Document:

Exhibit 10.15

 

ABIOMED, Inc.

Restricted Stock Agreement

 

This Restricted Stock Agreement (this “Agreement”) is made effective as of March 1, 2005, between
ABIOMED, Inc. (the “Company”), and
Michael R. Minogue, the President and Chief Executive Officer of the Company
(the “Employee”), pursuant to the Company’s
2000 Stock Incentive Plan, as it may be amended from time to time (the “Plan”).  This
Agreement is expressly subject to all of the terms and conditions contained in
the Plan, which is hereby incorporated herein by reference.  In the event that any of the terms and
conditions contained in this Agreement are inconsistent with the Plan, the
terms of the Plan shall control.  All capitalized
terms not defined in this Agreement have the meanings specified in the Plan.

 

WITNESSETH:

 

WHEREAS, on March 1,
2005 the Committee granted a Restricted Stock Award under Section 6 of the Plan
to the Employee in the amount of 24,000 shares of its Common Stock, $.01 par
value of the Company (the “Shares”),
subject to the restrictions set forth herein, including restrictions related to
the ability of the Employee to transfer the Shares and the Company’s right to
repurchase the Shares in the event of the termination of the Employee’s
employment with the Company; and

 

WHEREAS, the Plan
provides that a participant who is granted a Restricted Stock Award shall have
no rights with respect to the Award unless the participant shall have accepted
the Award within sixty (60) days following the award date by making payment to
the Company of the specified purchase price of the shares covered by the Award
and by executing and delivering to the Company a written instrument that sets
forth the terms and conditions applicable to the Restricted Stock in such form
as the Committee shall determine (the “Written Instrument”);

 

WHEREAS, the
Committee has specified that the Shares be acquired at no cost;

 

WHEREAS, this
Agreement constitutes the required Written Instrument the Employee must deliver
to accept the Restricted Stock Award; and

 

WHEREAS, the
Employee wishes to accept the Restricted Stock Award by delivery to the Company
of this Agreement;

 

NOW, THEREFORE, for
valuable consideration, the receipt of which is hereby acknowledged, the
Company and the Employee agree as follows:

 

1.                                       Repurchase
Option; Vesting .  If the Employee
ceases to be an employee, consultant or advisor to the Company or a subsidiary
of the Company at any time for any reason (the date this occurs being hereafter
referred to as the “Termination Date”),
whether because of any action of the Company or the Employee, the death or
incapacity of the Employee or otherwise, the Company shall have the option to
cause the forfeiture, at no cost to the Company, (the “Repurchase
Option”) of some or all of the Unvested Shares (as defined below),
in accordance with the procedures set forth in Section 3 below.  For purposes of this Agreement,

 

 

“Unvested
Shares” means any Shares that are not Vested Shares, and “Vested Shares” means any Shares that have vested in
accordance with the following schedule:

 

1.1                                 One-third
of the Shares shall vest on March 1, 2006;

 

1.2                                 An
additional one-third of the Shares shall vest on March 1, 2007; and

 

1.3                                 The
remaining one-third of the Shares shall vest on March 1, 2008.

 

2.                                       Deposit
of Shares.  Simultaneously with the
execution of this Agreement, the Employee shall deposit with the Company the
certificate or certificates representing all of the Stock and shall promptly
upon acquisition of any additional shares of stock, as described in Section 7
hereof, deposit with the Company the certificate or certificates for such
additional shares.  Any such additional
shares shall for all purposes be deemed Shares under this Agreement.  To all certificates deposited by the Employee
with the Company, there shall be attached a stock power or stock powers, duly
executed by the Employee in blank, constituting and appointing the Company his
attorney to transfer such stock on the books of the Company.  The Company shall hold such certificates and
stock powers for the purposes of this Agreement.  The Employee shall continue to be the owner
of the Shares, despite such deposit and stock powers, and shall be entitled to
exercise all rights of ownership in such Shares, subject, however, to the provisions
of this Agreement.

 

3.                                       Exercise
of Repurchase Option.

 

3.1                                 The
Company may exercise the Repurchase Option by delivering or mailing to the
Employee (or the Employee’s estate), within 90 days after the Termination Date
(the “Exercise Period”), a written notice of
exercise of the Repurchase Option.  Such notice shall specify the
number of Unvested Shares to be forfeited, at no cost to the Company, and a
date for the closing under this Paragraph 3, which date shall not be more than
thirty (30) days after the date of such notice. 
If and to the extent the Repurchase Option is not so exercised by the
giving of such a notice prior to the expiration of the Exercise Period, the
Repurchase Option shall automatically expire and terminate effective upon the
expiration of the Exercise Period.

 

3.2                                 Upon
the occurrence of the closing, the Employee shall transfer to the Company, at
no cost to the Company, the number of Shares specified in the Company’s notice,
free of all liens, encumbrances and rights of others.  The closing shall take place at the office of
the Company, on the date specified in the notice or at such other time as the
Company and the Employee shall mutually agree. 
At the closing, the Company shall deliver on behalf of the Employee the
certificate(s) representing the number of Shares the Company has elected to be
forfeited, at no cost to the Company, as well as the duly executed stock powers
accompanying such certificate(s).

 

3.3                                 In
the event that the certificates held by the Company shall evidence a greater
number of Shares than the number of Shares that are being forfeited under this
Section 3, the Company shall accept delivery of such certificate in exchange
for issuance of a new stock certificate to the Employee for such number of
shares equal to the Shares that have not been forfeited.

 

2

 

3.4                                 Upon
delivery by the Company of notice of exercise of the Repurchase Option, the
Company shall not be required thereafter to treat the Employee as the owner of
such Shares to be forfeited, to accord the right to vote to the Employee with
respect thereto or to pay dividends thereon, and shall, in so far as permitted
by law, treat the Company as the owner of such Shares.

 

4.                                       Restriction
on Transfer.  Other than as set forth
in Section 3 with respect to transfers to the Company, the Employee shall not
sell, assign, transfer, pledge, hypothecate, mortgage, encumber or otherwise
dispose of, voluntarily or involuntarily, by operation of law or otherwise
(collectively, “transfer”), any of the Unvested
Shares or any interest therein, unless and until such Shares are no longer
subject to the Repurchase Option.

 

5.                                       Lock-Up
Agreement.  The Employee agrees for a
period of up to 180 days from the effective date of any registration of
securities of the Company under the Securities Act of 1933, as amended, upon
request of the Company or underwriters managing any underwritten offering of
the Company’s securities, not to sell, make any short sale of, loan, grant any
option for the purchase of, or otherwise dispose of any Shares held by him
without the prior written consent of the Company and such underwriters.

 

6.                                       Restrictive
Legends.  All certificates
representing the Shares shall have affixed thereto legends in substantially the
following form, in addition to any other legends that may be required under
federal or state securities laws:

 

“The securities represented by this certificate are subject to
restrictions on transfer and repurchase rights of the Corporation set forth in
an agreement between the Corporation and the registered holder hereof, dated as
of March 1, 2005, a copy of which will be provided to the holder hereof by the
Corporation upon written request and without charge.”

 

7.                                       Adjustments
for Stock Splits, Stock Dividends, etc.

 

7.1                                 If
from time to time there is any stock split, stock dividend, stock distribution
or other reclassification of the Common Stock of the Company, any and all new,
substituted or additional securities to which the Employee is entitled by
reason of the Employee’s ownership of the Shares shall be immediately subject
to the Repurchase Option and the restrictions on transfer and the other
provisions of this Agreement in the same manner and to the same extent as the
Shares.

 

7.2                                 If
the Shares are converted into or exchanged for, or stockholders of the Company
receive by reason of any distribution in total or partial liquidation,
securities of another corporation, or other property (including cash), pursuant
to any merger of the Company or acquisition of its assets, then the rights of the
Company under this Agreement shall inure to the benefit of the Company’s
successor and this Agreement shall apply to the securities or other property
received upon such conversion, exchange or distribution in the same manner and
to the same extent as to the Shares.

