Document:

Exhibit 10

Exhibit 10.9

 

COLLECTIVE BARGAINING AGREEMENT

 

Between

 

SCHEID VINEYARDS INC.

 

and

 

UNITED FARM WORKERS OF AMERICA, AFL-CIO

 

January 25, 2002 -

December 31, 2006

 

TABLE OF CONTENTS

 

	

  PREAMBLE

  	

   

  	

   

  
	

  ARTICLE 1: RECOGNITION

  	

   

  	

   

  
	

  ARTICLE 2: UNION SECURITY

  	

   

  	

   

  
	

  ARTICLE 3: HIRING

  	

   

  	

   

  
	

  ARTICLE 4: SENIORITY

  	

   

  	

   

  
	

  ARTICLE 5: LAYOFF AND

  RECALL

  	

   

  	

   

  
	

  ARTICLE

  6: PROMOTION, DEMOTION AND TRANSFER

  	

   

  	

   

  
	

  ARTICLE

  7: GRIEVANCE AND ARBITRATION

  	

   

  	

   

  
	

  ARTICLE 8: STRIKES AND

  LOCKOUTS

  	

   

  	

   

  
	

  ARTICLE 9:

  DISCIPLINE AND DISCHARGE

  	

   

  	

   

  
	

  ARTICLE 10: LEAVES OF

  ABSENCE

  	

   

  	

   

  
	

  ARTICLE 11:

  WORKING CONDITIONS AND SAFETY

  	

   

  	

   

  
	

  ARTICLE 12:

  MANAGEMENT AND UNION RIGHTS

  	

   

  	

   

  
	

  ARTICLE

  13: LABOR CONTRACTORS AND SUBCONTRACTING OF WORK

  	

   

  	

   

  
	

  ARTICLE 14: HOURS AND

  OVERTIME

  	

   

  	

   

  
	

  ARTICLE 15: WAGES

  	

   

  	

   

  
	

  ARTICLE 16: VACATIONS

  AND BONUS

  	

   

  	

   

  
	

  ARTICLE 17: HOLIDAYS

  	

   

  	

   

  
	

  ARTICLE

  18: ROBERT F. KENNEDY FARM WORKERS MEDICAL PLAN

  	

   

  	

   

  
	

  ARTICLE

  19: SCHEID VINEYARDS INC. 401 (k) DEFINED CONTRIBUTION PLAN

  	

   

  	

   

  

 

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  ARTICLE 20: DURATION

  	

   

  	

   

  
	

  APPENDIX

  “A”: SCHEDULE OF HOURLY WAGE RATES

  	

   

  	

   

  
	

  APPENDIX “B”:

  SCHEDULE OF PIECE RATES

  	

   

  	

   

  
	

  APPENDIX “C”: AUTHORIZATION FOR VOLUNTARY

  ASSESSMENT

  	

   

  	

   

  
	

  APPENDIX “D”: RULES OF

  CONDUCT

  	

   

  	

   

  

 

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ii

 

PREAMBLE

 

                This Collective

Bargaining Agreement (hereinafter called the “Agreement”) is between SCHEID

VINEYARDS INC. (hereinafter called the “Company”), and THE UNITED FARM WORKERS

OF AMERICA, AFL-CIO (hereinafter called the “Union”), and said Collective

Bargaining Agreement shall operate for the purpose of establishing uniform

wages, hours, and working conditions as hereinafter defined.

 

                The parties agree

as follows:

 

 

 

ARTICLE 1

 

RECOGNITION

 

                A.            The Company recognizes the rights

and obligations of the Union as the sole and exclusive bargaining agent to

negotiate wages, hours and conditions of employment, and to administer this

Agreement on behalf of covered workers. The term “worker” shall mean persons

performing agricultural labor in the vineyards or in support of such labor, but

not include family members of management, interns, security guards, management

trainees, clerical, sales or supervisory workers who have the authority to

hire, transfer, suspend, layoff, recall, promote, discharge, assign, reward or

discipline other workers or the responsibility to independently direct them without

discretion or adjust their grievances or effectively recommend such action, if,

in connection with the foregoing, the exercise of such authority is not of a

merely routine manner or clerical in nature, but requires the use of

independent judgment.

 

                B.            Both the Company and the Union will

make known to the workers the obligations of the parties set forth in this

Agreement, and in addition, the Company shall so inform its supervisors.

 

                C.            Neither the Company nor any of its

representatives will take any action to disparage, denigrate or subvert the

Union, nor promote or finance a decertification petition. Neither the Union nor

any of its representatives will take any action to disparage, denigrate or

subvert the Company.

 

                D.            The Union and the Company agree with

the objective of a fair day’s work for a fair day’s pay. The Union and the

Company further agree with the objective of a safe, productive and incentive

based work environment. In accordance with these objectives, the workers

recognize their obligations in carrying out their job responsibilities and

assignments.

 

 

4

 

 

                E.             In accordance with the law no

employee shall be discriminated against in his or her employment on the basis

of race, color, religion, creed, age, sex, national origin, ancestry, marital

status, union activity or lack thereof or disability.

 

                F.             The

United Farm Workers Union was certified to represent all agricultural workers

of the Company in the State of California by the Agricultural Labor Relations

Board on April 30, 1992 in Case Number 92-RC-1-SAL.

 

 

 

ARTICLE 2

 

UNION SECURITY

 

                A.            Union membership shall be a

condition of employment. Each worker shall be required to become a member of

the Union immediately following fifteen (15) continual days of work after the

beginning of employment. The Company will advise new workers that it is a

condition of their employment that they must become a member of the Union

immediately following fifteen (15) continual days of work after the beginning

of their employment. The Company shall furnish the workers membership

applications and dues check off authorization forms as provided by the Union.

The Union agrees to admit new workers into the Union.

 

                B.            Any worker who fails to become a

Union member within the time limit set forth herein or who fails to pay the

required initiation fee and periodic dues shall be immediately discharged or

suspended within five (5) work days after written notice from the Union to the

Company. Periodic dues is defined as a percentage of a worker’s gross wages

before taxes which are deducted from each pay check as provided in Section E.

 

                C.            The Union will notify the Company in

writing of the amounts of deduction within thirty (30) days of the execution of

this Agreement and thirty (30) days before the effective date of any changes.

 

                D.            The Company agrees to deduct from

each worker’s pay, the Union’s normal initiation fee and all periodic dues as

required by the Union. The Company shall make such deductions upon presentation

by the Union of individual authorizations,

signed by the worker, directing the Company to make such deductions.

The Company shall make such deductions from the worker’s pay for that payroll

period in which it is submitted, provided that it is submitted seven (7) days

in advance of the close of the pay period and periodically thereafter, as

specified on the authorization so long as such authorization is in effect. The

Union shall provide the forms for all dues and initiation fees.

 

                E.             The Company agrees to deduct from

each worker’s pay, a voluntary assessment of one dollar ($1.00) per week for a

maximum of 26 weeks each calendar year according to the following conditions:

 

 

5

 

 

1.             The Company and the Union agree that such assessments

shall be for the benefit of duly elected ranch committee members for

administration of this Contract and Union training programs.

 

2.             The Union shall provide to the Company individual

authorization forms, signed by each worker authorizing such deductions. These

forms shall be photocopies or exact replicas of the “Authorization for

Voluntary Assessments” form in Appendix “C”.

 

3.             New, signed authorization forms shall be provided to the

Company for each calendar year.

 

4.             The Company shall make such deductions from the worker’s

pay in the payroll period after the period in which a form is submitted or

later as specified on the signed authorization forms.

 

                F.             Withheld deductions and assessments

are to be sent to the Union within three (3) days after the payroll checks are

distributed to the workers. Dues reports shall be provided by the Company to

the Union in accordance with procedures to be agreed upon by the parties.

 

                G.            The Union shall indemnify and hold

the Company harmless from and against any and all claims, demands, suits or

other forms of liability that may arise out of or by reason of action taken by

the Company for the purpose of compliance with any of the provisions of this

Article.

 

                H.            In the event that the Company files in

bankruptcy proceedings it shall promptly notify the Union. If such proceedings

occur, any Union dues withheld from employees’ pay checks shall be forwarded to

the Union as provided in Paragraph F.

 

 

 

ARTICLE 3

 

HIRING

 

                A.            The Company shall operate, maintain

and staff three or more facilities for the purpose of hiring new or additional

workers. The Company will inform the Union of any change in the locations of

the hiring facilities. Company headquarters at Hobson Avenue and Highway 101 in

Greenfield, the Sage Ranch headquarters on Airline Highway in Paicines and the

Vineyard office located on Jolon Rd. in Bradley will be the locations of the

Company’s hiring facilities.

 

                B.            Whenever, at the beginning of any

operating season, in any area of operation of the Company, the Company

anticipates the need for new or additional workers to perform any work covered

by this Agreement, the Company may, at least seventy-two (72) hours prior to

the date of anticipated need for such workers, notify the

 

 

6

 

Union, in writing, stating the number of workers needed, the type of

work to be performed, the date the workers are needed, and estimated duration

thereof. The Company shall notify the Union promptly of any changes in estimated

starting date.

 

                C.            Hiring shall not be done in an

unlawfully discriminatory manner, but the Company may hire on the basis of past

experience, competence, productivity, positive verification of previous

employment and other legitimate factors. The Company will determine job

qualifications.

 

                D.            When the Company hires a new worker,

it will make available to the Union in writing after fifteen (15) work days,

the name, social security number, hire date, job classification, and address of

the new worker hired.

 

                E.             The parties understand and accept

that the Company has three separate geographical areas of operations, one based

in the Greenfield area of Monterey County (“the Greenfield Operation”), the

other based in the Paicines area of San Benito County (“the Paicines

Operation”) and the third based in the Bradley area of Monterey County (“the

Bradley Operation”). Workers hired for employment in any of these three areas

of operations shall work solely in that respective area, rather than be

transferred back and forth between the three areas, except in emergencies as

determined by the Company and during the early stages of the harvest when the

Company may assign equipment operators to work in any of these areas in order

to prepare for operations.

 

                F.             The Company will use reasonable

efforts to maintain a labor force of approximately 240 workers. The size of the

labor force may increase or decrease due to changes in the Company’s vineyard

acres, seasonal demands or farming practices.

