Document:

EXHIBIT 10.1

 

FIRST AMENDMENT AGREEMENT

 

FIRST AMENDMENT AGREEMENT, dated as of November 26,
2007 (this “First Amendment”), to the Revolving Trade Receivables Purchase
Agreement, dated as of September 21, 2007 (as amended, supplemented or
otherwise modified from time to time, the “Receivables Purchase Agreement”),
among Sanmina-SCI Magyarorszag Elektronikai Gyarto Kft and Sanmina-SCI Systems
de Mexico, S.A. de C.V., as Originators, Sanmina-SCI Corporation and
Sanmina-SCI UK Ltd., as Servicers, the several banks and other financial
institutions or entities from time to time parties thereto, as Purchasers, and
Deutsche Bank AG New York Branch, as Administrative Agent.  Unless otherwise defined herein, terms used
herein shall have the meanings assigned thereto in the Receivables Purchase
Agreement.

 

W I T N E S S E T H :

 

WHEREAS, the Servicers have requested that certain
provisions of the Receivables Purchase Agreement be amended, so that they may
elect to extend the Facility Termination Date; and

 

WHEREAS, the Purchasers are willing to agree to such
amendment only upon the terms and subject to the conditions set forth herein;
and

 

NOW, THEREFORE, in consideration of the premises and
the mutual covenants contained herein, the Servicers, the Originators, the Purchasers
and the Administrative Agent  hereby
agree as follows:

 

1.             Amendments
to the Receivables Purchase Agreement

 

The definition of “Facility Termination Date” is
hereby amended to read in its entirety as follows:

 

“Facility Termination Date” means the earlier of (i) March 21,
2008, and (ii) the date on which the Administrative Agent delivers to the
Servicers a notice of termination as a result of a Termination Event in
accordance herewith (or the date on which such termination becomes effective
automatically pursuant to Section 7); provided, however that the Servicers
may elect, by notice in writing to the Administrative Agent not later than 30
days prior to March 21, 2008, to extend the Facility Termination Date for
an additional  18 months from March 21,
2008.  The effectiveness of such election
shall require written acceptance thereof by the Purchasers, which acceptance
will be subject to then-prevailing market conditions with respect to Obligor
Limits and Applicable Margins, all necessary credit and insurance approvals,
execution of mutually satisfactory documentation and there having occurred and
continuing no Termination Event or Incipient Termination Event..

 

2.             Representations
and Warranties

 

Each of the Originators and the Servicers, as of the
date hereof and after giving effect to the amendments contained herein, hereby
confirms, reaffirms and restates the representations and warranties made by it
in the Receivables Purchase Agreement and otherwise in the Transaction
Documents to which it is a party, all as if made on the date hereof, and hereby
represents and warrants to the Purchasers, the Administrative Agent and the
Collateral Agent that no Termination Event or Incipient Termination Event has
occurred and is continuing after giving effect to the terms hereof.

 

3.             Effectiveness

 

This First Amendment shall become effective on the
date upon which  the Administrative Agent
shall have received counterparts of this First Amendment, duly executed and
delivered by the Originators, the Servicers, the Administrative Agent and the
Required Purchasers, as the case may be;

 

4.             Limited
Effect

 

The execution, delivery and effectiveness of this
First Amendment shall not, except as expressly provided herein, operate as a
waiver of any right, power or remedy of the Administrative Agent or any
Purchaser under the Receivables Purchase Agreement or any other Transaction
Document, nor constitute a waiver of compliance with any provision of the
Receivables Purchase Agreement or any other Transaction Document.  Except as expressly amended, modified and
supplemented herein, all of the provisions and covenants of the Receivables
Purchase Agreement and the other Transaction Documents are and shall continue
to remain in full force and effect in accordance with the terms thereof and are
hereby in all respects ratified and confirmed. 
Each reference to the Receivables Purchase Agreement in any Transaction
Document shall be a reference to the Receivables Purchase Agreement as amended
by this First Amendment.

 

5.             Confirmation
of Guarantee

 

By its execution and delivery hereof, Sanmina-SCI
Corporation hereby confirms that the Guarantee dated as of September 21,
2007 in favor of the Administrative Agent is and shall remain in full force and
effect after the effectiveness of this First Amendment and hereby confirms its
obligations under the Guarantee after giving effect to this First Amendment.

 

6.             Governing
Law; Counterparts

 

(a) This First Amendment and the rights and
obligations of the parties hereto shall be governed by, and construed and
interpreted in accordance with, the laws of the State of New York.  The provisions of Section 9.12 of the
Receivables Purchase Agreement shall apply mutatis mutandis as if set forth in
full herein.