 

3

 

8.                                       Change
in Control.  In order to preserve the
Employee’s rights under this Agreement in the event of a change in control of
the Company, the Committee in its discretion may take one or more of the
following actions: (i) provide for the acceleration of any time period relating
to the vesting of the Shares, (ii) adjust the terms of this Agreement in a
manner determined by the Committee to reflect the change in control, (iii)
cause this Agreement to be assumed, or new rights substituted therefor, by
another entity, or (iv) make such other provision as the Committee may consider
equitable and in the best interests of the Company.

 

9.                                       Discretion
of the Committee.  Unless otherwise
provided, the Committee shall make all determinations required to be made
hereunder, including determinations required to be made by the Company, and
shall interpret all provisions of this Agreement, as it deems necessary or
desirable, in its sole and unfettered discretion.  Such determinations and interpretations shall
be binding and conclusive to the Company and the Employee.  If there shall be no Compensation Committee
of the Corporation’s Board of Directors or if the Board of Directors shall
determine that the Board of Directors shall administer this Agreement, all
references herein to the Committee shall be deemed references to the Board of
Directors.

 

10.                                 Withholding
Taxes; No Section 83(b) Election.

 

10.1                           The
Employee acknowledges and agrees that the Company has the right to deduct from
payments of any kind otherwise due to the Employee any federal, state or local
taxes of any kind required by law to be withheld with respect to the lapse of
the Repurchase Option.

 

10.2                           The
Employee has reviewed with the Employee’s own tax advisors the federal, state,
local and foreign tax consequences of this investment and the transactions
contemplated by this Agreement.  The
Employee is relying solely on such advisors and not on any statements or
representations of the Company or any of its agents.  The Employee understands that the Employee
(and not the Company) shall be responsible for the Employee’s own tax liability
that may arise as a result of the Restricted Stock Award or the transactions
contemplated by this Agreement.  The Employee
understands that no election under Section 83(b) of the Code has been, or
will be, made with the IRS with respect to the Restricted Stock Award.

 

11.                                 No
Rights To Employment.  Nothing
contained in this Agreement shall be construed as giving the Employee any right
to continued employment with the Company, or to establish or maintain an
on-going business relationship with the Company.  The Employee acknowledges and agrees that the
transactions contemplated hereunder and the vesting schedule set forth herein
do not constitute an express or implied promise of continued engagement as a
consultant or employee for the vesting period, for any period, or at all.

 

12.                                 Remedies.  No transfer of Shares shall be effective or
given effect on the books of the Company unless all of the applicable
provisions of this Agreement have been duly complied with.  If any transfer of Shares is made or
attempted in violation of the foregoing restrictions the Company shall have the
right to purchase such Shares from the owner thereof or his transferee at any
time before or after the transfer, as herein provided.  In addition to any other legal or equitable
remedies which it may have, the Company may enforce its rights by actions for

 

4

 

specific performance (to the
extent permitted by law) and may refuse to recognize any transferee as one of
its stockholders for any purpose, including, without limitation, for purposes
of dividend and voting rights, until all applicable provisions hereof have been
complied with.

 

13.                                 Fractional
Shares.  The Company shall not
purchase any fraction of a Share upon exercise of any or all of its rights
under this Agreement, and any fraction of a Share resulting from a computation
made pursuant to Section 1 of this Agreement shall be rounded to the
nearest whole Share (with any one-half Share being rounded upward).

 

14.                                 Assignment.  The Company may assign any or all of its
rights under this Agreement to one or more persons or entities.

 

15.                                 Severability.  The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement, and each other provision of this
Agreement shall be severable and enforceable to the extent permitted by law.

 

16.                                 Waiver.  Any provision for the benefit of the Company
contained in this Agreement may be waived, either generally or in any
particular instance, by the Committee.

 

17.                                 Binding
Effect.  This Agreement shall be
binding upon and inure to the benefit of the Company and the Employee and their
respective heirs, executors, administrators, legal representatives, successors
and assigns, subject to the restrictions on transfer set forth in this
Agreement.

 

18.                                 Amendment.  Subject to Section 13 of the Plan, the
Committee may amend any conditions of this Agreement.  In all other cases, this Agreement may only
be modified or amended by a writing signed by both parties.

 

19.                                 Notices.  Any notices required to be given under this
Agreement shall be sufficient if in writing and if sent by certified mail,
return receipt requested, and addressed as follows:

 

if to the Corporation:

 

ABIOMED, Inc.

22 Cherry Hill Drive

Danvers, Massachusetts  01923

Attn: Chief Financial Officer

 

if to the Employee, at the address of the Employee set forth in the
Company’s records or to such other address as either party may designate under
the provisions hereof.

 

20.                                 Applicable
Law.  All rights and obligations
under this Agreement shall be governed by the laws of The Commonwealth of Massachusetts,
without regard to its conflicts of law principles.

 

5

 

21.                                 Paragraph
Headings.  The paragraph headings
used in this Agreement are for convenience or reference, and are not to be
construed as part of this Agreement.

 

[SIGNATURE PAGE FOLLOWS]

 

6

 

IN WITNESS
WHEREOF, the parties have executed this Agreement as an instrument under seal
effective as of the date written on the first page of this Agreement.

 

 

	
   

  	
  ABIOMED,
  Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Charles
  B. Haaser

  	
   

  
	
   

  	
  By: Charles
  B. Haaser

  
	
   

  	
  Its:
  Corporate Controller and Principal Accounting

  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Michael
  R. Minogue

  	
   

  
	
   

  	
  Michael R.
  Minogue

  
	
   

  	
   

  
	
   

  	
  Acceptance
  date: April 28, 2005

  

 

7

 

IRREVOCABLE STOCK POWER

 

 

FOR VALUE RECEIVED, the undersigned does
hereby sell assign and transfer unto           
                                                                        ,
                                
(SSN or Taxpayer ID)                                         
shares of the capital stock of ABIOMED, INC. represented by
certificate(s) no(s)                                                                                      ,
inclusive, standing in the name of the undersigned on the books of said
Company.

 

The
undersigned does (do) hereby irrevocably constitute and appoint                                                                                   
Attorney to transfer the said stock on the books of said Company, with full
power of substitution in the premises.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Michael
  R. Minogue

  

 

8Exhibit 10.1

 

Labor Contract

Agreement

 

between

 

Musser Division

Division of Conn-Selmer, Inc.

 

and

 

Carpenter Local 1027

Mill-Cabinet- Industrial Division

 

affiliate of

Chicago Regional

Council of Carpenters

of the

United Brotherhood of Carpenters and Joiners of America

 

 

Effective November 20, 2004

Through

November 27, 2007

 

 

TABLE OF CONTENTS

 

	
  AGREEMENT

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
   

  	
   

  
	
  1.1

  	
  Recognition

  	
   

  
	
  1.2-1.3

  	
  Union Security

  	
   

  
	
  1.4

  	
  Dues Checkoff

  	
   

  
	
  1.5

  	
  Hiring of New Employees

  	
   

  
	
  1.6-1.7

  	
  No Discrimination

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  	
   

  
	
  2.1

  	
  Management

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  	
   

  
	
  3.1

  	
  Union Representative

  	
   

  
	
  3.2

  	
  Union Steward

  	
   

  
	
  3.3

  	
  Union Label

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  	
   

  
	
  4.1-4.3

  	
  Hours of Work

  	
   

  
	
  4.4-4.5

  	
  Overtime

  	
   

  
	
  4.6

  	
  Medical Absence

  	
   

  
	
  4.7

  	
  Wash Up Time

  	
   

  
	
  4.8

  	
  Rest Periods

  	
   

  
	
  4.9

  	
  Shift Differential

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
   

  	
   

  
	
