:

      

                ---    Thirteen
(13) twelve-hour shifts; and

      

                ---    One
(1) four-hour shift.

      

      Certain
criteria must be met in the preparation of this 12-Hour Shift
Agreement.  It is desirable to conform as closely as possible to the
contractual pay provisions under the current Labor Agreement, and it is
essential that the Company's cost and the employees' wages be equitable for the
same amount of time worked under both a 21-turn shift schedule and the 12-hour
continuous shift operations schedule (hereinafter referred to as the "12-Hour
Shift Schedule).

      

      Federal
Wage and Hour Law requires that an employee be paid time and one-half (1.5) for
hours worked in excess of forty (40) hours in a work week.  No other
overtime/premium payments shall be applicable to this 12-Hour Shift
Schedule.

      

      In order
to satisfy legal and contractual requirements and to provide employees with
equitable pay for the same amount of time worked under both a modified 21-turn
shift schedule and this 12-Hour Shift schedule, the Standard Hourly Wage Rates
listed in Appendix "A" of the current Labor Agreement will be adjusted for the
12-Hour Shift Schedule.  These adjustments are based on the ratio of
equivalent straight-time hours paid on the modified 21-turn shift schedule to
those on the modified 12-Hour Shift Schedule. The Adjusted Hourly Rates, which
are determined by multiplying the current Standard Hourly Wage Rates by a
factor, are applicable only for the proposed schedule. All hours worked or paid
outside this 12-Hour Shift Schedule, such as holdover overtime or call-outs,
will continue to be paid on the basis of the Standard Hourly Wage Rates listed
in APPENDIX "A" of the current Labor Agreement.

      

      I.           CONDITIONS FOR SHIFT SCHEDULE.
The conditions under which the 12-Hour Shift Schedule will be implemented are as
follows:

      

      A.           Coverage
of shift vacancies will be mandatory in accordance with the existing requirement
that an employee may not leave his/her work area until properly
relieved.

      

      B.           The
Company requires the Union employees to hold over or be available for overtime
(by pager) to man the jobs when vacancies occur.  If problems are
encountered in filling vacancies, the Company reserves the right to cancel the
12-Hour Shift Schedule operations at any time with ten (10) days'
notice.

      

      C.           Vacations
will be adjusted as defined herein for employees scheduled on 12-Hour Shift
Schedules.

      

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

      II.           PAY
PRACTICES

      

      A.           Regular
Scheduled Work Hours

      

      1.           Base Pay

      

      a.           In
order to equalize the cost to the Company and earnings of the employee, it is
necessary to apply a factor of .9756 to the Standard Hourly Wage Rate for each
job class and to develop an Adjusted Hourly Wage Rate for each job
class.

      

      b.           Overtime
worked as part of the regular 12-Hour Shift Schedule will be paid at the
Adjusted Hourly Wage Rate and referred to as Regularly Scheduled Overtime
(RSOT).

      

      2.           Shift
Differential.  An employee who works on the 12-Hour Shift
Schedule during a four-week period will receive forty
($.40)  cents  per hour for all hours worked.

      

      Example:    An
employee whose Standard Hourly Wage Rate is $19.84 per hour would be paid as
follows:

      

      
        	
                Standard
      Hourly Wage Rate

              	
                 $19.84

              
	
                Shift
      Differential

              	
                +          .40

              
	
                Subtotal.

              	
                 $   20.24

              
	
                Factor

              	
                x      .9756

              
	
                Adjusted
      Hourly Wage Rate

              	
                $19.75

              
	 
      	 
      
	
                Above
      rate applicable to Day and Night
Shifts.

              

      

      

       B.           Overtime

      

      1.           Overtime
worked outside the regular 12-Hour Shift Schedule will be paid at the Standard
Hourly Wage Rates listed in APPENDIX "A" of the current Labor
Agreement.

      

      2.           The
computation of hours of days worked for the appropriate overtime premium will be
made under the terms of the current Labor Agreement except that during the week
of the 28-day cycle in which the employee is scheduled to work 48 hours, all of
these hours, except unexcused hours, shall be considered hours worked for the
purpose of computing overtime.  The work week shall begin at 6:00 a.m.
on Monday and end at 6:00 a.m. on the following Monday.  The work day
shall begin at 6:00 a.m. and end at 6:00 a.m. the following
morning.