 

 

 

ARTICLE 4

 

SENIORITY

 

                A.            Seniority is defined as total length

of service with the Company from date of hire in the geographical area of

operation where the worker is hired (the Greenfield Operation, the Paicines

Operation or the Bradley Operation), unless there is a break in service.

Classification seniority is defined as a worker’s total length of service

within a job classification, which has been designated as a separate

classification for purposes of acquiring and losing seniority beginning with

his/her date of entry or reentry into the classification. The foregoing is

subject to the geographical area of operation where the worker is hired. More

specifically, classification seniority is defined as a worker’s total length of

service within a job classification in the Greenfield Operation, the Paicines

Operation or the Bradley Operation. A break in service terminates seniority.

Layoffs are not considered a break in service. All workers on the payroll on

the effective date of this Agreement shall have seniority dates based on their

original dates of hire unless seniority has been broken in accordance with

Article 4, Paragraph B of this Agreement. If seniority is or has been broken,

then the worker’s new seniority shall be based on the

 

 

7

 

worker’s most recent date of hire. After a worker has worked for the

Company at least twenty–five (25) work days within the preceding 120

days, he/she shall acquire seniority. The days prior to acquiring seniority

shall constitute a probationary period, during which period a worker may be

terminated; such termination will not be subject to the grievance and

arbitration provision or any other legal procedure brought by the Union. The

worker shall be entitled to all benefits of the Agreement during the

probationary period, except as modified in this Agreement.

 

                B.            Seniority shall be lost for the

following reasons:

 

1.             Voluntary quitting;

 

2.             Discharge for just cause;

 

3.             When recalled following a layoff, failure to report back

to work within four (4) calendar days after telephone notice to the worker or,

if telephone contact is not made within five (5) calendar days from the mailing

of a notice to the worker, unless reasons satisfactory to the Company are

given. Employment elsewhere is not a satisfactory reason.

 

4.             Failure to report to work at the termination of a leave

of absence or vacation without an approved extension or other reasons

satisfactory to the Company. Securing other employment during a leave of

absence is not a satisfactory reason.

 

5.             When a worker leaves the bargaining unit to accept a

permanent supervisory position or other nonbargaining unit position with the

Company.

 

The Company will provide to the Union and the Workers Board on a

quarterly basis, a list of workers by name, social security, seniority date,

and job classification, whose seniority was broken during the prior quarter,

pursuant to this Article.

 

                C.            On April 15, August 15 and November

15, the Company shall provide the Union with up-to-date seniority lists, one

for the Greenfield Operation, one for the Paicines Operation and the other for

the Bradley Operation showing the name of each worker, his/her seniority date,

social security number, and job classification. Where more than one worker has

the same original date of hire, the worker with the highest last four digits in

his/her social security number shall have the higher seniority. The Company

shall also post the same seniority lists in a conspicuous place for examination

by the workers and the Union. The Union may review the accuracy of the

seniority lists and present to the Company any error it may find on such lists.

 

                D.            If a question arises concerning the

accuracy of the seniority lists, the Union and the Company have up to two (2)

weeks after the posting is complete to

 

 

8

 

resolve the dispute, provided, however, that a worker not on the

Company’s payroll during such two (2) week period shall have up to five (5)

work days within which to file a written grievance on the accuracy of the

seniority lists after he/she returns to the Company’s payroll, or if a worker

is not recalled, such worker shall have the right to file a grievance on the

accuracy of the lists within three (3) days of the discovery thereof,

 

                E.             It is understood that the Company

and the Union may agree, in writing, to make deviations from these seniority

provisions regarding the application of seniority.

 

                F.             There shall be three separate

seniority lists, one maintained for the Greenfield Operation, another

maintained for the Paicines Operation and the other for the Bradley Operation.

Each seniority list shall be organized by classification.

 

 

 

ARTICLE 5

 

LAYOFF AND RECALL

 

                A.            Whenever there is a layoff in any

job classification, the Company shall retain the most effective workers based

on their qualifications which include: skills, efforts, productivity,

experience, work history and seniority. Company approved leaves and excused

absences will not adversely affect a worker’s work history. The Company shall

layoff first those workers who are least effective in accordance with the above

qualifications. In case of a dispute, the Company has the burden of proving

that the workers retained are more able to do an effective job. If workers are

equal in this respect, the layoff shall be by seniority order within the

classification in the geographical area of operation where the worker is

working, with the worker with the lowest seniority laid off first. More

specifically, classification seniority shall be followed on a geographical

basis, with no bumping of workers between the Greenfield Operation, the Bradley

Operation and the Paicines Operation. In making determinations for the purposes

of this Article, there shall be no favoritism or unlawful discrimination by the

Company.

 

                B.            The Company will notify the Union

twenty-four (24) hours in advance of any layoff, or as soon as possible prior

to any layoff.

 

                C.            The Company, when anticipating the

recall of seniority workers, shall telephone the workers not less than seventy-two

(72) hours prior to the estimated starting day of work. If contact with the

worker is not made by telephone, a written notice shall be mailed by First

Class mail to the worker at his/her last known address. The names and addresses

of those workers who are not contacted by telephone will be provided to the

Union, upon the Union’s written request. The most effective workers according

to the qualifications listed in Paragraph A shall be recalled first. Only those

workers who have acquired classification seniority in a particular seasonal

operation (i.e., pruning/tying season; suckering/training season; and harvest

season) are entitled to be recalled for the same seasonal operation. If a

worker does not work during the

 

9

 

same seasonal operation in the following year after being recalled,

he/she shall lose his/her seniority except where a Company approved leave of

absence has been in effect. The Company shall request and the worker shall

supply at the time of layoff, if a change of address has occurred, the exact

address where he/she wishes to receive a written notice of recall, and,

thereafter, the worker shall be responsible for notifying the Company in

writing of any such change of address.

 

1.             The Company shall send a postcard or letter to the

address supplied by each worker on layoff within the classification, advising

him/her of the estimated date on which his/her classification will begin work.

The postcard or letter shall advise the worker that the exact date on which

work will begin can be obtained by phoning the Company office at (831)

385-3924. The postcard or letter shall further advise the worker that if he/she

is unable to report to work on the date specified, he/she shall inform the

Company at 1972 Hobson Avenue, Greenfield, California 93927, in writing and

that his/her failure to report may result in his/her loss of seniority and

termination.

 

2.             Upon the Union’s written request, the Company shall make

available to the Union the names of all workers to whom recall notices were

sent.

 

3.             The Company shall notify the Union of the exact starting

date forty-eight (48) hours in advance, or in the case of the harvest, as soon

as possible, but no less than twenty-four (24) hours, of the exact date on

which work is scheduled to begin.

 

4.             The Company shall make available to the Union, at the

Union’s request, any notices of recall that have been returned with United

States Postal Service notice of nondelivery.

 

5.             During the operating season, when a layoff occurs within

a classification of work that is fifteen (15) days or less, and the worker has

been given a specific report–back date, no recall procedures shall be

required.

 

D.            Whenever there is a recall and fewer than the expected

number of employees return to work, the Company may call additional workers

twenty-four (24) hours prior to the estimated starting day of work.

 

E.            In cases of crews performing general labor, layoffs may

be by entire crew without regard to individual seniority. Such provision will

not be used for more than four (4) work days.

 

10

 

F.             In

cases where general labor crews will be transferred from one job to another,

such transfers may be made by entire crew without regard to individual

seniority. Such provision will not be used for more than five (5) work days.

 

 

 

ARTICLE 6

 

PROMOTION,

DEMOTION AND TRANSFER

 

                A.            When the Company decides to

permanently fill a job vacancy, or when it creates a new job, the job will be

posted. Each unit job opening description posted shall include the job

classification title, pay range, working title, and, if available, a brief job

description, anticipated shifts, required licenses and other pertinent data.

 

                B.            Such posting shall remain on the

bulletin board for three (3) consecutive work days. All applications must be

received within the posting period in order to be eligible. The posting period

shall be extended for another three (3) consecutive workdays if the Company

receives no qualified applications during the initial posting.

 

                C.            Workers shall not be limited on

their rights to bid for posted job vacancies in a job class higher than their

own. A worker who will be absent during the bidding period may submit a bid in

writing prior to departing.

 

                D.            The filling of vacancies, new jobs,

and promotions within the bargaining unit and transfer to lower paying jobs

shall be on the basis of the worker’s qualifications as they apply specifically

to the job in question, as well as the workers past performance. Those workers

who are the most effective with regard to the above qualifications shall be

promoted first. If workers are equal in such qualifications a promotion or

vacancy shall be filled by seniority order within the geographical area of the

operation where the worker is working.

 

In making determinations for the purposes of this article, there will

be no favoritism or unlawful discrimination by the Company.

 

                E.             A bargaining unit worker has the

right to refuse a promotion to a supervisor or management position.

 

                F.             The Company shall have the right to

fill temporary vacancies, such as during the posting period or those created by

a worker’s short–term illness, injury or other temporary absence not

exceeding ten (10) days, without regard to the posting procedures.

 

 

 

ARTICLE 7

 

 

11

 

GRIEVANCE

AND ARBITRATION

 

                A.            The parties agree that all disputes

which arise during the duration of this contract concerning the application and

interpretation of any specific and express provision of this Agreement shall be

subject to the grievance and arbitration procedure. The parties further agree

that the grievance and arbitration procedure of this Agreement shall be the

exclusive remedy with respect to any disputes arising under this Agreement and

no other remedies shall be utilized by any person with respect to any dispute

involving this Agreement.

 

                B.            Grievances shall be resolved in the

following manner:

 

                Step One:

Any grievance arising under this Agreement shall be immediately taken up

between the Company supervisor involved and the employee or the Union steward.

They shall use their best efforts to resolve the grievance. In the event the

grievance is not immediately satisfactorily resolved, the aggrieved party may choose

to proceed to Step Two.

 

                Step Two:

Any grievance not resolved in Step One, shall be reduced to writing setting

forth the nature of the grievance. A grievance regarding discharge must be in

writing and sent to the Company by certified mail, fax (followed by certified

mail hard copy sent same day), or hand delivery within five (5) days (excluding

Sundays and holidays) of the occurrence of the discharge or discovery thereof.