  5.1-5.4

  	
  Holidays

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
   

  	
   

  
	
  6.1

  	
  Bereavement

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
   

  	
   

  
	
  7.1-7.7

  	
  Vacations

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  	
   

  
	
   

  	
  Job
  Classifications and Wages

  	
   

  
	
  8.1

  	
  Pay Day

  	
   

  
	
  8.2-8.5

  	
  Categories and Wages

  	
   

  
	
  8.6

  	
  Working Supervisors

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
   

  	
   

  
	
  9.1-9.3

  	
  Grievance & Arbitration Procedure

  	
   

  
	
  9.4

  	
  Steps to
  Grievance & Arbitration Procedure

  	
   

  

 

i

 

	
  ARTICLE X

  	
   

  	
   

  
	
  10.1-10.5

  	
  Seniority

  	
   

  
	
  10.5(c)

  	
  Leave of Absence

  	
   

  
	
  10.6

  	
  Job Opportunities Posting

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI

  	
   

  	
   

  
	
  11.1

  	
  Insurance

  	
   

  
	
  11.2

  	
  Pension Plan

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII

  	
   

  	
   

  
	
  12.1

  	
  Severance

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIII

  	
   

  	
   

  
	
  13.1

  	
  Christmas Bonus

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIV

  	
   

  	
   

  
	
  14.1

  	
  Jury Duty

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XV

  	
   

  	
   

  
	
  15.1

  	
  Duration

  	
   

  
	
  15.2

  	
  Successorship

  	
   

  
	
  15.3

  	
  No Strike - No Lockout

  	
   

  
	
  15.4

  	
  Partial Invalidity of
  Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  Signatures

  	
   

  

 

ii

 

AGREEMENT

 

This Agreement, made and
entered into this 20th day of November 2004, by and between Musser Division, a Division of Conn-Selmer, Inc.
(herein after referred to as the “Company”
and/or “Employer” where appropriate), and Carpenter Local 1027 of the Chicago
Regional Council of Carpenters, of the United
Brotherhood of Carpenters and Joiners of America (herein after
referred to as the “Union”).

 

The general purpose of
this Agreement is to promote the mutual interests of both parties.  Both parties agree that the continued growth
and competitive strength of the Company is to their mutual interest.  Therefore, this Agreement is made to provide
for the operation of the plants of the Company at 505 E. Shawmut, LaGrange,
Illinois, under methods which will further to the fullest extent possible the
safety and welfare of the employees, the economy of operation, the elimination
of waste, the quality of service, cleanliness of the plants, protection of the
property, and the welfare, interest, and competitive position of the
Company.  The Union recognizes that it is
the obligation of each employee to give the Company a full day of efficient and
cooperative work for a day’s pay.  Under
this Agreement it is the duty of the Company, the Union, and the employees to
cooperate fully, individually, and collectively for the advancement of these
conditions.

 

ARTICLE I

RECOGNITION

 

1.1                                 The
Company recognizes the Union, during the term of this Agreement, as the sole
and exclusive representative of all its production, maintenance, warehouse
employees, including group leaders of the company (herein after referred to as “Employee” or “Employees”), for the purpose of collective bargaining
in respect to rates of pay, wages, hours of work and working conditions covered
by the scope of the Agreement.

 

UNION
SECURITY

 

1.2                                 All
Employees encompassed in the terms and provisions of this Agreement shall be
obligated to become and remain members in good standing in the Union.  The Company shall notify the Union at any
time a new employee is placed in the bargaining unit.  After sixty (60) working days said Employee shall make
application to the Union at which time any applicable fees and the payment of
dues shall commence.

 

1.3                                 The
Company agrees, upon written notice from the Union, that any Employee failing
to maintain their membership in good standing, shall be discharged, unless such
Employee reinstates their membership within five (5) working days of such
notice.

 

DUES
CHECKOFF

 

1.4                                 The
Company agrees to deduct and forward to the Local Union on a monthly basis dues
levied by the Union from the pay of each employee who executes or has executed
an authorization for checkoff of dues form. Dues will be deducted from the
paycheck that is

 

1

 

distributed on the fourth
Friday of each month.  The Union shall
indemnify the Company against any and all claims or liabilities arising by
reason of the deduction of such dues.

 

HIRING OF
NEW EMPLOYEES

 

1.5                                 The
Company may request additional employees from time to time if needed, from the
Union, or may hire such employees from any other available source.  All new employees may be required to work a
probationary period of sixty (60)
days of actual work but no later than ninety (90) actual calendar days.

 

NO
DISCRIMINATION

 

1.6                                 There
shall be no discrimination engaged in by either the Employer or the Union in
the employment of employees based on race, color, religion, creed, sex,
national origin, or age.

 

1.7                                 Wherever
in the Agreement the words his, her, their are used it is understood that these
words shall be gender-free and refer to all employees.

 

ARTICLE II

MANAGEMENT

 

2.1                                 Except
to the extent expressly abridged by a specific provision of this Agreement, the
Company reserves and retains, solely and exclusively all of its rights to
manage the business.  Furthermore, the
sole and exclusive rights of management, which are not abridged by this
Agreement shall include but are not limited to determine prices of products;
volume of production and methods of financing; to drop a product line; the
right to determine and from time to time re-determine the number, location,
relocation, and types of its operations, and the methods, processes and
materials to be employed; to determine the number of hours per day or per week
operations shall be carried on, except as provided for in Article Four, Section 4.3
hereof; to select and to determine the number and types of employees required;
to assign work to such employees in accordance with the requirements determined
by management; to establish and change work schedules and assignments; to
transfer, promote, or demote employees, or to lay off, terminate, or otherwise
relieve employees from duty for lack of work or other legitimate reasons; to
suspend, discharge, or otherwise discipline employees for cause and otherwise
to take such measures as management may determine to be necessary for the
orderly, efficient and profitable operation of the business; and to make and
enforce reasonable rules for the maintenance of discipline, provided that
any complaint as to the rules or the application thereof to any employee
or employees may be challenged in accordance with the grievance procedure
including arbitration as set forth in this Agreement.

 

a)                                      The
management of the shop and the direction of the working forces, and the right
to relieve employees of their duty shall vest exclusively in the Company,
provided, however, that this shall not be used for the purpose of
discrimination against any member of the Union, or against any employee because
of bona fide activities on behalf of the Union. 
All functions of management not expressly limited by this Agreement are
reserved to and vested exclusively in the Company.

 

2

 

ARTICLE III

UNION
REPRESENTATIVE

 

3.1                                 The
Business Representative of the Union shall be permitted to confer with
employees of the Company during working hours when necessary, provided proper
notification has been given to plant management, and provided further that said
Business Representative shall in no way interfere with the progress of the
work.

 

UNION
STEWARD

 

3.2                                 The
Union shall appoint or elect one (1) steward as it deems necessary for the
efficiency of its operations and shall notify the Company of its selection but
such stewards shall always be selected from Employees of the Company.  Such stewards shall be classed as having the highest seniority.  In the event any bargaining unit work is
being performed, the Steward (or designated alternate steward) shall work
provided he or she is qualified for the available work.  The Union will notify the Company in writing
the names of the employees who will serve as steward and alternate
steward.  The Company will have no
obligation to recognize an employee as a steward or alternate absent such
written notification.  The alternate
steward will act on behalf of the steward only when the steward is absent for
at least one full workday.  The alternate steward shall discharge
the steward duties as assigned by the Union.

 

UNION
LABEL

 

3.3                                 It
is hereby understood and agreed by the Employer and the Union that should an
application be made for the Union Label to the First General Vice President of
the United Brotherhood of Carpenters and Joiners of America and if the
application is approved, and the Union Label is issued by the United
Brotherhood to be placed on products manufactured by the Employer, the Label
shall remain the property of the United Brotherhood of Carpenters and shall be
at all times in the possession of a member of the United Brotherhood; and that
said Union Label shall at no time be used in any manner that will be
detrimental to the interest and welfare of the members of the United
Brotherhood.  Use of said Label may be
withdrawn from the Company any time, at the discretion of the International
Union.