 

(b)  This First
Amendment may be executed by one or more of the parties hereto on any number of
separate counterparts, and all of said counterparts taken together shall be
deemed to constitute one and the same instrument.  This First Amendment may be delivered by facsimile
transmission of the relevant signature pages hereof.

 

[remainder of this
page intentionally left blank]

 

 

IN WITNESS
WHEREOF, the parties hereto have caused this First Amendment to be duly
executed and delivered by their proper and duly authorized officers as of the
day and year first above written.

 

	
  ORIGINATORS

  	
   

  	
  SANMINA-SCI
  MAGYARORSZAG ELEKTRONIKAI GYARTO KFT.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SANMINA-SCI SYSTEMS DE MEXICO, S.A. DE C.V.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By  

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SERVICERS

  	
   

  	
  SANMINA-SCI CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SANMINA-SCI UK LTD.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

 

	
  ADMINISTRATIVE AGENT

  	
  DEUTSCHE BANK AG, NEW
  YORK BRANCH,

  as Administrative Agent

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  PURCHASERS

  	
  DEUTSCHE BANK AG, NEW
  YORK BRANCH

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
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  Title:EXHIBIT 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 19,
2007

Through

 November 21, 2009

 

 

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page No.

  
	
   

  	
   

  	
   

  
	
  AGREEMENT

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
   

  	
   

  
	
  1.1

  	
  Recognition

  	
  1

  
	
  1.2-1.3

  	
  Union Security

  	
  1

  
	
  1.4

  	
  Dues Checkoff

  	
  1

  
	
  1.5

  	
  Hiring of New Employees

  	
  2

  
	
  1.6-1.7

  	
  No Discrimination

  	
  2

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  	
   

  
	
  2.1

  	
  Management

  	
  2

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  	
   

  
	
  3.1

  	
  Union Representative

  	
  3

  
	
  3.2

  	
  Union Steward

  	
  3

  
	
  3.3

  	
  Union Label

  	
  3

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  	
   

  
	
  4.1-4.3

  	
  Hours of Work

  	
  3

  
	
  4.4-4.5

  	
  Overtime

  	
  4

  
	
  4.6

  	
  Medical Absence

  	
  4

  
	
  4.7

  	
  Wash Up Time

  	
  4

  
	
  4.8

  	
  Rest Periods

  	
  4

  
	
  4.9

  	
  Shift Differential

  	
  5

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
   

  	
   

  
	
  5.1-5.4

  	
  Holidays

  	
  5

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
   

  	
   

  
	
  6.1

  	
  Bereavement

  	
  6

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
   

  	
   

  
	
  7.1-7.7

  	
  Vacations

  	
  6

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  	
   

  
	
   

  	
  Job Classifications and
  Wages

  	
  8

  
	
  8.1

  	
  Pay Day

  	
  9

  
	
  8.2-8.5

  	
  Categories and Wages

  	
  9

  
	
  8.6

  	
  Working Supervisors

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
   

  	
   

  
	
  9.1-9.3

  	
  Grievance &
  Arbitration Procedure

  	
  10

  
	
  9.4

  	
  Steps to
  Grievance & Arbitration Procedure

  	
  10

  

 

 

 

i

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page No.

  
	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
   

  	
   

  
	
  10.1-10.5

  	
  Seniority

  	
  12

  
	
  10.5(c)

  	
  Leave of Absence

  	
  13

  
	
  10.6

  	
  Job Opportunities
  Posting

  	
  13

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI

  	
   

  	
   

  
	
  11.1

  	
  Insurance

  	
  14

  
	
  11.2

  	
  Pension Plan

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII

  	
   

  	
   

  
	
  12.1

  	
  Severance

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIII

  	
   

  	
   

  
	
  13.1

  	
  Christmas Bonus

  	
  17

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIV

  	
   

  	
   

  
	
  14.1

  	
  Jury Duty

  	
  17

  
	
   

  	
   

  	
   

  
	
  ARTICLE XV

  	
   

  	
   

  
	
  15.1

  	
  Duration

  	
  17

  
	
  15.2

  	
  Successorship

  	
  17

  
	
  15.3

  	
  No Strike - No Lockout

  	
  17

  
	
  15.4

  	
  Partial Invalidity of
  Agreement

  	
  17

  
	
   

  	
   

  	
   

  
	
  Signatures

  	
  18

  

 

 

ii

 

 

AGREEMENT

 

This Agreement, made and
entered into this 19th day of November 2007, 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, Monday
through Friday, commencing at 6:00 A.M.   Should some significant factor change which
might warrant a plant wide start time modification, the union and the Company
agree to meet within ten (10) days prior to discuss a change in start
time.