All other grievances must be in writing and sent to the Company by certified mail

or hand delivered within ten (10) calendar days of the occurrence of the action

that predicated such grievance or discovery thereof. Grievances which have gone

through Step One and have been submitted in writing according to the above,

shall be discussed in a meeting between the Union Representative and the

Company representative delegated to resolve such matters not later than ten

(10) calendar days from the filing of the grievance, unless both parties agree

to meet after the ten (10) day period.

 

The failure of the grieving party to file a grievance within the time

limits specified in this paragraph shall wave the grievance.

 

Valid written grievances shall include the following information:

 

1 .            Section(s) of contract alleged to

have been violated.

2.             Action(s) claimed to have violated contract.

3.             Remedies sought.

4.             Name(s) and signature(s) of person(s) in the grievance.

(If more than ten (10) workers are involved in the grievance then the

signatures of a ranch committee member and a union 

 

12

 

 

representative shall be sufficient. )

 

                5.             Date

of alleged violation.

 

If the grievance is not satisfactorily resolved in the Step Two

meeting, the party receiving the grievance shall give a written response to the

other regarding its position including reasons for denial within ten (10) work

days from the close of the Step Two meeting. If the party receiving the

grievance fails to respond within said ten (10) work days such party shall be

considered to have withdrawn its objection to the grievance and the grievance

shall be granted in the grieving party’s favor. A Union representative may

fully participate in the grievance meeting.

 

                Step 3: If

the grieving party is not satisfied with the written response, it may request

in writing that the matter be referred to arbitration. This request shall be

made not more than thirty (30) calendar days from the receipt of such written

response. The request for arbitration must be sent to the Company by certified

mail, fax (followed by certified mail hard copy sent same day), or hand

delivery. If the parties are unable to agree upon an arbitrator within fifteen

(15) days of the request for arbitration, they shall select an arbitrator for

each case from a list of nine (9) persons submitted to the parties by the

California State Mediation and Conciliation Service (CSMCS). Each party shall

alternatively strike one (1) name from said list (the first strike being

determined by a coin toss) and the last name remaining shall be the arbitrator.

If said individual is unable or unwilling to serve, the parties shall request a

new list of nine (9) names from the CSMCS and the process shall be repeated.

Either party has the right to reject the first list sent by the CSMCS.

 

                C.            The arbitrator shall consider and

decide the grievance referred to him/her and his/her decision shall be final

and binding on the Company, the Union, and the workers. The arbitrator’s

decision shall be in writing, signed and delivered to the respective parties.

The arbitrator shall have no authority to modify, amend, change, alter, or

waive any provision of the Agreement. Within this limitation, he/she shall have

the authority in a discipline case to award back pay for any loss of earnings

from the Company and the right to revoke the discipline, if it is found that

the discipline was rendered without just cause. The arbitrator shall have no

authority to impose compensatory damages, punitive damages, or attorney’s fees.

 

                D.            Unless otherwise mutually agreed to,

all testimony taken at arbitration hearings shall be under oath, reported and

transcribed. The arbitrator’s and reporter’s fees and expenses., and the cost,

if any, of a hearing room shall be paid by the losing party. All other expenses

incident to the arbitration shall be borne by the party incurring them. The

arbitrator shall allow briefs if either party so requests.

 

                E.             Step 3 grievances shall be

arbitrated in the order of their filing date. If Step 3 grievance is not

arbitrated within one year of its filing date the grievance shall be dismissed.

 

 

13

 

ARTICLE 8

 

STRIKES AND LOCKOUTS

 

A.           There shall be no strikes, slowdowns, or interruptions of

work by any of the workers or the Union during the term of the Agreement. There

shall be no picketing, boycotts, or other adverse economic action of any kind

against the Company or its products, and there shall be no lockout against the

workers during the term of this Agreement.

 

B.            If any said events occur, the officers and representatives

of the Union and/or Company as the case may be, shall do everything within

their power to end or avert such activity.

 

C.            Workers engaging in any strikes, slowdowns, boycotts or

other curtailment of production in violation of this Agreement may be subject

to discipline, including discharge. In the event of an arbitration over

disciplinary action taken by the Company against a worker for violation of this

Article, the arbitrator’s authority shall be limited to determining whether the

worker in fact violated any provision of the Article. If it is found that

he/she did, the discipline shall stand.

 

 

 

ARTICLE 9

 

DISCIPLINE AND DISCHARGE

 

A.           The Company shall have the right to discipline and

discharge workers for just cause. The parties agree that working under the

influence of alcohol or illegal drugs, having the same in their possession on

Company time or property, negotiating a transaction pertaining to illegal drugs

constitute just cause and if any of the foregoing is established, the Company has

the right to terminate. Additional basis for termination may be reviewed in

individual discipline cases which proceed to arbitration.

 

The Company shall have the right to require a worker to submit to a

drug and/or alcohol test if reasonable suspicion exists that the worker has

consumed or has in his/her possession alcohol or drugs or is under the

influence of either. If the worker refuses to submit to the test, such refusal

shall constitute insubordination and be grounds for termination. If the worker

admits to the consumption or the possession of drugs or alcohol or being under

the influence of either, or the Company believes it has sufficient evidence of

the foregoing, the Company shall not be required to have the worker tested The

first twenty-five (25) work days of employment (within a 120 day period) for a

new non–seniority employee shall be considered as a probationary period.

The Company

 

 

14

 

may discharge such new employee during this twenty-five (25) work day

period without being subject to the grievance procedures or Union intervention.

Unless immediate action is necessary, the Company shall, upon the worker’s

request, notify the Union prior to any investigatory interview of a worker

which might reasonably result in disciplinary action, and upon request of the

worker, the Union shall have the right to be present during these interviews.

Provided, however, if a situation occurs in a remote area, wherein the Company

deems it necessary to take action and no steward or Union representative is

available, the Company may take action.

 

                B.            No worker shall be summarily

discharged. In all cases in which the Company concludes that a worker’s conduct

may justify discharge, he/she shall be suspended initially for not more than

five (5) working days. Upon the worker’s request, during this suspension, the

Company will meet with the worker. Furthermore, if the worker requests the

presence of a Union representative during the review of the facts of the case,

such shall be permissible. This suspension period may be extended for three (3)

days at the request of either party to assure a complete investigation of the

facts which initiated the suspension. At the end of the suspension period, the

Company shall notify the worker and the Union of its final action.

 

                C.            The Union and the worker(s) involved

shall be furnished with any discharge or suspension notices within forty–eight

(48) hours, exclusive of Saturday, Sunday, or holidays, after the suspension or

discharge occurs.

 

                D.            The worker may acknowledge, by

signature, if he/she so desires, in receiving a written warning, and such

acknowledgment is in no way an admission of guilt.

 

                E.             The Company and the Union agree

that the Company’s Rules of Conduct were developed solely by the Company. The

Rules of Conduct are listed in Appendix “D”.

 

                F.             The Union acknowledges and accepts

that the Company takes the position that violation of any of the Rules of

Conduct constitutes just cause for the discipline imposed for the violation.

The Company acknowledges and accepts that the Union may take the position

during a grievance proceeding or in arbitration that the discipline imposed for

violation of the Rules of Conduct does not constitute just cause for the

discipline imposed. It shall then be for the arbitrator to decide whether just

cause has been established, subject to the limitation set forth in Paragraph A

of this Article.

 

 

 

ARTICLE 10

 

LEAVES OF ABSENCE

 

 

15

 

A.            A

worker shall be granted a leave of absence without pay upon request for valid

personal reasons, as determined by the Company. Applications for leaves of

absence without pay and any extension thereof, shall be made to the Company at

least two (2) days, excluding weekends and holidays, in advance of the

effective date of the leave of absence, except for emergency requests.

Applications for leaves of absence which will be longer than two (2) continual

days shall be submitted to the Company at least two (2) weeks in advance of the

effective date of the leave of absence, except for emergency requests. Such

leaves shall not constitute a breach of the worker’s seniority. Leaves of

absence are not valid unless they are approved by the Company in writing before

the effective date of the leave of absence.

 

Occasionally, individual employees require short leaves (two - three

hours) taken at the end of the work day. Such leaves are permissible if the

employee has given his/her immediate supervisor one (1) work day notice and has

received a written leave of absence approved by the Company. If a supervisor is

unavailable during the work day the employee shall telephone the office and

leave a voice message at (831) 385-3924 or (831) 385-4801 with their first and

last name and the reason for the leave.

 

In case of an emergency leave where the employee is unable to speak

with a Company representative, the employee shall leave a voice message at

(831) 385-3924 or (831) 385-4801 with their first and last name and the reason

for the emergency leave. In addition, the employee shall call back during

normal business hours to speak with a Company representative as soon as

possible, but in no event later than three work days from the start of the

emergency leave. The employee shall inform the Company of the nature and

duration of the emergency. An emergency leave is not valid unless approved by

the Company, within three work days from the start of the emergency leave. The

Company shall apply reasonable standards when granting emergency leaves.

 

                B.            Unless excused, a worker who does

not return to work on the day following the expiration of his/her leave of

absence will be considered as having resigned voluntarily and will forfeit all

his/her seniority rights.

 

                C.            Workers on leaves of absence who

desire to return to work before their leave expires, shall notify the Company

three (3) days prior to their intended date of return to work. The Company is

not required to return the worker to his/her job prior to the expiration of the

earlier agreed upon expiration date.

 

                D.            At the written request of the Union,

a leave of absence shall be granted to no more than two (2) workers selected by

the Union who are required to perform functions on behalf of the Union,

necessitating a leave of absence. The leave of absence may be granted for a

period of one (1) month, renewable for one additional month upon proper

application. A leave of absence without pay shall be granted for temporary

leave not to exceed three (3) consecutive work days at one time, to conduct

Union business, provided that notice is given by the Union to the Company at

least two (2) days prior to the day on which such leave commences.

 

 

16

 

E.            A disability leave shall be for the purpose of

recuperating from an illness, injury, disability or pregnancy leave. The

following shall apply to disability leaves of absence:

 

1 .            The worker must provide written

verification from a medical doctor that he/she cannot work due to the,

disability. The Company may waive this requirement if the disability does not

exceed three (3) days.

 

2.             A worker shall be granted a leave of absence for a

period of up to 4 months while disabled due to non job–related illness.

This provision shall also apply to female employees who are disabled due to

pregnancy including prenatal and postnatal disability.