 

ARTICLE IV

HOURS OF
WORK

 

4.1                                 The
normal scheduled work week shall constitute forty (40) hours of work as
follows: eight hours a day on Monday through Friday commencing at any time
between the hours of 6:00 A.M.  and
8:00 A.M.; provided however that the company may implement a 6:00 A.M.
start for only eight (8) calendar months in any calendar year period.  If any governmental unit should restrict
commercial vehicle traffic to times prior to 7:00 A.M., or if any public
utility should place restrictions or rate hikes on operations, the company may
implement the 6:00 A.M. start for as long as such governmental or utility
restriction is in place.

 

4.2                                 When
an employee reports to work at the regular starting time and regular work is
not available, he shall be transferred to work he is capable of doing and/or he
shall be guaranteed a minimum of four (4) hours pay at his regular day
rate except for conditions referred to as “Acts of God” i.e. power failure,
flood, fire, etc.

 

3

 

4.3                                 However,
if it is not efficient to operate the plant on a forty (40) hour normal work
week, the Company may reduce its normal scheduled work week to not less than
four (4) eight (8) hour days; provided, however, that the Company
shall have the right to determine whether it will layoff employees with two (2) years
or less seniority or whether the Company will retain one or more less senior
employees if the Company determines that such employees skills and
qualification would be beneficial for the Company.

 

OVERTIME
PAY

 

4.4                                 An
employee shall be paid at the rate of time and one-half pay of all time worked
in excess of eight (8) hours in any one day which shall not pyramid
because of being paid under any other provisions of this Agreement.  When conditions require the Company to schedule work
on Saturday, time and one-half pay shall be paid for all work on such
Saturday.  Double time pay shall be paid
for all work on Sunday and paid holidays.

 

4.5                                 The
Company agrees to endeavor to distribute overtime work on an equitable basis
whenever practical.  The Company will
request voluntary overtime within a department on a rotational basis (subject
to production requirements of the Company and the skill and ability of
available employees to perform the work in question).  Lacking enough volunteer, it shall assign as
many junior qualified employees as needed in that classification or department
to perform the work.  In the application
of this provision, no employee shall be required to work in excess of ten (10) overtime
hours per week and not for more than three (3) consecutive weeks. When an employee
is scheduled to work involuntary overtime, extenuating circumstances involving
that employee shall be taken into consideration, provided reasonable notice is
given and the employee does not abuse the exemption process. If multiple
employees request exemption from involuntary overtime under this procedure, the
Company will attempt to develop an accommodation but failing that, will approve
or reject requests based on production needs.

 

MEDICAL
ABSENCE

 

4.6                                 No
written excuse is required from a medical doctor for three (3) or less
days of medical absence, however the Company shall be notified no later than
one hour after the Employee’s scheduled starting time the first day
absent.  Employees expecting to be off
for more than that day should let the Employer know.  Absences in excess of three (3) days
shall require a medical excuse.

 

WASH-UP
TIME

 

 4.7                              All
employees shall be allowed a five (5) minute wash-up time prior to lunch
and at the end of the shift.

 

REST
PERIODS

 

4.8                                 Employees
will be permitted to take two (2) scheduled rest periods during each eight
(8) hour shift at times to be determined by the Company.  Each period shall be fifteen minutes in
duration.  Should scheduled overtime
exceed two hours on a normal work day, a third rest period shall be provided at
what would have been the end of a regular work day.

 

4

 

SHIFT
DIFFERENTIAL

 

4.9                                 Employees
who work on the second shift shall receive an additional hourly payment of ten
percent (10%) of their regular hourly rate for each hour worked on the second
shift.

 

ARTICLE V

HOLIDAYS

 

5.1                                 All
employees who have worked for the Company ninety (90) days shall receive eight (8) hours
pay at regular hourly rates for the following holidays:

 

	
  2004

  	
   

  	
  2005

  	
   

  
	
  Thanksgiving Day 11/25/04

  	
   

  	
  New Year’s Day
  12/31/04

  	
   

  
	
  Day after Thanksgiving 11/26/04

  	
   

  	
  Good Friday
  3/25/05

  	
   

  
	
  Christmas Eve 12/24/04

  	
   

  	
  Memorial Day
  5/30/05

  	
   

  
	
  Christmas Day 12/27/04

  	
   

  	
  4th
  of July 7/4/05

  	
   

  
	
  * Floating 1 – 12/28/04

  	
   

  	
  Labor Day 9/5/05

  	
   

  
	
  * Floating 2 – 12/29/04

  	
   

  	
  Thanksgiving Day
  11/24/05

  	
   

  
	
  * Floating 3 – 12/30/04

  	
   

  	
  Day after
  Thanksgiving 11/25/05

  	
   

  
	
   

  	
   

  	
  Christmas Day 12/26/05

  	
   

  
	
   

  	
   

  	
  Christmas Eve 12/27/05

  	
   

  
	
   

  	
   

  	
  * Floating 1 – 12/28/05

  	
   

  
	
   

  	
   

  	
  * Floating 2 – 12/29/05

  	
   

  
	
   

  	
   

  	
  * Floating 3 – 12/30/05

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2006

  	
   

  	
  2007

  	
   

  
	
  New Year’s Day 1/2/06

  	
   

  	
  New Year’s Day 1/1/07

  	
   

  
	
  Good Friday 4/14/06

  	
   

  	
  Good Friday
  4/6/07

  	
   

  
	
  Memorial Day 5/29/06

  	
   

  	
  Memorial Day
  5/28/07

  	
   

  
	
  4th of July 7/4/06

  	
   

  	
  4th
  of July 7/4/07

  	
   

  
	
  Labor Day 9/4/06

  	
   

  	
  Labor Day 9/3/07

  	
   

  
	
  Thanksgiving Day 11/23/06

  	
   

  	
   

  	
   

  
	
  Day after Thanksgiving 11/24/06

  	
   

  	
   

  	
   

  
	
  Christmas Day 12/25/06

  	
   

  	
   

  	
   

  
	
  Christmas Eve 12/26/06

  	
   

  	
   

  	
   

  
	
  * Floating 1 – 12/27/06

  	
   

  	
   

  	
   

  
	
  * Floating 2 – 12/28/06

  	
   

  	
   

  	
   

  
	
  * Floating 3 – 12/29/06

  	
   

  	
   

  	
   

  

 

*                 (To
be used in conjunction with Christmas Eve and Christmas Day to provide one week
of shutdown.)

 

5.2                                 No
employee shall qualify for pay for the above named holidays who has not been
present at work the full scheduled work day before and the full scheduled work
day after the holiday, provided, however, each employee on the active payroll
of the Company shall be credited with

 

5

 

an excused absence or
tardiness the scheduled work days before or the scheduled work days after a
paid holiday for the following reasons:

 

a)                                      An
illness of or accident to, such employee, provided the illness or injury and
the employee’s inability to work is verified in writing to the Company by the
attending physician; however, no holiday pay will be paid an employee receiving
sick pay or compensation pay for the same day.

 

b)                                     The
death of the employee’s spouse, child, grandchild, grandparent, parent,
brother, sister, step-parents, step-children, or in-law relative.

 

c)                                      Any
other good and valid reason approved in writing by the Union and the Company;
and provided further, each such employee shall have a total allowance each year
of four hundred eighty (480) minutes of unexcused absences or tardiness the
scheduled work days before and the scheduled work days after paid holidays.

 

5.3                                 An
employee laid-off during the week in which a holiday occurs will receive that
holiday pay.

 

5.4                                 Employees
scheduled to work during Christmas shutdown shall be permitted to take their
holidays during the following year as long as the employee provides the Company
with a five (5) working days advance notice.