      

      3.           Employees
assigned to 12-Hour Shifts will eat their lunches on Company time at such hours
as their duties permit. No overtime lunches will be provided to employees while
working scheduled 12-Hour Shifts.

      

      C.           Holiday
Pay

      

      1.           On
the 12-Hour Shift Schedule, a holiday will be paid as follows:

      

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

        

      

      a.           Each
of the two 12-Hour Shifts that work will be paid 1.5 times the Adjusted Hourly
Wage Rate for all hours worked on the holiday plus eight (8) hours of holiday
pay at the Standard Hourly Wage Rate.

      

      b.           Each
Off-Shift employee will receive eight (8) hours times the employee's
straight-time pay at his/her Standard Hourly Wage Rate.

      

      2.           An
employee who works on a holiday will be paid 1.5 times his/her Adjusted Hourly
Wage Rate only for all scheduled hours worked on the holiday plus eight (8)
hours of holiday pay at the employee's Standard Hourly Wage Rate.

      

      3.           An
employee who is scheduled off on a holiday will be paid eight (8) hours only at
his/her Standard Wage Rate.

      

      4.           For
purposes of the 12-Hour Shift Agreement, holidays will be the same as those
listed in Article 16 of the current Labor Agreement.

      

      5.           An
employee who is on a scheduled vacation on a holiday will be paid eight (8)
hours at the Standard Hourly Wage Rate, in addition to his/her vacation
pay.

      

      III.           VACATIONS

      

      A.           Employees
on the 12-Hour Shift Schedule will qualify for vacations in accordance with
Article 15 of the current Labor Agreement.

      

      B.           Vacation
pay for an employee on the 12-Hour Shift Schedule will be computed in accordance
with the number of hours the employee would have been scheduled to work had
he/she not been on vacation. The number of hours of vacation time is defined in
the contract with the maximum being one-hundred sixty (160) hours per year
depending on eligibility.  Vacation time remaining of less than one
(1) week will be taken as per the contract.

      

      C.           One
(1) vacation week equals the hours determined in paragraph B above.

      

      D.           Vacations
will be adjusted for the full year.

      

      E.           A
week of vacation under the 12-Hour Shift Schedule shall be a work week as
defined in Article 15, Section L of the current Labor Agreement, provided that
suitable standby coverage is maintained.  It is understood that
persons working the 12-Hour Shift Schedule may take five (5) twelve-hour days of
vacation one day-at-a-time with approval from the Company and at least a
twenty-four (24)-hour notice.

      

      
        	
                IV.

              	
                OVERTIME
      PROCEDURES.   In addition to paragraphs A and B of
      Section I of this Agreement, the following shall
  apply:

              

      

      

      A.           12-Hour
Shift overtime coverage will be obtained from the replacement chart shown on the
12-Hour Shift Schedule except as otherwise specified below.

      

      B.           All
employees on the 12-Hour Shift Schedule must make available to the Company a
telephone number where they can be contacted.

      

      
        
          
          

        

        
          33

          
            

          

        

        
          
          

        

      

      C.           The
Company may, when such action is necessary to fill a job, require an employee to
work past the time when his/her vacation is scheduled to begin.  The
Company will, however, review any undue inconveniences which may result from
such action.

      

      D.           Overtime
provisions in the Labor Agreement will govern those areas not specifically
excluded herein under this Section IV.

      

      
        	
                V.

              	
                CALL-OUT AND SCHEDULE
      CHANGES.  Not withstanding any other provisions of this
      Agreement, call-outs of 12-Hour Shift employees to vacancies on 12-Hour
      Shifts will be paid at the Standard Hourly Wage Rate for those call-out
      hours.  If an employee is rescheduled to a 12-Hour Shift, the
      employee will be paid according to the 12-Hour Shift
      Agreement.  An employee scheduled to work other than a 12-Hour
      Shift, but who actually works a 12-Hour Shift, shall be paid at the
      applicable Standard Hourly Wage
Rate.