 

3.             A leave of absence for a job–related disability

will be authorized for the duration of the disability or until the worker

indicates a desire to be terminated, accepts employment with another company or

refuses to return to work after having been released for full or partial work.

 

4.             Workers on an approved disability leave of absence or

work related injury in excess of ten (10) days must update the Company at the

end of the first calendar month and each month thereafter concerning their

health status, anticipated date of return to work and continued intent to

return to work. If a worker does not comply with this reporting requirement,

the Company may terminate the worker.

 

5.             All jobs in the Company require varying amounts of

physical labor. The Company will attempt to adjust a disabled worker’s work

assignment to accommodate the disability. New assignments will depend on the

availability of vacancies in suitable positions and upon the approval of the

worker’s medical doctor. If a suitable position is not available, the worker

may not return to work until a written release is approved by the worker’s

medical doctor.

 

6.             The Company requires all workers who plan to take a

leave on account of disability (e.g., due to corrective surgery or pregnancy)

to give the Company at least two (2) months notice of the approximate date the

leave will commence and the estimated duration of the leave.

 

7.             A leave of absence without pay shall be granted to workers

by the Company upon workers applying to and being confirmed by the

 

 

17

 

 

                Company for jury duty or witness duty when

subpoenaed.

 

8.             The Company agrees to be bound contractually to any

applicable Family and Medical Leave Act (FMLA) laws. If the same are not

applicable as a matter of law, this paragraph is of no effect. Nothing in this

Agreement is intended to abrogate rights under the FMLA laws.

 

                F.             Workers shall be granted an unpaid

leave of absence (LOA) when enrolled in any one of the following courses:

 

1 .            Training

courses that are relevant to the work performed in the vineyards.

 

2.             ESL(English

as a second language) and citizenship classes.

 

3.             Class

A drivers license.

 

LOA’s shall be limited to a maximum of two (2) work hours for each

attendance twice a week for the duration of the course. At least fifteen (15)

days advance notice is required and such LOA’s shall be limited to a maximum of

five (5) percent of workers hired by the Company. Documentation of the course

and attendance is required.

 

ARTICLE 11

 

WORKING CONDITIONS

AND SAFETY

 

                A.            The Company will comply with all

applicable laws relating to the health and safety of farm workers.

 

                B.            In the interest of each workers

personal safety, the Company will publish safety rules covering the overall

operations.

 

The use of such chemicals injurious to farm workers must be such so as

not to cause injury to workers. Therefore, the Company shall maintain in its

area office(s) and shall make available to its workers, the following

information, in English and Spanish and shall make such information available

to the Union. The Company shall have seventytwo (72) hours to make such

information available to the requesting party following written request.

 

1.             Location

of fields treated with an agricultural chemical.

 

2.             Name

of material used by brand name, formulation, chemical name, and registration

number.

 

3.             Date

and time material was applied.

 

 

18

 

 

4.             Amount

of material applied.

 

5.             Method

of application.

 

6.             Applicator’s

name and address, if any.

 

7.             Re-entry

date in accordance with the chemical label requirements.

 

When an agricultural chemical is to be applied, the Company shall

advise all workers in the immediate area prior to the application. Re–entry

into treated fields shall be in accordance with label requirements. Workers

shall not re-enter a field during the prohibited period, nor shall the worker

refuse to re-enter thereafter. Nothing in this paragraph shall infringe upon

the right of a worker under the paragraph below.

 

Equipment and chemicals for fumigation and spraying shall be stopped

outside the area where employees are working, or where workers take rests or

lunch. Fumigation and spraying shall not be performed in close proximity to the

area in which workers are present.

                C.            Protective equipment and other

devices necessary to properly protect workers from injury and sickness shall be

provided by the Company according to state and federal laws. Such protective

equipment shall be provided by the Company without cost, except that the

Company may assess a reasonable charge to cover loss or willful destruction

thereof by the worker. When the Company introduces new personal protective

apparel) or extends the use of protective apparel to new areas or issues, or

new rules relating to the use of protective apparel, the Union will be advised

of such changes, in advance.

 

Workers shall be responsible for returning all equipment that was

checked out to them, but shall not be responsible for normal wear and tear.

Workers shall be charged actual cost for excessive breakage beyond normal wear

and tear and for equipment that is not returned. Receipts for returned

equipment shall be given to the worker by the Company. The Company and the

Union have agreed that the following tools, equipment and protective garments

are to be provided: irrigation boots for irrigators and those temporarily

assigned to irrigation work; pruning shears; budding knives; coveralls for tractor

drivers; breathing and protective eye wear for tractor drivers when spraying or

dusting; protective rubberized coveralls, gloves, masks and goggles for

employees engaged in hand spraying; hard hats for driving stakes hydraulically;

gloves for handling stakes and wires in the installation and repair and

maintenance of trellises, stakes, wire and posts. Supervisors will have mill

bastard files available for use by the crew leader or the worker as appropriate

for sharpening shears when needed; no Company shears will be sharpened except

with Company files.

 

                D.            All Company vehicles and equipment

used by and around workers shall be maintained and operated in safe conditions

at all times.

 

                E.             A worker may refuse to perform work

the worker legitimately believes to be unsafe or hazardous to his/her health.

 

 

19

 

 

                F.             In cases involving occupation

injuries, illnesses, or disease, the Company will provide to the Union, upon

receipt of a written request, a copy of Occupational Safety and Health

Administration form OSHA no. 101 entitled “Supplementary Record of Occupational

Injuries and Illnesses,” provided the ill or injured worker involved approves

in writing the release of such information. In the event a worker dies, written

approval from the worker’s legal heirs is acceptable.

 

                G.            The Company shall make the necessary

provisions for the safety and health of its workers and will maintain adequate

medical and first aid services to care for accidents and minor illnesses

occurring while at work.

 

                H.            Any worker who becomes sick or

injured during working hours will be provided with transportation to the

nearest Company approved doctor provided that if an injury is of a minor nature

and does not impair an employees ability to transport himself/herself, such

shall be permissible.

 

                I.              In accordance with law, there

shall be adequate toilet facilities, separate for men and women in the field

readily accessible to workers, that will be maintained in a clean and sanitary

manner. Doors on portable toilets shall have latches. Hand washing facilities,

soap and paper towels shall be provided.

 

                J.             Each place where there is work

being performed shall be provided with suitable, cool, potable drinking water

convenient to workers. Water shall be provided in cool cans or equivalent

containers. Individual paper drinking cups shall be provided.

 

Failure to adhere strictly to these safety procedures will subject a

worker to disciplinary actions which may include termination.

 

 

 

ARTICLE 12

 

MANAGEMENT AND

UNION RIGHTS

 

                A.            The Company retains any and all

rights and prerogatives of management it had prior to the execution of this

contract except as specifically and expressly limited or modified by the

provisions of this contract.

 

                B.            The Company may adopt or alter any

rules which are not in direct conflict with the provisions of this Agreement.

The Company will provide to the nearest Union field office a copy of any new or

revised Company rules and the Union will acknowledge receipt of the same,

thereby indicating its knowledge of the rules.

 

                C.            Supervisors, interns and other

workers not included in the bargaining unit shall not perform any work covered

by this Agreement except for instruction, training, emergencies, temporary work

and/or work they have performed in the past. There shall be no more than three

(3) interns working at any one time in each geographical area of operation as

defined in Paragraph E of Article 3. This paragraph shall not be used for the

purpose of avoiding the recall of laid off workers.

 

 

20

 

D.            Crew Leaders are “workers” as defined in Paragraph A of

Article 1 and are members of the bargaining unit. Crew Leaders are responsible

for carrying out the instructions of Vineyard Supervisors and management and

relaying such instructions to their crews. As defined in Paragraph A of Article

1, Crew Leaders do not discipline or recommend discipline for other workers;

however, they are responsible for observing, reporting and quality control. The

parties understand and accept that workers on occasion may serve as Crew

Leaders for a period of time and thereafter not serve as Crew Leaders. In

accordance with past practice, such is permissible.

 

E.            In the event the Company decides to increase its

mechanization in any way that will result in the permanent displacement of

bargaining unit workers, the Company shall notify the Union in writing one (1)

month before commencing such mechanical operations and shall meet with the

Union to discuss the training of displaced workers to operate and maintain the

new mechanical equipment, the placing of displaced workers in other jobs with

the Company, the training of workers for other jobs with the Company, or the

placing of such workers on a preferential rehire list. Experimentation with new

equipment is not subject to the next paragraph. The Company may experiment with

new equipment applications without following the procedure in paragraph E.

 

F.            New job classifications or material changes in the operation

of existing job classifications shall be established and made effective by the

Company in accordance with the following procedure.

 

1 .            The Company shall notify the Union

in writing of new job classifications or of material changes in existing job

classifications. Such notices shall be given at least ten (10) days in advance

of the date on which the new classification or the change in an existing job

classification is to become effective.

 

2.             The Company and the Union shall meet within five (5)

days after notice is received to negotiate the wage rate.

 

3.             If the Union and the Company cannot reach an agreement

on the job classification and wage rates, the matter may be submitted to

arbitration as provided for in Article 8 of this Agreement, which shall decide

the dispute. The scope of such arbitration shall be the job wage rate.

 

4.             Any wage rate increase shall be retroactive to the

effective date of the new classification or of the change in the existing job

classification.

 

G.            Time off during regular working hours, without pay, will

be provided to no more than five (5) members of the Worker’s Board to attend

collective bargaining sessions scheduled by the Company during working hours.

Upon written request, the Union may post notices on the Company’s bulletin

boards provided these notices do not

 

21

 

exceed an area of 12” x 12” and do not remain in place longer than ten

(10) days.

 

                H.            Vineyard Access:

 

1 .            Duly authorized and designated Union

Representatives will have a right of access to the Company premises covered by

this Agreement in connection with the administration of this Agreement,

provided that there is no interference with presently working employees or with

the conduct of Company business.

 

2.             Before a Union Representative contacts any worker on

company property, he or she will notify a Company agent by telephoning the

Greenfield office (831–385–4801) at least one hour prior to their

arrival.

 

3.             In order to accommodate Union Representatives, who occasionally

drive over one mile on vineyard farm roads, access to Company property shall be

allowed at the following time periods:

 

a.             One hour before the start of the usual work day in the

morning.