 

ARTICLE VI

BEREAVEMENT

 

6.1                                 Upon
the death of an employee’s spouse, child, grandchild, grandparent, parent,
brother, or sister, such employee shall receive three (3) days off with
pay at such employee’s regular hourly rate exclusive of any coinciding paid
vacation or paid holidays of such employee. 
Upon the death of an in-law relative or step-child, or step-parent, one
full day off with pay and two days at no pay, if requested, will be allowed.

 

ARTICLE VII

VACATIONS

 

7.1                                 For
the purpose of determining vacation pay eligibility, the employee’s seniority
date (hire date) shall be compared to July 1st of the current
vacation year.

 

Employees with less than
one year of seniority – For the purpose of determining vacation pay due an
employee with less than one (1) year of seniority (employee hire date
compared to July 1st of current vacation year), payment shall
be based on pro-rated schedule set forth in 7.4.  To receive vacation pay, the employee must be
active as of July 1st.

 

Employees with one (1) or
more year(s) of seniority as of July 1st will be as follows:

 

Length of Service as of July 1st

 

	
  One (1) year
  but less than Two (2) years

  	
   

  	
  -

  	
   

  	
    40 hours

  
	
  Two (2) years
  but less than eight (8) years

  	
   

  	
  -

  	
   

  	
    80 hours

  
	
  Eight (8) years
  but less than thirteen (13) years

  	
   

  	
  -

  	
   

  	
  120 hours

  

 

6

 

	
  Thirteen (13)
  years but less than twenty (20) years

  	
   

  	
  -

  	
   

  	
  160 hours

  
	
  Twenty (20)
  years or more

  	
   

  	
  -

  	
   

  	
  200 hours

  

 

For employees
hired after the ratification date of this agreement, and solely for purpose of
determining when the employee becomes eligible for two weeks of vacation,
employees who are hired after July 1, but prior to December 31 of any
year shall accrue one full year of consecutive service on the July 1
immediately following the employee’s date of hire.

 

When plant shutdowns are
scheduled employees will be required to use available vacation time; however,
any employee entitled to two (2) weeks or less vacation time may take one
week of such time at a later date, so long as the employee:

 

1.               Requests
to work during the shutdown period, and

2.               Schedules
his vacation time.

 

In the event that the
employee works all or part of the shutdown period or in the event that the
Company fails to assign work to the employee during the shutdown period the
employee shall be entitled to take the one (1) week of vacation during the
previously scheduled period.

 

Each such employee shall
take his paid vacation during the twelve months following July 1st
at a time agreeable to the Company and the employee.  If the Fourth (4th) of July holiday
falls during the vacation shut down, then the Company and Union by mutual
agreement shall designate its observance on another date or may agree to allow
employees to observe the holiday, with prior approval, at any time.

 

7.2                                 The
Company shall have the right to require some employees to work during the
vacation period in case of emergency or unusual conditions.

 

Employees and/or
departments asked to work during the plant shutdown period shall schedule their
vacation at another time.

 

7.3                                 An
employee receiving two weeks or less of vacation may take a week off at a date
other than shutdown if the employee who wants a week off at a later date
requests
to work during the plant shutdown period and schedules his one week of
vacation.  The Company may or may not
assign the employee to work during the shutdown.

 

7.4                                 Each
week of vacation pay of each employee shall be at such employee’s regular
hourly rate at the time of such vacation. 
In order to be eligible for full vacation pay an employee must have
worked 1,680 hours during the year prior to July 1st.  If the employee during such year worked less
than 1,680 hours but more than 1,260 hours, he shall receive seventy-five
percent (75%) of his full vacation pay; less than 1,260 hours but more than 840
hours, he shall receive fifty percent (50%) of his full vacation pay; less than
840 hours but more than 420 hours, he shall receive twenty-five percent (25%)
of his full vacation pay; and if he worked less than 420 hours in such year he
shall receive no vacation pay.  Regular
paid vacations and regular paid holidays during such year shall be considered
as hours worked.

 

7.5                                 If
an employee eligible for paid vacation is laid off, he may request to be paid
his accrued vacation to the date of layoff. 
An employee who quits after one (1) year of continuous employment
with the Company shall be paid his accrued vacation to the date of his
termination

 

7

 

of employment.  Employees who are discharged for good cause
shall receive no accrued paid vacation.

 

7.6                                 The
Company shall supply the Union representative with a vacation list and will
supply the Union with all necessary wage data.

 

7.7                                 Employees who have
more than two (2) weeks of vacation entitlement may elect to take up to
five (5) of their vacation days in single day increments.  Employees who make this election must provide
five- (5) workday notice, and the Company will attempt to accommodate the
request, but shall make a decision based on its production needs and schedules
or anticipated time off by other employees; provided however, that if no other
employee in that classification is scheduled off for that day, the requested
day off will be granted (except for the unique anticipated events when business
needs require a denial of the request, such as stock room clerk on inventory
day).  In the event that more than 10% of
the bargaining unit employees in multiple classifications choose vacation time
during the same period, the Union and the Company will meet in order to
accommodate the employer’s interest in maintaining production and the employees’
interest in securing their scheduled vacations. The Company will also give
consideration to an employee’s request with less than five (5) days notice
if an emergency situation arises.

 

ARTICLE VIII

JOB CLASSIFICATIONS AND WAGES

PAY DAY

 

8.1                                 There
shall be a payday on Friday of each week following the previous workweek, and
pay shall be made in currency or by check. 
Not more than five (5) days’ pay shall be held back.  Such pay shall be delivered to the Employees
at or before the regular quitting time each Friday.

 

8.2                                 The
following shall constitute the job title of each Employee placed in “Groups”
for the purpose of wage classifications.

 

JOB CLASSIFICATIONS AND RATES

 

	
  Job Title

  	
   

  	
  Job

  Groupings

  	
   

  	
  Effective

  11/22/04

  	
   

  	
  Effective

  11/21/05

  	
   

  	
  Effective

  11/20/06

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tool & Die Maker

  	
   

  	
  1

  	
   

  	
  17.26

  	
   

  	
  17.51

  	
   

  	
  17.78

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Maintenance

  	
   

  	
  2

  	
   

  	
  16.00

  	
   

  	
  16.24

  	
   

  	
  16.48

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Punch Press (Set Up & Operate)

  	
   

  	
  3

  	
   

  	
  15.59

  	
   

  	
  15.82

  	
   

  	
  16.05

  	
   

  
	
  Set-Up (Mill, Drill & Lathe)

  	
   

  	
  3

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Chime Tuner, Final Assembler

  	
   

  	
  4

  	
   

  	
  15.18

  	
   

  	
  15.41

  	
   

  	
  15.64

  	
   

  
	
  Inspector Tester

  	
   

  	
  4

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tuner 1

  	
   

  	
  4

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Assembly I

  	
   

  	
  4

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tuner II

  	
   

  	
  5

  	
   

  	
  14.64

  	
   

  	
  14.86

  	
   

  	
  15.08

  	
   

  

 

8

 

	
  Resonator Assembly

  	
   

  	
  5

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Machine Operator I

  	
   

  	
  5

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bar Finisher

  	
   

  	
  5

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Assembly II

  	
   

  	
  5

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Production Painter/Sprayer

  	
   

  	
  5

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stockroom Clerk

  	
   

  	
  5

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Order Packer

  	
   

  	
  6

  	
   

  	
  14.35

  	
   

  	
  14.57

  	
   

  	
  14.79

  	
   

  
	
  Machine Operator II

  	
   

  	
  6

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Material Handler

  	
   

  	
  6

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tuner III

  	
   

  	
  6

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bench Assembler

  	
   

  	
  6

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Maintenance Helper

  	
   

  	
  6

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tuner Trainee

  	
   

  	
  7

  	
   

  	
  13.34

  	
   

  	
  13.54

  	
   

  	
  13.74

  	
   

  
	
  Machine Operator III

  	
   

  	
  7

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Janitor

  	
   

  	
  8

  	
   

  	
  10.66

  	
   

  	
  10.66

  	
   

  	
  10.66

  	
   

  

 

b)                                     Wages
of each individual employee will be increased by the following:

 

	
  1/3/05

  	
   

  	
  1/2/06

  	
   

  	
  1/1/07

  	
   

  
	
  1.5

  	
  %

  	
  2.25

  	
  %

  	
  2.5

  	
  %

  

 

There shall be no
pyramiding of these annual percentage increases and the base rate annual
adjustments set forth in Job Classification and Rate Table.  Employees shall not receive both a percentage
increase and a base rate annual adjustment.