 

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.

 

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 

 

 

3

 

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 volunteers,
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, the
Company shall provide twenty-four (24) hours notice to the affected department(s) and/or
employee(s).  Additionally, 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
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:

 

	
  2007

  	
   

  	
  2008

  
	
  Thanksgiving Day
  11/22/07

  	
   

  	
  New Year’s Day 1/1/08

  
	
  Day after Thanksgiving
  11/23/07

  	
   

  	
  Good Friday 3/25/08

  
	
  Christmas Eve 12/24/07

  	
   

  	
  Memorial Day 5/26/08

  
	
  Christmas Day 12/25/07

  	
   

  	
  4th of
  July 7/4/08

  
	
  * Floating 1 — 12/26/07

  	
   

  	
  Labor Day 9/1/08

  
	
  * Floating 2 — 12/27/07

  	
   

  	
  Thanksgiving Day
  11/27/08

  
	
  * Floating 3 — 12/28/07

  	
   

  	
  Day after Thanksgiving
  11/28/08

  
	
   

  	
   

  	
  Christmas Day 12/25/08

  
	
   

  	
   

  	
  Christmas Eve 12/24/08

  
	
   

  	
   

  	
  * Floating 1 — 12/22/08

  
	
   

  	
   

  	
  * Floating 2 — 12/23/08

  
	
   

  	
   

  	
  * Floating 3 — 12/26/08

  
	
   

  	
   

  	
   

  

 

	
  2009

  	
   

  	
   

  
	
  New
  Year’s Day 1/1/09

  	
   

  	
   

  
	
  Good Friday 4/14/09

  	
   

  	
   

  
	
  Memorial Day 5/25/09

  	
   

  	
   

  
	
  4th of
  July 7/3/09

  	
   

  	
   

  
	
  Labor Day 9/7/09

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

*                 (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 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.

 

 

5

 

 

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.  An employee who is on vacation
will be paid bereavement and given the opportunity to reschedule paid vacation
time, subject to the production requirements of the Company.  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

  
	
  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 

 

 

6

 

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 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

 

7.7

 

·                  Employees with two (2) weeks
vacation shall use two (2) weeks vacation during predetermined shutdown
periods.  If they work during shutdown,
they will be able to reschedule up to five (5) days as single days.

·                  Employees with three (3) weeks
vacation shall use two (2) weeks vacation during predetermined shutdown
periods.  If they work during shutdown,
they will be able to reschedule up to seven (7) days as single days.

·                  Employees with four (4) weeks
vacation shall use two (2) weeks vacation during predetermined shutdown
periods.  If they work during shutdown,
they will be able to reschedule up to ten (10) days as single days.

·                  Employees with five (5) weeks
vacation shall use two (2) weeks vacation during predetermined shutdown
periods.  If they work during shutdown,
they will be able to reschedule up to twelve (12) days as single days.

 

Employees who make this election must provide five (5) workdays
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 and customer requirements; provided however, that if no
other employee in the affected department 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, by
check, or direct deposit.  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

 

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

  11/22/07 

  	
   

  	
  Effective

  11/21/08 

  	
   

  
	
  Tool & Die Maker

  	
   

  	
  1

  	
   

  	
  $

  	
  17.78

  	
   

  	
  $

  	
  17.78

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Maintenance

  	
   

  	
  2

  	
   

  	
  $

  	
  16.48

  	
   

  	
  $

  	
  16.48

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Punch Press (Set Up & Operate)

  	
   

  	
  3

  	
   

  	
  $

  	
  16.05

  	
   

  	
  $

  	
  16.05

  	
   

  
	
  Set-Up (Mill, Drill & Lathe)

  	
   

  	
  3

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Chime Tuner, Final Assembler

  	
   

  	
  4

  	
   

  	
  $

  	
  15.64

  	
   

  	
  $

  	
  15.64

  	
   

  
	
  Inspector Tester

  	
   

  	
  4

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tuner 1

  	
   

  	
  4

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Assembly I

  	
   

  	
  4

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tuner II

  	
   

  	
  5

  	
   

  	
  $

  	
  15.08

  	
   

  	
  $

  	
  15.08

  	
   

  
	
  Resonator Assembly

  	
   

  	
  5

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Machine Operator I

  	
   

  	
  5

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bar Finisher

  	
   

  	
  5

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Assembly II

  	
   

  	
  5

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Production Painter/Sprayer

  	
   

  	
  5

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stockroom Clerk

  	
   

  	
  5

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Order Packer

  	
   

  	
  6

  	
   

  	
  $

  	
  14.79

  	
   

  	
  $

  	
  14.79

  	
   