 

b.             Fifteen minutes before the standard noon lunch period

(11:45 A.M.), until 15 minutes after the conclusion of lunch period (12:45

P.M.).

 

c.             One hour after the conclusion of the usual work day in

the afternoon.

 

d.             The Company, in its discretion, may allow additional

and/or longer time periods if requested by the Union representative.

 

                I.              The Union will advise the Company

of the names of its duly authorized and designated representatives in writing.

This notice will be effective upon receipt by the Company.

 

1 .            The Union will indemnify and hold

the Company harmless from any and all liability for any injuries sustained or

caused by anyone involved in taking access under this Article 13. The Union

hereby certifies to the Company that all vehicles operated by its agents or

representatives during any such access, shall be covered by an automobile

general liability insurance policy.

 

 

22

 

ARTICLE 13

 

LABOR CONTRACTORS

AND SUBCONTRACTING OF WORK

 

A.            The parties understand and agree that the hazards of

agriculture, unpredictable weather conditions and shortages in labor are such

that subcontracting may be necessary.

 

In the event that labor contractor workers are required to complete

work within the available time frame, the Company will notify the Union by fax

of the approximate number of labor contractor workers the Company will utilize

and the approximate duration. At the Union’s request, the Company will meet to

discuss such labor requirements.

 

The parties agree that in the application of this article the following

will apply:

 

1 .            In the geographical area of

operations (as defined in Article 3, Section E) where subcontracting is

necessary, all workers hired by the Company, who are available for recall, are

working or have been offered work.

 

2.             Notwithstanding Paragraph 1 above, subcontracting is

permissible under this Agreement where the Company does not have the equipment

to do the work being subcontracted. When the Company does subcontract pursuant

to the terms of this provision, any workers of the subcontractor who actually

operate or maintain the equipment shall not be covered by terms of this

Agreement.

 

3.             Notwithstanding Paragraph 1 above, subcontracting is

permissible under this Agreement where skills of a specialized nature are

required.

 

4.             The provisions of Article 2 - Union Security, shall not

apply to labor contractor workers.

 

5.             Article 7 - Grievance and Arbitration, and Article 9 -

Discipline and Discharge, shall apply only to terminations of labor contractor

workers who have worked a probationary period of twenty-five (25) work days on

Company property. Only terminations prompted by work–related incidents

occurring on Company property while performing Company-related work will be

eligible for this provision.

 

6.             In lieu of Article 3 - Hiring, Article 4 - Seniority,

Article 5 - Layoff and Recall and Article 6 - Promotion, Demotion and Transfer,

labor , contractor companies hired by the Company shall hire, recall, layoff

and promote labor contractor workers using systems established by

 

 

23

 

 

                each labor contractor company.

 

7.             Labor contractor workers shall be excluded from all

provisions of the Agreement related to insurance (including health, vision,

dental and life insurance), 401 k plan, leaves of absences (paid and unpaid),

vacations, holidays and all economic provisions.

 

8.             All other provisions of the Agreement shall apply to

labor contractor workers.

 

 

 

ARTICLE 14

 

HOURS AND OVERTIME

 

                A.            Nine (9) hours per day and

fifty-four (54) hours a week shall be the usual number of hours of work for

piece work and general labor, except during harvest.

 

                B.            Each worker shall be entitled to one

full day, twenty-four (24) hours off work, without pay during each payroll

week. Insofar as possible, work shall be arranged so that each worker will have

Sunday off.

 

                C.            When a worker is assigned to a

“shift” they will be paid overtime at the rate of time and one-half (1 1/2) for

time worked in excess of ten (10) consecutive hours. A shift is the assigned

working period of time that a worker is performing his/her job duties.

 

                D.            Time and one-half (1 1/2) shall be

paid for all work in excess of ten (10) hours in any one work day, for all work

in excess of sixty (60) hours in any regularly scheduled work week and time and

one-half (1 1/2) for work performed on Sunday. In the case of a Monday “shift”

which begins Sunday evening at 8:00 P.M. or later, time and one half (1 1/2)

will be paid for the Sunday hours worked and after ten (10) consecutive hours

have been worked. Overtime earnings while working by piece rate shall equal at

least 1.5 times the piece rate minimum base wage.

 

                E.             A night-time premium of fifty cents

($.50) per hour will be paid for hours worked between 8:00 P.M. and 6:00 A.M.

Any shift that was begun at 8:00 P.M. will be considered a shift for the

upcoming day, e.g. work starting at 8:00 P.M. Sunday will be attributed to the

Monday shift. The night–time premium will only apply to a work shift

which begins before 12:00 A.M. (midnight). The night–time premium shall

not be paid for Sunday hours or overtime.

 

                F.             A worker shall receive the rate of

his/her classification for all time worked, including time, if any, worked in a

classification with a lesser rate of pay. When a worker performs work in a

higher rated job, he/she shall be paid at the highest rate for

all time worked on the highest rated job.

 

                G.            If more than five (5) consecutive

days of overtime work are anticipated,

 

 

24

 

the work shall be offered initially on the basis of highest seniority

within the classification required to work the overtime. If there are no

volunteers for the overtime work, the Company has the right to assign the work

to anyone. The Company has the right to finish fields or the harvest orders

without searching for seniority workers.

 

H.            Meal time breaks shall be one-half (1/2) hour and not

compensated for nor counted as hours worked under the provisions of this

Agreement. The Company shall not use the meal time breaks for the purpose of

moving the workers to another job-site, or any other related work activity.

 

I.             Workers shall have paid rest periods of fifteen (15)

minutes each, which insofar as practical, shall be in the middle of each

continuous four (4) hour work period or major fraction thereof.

 

J.             A

worker paid on an hourly basis who is required to report for work and does

report and is furnished no work or less than four (4) hours of work for reasons

other than an Act of God or other cause beyond the control of the Company, shall

be paid at least four (4) hours for that day at the worker’s hourly rate of

pay.

 

 

 

ARTICLE 15

 

WAGES

 

                A.            The Company shall pay the wage rates

(hourly and piece rates) in accordance with Appendices A and B attached hereto.

However, when the Company determines that particular piece rates are

inappropriate, it may pay on an hourly basis.

 

                B.            All new hires will be designated as

“General Labor Probation Employees” until they have completed twenty–five

(25) work days. These new employees will receive training for job skills,

policies and safety. The Company will conduct “tailgate” meetings and such

other training sessions as are necessary for the explanation of Company

policies, Senate Bill 198 safety compliance issues, the proper use of

machinery, tools and safety equipment and other important information.

 

                C.            After completion of the probation

period, new employees will be classified as “General Labor Trainees” until they

have completed 1,200 total hours of work from their original hire date. During

the training period, employees will be paid the General Labor Trainee rate from

Appendix “A” for hourly work. Employee skills and productivity will be

evaluated during the training period. If, in the Company’s sole discretion, a

worker’s performance has reached an appropriate level, such worker may be

promoted to the General Labor wage rate from Appendix “A” prior to the

completion of 1,200 hours. All General Labor Trainees not already promoted,

shall be promoted to the General Labor wage rate after completing 1,200 hours.

 

D.           An employee in a “Trainee” classification, other than

General Labor

 

 

25

 

Trainee, will be promoted to the appropriate regular classification

when, in the Company’s sole discretion, he/she has exhibited the necessary

qualifications in accordance with Article 6, Paragraph D. Such Trainee

classifications include Mechanic Trainee, Tractor Driver Trainee, Irrigator

Trainee and Crew Leader Trainee, as listed in Appendix “A.”

 

                E.             The trainee period for tractor

driver trainees and irrigator trainees shall not exceed 100 workdays.

 

                F              The Company will meet with Crew

Leader Trainees and Mechanic Trainees on or before the 100th workday to discuss their job status. At

the trainee’s request, a Union representative may be present at the meeting.

 

                G.            A premium of fifty cents ($0.50) per

hour at the employee’s current rate of pay will be paid to Machine Harvest

Drivers.

 

                H.            A premium of twenty-five cents

($0.25) per hour at the General Labor rate will be paid to Hand Harvest Tractor

Drivers for time worked before or after the piece rate work activities.

 

 

 

ARTICLE 16

 

VACATIONS AND BONUS

 

                A.            Vacation pay for the completed

calendar year will be paid to workers in January of the following year. In

order to qualify for the first January vacation check, the worker must have

earned gross wages of at least $6,500 in each of the immediate past two

calendar years. Workers must continue to earn $6,500 in gross wages each

calendar year in order to maintain their qualifications for vacation pay. If

the worker falls below the $6,500 minimum in any one calendar year, he/she then

must requalify as if it were his/her first year of employment. The vacation pay

amounts are calculated as a percentage of gross wages. The percentage is based

on the number of consecutive calendar years the worker has met the minimum

qualifications, as follows:

 

	

  Calendar Year

  	

   

  	

  Minimum

  Gross

  	

   

  	

  % Vacation

  Pay

  	

   

  
	

  1

  	

   

  	

  $

  	

  6,500

  	

   

  	

  0

  	

   

  
	

  2

  	

   

  	

  $

  	

  6,500

  	

   

  	

  2

  	

   

  
	

  3–4

  	

   

  	

  $

  	

  6,500

  	

   

  	

  4

  	

   

  
	

  5 or more

  	

   

  	

  $

  	

  6,500

  	

   

  	

  6

  	

   

  

 

 

26

 

                B.            A bonus is paid to any worker who

works 600 hours or more during the farming year from December 1st to November

30th.  Workers will be paid a bonus of

ten ($.10) cents for each hour worked. Bonuses will paid to those who qualify

with the first check in December or with the final check at lay-off.

 

 

 

ARTICLE 17

 

HOLIDAYS

 

                A.            Commencing on the effective date of

this Agreement, the following holidays shall be paid holidays for workers who

qualify under the provisions of this Article:

 

	

   

  	

   

  	

  Hours

  
	

  NEW YEARS DAY

  	

   

  	

  8

  
	

  GOOD FRIDAY

  	

   

  	

  8

  
	

  MEMORIAL DAY

  	

   

  	

  8

  
	

  JULY 4TH

  	

   

  	

  8

  
	

  LABOR DAY

  	

   

  	

  8

  
	

  THANKSGIVING

  	

   

  	

  8

  
	

  CHRISTMAS

  	

   

  	

  8

  
	

  CESAR CHAVEZ DAY

  	

   

  	

  8

  

 

To qualify a worker must work the scheduled work day both immediately

before and after each holiday. In addition, the worker must have already worked

four hundred (400) hours during the current calendar year; however, for New

Year’s Day the qualifying period shall be the prior calendar year.