 

8.3                                 The
amount of any negotiated wage increase during the term of this Agreement shall
then be added to the wage rates then paid to employees.

 

8.4                                 Groupleaders
shall receive a minimum of seventy-five ($.75) cents per hour over the highest
job classification wage rate under their lead (red circled job rates are
excluded from this consideration).

 

8.5                                 The
policy of Musser is to have on file and make available for all interested
employees the Job Classifications for all jobs within the departments.

 

a)                                      All
employees interested in further explanation of the details and requirements of
a specific job may request a meeting with the supervisor.

 

b)                                     Employees
accepted and attaining enough proficiency to be retained in a job shall receive
the designated wage for that job in no longer than twelve (12) months.

 

c)                                      The
minimum starting rates of skilled employees (Groups A, B, C, D) will be $10.00
per hour minimum; semi-skilled employees (Groups E, F, G, H) will be $9.00 per
hour

 

9

 

minimum;
and unskilled employees (Group I) will be $8.00 per hour minimum.  The Company may hire part-time help, provided
such help does not constitute in excess of five percent (5%) of the total work
force covered by this contract.

 

8.6                                 Supervisory
employees shall not perform work on any hourly rated job classification if the
result would be to displace an employee in the bargaining unit, but this
provision shall not prevent such work (1) in emergencies, when regular
employees are not immediately available; (2) in the instruction or
training of employees; (3) in testing materials and production; and (4) in
the performance of necessary work when production difficulties are
encountered.  It is not the intent of
this Section to circumvent Article I Recognition.

 

ARTICLE IX

GRIEVANCE
AND ARBITRATION

PROCEDURE

 

9.1                                 For
the purpose of peacefully settling all complaints and grievances, both parties
shall be governed by the grievance procedure as outlined in this article.

 

9.2                                 Time
limits will be strictly adhered to in all steps.  Should either party fail to adhere to a time
limit, that party will lose the right to any further objection, and the
grievance in question shall be considered at an end and shall be resolved in
favor of the other party.  The parties
may agree to a waiver of time limits in the event an emergency arises.

 

a)                                      No
complaint will be considered a grievance unless the incident causing the
complaint is reported orally within three (3) working days of the time it
becomes known to the person making the complaint to his or her supervisor.
(Step One (a) of Section 9.4 below). 
Thereafter the employee must comply with the time limits for putting his
or her complaint in writing that are set forth in Section 9.4 below.

 

b)                                     In
case more than one Employee is party to a grievance, a settlement on one shall
be binding to all.

 

c)                                      Any
agreements between the Company and the Union when signed by both parties shall
be binding on both parties.

 

d)                                     A
grievance shall be made in writing and in triplicate on a form supplied by the
Union.  The Union, the employee, and the
Company shall receive one copy each.  The
grievant shall have the right to be present at each step of the grievance
procedure.  No steward of the Union shall
leave his or her department without notifying his or her foreman.

 

9.3                                 No
more than three (3) employees shall be paid their straight time hourly
wages for time lost while in negotiations with Company representatives during
working hours.

 

9.4                                 STEPS TO THE GRIEVANCE & ARBITRATION PROCEDURE

 

STEP ONE

 

a)                                      Any
employee of the Company having a grievance must first discuss this grievance
with his supervisor within three (3) working days of the time the complaint
becomes known to the

 

10

 

employee.  Any employee may have the assistance of his
or her department steward at this step. The supervisor in question shall reply
to the employee within eight (8) working hours from the time of the
complaint.

 

b)                                     If
the Union or any individual employee believes a grievance exists, and in the
case of an individual employee’s grievance, within three (3) working days
after he or she has received an unfavorable response to Step One (a) (oral
discussion), the grievance must be submitted in writing to a representative of
the Company.  The grievance shall state
the facts of the case and the remedy requested and shall be signed by the
steward.  Any employee shall have the
assistance of his or her steward at this step.

 

c)                                      The
supervisor shall answer the grievance in writing as soon as possible and in no
case later than ten (10) working days of his receipt of it, indicating his
decision and the reason for it.

 

STEP TWO

 

a)                                      If
the party presenting the grievance is not satisfied with the supervisor’s
answer, that party or his steward shall turn the matter over to the Union
Business Agent.

 

b)                                     Should
the Business Agent deem the grievance to be valid, within ten (10) working
days of the receipt of the supervisor’s written response, a written request for
a meeting with the Plant Manager shall be submitted to him.  The Plant Manager will set a time for his
meeting with the Business Agent within ten (10) working days.  The decision of the Company reached as a
result of this meeting will be submitted in writing to the Shop Steward within
ten (10) working days after such meeting.

 

c)                                      Witness-The
Union or the Company shall have the right to call as witness any employee to
testify as to the facts concerning any dispute during the hearing of a
grievance or complaint.

 

STEP
THREE

 

a)                                      If
and when the procedure under the two previous steps of this Section fails
to bring about an amicable settlement, then the Union within twenty (20) days
of the Company’s determination under Step Two above, shall submit a written
request to the Company for Arbitration.

 

b)                                     The
Company and the Union by their designated representatives shall elect an
impartial arbitrator to hear and determine the case and whose decision shall be
final and binding on all concerned.  The
impartial arbitrator shall be selected as follows: The Federal Mediation
Service shall be requested to submit a list of five (5) candidates from
which the selection shall be made.  Each
party, within ten (10) days of receiving such list, shall delete
alternately two (2) names from such list and the remaining candidate shall
be the impartial arbitrator.

 

c)                                      The
arbitrator shall have no power to add to, subtract from, or modify any of the
terms of this agreement.  The final
decision of the arbitrator shall be rendered as soon as possible after the
submission of the case to him.  The fee
and any expense incurred by impartial arbitration hereby shall be borne equally
by the Company and the Union.  It is
further agreed that there shall be no unnecessary delay in such proceedings.

 

11

 

ARTICLE X

SENIORITY

 

10.1                           All
employees who have been on the Company payroll and who have completed their
probationary period as provided in Article I, Section 1.5, hereof,
are included on the seniority list. 
Plant seniority shall be observed and determined by the last hiring date
of each employee.  Seniority shall
operate as follows: First as to occupation (job title) within the department;
second, on a departmental basis; third, on a plant-wide basis.

 

10.2                           Should
a layoff become necessary, the layoff will operate in the following
manner:  In the affected department(s),
the employee(s) with the least seniority shall be bumped from the
department.  Such employee(s) shall have
the right to bump other employee(s) in the bargaining unit with less seniority
provided they satisfy the following training performance criteria.

 

a)                                      The
employee shall have a maximum four (4) week training period.  The first week the employee will not be
governed by job efficiencies.  The second
week the employee must average 50% of standard or higher. The third week the
employee must average 75% of standard. 
The fourth week the employee must average 90% or higher of
standard.  Failure to satisfy these
requirements constitutes automatic disqualification and the employee shall be
placed on layoff status with no further “bumping” options.

 

b)                                     Should
an employee exercise his or her seniority rights bumping to a higher
classification, the employee will receive the base rate for that higher
classification for the four week training period set forth in Section 10.2
(a) above.  Upon the satisfactory
completion of the four week training period, that employee will receive the
rate of pay he or she was previously being paid or the base rate for the higher
classification, whichever is greater, plus a fifteen cent ($.15) hourly wage
increase.

