Document:

exv10w1

 

Exhibit 10.1

CONTRACT

BETWEEN

STILLWATER MINING COMPANY

AND

USW International Union, Local 1

EAST BOULDER UNIT

 

 

	 	 	 	 	 
	ARTICLES OF AGREEMENT

	 	 	1	 
	 
	 	 	 	 
	ARTICLE 1 RECOGNITION

	 	 	1	 
	 
	 	 	 	 
	ARTICLE 2 NON-DISCRIMINATION

	 	 	1	 
	 
	 	 	 	 
	ARTICLE 3 UNION SECURITY

	 	 	2	 
	 
	 	 	 	 
	ARTICLE 4 MANAGEMENT RIGHTS

	 	 	2	 
	 
	 	 	 	 
	ARTICLE 5 MANAGEMENT-UNION COMMITTEE

	 	 	4	 
	 
	 	 	 	 
	ARTICLE 6 GRIEVANCE AND ARBITRATION

	 	 	4	 
	 
	 	 	 	 
	ARTICLE 7 MEDICAL ARBITRATION

	 	 	7	 
	 
	 	 	 	 
	ARTICLE 8 SENIORITY

	 	 	7	 
	 
	 	 	 	 
	ARTICLE 9 PROBATIONARY PERIOD

	 	 	8	 
	 
	 	 	 	 
	ARTICLE 10 JOB POSTINGS

	 	 	9	 
	 
	 	 	 	 
	ARTICLE 11 LAY-OFF AND RECALL

	 	 	9	 
	 
	 	 	 	 
	ARTICLE 12 SEVERANCE PAY

	 	 	11	 
	 
	 	 	 	 
	ARTICLE 13 HOURS OF WORK AND OVERTIME

	 	 	11	 
	 
	 	 	 	 
	ARTICLE 14 SICK/PERSONAL LEAVE/ATTENDANCE

	 	 	12	 
	 
	 	 	 	 
	ARTICLE 15 CLASSIFICATION AND WAGES

	 	 	14	 
	 
	 	 	 	 
	ARTICLE 16 SAFETY AND HEALTH

	 	 	14	 
	 
	 	 	 	 
	ARTICLE 17 BENEFITS

	 	 	16	 
	 
	 	 	 	 
	ARTICLE 18 HOLIDAYS

	 	 	18	 
	 
	 	 	 	 
	ARTICLE 19 VACATION

	 	 	19	 
	 
	 	 	 	 
	ARTICLE 20 UNION LEAVES OF ABSENCE

	 	 	20	 

 

 

	 	 	 	 	 
	ARTICLE 21 FAMILY AND MEDICAL LEAVE

	 	 	21	 
	 
	 	 	 	 
	ARTICLE 22 MILITARY SERVICE

	 	 	23	 
	 
	 	 	 	 
	ARTICLE 23 BEREAVEMENT LEAVE

	 	 	23	 
	 
	 	 	 	 
	ARTICLE 24 JURY AND WITNESS SERVICE

	 	 	23	 
	 
	 	 	 	 
	ARTICLE 25 CONTRACTING OUT

	 	 	24	 
	 
	 	 	 	 
	ARTICLE 26 MISCELLANEOUS

	 	 	24	 
	 
	 	 	 	 
	ARTICLE 27 MINE/PLANT CLOSURE

	 	 	26	 
	 
	 	 	 	 
	ARTICLE 28 NO STRIKE

	 	 	26	 
	 
	 	 	 	 
	ARTICLE 29 PAST PRACTICE

	 	 	26	 
	 
	 	 	 	 
	ARTICLE 30 VALIDITY

	 	 	26	 
	 
	 	 	 	 
	ARTICLE 31 COMPLETE AGREEMENT

	 	 	27	 
	 
	 	 	 	 
	ARTICLE 32 TERM OF AGREEMENT

	 	 	27	 

 

 

ARTICLES OF AGREEMENT

This Agreement is between Stillwater Mining Company East Boulder Operation (“Company”), its
successors and assigns, and the USW International Union, Local 1 (“Union”), East Boulder Unit, its
successors and assigns.

ARTICLE 1

RECOGNITION

Section 1. The Company recognizes the Union as the sole and exclusive bargaining representative
for the following Company employees employed by the Company at 12 Miles FS 205, McLeod, Montana.
All hourly production and maintenance employees, including warehouse employees, and custodians; but
excluding all temporary employees, student summer hires, professional employees, technical
employees, office clerical employees, guards, dispatchers and supervisors, and those above the rank
of supervisor.