              

      

      

      VI.           MISCELLANEOUS
BENEFITS.

      

      A.           Jury
Duty will be administered in accordance with the provisions of Article 18 of the
current Labor Agreement.

      

      B.           Funeral
Leave Pay will be paid only for two (2) workdays (24 hours) at twelve (12) hours
each at the Standard Hourly Wage Rate.  If a 12 hour shift employee
needs a third day in conjunction with funeral leave, it will be granted, without
pay, upon request.

      

      VII.           SCOPE
OF AGREEMENT

      

      A.           It
is agreed that this 12-Hour Continuous Shift Operations Agreement supersedes the
current Labor Agreement in all areas where there may be a conflict.

      

      B.           All
areas not specifically covered by this Agreement shall be governed by the terms
and conditions of the current Labor Agreement.

      

      C.           In
the event of questions concerning the application of the 12-Hour Shift Schedule,
and/or unforeseen conflicts with the provisions of the current Labor Agreement,
such issues shall be referred to Human Resources for resolution.

      

      D.           Any
modifications and/or changes made to the existing terms and conditions of the
current Labor Agreement as a result of the Cherokee Nitrogen facility or any
portion thereof changing to this 12-Hour Shift Schedule shall be applicable only
during the term of this 12-Hour Continuous Shift Operations Agreement. In the
event that the 12-hour Shift Schedule is subsequently discontinued, the terms
and conditions of the current Labor Agreement will be given their normal
interpretation and application.

      

      
        
           

        

        
          34

          
            

          

        

        
           

        

      

      Schedules
and Factor Determination

      

      One (1)
Four-Week Schedule

      

      

      
        	 
      	
                Week
      No. 1

              	
                Week
      No. 2

              	
                Week
      No. 3

              	
                Week
      No. 4

              
	 
      	
                M

              	
                T

              	
                W

              	
                T

              	
                F

              	
                S

              	
                S

              	
                M

              	
                T

              	
                W

              	
                T

              	
                F

              	
                S

              	
                S

              	
                M

              	
                T

              	
                W

              	
                T

              	
                F

              	
                S

              	
                S

              	
                M

              	
                T

              	
                W

              	
                T

              	
                F

              	
                S

              	
                S

              
	
                DAY

              	
                X

              	
                X

              	
                X

              	
                X

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                X

              	
                X

              	
                X

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                NIGHT

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                X

              	
                X

              	
                X

              	
                X

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                X

              	
                X

              	
                X

              	 
      	 
      	 
      
	
                OFF

              	 
      	 
      	 
      	 
      	
                X

              	
                X

              	
                X

              	
                X

              	
                X

              	
                X

              	
                X

              	 
      	 
      	 
      	 
      	
                X

              	
                X

              	
                X

              	 
      	 
      	 
      	
                X

              	 
      	 
      	 
      	
                X

              	
                X

              	
                X

              

      

      

      

      

      

      

      
        	
                Factor:

              	
                Hours Worked

              	
                Hours Paid at Straight
  Time

              
	
                1st
      Week

              	
                48

              	
                52

              
	
                2nd
      Week

              	
                36

              	
                36

              
	
                3rd
      Week

              	
                40

              	
                40

              
	
                4th
      Week

              	
                36

              	
                36

              
	
                Hours
      in 28-Day Cycle:

              	
                160

              	
                164

              
	
                Thirteen
      28-Day Cycles/Yr.

              	
                X     13

              	
                X     13

              
	
                Number
      Hours Per Year:

              	
                2080

              	
                2132

              
	 
      	 
      	 
      
	
                Factor
      Determination: 2080 / 2132= .9756

              	 
      	 
      

      

      

       

      
        
           

        

        
          35

          
            

          

        

        
           

        

      

      APPENDIX
"C”

      

      401(K)
PLAN

      

      

      Effective
January, 2003, the company will contribute a sum based on 10% of a maximum of
$4,000.00 contribution by a plan participant.  If a participant
employee contributes $4,000.00 during a plan year, the company’s contribution
would be $400.00, for that plan year.