 

A worker who reports for work on such workdays immediately before and

after the holiday, but who works less than the full number of scheduled hours

on the day before and the day after the holiday, must provide valid written

documentation to the Company in support of his/her reasons why he/she only

worked a partial day in order to be eligible to receive holiday pay. The

Company shall apply reasonable standards in determining what to accept as valid

written documentation.

 

 

 

ARTICLE 18

 

ROBERT F. KENNEDY

FARM WORKERS MEDICAL PLAN

 

The Company will

contribute to the Robert F. Kennedy Medical/Dental/Vision Plan (the

 

27

 

“RFK Plan”) for the worker and their qualified dependents. An initial

qualification period of 100 work days is required for the Company to begin contributions

to the RFK Plan. Once initially qualified, each employee must maintain a

minimum of 80 work hours in a calendar month to continue to qualify for the

insurance benefits.

 

Contributions by the Company to the RFK Plan shall be as follows:

 

                For the period

January 1, 2002 to August 31, 2002: $1.63 per hour worked

                For the period

September 1, 2002 to August 31, 2003: $1.79 per hour worked

                For the period

September 1, 2003 to August 31, 2004: $1.96 per hour worked

                For the period

September 1, 2004 to August 31, 2005: $2.15 per hour worked

                For the period

September 1, 2005 to December 31, 2006: $2.30 per hour worked

 

The qualified employees shall be covered by the RFK B 05A Medical Plan

or a plan with equivalent benefits. In addition, qualified workers shall be

provided with the VSP #2 Vision Plan and the PUD #3 Dental Plan or plans with

equivalent benefits. If contributions in excess of the above rates are

necessary to maintain the benefits, employees will contribute the difference.

Upon written notification from the Union, the Company will deduct such

contributions in excess of the above rates from the employees wages and will

remit the same to the RFK Medical Plan.

 

Each employee shall have the right to decline coverage under the RFK

Plan. If coverage is declined the Company shall not make contributions to the

RFK Plan for such employee.

 

The Union will provide, or cause to be provided, to the Company the

following materials by July 31 of each year of the contract: Summary Annual

Report, a copy of the summary plan description as and when filed with the

Department of Labor, a copy of Form 5500 as filed with the Internal Revenue

Service. In addition, on a monthly basis, a census list of the names of

employees and dependents of employees covered under the RFK Plan will be

provided. In addition, the Union will provide the Company with copies of all

claims experience studies prepared for the RFK Plan’s trustees by the Union,

any employee of the RFK Plan or any outside consultant to the RFK Plan.

 

The Company will remit the appropriate summary reports and monies for

the RFK Plan within one calendar month following the premium month. The parties

agree that the Company’s obligation under this Article is complete upon the

submission of appropriate summary reports and monies on a monthly basis and

therefore, the Union agrees to indemnify and hold the Company harmless from any

and all claims, lawsuits, administrative proceedings and/or other actions

brought in any forum by anyone regarding the RFK Plan and its operation,

including any damages, cost of suits and “reasonable attorneys’ fees.

 

 

 

 

28

 

 

ARTICLE 19

 

SCHEID

VINEYARDS INC. 401(k) DEFINED CONTRIBUTION PLAN

 

The Company will, after execution of this Agreement, contribute fifteen

cents ($.15) per hour worked into a 401 (k) Defined Contribution Plan for each

worker who has qualified.

 

 

29

 

ARTICLE 20

 

DURATION

 

This Agreement shall be in full force and effect from January 25, 2002

until December 31, 2006.

 

	

  SCHEID VINEYARDS INC.

  	

   

  	

  UNITED FARM WORKERS OF AMERICA, AFL-CIO

  
	

   

  	

   

  	

   

  
	

  By:

  	

  /s/ Scott D. Scheid

  	

   

  	

  By:

  	

  /s/ Arturo Rodriguez

  
	

   

  	

  Scott D. Scheid

  	

   

  	

   

  	

  Arturo Rodriguez

  
	

   

  	

  President

  	

   

  	

   

  	

  President

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  By:

  	

  /s/ Kurt J. Gollnick 

  	

   

  	

  By:

  	

  /s/ Jorge Rivera

  
	

   

  	

  Kurt J. Gollnick

  	

   

  	

   

  	

  Jorge Rivera

  
	

   

  	

  Chief Operating Officer

  	

   

  	

   

  	

  Lead Negotiator

  
	

   

  	

   

  	

   

  	

   

  	

   

  

 

30

 

APPENDIX

“A”

 

SCHEDULE

OF HOURLY WAGE RATES

 

	

   

  	

   

  	

  2002

  	

   

  	

  2003

  	

   

  	

  2004

  	

   

  	

  2005

  	

   

  	

  2006

  	

   

  
	

  MECHANIC

  	

   

  	

  $

  	

  11.20

  	

   

  	

  11.25

  	

   

  	

  11.40

  	

   

  	

  11.60

  	

   

  	

  11.80

  	

   

  
	

  MECHANIC TRAINEE

  	

   

  	

  $

  	

  10.30

  	

   

  	

  10.35

  	

   

  	

  10.50

  	

   

  	

  10.70

  	

   

  	

  10.90

  	

   

  
	

  MECHANIC

  ASSISTANT

  	

   

  	

  $

  	

  9.50

  	

   

  	

  9.70

  	

   

  	

  9.90

  	

   

  	

  10.15

  	

   

  	

  10.35

  	

   

  
	

  ADVANCED TRACTOR

  DRIVER

  	

   

  	

  $

  	

  10.30

  	

   

  	

  10.35

  	

   

  	

  10.50

  	

   

  	

  10.70

  	

   

  	

  10.90

  	

   

  
	

  INTERMEDIATE

  TRACTOR DRIVER

  	

   

  	

  $

  	

  9.75

  	

   

  	

  9.80

  	

   

  	

  9.95

  	

   

  	

  10.15

  	

   

  	

  10.35

  	

   

  
	

  TRACTOR DRIVER

  TRAINING (TRIAL PERIOD)

  	

   

  	

  $

  	

  8.75

  	

   

  	

  8.80

  	

   

  	

  8.95

  	

   

  	

  9.15

  	

   

  	

  9.35

  	

   

  
	

  IRRIGATOR LEVEL

  1

  	

   

  	

  $

  	

  10.30

  	

   

  	

  10.35

  	

   

  	

  10.50

  	

   

  	

  10.70

  	

   

  	

  10.90

  	

   

  
	

  IRRIGATOR LEVEL

  2

  	

   

  	

  $

  	

  9.75

  	

   

  	

  9.80

  	

   

  	

  9.95

  	

   

  	

  10.15

  	

   

  	

  10.35

  	

   

  
	

  IRRIGATOR

  TRAINEE (TRIAL PERIOD)

  	

   

  	

  $

  	

  8.75

  	

   

  	

  8.80

  	

   

  	

  8.95

  	

   

  	

  9.15

  	

   

  	

  9.35

  	

   

  
	

  CREW LEADER

  	

   

  	

  $

  	

  10.30

  	

   

  	

  10.35

  	

   

  	

  10.50

  	

   

  	

  10.70

  	

   

  	

  10.90

  	

   

  
	

  CREW LEADER

  TRAINEE (TRIAL PERIOD)

  	

   

  	

  $

  	

  8.75

  	

   

  	

  8.80

  	

   

  	

  8.95

  	

   

  	

  9.15

  	

   

  	

  9.35

  	

   

  
	

  GENERAL LABOR

  	

   

  	

  $

  	

  8.50

  	

   

  	

  8.60

  	

   

  	

  8.70

  	

   

  	

  8.90

  	

   

  	

  9.10

  	

   

  
	

  GENERAL LABOR

  TRAINEE

  	

   

  	

  $

  	

  8.10

  	

   

  	

  8.15

  	

   

  	

  8.20

  	

   

  	

  8.25

  	

   

  	

  8.30

  	

   

  
	

  GENERAL LABOR

  PROBATION

  	

   

  	

  $

  	

  7.50

  	

   

  	

  7.50

  	

   

  	

  7.75

  	

   

  	

  7.75

  	

   

  	

  7.75

  	

   

  

 

 

31

 

APPENDIX “B”

 

SCHEDULE

OF PIECE RATES

 

Piece rates will be determined by the Company and announced to the

employees prior to the time they enter the field and begin working. The Company

shall closely evaluate the field conditions and will consider vine vigor,

spacing, training practices and timing when determining rates. There shall be a

piece rate minimum wage of $6.75 per hour for calendar years of 2002 - 2003 and

$7.00 per hour for calendar years 2004 - 2006.

 

If, after giving their best efforts towards the piece rate job

assignment, the worker(s) believe the rate is set too low they may follow the

grievance procedures referenced in Article 8.

 

 

32

 

APPENDIX “C”

 

	

   

  	

  Ranch-Code

  	

   

  	

  Dispatch

  
	

   

  	

  o General

  	

  Other 

  
	

   

  	

  Field

  
	

   

  	

  Work

  
	

   

  	

  Location 

  
	

   

  

 

 

Authorization for Voluntary

Assessment

Autorizatión para Deduccions Voluntarios

 

The Collective Bargaining Agreement

between Scheid Vineyards Inc. and the United Farm Workers (effective January

25, 2002 through December 31, 2006), provides in Article 2, Section F that

voluntary assessments of one dollar ($1.00) per week for up to 26 weeks each

year may be deducted from your pay if you authorize such deductions by signing

below.

El Acuerdo Colectivo entre Scheid Vineyards Inc. y la Union de

Campensinos (UFW) (efectivo 25 de enero de 2002 a 31 de dicembre de 2006),

proporciona en Articulo 2, Sección F que deducciones voluntarios de un dollar

($1.00) por semana hasta 26 semanas cada año pueden ser restados de su pago si

usted autoriza las deducciones con su firma en la linea abajo.

 

 

 

o            Yes, please deduct $1.00 per week from my pay for 26

weeks and send it to the United Farm Workers.