 

c)                                      Exempt Jobs.  Notwithstanding the above, an employee with
prior experience on an exempt job may bump into that job providing that the
employee can perform to Company standards immediately, except that this provision
shall not apply to the classification of Groupleader, which will continue to be
totally a management prerogative.

 

d)                                     The
following jobs are exempt from bumping:

 

Tool and Die

Maintenance

Chime Tuner/Final Assembler

Tuner I

Tuner II

Set-Up Operators

Groupleaders

 

10.3                           Recall

 

a)                                      Employees
shall be recalled in order of seniority.

 

b)                                     Should
an employee be recalled for a job other than his own, he shall be eligible for
the four week training period outlined in Section 10.2 (a) above; provided however,
that Employees

 

12

 

shall
not be eligible for recall to the exempt jobs identified in 10.2 (d) above,
unless the employees
have held the job in the prior twelve month period. 
Should the employee disqualify during training he will be
returned to layoff and be recalled only when his permanent job is open, or in
the case of an employee whose permanent job has been eliminated, only when his
seniority qualifies him to be recalled for another job.

 

c)                                      An
employee may, when recalled for a job other than his own, choose one of three
options:

 

1)              Accept
the job subject to satisfying the training procedure.

 

2)              Decline,
awaiting the next call back.

 

3)              Decline,
awaiting call back for his permanent job.

 

10.4                           When an
employee is transferred from his permanent job to another on a temporary
assignment, the employee will be paid at the higher rate of pay of the two job
classifications.

 

10.5                           An
employee who quits or is discharged for cause, or fails to report for work within
three (3) work days after he is called to work, unless he has been excused
in writing by the Company’s human resource office, copies of which shall be
given to the Steward, shall lose all seniority and be considered a new employee
if ever re-employed.  All employee call
backs will be via certified mail, return receipt requested to the last address
on file in the personnel office.

 

a)                                      Effective
the date of this Agreement, an employee who is transferred to a job outside the
bargaining unit shall retain the seniority he has as of the date he leaves the
unit.  If such employee is later
transferred back to a job within the bargaining unit, he may exercise said
seniority.  Employees outside the
bargaining unit will retain their accumulated seniority through November 18,
1987.

 

b)                                     Each
employee must conduct himself or herself in accordance with the posted rules and
regulations of the Company.  Unreasonable
absence from an employee’s work position contrary to the orders of his foreman,
department head, or stopping work before the warning bell may subject the
employee to discipline or discharge.  If
an employee is absent three (3) days and has failed to contact or notify
the Company within the three (3) days, the employee will be dismissed.

 

LEAVE
OF ABSENCE

 

c)                                      The
Company may grant leave of absence on such conditions as it deems necessary,
which shall be in writing, copies of which shall be furnished to the Steward
upon proper request.

 

JOB
OPPORTUNITIES POSTING

 

10.6                           All
jobs other than groupleader status will be posted on all Bulletin Boards for
two (2) consecutive working days during the normal work week.  During that time period, all employees shall
have the right to bid on all jobs so posted by signing their names on a bidding
sheet which shall be posted with the job notice.

 

a)                                      Job
or department seniority shall be given preference in filling vacancies of a
permanent nature or a newly created job, provided that the senior employee is
capable of performing the particular work involved.

 

13

 

b)                                     The
employee shall have a maximum four (4) week training period.  The first week the employee will not be
governed by job efficiencies.  The second
week the employee must average 50% of standard or higher.  The third week the employee must average 75%
of standard.  The fourth week the
employee must average 90% or higher of standard.  Failure to satisfy these requirements
constitutes automatic disqualification and the employee shall return to
previous job, forfeiting rights to re-bid on that job one (1) year.

 

c)                                      Should
an employee exercise their bidding rights qualify for a higher pay
classification, the employee will receive the base rate for the higher
classification for the four week training period set forth in Section 10.6
(b) above.  Upon the satisfactory
completion of the four week training period, the employee will receive the rate
of pay he or she was previously being paid or the base rate for the new
classification, whichever is higher, plus a fifteen cent ($.15) hourly increase.

 

d)                                     During
Company shutdown of the plant and resulting layoffs for the purpose of taking
inventory, the Company may select employees to assist in the inventory for a
period of up to two (2) full work days without regard to the seniority
hereunder of the employees selected. 
Employees not so selected may take these days as vacation to which they
are entitled under Article VII hereof.

 

e)                                      This
job is being posted as a backup job. 
Employees being accepted for backup jobs will be provided with training
so they can work on the job.  When
assistance is required, backup employees will be transferred to the job
requiring assistance in accordance with the Agreement.  If a vacancy occurs in this job
classification, the employees who are considered backup employees will have
preference in filling the vacancy in order of seniority.

 

10.7                           The
Company will develop and begin training programs as soon as practical in any
classification where the job duties have been modified.  While it is not the Company’s intent to
disqualify an employee from their current job due to the reclassifications the
Company has proposed during the 2004 collective bargaining session, if an
employee cannot satisfactorily perform the functions of the job after a
reasonable training period (not to exceed four weeks) the employee will be
disqualified, however if the new function is one that employees have not
historically learned in the normal four week training period, and the employee
has shown that they are capable of performing this function and are making
progress, the Company will continue to work with the employee for up to an
additional four weeks.

 

ARTICLE XI

INSURANCE

 

11.1                           The
Company agrees to maintain and keep in full force and effect a Comprehensive
Major Medical Expense Insurance Plan and a Group Life Insurance Plan covering
all employees of the Company who make proper application for coverage
thereunder.  The benefits to be provided
by such Plans shall be those which were negotiated.  The rights, privileges, benefits, and duties of
each covered employee shall be subject to all provisions contained in such
group contracts and the individual certificate issued thereunder, and the
Company assumes no responsibility thereunder other than the payment of premiums
due as hereinafter provided.

 

a)                                      All
new employees hired by the Company shall be required to wait ninety (90) days
from the date of employment before coverage applies.

 

14

 

b)                                     Any
employee who has been employed by the Company for at least ninety (90) days who
wishes to cover dependents must fill out an enrollment application form
requesting Family Plan Coverage.

 

c)                                      The
employee’s weekly contribution for the Comprehensive Major Medical Expense
Insurance Plan will be as follows:

 

Conn-Selmer, Inc.
Choice Benefit Plan

 

CHOICE
ONE

 

	
   

  	
   

  	
  2005

  	
   

  	
  2006

  	
   

  	
  2007

  	
   

  
	
  Single

  	
   

  	
  $

  	
  13.00

  	
   

  	
  $

  	
  19.00

  	
   

  	
  $

  	
  25.00

  	
   

  
	
  Employee + 1

  	
   

  	
  $

  	
  20.00

  	
   

  	
  $

  	
  27.00

  	
   

  	
  $

  	
  32.00

  	
   

  
	
  Employee + Children

  	
   

  	
  $

  	
  23.00

  	
   

  	
  $

  	
  30.00

  	
   

  	
  $

  	
  36.00

  	
   

  
	
  Employee + Family

  	
   

  	
  $

  	
  27.00

  	
   

  	
  $

  	
  40.00

  	
   

  	
  $

  	
  50.00

  	
   

  

 

CHOICE
TWO

 

	
   

  	
   

  	
  2005

  	
   

  	
  2006

  	
   

  	
  2007

  	
   

  
	
  Single

  	
   

  	
  $

  	
  8.00

  	
   

  	
  $

  	
  15.00

  	
   

  	
  $

  	
  20.00

  	
   

  
	
  Employee + 1

  	
   

  	
  $

  	
  11.00

  	
   

  	
  $

  	
  18.00

  	
   

  	
  $

  	
  23.00

  	
   

  
	
  Employee + Children

  	
   

  	
  $

  	
  14.00

  	
   

  	
  $

  	
  21.00

  	
   

  	
  $

  	
  26.00

  	
   

  
	
  Family

  	
   

  	
  $

  	
  16.00

  	
   

  	
  $

  	
  30.00

  	
   

  	
  $

  	
  40.00

  	
   

  

 

For
employees who elect coverage under either Choice One or Choice Two, the Company
will waive the first four hundred dollars ($400.00) that the employee otherwise
would have paid toward the annual deductible for calendar year 2005.