      

      

      
        
           

        

        
          36

          
            

          

        

        
           

        

      

      APPENDIX
"D”

      

      

      The
Cherokee Nitrogen Substance/Alcohol Abuse Policy and Procedure is made a part of
the Labor Agreement by reference.

      
         

         

         

         

        
          
            
            

          

          
            37

            
              

            

          

          
            
            

          

        

        

          APPENDIX
“E”

           

           

          United Steelworkers (USW) Check-off Authorization Form

           

           

        

      

       

      
        
          
          

        

        
          38

          
            

          

        

        
          
          

        

      

       

      LETTER OF
UNDERSTANDING

      

      February
22, 2002 and amended November 12, 2007

      

      

      
        	
                A.

              	
                During
      their negotiations, the Parties discussed Article 4, Work Groups,
      Operations Skill Advancement/On-The-Job Training, and agreed as
      follows:

              

      

      

      All
employees who were hired on or after December 1, 1994, must complete all levels
of advancement outlined in Article 4, B. 2. for operations personnel and in
Article 4, D. 2. for maintenance work groups.

      

      Employees
hired before December 1, 1994, in either operations or maintenance will only be
required to complete the levels of advancement through Level 2.

      

      B.           The
parties also agreed, as follows:

      

      
        	
                1.

              	
                Red
      Circle Personnel listed below will receive first consideration for
      available Utility Positions within all areas of the
      plant.  Those individuals are:  Charlie Pounders and
      Clyde Wallace.

              

      

      

      The
Parties agree that the positions they hold are not subject to the seniority
provisions of Article 10, Seniority, which relate to bidding and bumping
procedures.

      

      In the
event of a reduction in force which includes Red Circled utility persons, plant
seniority shall control any such reduction in force.

      

      It is
understood no employee will be laid off unless he/she has had the opportunity to
displace red-circled employees.

      

      

      
        	
                2.

              	
                Ron
      Russell shall not be required to complete the Operations and/or
      Maintenance Skills Advancement requirements of Article 4, Work Groups, for
      Operations or Maintenance
personnel.

              

      

      

      

      

      

      COMPANY                                                                           UNION

      

      

      

      ______________________                                             ________________________

      
        
           

        

        
          39

          
            

          

        

        
           

        

      

       

      
 

      LETTER OF
UNDERSTANDING

      

      (Board
Operator Premium)

      

      November
12, 2004 and reaffirmed November 12, 2007

      

      During
their negotiations, the parties discussed the Company’s agreement to provide a
premium of fifty cents ($.50) per hour to Board Operators in consideration for
their handling of administrative duties in addition to their regular duties such
as: filling out time cards for production personnel; calling employees for
overtime call-ins; maintaining area overtime board; posting of overtime hours,
refused and worked; maintain attendance records for shift personnel; handles
requests for vacation time off; functions as contact point and receives calls
from suppliers or vendors as needed.

      

      COMPANY                                                                                                UNION

      

      

       ________________________________                                                                           
______________________________

      

      

      
        
           

        

        
          40

          
            

          

        

        
           

        

      

      SUBJECT
INDEX

      

      
        	
                Subject

              	
                Article

              	
                Page

              
	
                Adjustment
      of Grievances

              	
                22

              	
                19

              
	
                Agreement

              	 
      	
                  1

              
	
                Alcohol
      Policy

              	
                Appendix
      “D”

              	
                37

              
	
                Arbitration

              	
                22

              	
                20

              
	 
      	 
      	 
      
	
                Board
      Operator Premium

              	
                Letter
      of Understanding

              	
                40

              
	
                Bulletin
      Boards

              	
                27

              	
                23

              
	 
      	 
      	 
      
	
                Change
      of Home Address

              	
                30

              	
                25

              
	
                Contracting
      Out Work

              	
                3

              	
                2

              
	 
      	 
      	 
      
	
                Disability
      Benefits – Short Term

              	
                28

              	
                24

              
	
                Discharge

              	
                29

              	
                25

              
	
                Drug
      Policy

              	
                Appendix
      “D”

              	
                37

              
	 
      	 
      	 
      
	
                EAP
      – Employee Assistance Program

              	
                28

              	
                24

              
	