                Si, por favor

resta $1.00 por semana de mi pago por 26 semanas y mandelo a la Union de

Campensinos (UFW).

 

o            No, please do not deduct any assessments from my pay.

                No, por favor no

reste deducciones de me pago.

 

                Assessments will begin in the

payroll period after the period in which this form is submitted to the Scheid

Vineyards Payroll Department.

                Las deducciones empezaran en el periodo de pago

después que esta forma sea entregada al departamento de nominas de Scheid

Vineyards.

 

 

 

	

  Name (Please Print)

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Nombre (Por escrito)

  	

   

  	

   

  	

  S.S. #

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Signature / Firma

  	

   

  	

   

  	

  Date / Fecha

  

 

 

33

 

APPENDIX “D”

 

RULES OF

CONDUCT

 

Listed below are examples that illustrate the type of conduct which is

not permitted and may result in disciplinary action or immediate termination.

 

1 .            Obtaining employment on the basis of

false or misleading information.

2.             Falsifying any time card, timekeeping record or

production record.

3.             Fraud - by whatever means.

4.             False remarks about the company or fellow employees.

5.             Using someone else’s identification card or permitting

someone else to use your card to enter the property.

6.             Unauthorized duplication or use of keys or any device

used for locking or securing company premises or property.

7.             Transmission of confidential and/or employee information

to unauthorized persons.

8.             Leaving premises during working hours without written

permission from authorized personnel.

9.             Failure to promptly inform the office (831 - 385-3924/831 - 385-4801) or

immediate supervisor by directly talking to them or by telephone prior to 9:00

a.m. when unable to report to work due to an emergency.

10.           Excessive tardies or absences.

11.           Possessing, using, or being under the

influence of alcohol or drugs in work areas or during work hours.

12.           Violation of sanitation rules.

13.           Unsafe working practices that

endanger you or your fellow worker’s health and safety.

14.           Failure to report industrial injuries

to your crew leader or supervisor immediately after an injury.

15.           Violation of any Fish and Game laws.

16.           Horseplay, immoral conduct, or

indecency.

17.           Using profane, abusive, or derogatory

language.

18.           Fighting, threatening, or disrupting

the work of others.

19.           Possession of any unauthorized type

of weapon in work areas or on company property.

20.           Sleeping on the job during working

hours.

21.           Insubordination, belligerency or

failure or refusal to perform assigned work or exercises.

22.           Slowing or interfering with

production or advocating or encouraging other employees to do so.

23.           Performing work of a personal nature

during working hours.

24.           Abuse, misuse, or theft of company

property, supplies, materials and equipment or the property of another employee.

25.           Failure to obtain permission from

supervisor before using company telephone.

26.           Charging supplies to the company for

personal use.

27.           Smoking in unauthorized areas.

 

 

34

 

28.           Posting notices of any kind on

company property without prior written approval of the company.

29.           Allowing visitors in the work area or

on work equipment.

30.           Gambling or any moral offense.

31.           Carelessness or negligence resulting

in excessive spoilage, damage, waste, loss, or inferior work.

32.           Conviction of a felony or conviction

of any crime which renders you unsuitable for your position.

33.           Solicitation of money or sale of

merchandise on, company property.

34.           Incompetence or inefficiency in the

performance of the duties of the position.

35.           Discourteous or offensive conduct or

language toward other employees or supervisors.

36.           Abuse of illness leave privileges.

37.           Failing to support

or interfering with the company’s goal of being profitable, including failing

to be loyal to the company, working at less than the employee’s full potential,

or creating or promoting dissension among fellow employees.

38.           Three unexcused absences and/or three

tardies during a 90 day period.

39.           Not being available at recall time.

40.           Failure to follow all safety rules

and use all safety equipment required.

 

Employees who violate rules of Scheid Vineyards Inc. are subject to

disciplinary action. In some cases, an employee may receive a verbal or written

warning. Suspension and/or termination may follow if the employee continues to

violate any of the rules. Depending on the seriousness of the violation, it is

possible for the employee to be terminated immediately.

 

This is not a complete list but it does give us a general idea of the

behavior that is expected of employees by Scheid Vineyards Inc. Before you

begin work in a field, you must have read these rules. You will need to sign

the attached form stating that you have read and understand the rules set forth

by Scheid Vineyards Inc.

 

 

35EXHIBIT 10

EXHIBIT 10.32

 

SCHEID VINEYARDS

INC.

13470 Washington

Blvd.

Marina Del Rey, CA

90292

 

March 22, 2001

 

 

PERSONAL DELIVERY

 

Mr. Scott D.

Scheid

3204 Crest Drive

Manhattan Beach,

CA  90266

 

 

 

                                    Re:      Scheid

Vineyards Inc. (the “Company”) —

                                                Terms

of Employment

 

Dear Mr. Scheid:

 

                                This letter

agreement (this “Agreement”) will confirm our mutual understanding that the

terms and conditions pursuant to which the Company has extended and you have

accepted its offer to serve as its President and Chief Operating Officer

(“COO”) are as follows:

 

1.             Position; Services.  You agree to serve as President and COO of

the Company. In such capacities, you shall report to the Company’s Chief

Executive Officer (“CEO”) and Board of Directors.   As President and COO of the Company you shall have such duties

and responsibilities as are normally associated with such positions and such

other duties and/or responsibilities as may from time to time be assigned to

you by the Company’s CEO or its Board of Directors; including but not limited

to, supervision over all of the operational and administrative aspects of the

Company’s business.  You hereby accept

employment hereunder and agree to devote your full time, energy and skill to

such employment.  Notwithstanding the

foregoing, you may engage in other personal business so long as the performance

of such activities does not materially interfere with the full, efficient and

timely performance of your duties hereunder. In the event both you and the

Company agree, the Company may appoint a separate COO who shall report to you

without otherwise affecting the terms and conditions of this Agreement.

 

2.             Term.

 

                The term of this Agreement (the

“Term”) shall be four (4) years, unless sooner terminated as provided herein.

Your services under this Agreement shall commence as of April 1, 2001 (the

“Start Date”), and, unless sooner terminated, shall terminate on March 31,

 

1

 

2005 (the

“Expiration Date”). The Company may terminate your services at any time during

the Term of this Agreement with or without “Cause,” as such term is hereinafter

defined.

 

3.             Compensation.

 

                (a)           As compensation for all services to be rendered by you

hereunder, the Company shall pay you, during the Term of this Agreement, a base

salary at the rate of Two Hundred and Thirty Five Thousand Dollars ($235,000)

per annum (the “Base Salary”) with such increases and/or bonuses as may be

determined from time to time by the Board in its sole discretion; provided

however, nothing herein shall require that the Company pay you any bonus or

increase your Base Salary.  Said Base

Salary shall be payable in equal semi-monthly installments or in such other

installments as the Company may from time to time pay other similarly situated

employees.

 

                (b)           The Term of this Agreement may be terminated prior to the

Expiration Date in the event your employment with the Company ends as a result

of (x) your termination by the Company with “Cause” or without “Cause”; (y)

your voluntary termination; or (z) your death or “disability,” as hereinafter

defined.  For the purposes hereof the

term “disability” shall mean your absence from the Company’s principal offices

or your inability to perform in all material respects your duties pursuant to

this Agreement by reason of mental or physical illness, disability or

incapacity for a period of four (4) months or more during any twelve (12) month

period during the term hereof. Your compensation in the event the Agreement is

terminated prior to the Expiration Date shall be as follows:

 

                                                                (i)

the Company may in its sole discretion terminate you at any time without

“Cause.”  In the event the termination

is without “Cause,” you hereby agree that you shall only be entitled to receive

your then current “Base Salary,” as such term is hereinafter defined, and

benefits through the date of termination and as your entire severance

compensation your then Base Salary for the remainder of the term of this

Agreement (the “Severance Compensation”). Such Severance Compensation shall be

payable when it would have otherwise been due to you;

 

IN CONNECTION WITH

YOUR TERMINATION WITHOUT CAUSE, THE SEVERANCE COMPENSATION PROVIDED IN THIS

SECTION 3(b) SHALL BE PAID TO YOU AS LIQUIDATED DAMAGES FOR ALL CLAIMS YOU

WOULD HAVE WITH RESPECT TO (i) THE TERMINATION OF THIS AGREEMENT,(ii) ANY

COMPENSATION DUE YOU FROM THE COMPANY PURSUANT TO THIS AGREEMENT AND (iii) THE

INJURY TO YOUR REPUTATION AS A RESULT OF SUCH TERMINATION.  IN CONNECTION THEREWITH, THE PARTIES AGREE

THAT IT WOULD BE IMPRACTICAL AND EXTREMELY DIFFICULT TO FIX THE ACTUAL AMOUNT

OF SUCH DAMAGES AND CLAIMS DUE YOU WITH RESPECT THERETO AND THAT SUCH SEVERANCE

 

2

 

BENEFITS SHALL

CONSTITUTE A REALISTIC AND REASONABLE VALUATION OF THE DAMAGES WITH RESPECT TO

YOUR CLAIMS.

 

	

  /s/ AGS

  	

   

  	

  /s/ SS

  
	

  Initial

  	

   

  	

  Initial

  

 

                                                                (ii)            in the event the Agreement terminates as a

result of your death or “disability,” you or your estate shall be entitled to

receive your Base Salary through the date of termination and for ninety (90)

days thereafter, plus all benefits hereunder through the date of termination.

 

                                                                (iii)

         in the event you terminate your

employment voluntarily or are terminated with “Cause,”  you shall be entitled to receive solely your

then current “Base Salary,” plus any accrued and unpaid  benefits due you, through the date of

termination.  For the purposes hereof

“cause” shall be as defined in Exhibit “A” attached hereto and made a

part hereof.

                                                                (iv)          under no circumstances shall the

Company be obligated to pay you any undeclared or declared but unpaid bonuses

in the event of your termination  prior

to the payment thereof.  The payment of

any such bonus shall be at the sole discretion of the Company’s Board of

Directors.

 

                (c)             As consideration

for and a condition precedent to the Company’s obligation to provide the

payments required pursuant to Section 3(b)(i) above, on or before such payment

is made to you pursuant to such Section, you shall simultaneously execute and

deliver to the Company a release, in a form acceptable to the Company and its

counsel, of all claims against the Company arising out of or pursuant to this

Agreement or your employment with the Company pursuant hereto, including any

claims for Severance Benefits or compensation hereunder.