  
	
  Machine Operator II

  	
   

  	
  6

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Material Handler

  	
   

  	
  6

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tuner III

  	
   

  	
  6

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bench Assembler

  	
   

  	
  6

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Maintenance Helper

  	
   

  	
  6

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tuner Trainee

  	
   

  	
  7

  	
   

  	
  $

  	
  13.74

  	
   

  	
  $

  	
  13.74

  	
   

  
	
  Machine Operator III

  	
   

  	
  7

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Janitor

  	
   

  	
  8

  	
   

  	
  $

  	
  10.66

  	
   

  	
  $

  	
  10.66

  	
   

  

 

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

 

	
  11/19/07

  	
   

  	
  11/17/08

  
	
  1%

  	
   

  	
  1%

  

 

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     Groupleaders shall receive a minimum of one
dollar ($1.00) per hour over the highest job classification wage rate under
their lead.

 

8.4     The policy of the Company 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 employees in groups 1 -
4 will be $10.00 per hour minimum; employees in groups 5 - 9 will be $9.00 per
hour minimum; and employees in groups 7 - 8 

 

 

9

 

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 if the bidder
has twelve (12) or more months of seniority and, if not, plant wide seniority
will be followed, and provided that the 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

 

	
   

  	
   

  	
  2007 - 2008

  	
   

  	
  2008 - 2009

  	
   

  
	
  Single

  	
   

  	
  $

  	
  25.00

  	
   

  	
  $

  	
  25.00

  	
   

  
	
  Employee + 1

  	
   

  	
  $

  	
  32.00

  	
   

  	
  $

  	
  32.00

  	
   

  
	
  Employee + Children

  	
   

  	
  $

  	
  36.00

  	
   

  	
  $

  	
  36.00

  	
   

  
	
  Employee + Family

  	
   

  	
  $

  	
  50.00

  	
   

  	
  $

  	
  50.00

  	
   

  

 

        CHOICE TWO

 

	
   

  	
   

  	
  2007 - 2008

  	
   

  	
  2008 - 2009

  	
   

  
	
  Single

  	
   

  	
  $

  	
  20.00

  	
   

  	
  $

  	
  20.00

  	
   

  
	
  Employee + 1

  	
   

  	
  $

  	
  23.00

  	
   

  	
  $

  	
  23.00

  	
   

  
	
  Employee + Children

  	
   

  	
  $

  	
  26.00

  	
   

  	
  $

  	
  26.00

  	
   

  
	
  Family

  	
   

  	
  $

  	
  40.00

  	
   

  	
  $

  	
  40.00

  	
   

  

 

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

 

2007-2009:   $5.81 family,  $2.06 employee only

 

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

 

2007-2009:   $3.50 family,  $.70 employee only

 

f)                During the term of this Agreement, if an employee opts
out of the Vision Plan, the employee must wait until the next open enrollment
period before entering back into the Plan.

 

PENSION PLAN

 

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

 

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

 

 

15

 

 

a)              For purposes of determining eligibility for benefits
under this Plan, the Company will recognize up to five (5) years of
continuous service with 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:

 

    $26.00 per month if the employee’s last
working day is on or after January 1, 2008

 

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 Musser.

 

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 19th day of November 2007 and shall end at 12:01 a.m. on the 21st
day of November 2009.  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.

 

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 

 

17

 

 

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.

 

IN WITNESS WHEREOF, the
parties hereto set their hands and seals as of the 31st day of January, 2008.

 

This is to certify that
this Agreement entered into between CONN-SELMER  INC., Lagrange, IL facility, 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

  	
   

  	
  /s/
  James Kasmer Sr.

  
	
  Martin
  C. Umlauf

  	
   

  	
  President

   Exec Sec’y-Treas.

  	
   

  	
  James
  Kasmer Sr.

  	
   

  	
  Asst. to Pres.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/
  Jeffrey Isaacson

  	
   

  	
   

  
	
  Jeffrey
  Isaacson

  	
   

  	
  First Vice President

  	
   

  	
  Christopher
  Kasmer

  	
   

  	
  Bus. Rep.

  

 

FOR:

LAGRANGE, IL

Division of Conn-Selmer, Inc.

 

	
  /s/
  Bob Speed

  	
   

  	
  /s/
  Harry Isom

  
	
  Bob
  Speed, Vice President, Operations

  	
   

  	
  Harry
  Isom, Plant Manager

  
	
   

  	
   

  	
   

  
	
  /s/
  Danielle Andrews

  	
   

  	
   

  
	
  Danielle
  Andrews, Regional HR Mgr.

  	
   

  	
   

  

 

 

18

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