                Effective
      Date of Agreement

              	 
      	
                1

              
	
                Employee/Management
      Partnership

              	
                2

              	
                1

              
	 
      	 
      	 
      
	
                Funeral
      Leave

              	
                17

              	
                17

              
	 
      	 
      	 
      
	
                General

              	
                30

              	
                25

              
	
                Grandfathering

              	
                Letter
      of Understanding

              	
                39

              
	
                Grievance
      Committee

              	
                21

              	
                19

              
	
                Grievance
      Procedures

              	
                22

              	
                19

              
	
                Group
      Life Insurance

              	
                28

              	
                24

              
	
                Group
      Medical Insurance

              	
                28

              	
                24

              
	 
      	 
      	 
      
	
                Health
      Care Reimbursement Accounts (HCR)

              	
                28

              	
                24

              
	
                Holidays

              	
                16

              	
                16

              
	
                -
      Loss of Pay

              	
                16

              	
                16

              
	
                -
      Observed Holidays

              	
                16

              	
                16

              
	
                -
      Pay for Holidays Worked

              	
                16

              	
                16

              
	
                Hours
      of Work

              	
                9

              	
                8

              
	 
      	 
      	 
      
	
                Incentive
      Plan

              	
                Appendix
      “C”

              	
                36

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                Jury
      Duty

              	
                18

              	
                17

              
	 
      	 
      	 
      
	
                Layoffs
      – Advance Notice

              	
                7

              	
                6

              
	
                Leave
      of Absence

              	
                23

              	
                21

              
	
                -
      Approval

              	
                23

              	
                21

              
	
                -
      Personal Reasons

              	
                23

              	
                21

              
	
                -
      Union Business

              	
                23

              	
                21

              
	
                -
      Medical Reasons

              	
                23

              	
                22

              
	
                Life
      and Medical Insurance

              	
                28

              	
                24

              
	 
      	 
      	 
      
	 
      	 
      	 
      

      

      
        
           

        

        
          41

          
            

          

        

        
           

        

      

      

      
        	
                Subject (cont’d)

              	
                Article

              	
                Page

              
	 
      	 
      	 
      
	
                Maintenance
      Department Work Groups

              	
                4

              	
                3

              
	
                -
      Titles

              	
                4

              	
                3

              
	
                -
      Qualifying

              	
                4

              	
                3

              
	
                -
      Training Progression

              	
                4

              	
                4

              
	
                Maintenance
      on 12-Hour Shifts

              	
                30

              	
                26

              
	
                Management’s
      Rights

              	
                3

              	
                1

              
	
                Management
      Employees Working

              	
                30

              	
                25

              
	
                Meal
      Allowance

              	
                20

              	
                18

              
	
                -
      Meal Period of Non Shift Workers

              	
                20

              	
                18

              
	
                Military
      Service

              	
                24

              	
                22

              
	
                Military
      Training

              	
                24

              	
                22

              
	 
      	 
      	 
      
	
                Operations
      Work Groups

              	
                4

              	
                2

              
	
                -
      Titles

              	
                4

              	
                2

              
	
                -
      Qualifying

              	
                4

              	
                3

              
	
                -
      Training Progression

              	
                4

              	
                2

              
	
                Overtime
      Procedures

              	
                10

              	
                9

              
	
                -
      Call-outs

              	
                10

              	
                10

              
	
                -
      Overtime Coverage Procedure

              	
                10

              	
                9

              
	
                -
      Charged Overtime

              	
                10

              	
                9

              
	
                -
      Maintenance

              	
                10

              	
                9

              
	
                -
      Production

              	
                10

              	
                11

              
	
                -
      Transfers From One Group to Another

              	
                10

              	
                9

              
	
                -
      Reporting Pay – Guarantee

              	
                10

              	
                9

              
	 
      	 
      	 
      
	
                -
      Production Overtime Procedures

              	
                10

              	
                11

              
	 
      	 
      	 
      
	
                Payday

              	
                19

              	
                18

              
	
                Promotions
      to Outside Bargaining Unit

              	
                5

              	
                5

              
	