 

4.             Relocation Package.  In connection with the performance of your

services as contemplated in this Agreement, you agree that your office shall be

located at the Company’s principal offices which will be relocated to 305

Hilltown Road, Salinas, CA; the purpose of such relocation being to place the

Company’s headquarters in greater proximity to the Company’s vineyards.  In connection therewith, you intend to

relocate and purchase a new principal residence near such offices and in

connection with your relocation, the Company shall provide you the following

(the “Relocation Package”):

 

                (a)           the compensation and benefits described in that certain

document attached hereto as Exhibit “B” (the “Relocation Package”);

 

3

 

                (b)           a “Settling-In Allowance,” in the sum of (i)  Thirty Thousand Dollars ($30,000)(the

“Affected Payment”)  payable in a lump

sum to you upon your physically relocating your principal place of residence to

Monterey County, CA or a neighboring county (the “Relocation”), plus (ii) the

“Additional Payments” which shall be equal to 

the sum  of any federal, state

and local income taxes and penalties and interest thereon attributable to both

the Affected Payment and the Additional Payments.   You shall receive the Additional Payments concurrently with

Affected Payments.

 

                (c)           The Company agrees to make available to you an interest

free relocation bridge loan (the “Loan”), secured by a Second Deed of Trust on

your current principal residence which shall be funded prior to the closing of

your purchase of your new residence, in the principal amount of Two Hundred

Thousand Dollars ($200,000).  The Loan

shall mature and be payable upon the first to occur of either: (i) the sale of

your current residence or (ii) one (1) year from the date of funding.

 

5.             Benefits.

 

                (a)           During the Term, in addition to the compensation and the

Relocation Package provided for in Sections 3 and 4 of this Agreement

respectively, you shall have the right to: (x) participate in any profit-sharing,

pension, life, health and accident insurance, retirement or other employee

benefit plans presently adopted or which hereafter may be adopted by the

Company under terms no less favorable to those offered or available to other

senior executives of the Company of comparable or lower standing than you; (y)

participate in the Company’s 401(k) Plan in accordance with the terms; and (z)

receive, in the sole discretion of the Board, stock options, restricted stock,

stock appreciation rights or other equity-based compensation (“Discretionary

Compensation”).  Any Discretionary

Compensation granted to you shall be subject to such terms and conditions as

the Board, in its sole discretion, may deem appropriate or necessary.

 

                (b)           During the Term, you shall also be entitled to twenty (20)

days annual vacation time, during which time your compensation will be paid in

full.  Unused vacation days at the end

of any pay period(s) may be carried over to subsequent pay period(s), provided

that the cumulative number of vacation days accruing from and after the date of

this Agreement carried over into any subsequent pay period shall not exceed

twenty-five (25) days.  You shall not

accrue additional vacation days during any pay period once the total number of

accumulated vacation days equals twenty-five (25) days.  You shall under no circumstances be entitled

to cash in lieu of vacation days, except in the event of your termination of

employment with the Company.

 

6.             Expenses.  The Company shall reimburse you for all reasonable

travel, hotel, entertainment and other expenses incurred by you in the

discharge of your duties

 

4

 

hereunder, in

accordance with Company policy regarding same, only after receipt from you of

vouchers, receipts or other reasonable substantiation of such expenses

acceptable to the Company.

 

7.             Indemnification.   In connection with your services rendered on

behalf of the Company during the term of this Agreement, the Company agrees to

indemnify you to the fullest extent permitted by Delaware law.

 

8.             Confidentiality.  You covenant and agree that you will not at

any time during or after the termination of your employment with the Company

reveal, divulge or make known to any person, firm or corporation any

information, knowledge or data of a proprietary nature relating to the business

of the Company or any of its affiliates which is not or has not become

generally known or public.  You shall

hold, in a fiduciary capacity, for the benefit of the Company, all information,

knowledge or data of a proprietary nature, relating to or concerned with, the

operations, customers, developments, strategic plans, new or potential

products, marketing, sales, business and affairs of the Company and its

affiliates which is not generally known to the public and which is or was

obtained by you during your employment by the Company.  You recognize and acknowledge that all such

information, knowledge or data is a valuable and unique asset of the Company,

and accordingly you will not discuss or divulge any such information, knowledge

or data to any person, firm, partnership, corporation or organization other

than to the Company, its affiliates, designees, assignees or successors or

except as may otherwise be required by the law, as ordered by a court or other

governmental body of competent jurisdiction, or in connection with the business

and affairs of the Company.

 

9.             Miscellaneous.

 

                (a)           This Agreement reflects the entire agreement between the

parties with respect to the subject matter hereof and shall supersede any prior

agreements or understandings whether oral or in writing with respect thereto.

This Agreement may not be modified, altered or amended except by an instrument

in writing signed by the parties hereto.

 

                (b)           This Agreement shall be construed in accordance with the

laws of the State of California except to the extent that any provision of

Section 7 hereof may relate to an interpretation of the corporation laws of

Delaware, the state in which the Company is domiciled, in which case such

provision shall be construed in accordance with the corporation laws of that

state.

 

                (c)           Nothing in the Agreement is intended to require or shall

be construed as requiring the Company to do or fail to do any act in violation

of applicable law.  The Company’s

inability pursuant to court order to perform its obligations under this

Agreement shall not constitute a breach of this Agreement.  If any provision of this Agreement is

invalid or unenforceable, the remainder of this Agreement shall nevertheless

remain in full force and effect.

 

5

 

If any provision

is held invalid or unenforceable with respect to particular circumstances, it

shall, nevertheless, remain in full force and effect in all other

circumstances.

 

                (d)           Any arbitrable controversy or claim arising out of or

relating in any way to this Agreement or the breach thereof, or Employee’s

employment, and any arbitrable statutory claims including all arbitrable claims

of employment discrimination or harassment shall be subject to private and

confidential arbitration in the County of Monterey in accordance with the laws

of the State of California.  EXCEPT AS

OTHERWISE EXPRESSLY PROVIDED HEREIN, THE PARTIES AGREE THAT IF A DISPUTE OR

CLAIM OF ANY KIND ARISES BETWEEN THEM, THEY AGREE TO WAIVE ANY RIGHTS EACH MAY

HAVE TO A JURY OR COURT TRIAL.  The

arbitration shall be conducted in a procedurally fair manner by a mutually

agreed upon neutral arbitrator selected in accordance with the National Rules

for the Resolution of Employment Disputes (“Rules”) of the American Arbitration

Association or if none can be mutually agreed upon, then by one arbitrator

appointed pursuant to the Rules; the arbitration shall be conducted

confidentially in accordance with the California Rules of Evidence and the

Rules, except to the extent that the rules are inconsistent herewith; the

arbitration fees shall be paid  by the

Company; each party shall have the right to conduct reasonable discovery

including three (3) depositions, requests for production of documents and such

other discovery as permitted under the Rules or ordered by the arbitrator; the

arbitrator shall have the authority to award any damages or remedies authorized

by law for the claims presented including punitive damages and shall have the

authority to award  reasonable attorneys

fees to the prevailing party as provided 

by law; the decision of the arbitrator shall be final and binding on all

parties and shall be the exclusive remedy of the parties; and the award, and

the legal and factual basis for the award, shall be in writing in accordance

with the Rules, and shall be subject to judicial confirmation, enforcement and

review in accordance with California law.

 

                (e)           Any notice to the Company required or permitted hereunder

shall be given in writing to the Company, either by personal service,

telecopier or, if by mail, by registered or certified mail return receipt

requested, postage prepaid, duly addressed to the President of the Company at

its then principal place of business attention.  Any such notice to you shall be given in a like manner, and if

mailed shall be addressed to you, as set forth above or in the Company’s

records. For the purpose of determining compliance with any time limit herein,

a notice shall be deemed given on the fifth business day following the

postmarked date, if mailed, or the date of delivery if personally delivered or

delivered by telex or telecopier.

 

                (f)            A waiver by either party of any term or condition of this

Agreement or any breach thereof, in any one instance, shall not be deemed or

construed to be a waiver of such term or condition or of any subsequent breach

thereof.

 

                (g)           You acknowledge that you have been advised that Barry L.

Burten, Esq. and other attorneys at Jeffer, Mangels, Butler & Marmaro, LLP

have represented only the

 

6

 

Company in

connection with the negotiation of this Agreement and that the Company has

advised you to seek the advice of separate counsel in connection with the

negotiation of the terms of the Agreement and your rights with respect to the

Agreement.  In connection therewith, you

hereby acknowledge that you have been represented to your satisfaction in

connection with the negotiation of the terms of this Agreement, your rights

with respect to the Agreement, and the execution thereof by independent legal

counsel of your choosing.

 

                                If the

aforementioned terms and conditions accurately reflect your understanding of

our agreement, please date and execute two copies of this Agreement in the

spaces provided and return one fully executed copy of this Agreement to the

Company.

 

	

  Very truly yours,

  
	

   

  
	

  SCHEID VINEYARDS INC.

  
	

   

  
	

   

  
	

   

  
	

  By:

  	

  /s/ Alfred G. Scheid

  
	

   

  	

  Alfred G. Scheid

  
	

   

  	

  Chief Executive Officer

  

 

Accepted and Agreed

to

this 22nd day of

March, 2001

 

 

	

  By:

  	

  /s/ Scott D. Scheid

  
	

   

  	

  Scott D. Scheid

  

 

7

 

EXHIBIT

“A”

 

To the Letter Agreement (the

“Agreement”) Dated March 22, 2001 between

Scheid Vineyards Inc. (the “Company”)

and Scott D. Scheid

 

Definition of “Cause”

 

 

 

“Cause”

means, as used with respect to the involuntary termination of Scott D. Scheid

(“you”):

 

                                (a)           Your continued failure or refusal to

substantially perform your duties pursuant to the terms of the Agreement;

 

                                (b)           Your engaging in misconduct or

inaction materially injurious to the Company; or

 

                                (c)           Your conviction of a felony or of a

crime involving moral turpitude.

 

8

 

EXHIBIT “B”

 

                                                To the

Letter Agreement (the “Agreement”) Dated March 22, 2001 between    Scheid Vineyards Inc. (the “Company”) and

Scott D. Scheid

 

The Relocation Package

 

9

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