 

d)                                     The
employee’s weekly contribution for Dental Insurance Plan will be as follows:

 

January 1, 2005   $5.29 family, $1.92 employee only

January 1, 2006   $5.29 family, $1.92 employee only

January 1, 2007   $5.81 family, $2.06 employee only

 

e)                                      The
employee’s weekly contribution for Vision Insurance Plan will be as follows:

 

January 1, 2005   $3.50 family, $.60 employee only

January 1, 2006   $3.50 family, $.65 employee only

January 1, 2007   $3.50 family, $.70 employee only

 

During
the term of the Agreement, if an employee opts out of the Vision Plan for any reason,
the employee will not be allowed to re-enroll. 
The employee will not be allowed to re-enroll unless agreed to in the
next round of negotiations.

 

PENSION
PLAN

 

11.2                           Effective
November 23, 1981, all active hourly employees of Ludwig and Musser
covered by this Agreement will participate in Conn-Selmer, Inc. Pension
Plan for Hourly Employees.

 

15

 

All contributions to the
Plan will be made by the Company.

 

a)                                      For
purposes of determining eligibility for benefits under this Plan, the Company
will recognize up to five (5) years of continuous service with Ludwig or
Musser based on actual hours worked by year during the period of November 23,
1976 to November 23, 1981.

 

b)                                     Effective
November 23, 1981, the accrued monthly pension benefits due eligible
employees shall be computed by multiplying an eligible employee’s years of
Benefit Service as defined in the Plan up to a maximum of 40 years by:

 

$23.00 per month if the
employee’s last working day is on or after January 1, 2005

$24.00 per month if the
employee’s last working day is on or after January 1, 2006

$25.00 per month if the
employee’s last working day is on or after January 1, 2007

 

The Company will provide
the Union with a copy of the Pension Plan which provides for the various
options and requirements.

 

ARTICLE XII

SEVERANCE

 

12.1                           If
economic or competitive conditions make it necessary to move a part or all of a
plant to a new location, the employees affected by the moves shall have the
following rights:

 

a)                                      Employees
whose jobs are affected due to job elimination shall be required to exercise
their option of bidding, bumping, accept layoff or severance pay as provided in
this Agreement.  Employees electing any
of the above options, other than severance pay, forfeit the right to such
severance pay at the time of such election except as provided for in this
Agreement.

 

Employees
electing any of the above options, other than severance pay, forfeit the right
to such severance pay at the time of such election except as provided for in
this Agreement.

 

b)                                     All
employees actively employed at the time of relocation of operations will be
eligible for severance pay based on original hire date with Ludwig, Musser, or
Selmer.

 

c)                                      Active
employees who are eligible for early retirement may elect their retirement and
receive severance in accordance with this section provided they qualify
under the provisions of the pension plan set forth in Section 11.2 above.

 

d)                                     Severance
pay for affected employees shall be at the rate of one (1) week’s pay for
each full year of seniority at the current rate of pay at the time of
severance.

 

e)                                      Employees
accepting severance pay shall forfeit all seniority rights at that time,
retaining only vested rights, if any, in the pension plan.

 

f)                                        Nothing
in this Agreement shall restrict the Company’s right to introduce new
production methods or facilities, to discontinue present jobs, to introduce new
engineering changes or methods, to introduce new materials or to substitute new
materials, to purchase or sub-contract any items.  This Agreement pertains only and specifically
to closing a part or all of the plant and relocating it to a new location.

 

16

 

ARTICLE XIII

CHRISTMAS
BONUS

 

13.1                           An
annual Christmas Bonus will be paid to all hourly employees, based on full
years of service as of December 31st each year, in accordance with the
following schedule:

 

	
  SERVICE

  	
   

  	
  BONUS

  	
   

  
	
  Over 3 months to 5 years

  	
   

  	
  $

  	
  50.00

  	
   

  
	
  Over 5 years to 10 years

  	
   

  	
  $

  	
  100.00

  	
   

  
	
  Over 10 years

  	
   

  	
  $

  	
  200.00

  	
   

  

 

ARTICLE XIV

JURY DUTY

 

14.1                           The
Company agrees to pay any employee called for jury duty his or her regular
straight-time hourly rate for an eight hour day less any jury fee he or she
receives for such jury duty during each day he or she is absent from work and
in court attendance on official jury duty.

 

ARTICLE XV

DURATION

 

15.1                           The
term of the Agreement shall commence on the 20th day of November 2004 and
shall end at 12:01 a.m. on the 17th day of November 2007.  Thereafter, it shall continue in force from
year to year unless either party hereto shall notify the other in writing at
least (60) days prior to the expiration date of the term, or any extended term
of the Agreement of any intention to make changes in or terminate Agreement.

 

SUCCESSORSHIP

 

15.2                           If
the ownership and/or management of the Employer should change, or if the legal
identity should change, this Agreement will be recognized in its present form
by the new party.

 

NO
STRIKE-NO LOCKOUT

 

15.3                           The
Company agrees that so long as this Agreement is in effect, there shall be no
lockouts.  The closing down of the Plant
or any part thereof or curtailing any operations for business reasons shall not
be construed to be a lockout.  The Union,
its officers, agents, members, and employees covered by this Agreement agree
that so long as this Agreement is in effect, there shall be no strikes,
sit-downs, stoppage of work, boycott or any unlawful acts that interfere
with the Company’s operations or the production or sale of its products, and
furthermore shall take affirmative action to prevent or stop unauthorized
strikes by notifying its members that it disavows the strike.  Such affirmative action must be taken by the
Union within five (5) days of any violation of the foregoing by any
employee or employees.  Thereafter, any
violation of the foregoing provisions may be made the subject of disciplinary
action, including discharge, and such action or management’s determination of
the facts on which such action is based, may not be raised as a grievance under
this Agreement.

 

17

 

PARTIAL INVALIDITY OF AGREEMENT

 

15.4                           Any
provision of the Agreement which conflicts with the provision of a Federal or
State Statute, or Executive Order having the effect of law, now in force or
hereafter enacted, shall be considered to be automatically modified to such
extent as is necessary to remove such conflict and the fact that any such
provision as originally written is determined to be invalid shall not affect
the validity of the remainder of this Agreement.

 

18

 

IN WITNESS WHEREOF, the parties hereto set their hands
and seals as of the 6th day of August, 2005.

 

This is to certify that
this Agreement entered into between MUSSER DIVISION,
a Division of CONN-SELMER INC. and LOCAL 1027 of the UNITED BROTHERHOOD OF
CARPENTERS AND JOINERS OF AMERICA has been acknowledged.

 

 

	
  FOR:

  
	
  CHICAGO REGIONAL COUNCIL OF CARPENTERS

  
	
   

  
	
   

  
	
  /s/ Martin C. Umlauf

  	
   

  
	
  Martin C. Umlauf

  
	
  President – Executive Secretary Treasurer

  
	
   

  
	
   

  
	
  /s/ Jeffrey Isaacson

  	
   

  
	
  Jeffrey Isaacson

  
	
  First Vice President

  
	
   

  
	
   

  
	
  FOR:

  
	
  MUSSER DIVISION

  
	
  Division of Conn-Selmer, Inc.

  
	
   

  
	
   

  
	
  /s/ Michelle Hammer

  	
   

  
	
  Michelle Hammer

  
	
  Vice President, Human Resources

  

 

19

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