                Purpose
      of Agreement

              	
                2

              	
                1

              
	
                Protective
      Equipment Safety Policy Procedure (SAF-17-Corp)

              	
                25

              	
                22

              
	 
      	 
      	 
      
	
                Recognition
      of Union

              	
                1

              	
                1

              
	
                Reduction
      In Force

              	
                7

              	
                6

              
	
                Return
      to Work Program

              	
                28

              	
                25

              
	
                Route
      of Advancement

              	
                4

              	
                3

              
	 
      	 
      	 
      
	
                Safety
      and Health

              	
                25

              	
                22

              
	
                -
      Safety and Health Committee

              	
                25

              	
                23

              
	
                Savings
      Clause

              	
                32

              	
                26

              
	
                Savings
      Plan – Section 401 (k)

              	
                Appendix
      “C”

              	
                36

              
	
                Seniority

              	
                5

              	
                4

              
	
                -
      Broken

              	
                5

              	
                5

              
	
                -
      Filling Vacancies

              	
                6

              	
                5

              
	
                -
      New Employees

              	
                5

              	
                5

              
	
                -
      Plant-Wide Seniority

              	
                5

              	
                5

              
	
                -
      Reductions in Workforce

              	
                7

              	
                6

              
	
                -
      Seniority List

              	
                5

              	
                5

              
	
                Shift
      Differential

              	
                14

              	
                14

              
	 
      	 
      	 
      
	
                Wages

              	
                13

              	
                13

              
	
                -
      Seven Consecutive Days Worked

              	
                13

              	
                13

              
	 
      	 
      	 
      

      

      
        
           

        

        
          42

          
            

          

        

        
           

        

      

      

      
        	
                Subject (cont’d)

              	
                Article

              	
                Page

              
	 
      	 
      	 
      
	
                Sick
      Leave Agreement (Short Term Disability Benefits)

              	
                28

              	
                24

              
	
                -
      Return to Work

              	
                28

              	
                24

              
	
                -
      Return to Work Program

              	
                28

              	
                25

              
	 
      	 
      	 
      
	
                Term
      of Agreement, Expiration Date

              	
                34

              	
                27

              
	
                Twelve
      Hour Shift Agreement

              	
                Appendix
      “B”

              	
                31

              
	
                -
      Maintenance on 12 Hour Shifts

              	
                30

              	
                26

              
	 
      	 
      	 
      
	
                Union
      Dues and Checkoff

              	
                31

              	
                26

              
	 
      	 
      	 
      
	
                Vacations

              	
                15

              	
                14

              
	
                -
      Amount Paid

              	
                15

              	
                14

              
	
                -
      During Holiday Week

              	
                15

              	
                15

              
	
                -
      Money in Lieu Of

              	
                15

              	
                15

              
	
                -
      New Employees – First Vacation

              	
                15

              	
                14

              
	
                -
      Pay Following Death

              	
                15

              	
                15

              
	
                -
      Qualifying Hours

              	
                15

              	
                14

              
	
                -
      Retirement During Year

              	
                15

              	
                15

              
	
                -
      Scheduling

              	
                15

              	
                15

              
	
                -
      Weeks Paid Per Year

              	
                15

              	
                14

              
	
                -
      When Paid

              	
                15

              	
                15

              
	 
      	 
      	 
      
	
                Wage
      Rates

              	
                Appendix
      “A”

              	
                29

              
	
                -
      Maintenance

              	
                Appendix
      “A”

              	
                29

              
	
                -
      Operations

              	
                Appendix
      “A”

              	
                30

              
	
                -
      Change in Work Schedules

              	
                8

              	
                8

              
	
                -
      Paydays

              	
                19

              	
                18

              
	
                -
      Premium Pay for Non-Scheduled Workday

              	
                13

              	
                13

              
	
                -
      Shift Differential

              	
                14

              	
                14

              
	
                -
      Wage Rates for New Jobs

              	
                13

              	
                13

              
	
                Work
      Groups

              	
                4

              	
                2

              
	
                Workers
      Committee

              	
                21

              	
                19

              

      

      

      
        
           

        

        
          43

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00138-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00138-of-00352.parquet"}]]