Section 2. The Union’s Workers’ Committee represents Union interests to the Company. The Workers’
Committee will be selected by the Union, and consist of four (4) members, including the Local Unit
Chairman who will be the Chair. The three (3) remaining members will consist of one (1) Miner’s
Representative, one (1) Surface Representative, and one (1) Underground Representative. Alternates
may be selected to replace absent Committee members.

Section 3. The Local Unit Chairman will promptly notify the Company, in writing, of the names of
the Workers’ Committee members and Stewards. The Company will be notified, in writing, of any
changes to these groups.

Section 4. The activities of the Union’s Workers’ Committee will not result in any disruption of
the Company’s operations, and employees will not neglect their duties and responsibilities.

ARTICLE 2

NON-DISCRIMINATION

Section 1. The Company and Union agree that neither will discriminate nor harass any employee or
applicant for employment because of race, creed, marital status, color, age, disability, religion,
national origin or sex in violation of any applicable Federal, State or local law.

-1-

 

ARTICLE 3

UNION SECURITY

Section 1. Every employee covered by this Agreement must, for the life of this Agreement after the
grace period described below, satisfy a financial obligation to the Union as the exclusive
bargaining representative. Under this Agreement, the financial obligation for union members is an
amount equivalent to monthly dues, and for non-members a fee amount, as determined by the Union, to
perform the duties as exclusive representative under this Agreement.

This financial obligation is a condition of continued employment and is in consideration for the
cost of representation and collective bargaining and is not contingent upon present or future
membership in the Union.

The grace period for this Agreement is thirty (30) calendar days following the completion of the
employee’s probationary period or by the thirtieth (30th) calendar day following the effective date
of this Agreement, whichever is later.

Neither the Union, Company, nor any of their officers, agent or members will intimidate or coerce
employees about membership or non-membership in the Union. If any dispute arises as to whether
there has been any violation of this provision (or whether an employee affected by this Agreement
has failed to meet the financial obligation), the dispute will be submitted directly to arbitration
for determination.

The Union will indemnify and save the Company harmless against any and all claims, demands, suits
or other forms of liability that will arise out of or by reason of action taken by the Company
complying with the provisions of this Article.

Section 2. For employees in the bargaining unit, the Company agrees to deduct the Union dues for
the month from the wages due each month, providing each employee from whose check Union dues are to
be deducted has on file a signed payroll deduction authorization.

ARTICLE 4

MANAGEMENT RIGHTS

Section 1. Management retains all the general and traditional rights to manage the business as
well as any rights under the law or agreed by the parties. These rights rest exclusively in
management who are the sole decision makers regarding the Company’s operations. The following list
of specific management rights is not intended to be all-inclusive, but are some of those rights
considered to be general rights of management. The fact that a particular management right is not
included in the following listing does not mean the right does not exist.

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Section 2. The Company has the right to determine the number of employees required by the Company
at any place from time to time, for any and all operations; to determine the jobs, content of jobs
and to modify, combine or end any job, classification, department or operation; to hire, classify,
transfer, promote, demote and layoff employees; to determine qualifications, evaluate performance
and assign and direct the workforce; to maintain order and discipline; and to reprimand, suspend,
discharge and otherwise discipline for just cause.

Section 3. The Company has the right to create and administer rules, policies and procedures.
This will include the right to establish or revise attendance, work, substance abuse, drug and/or
alcohol testing, functional testing and safety rules. The Company has the right to establish or
revise a disciplinary policy to address violations of these rules.

Section 4. The Company also has the right to determine the number and types of facilities and
working places; the kinds and locations of machines, tools and equipment to be used; and the right
to schedule production; to maintain efficiency; to introduce new or improved research methods,
materials, processes, techniques, machinery and equipment, means of processing, distribution and
mining; to set the standards of productivity and the products to be produced; to determine
employees’ working schedules, including, but not limited to, the number of hours and shifts to be
worked; to determine when overtime work is necessary and to assign overtime; to choose customers;
to utilize part-time and temporary employees; to decide where or when training on a particular
operation or job is required, how much training is required and the right to move or retrain
employees; to determine the amount and form of any incentive and/or bonus compensation to be paid
in addition to wages; to establish, implement, modify, suspend or terminate any contract or
incentive program; to use independent contractors to perform any work or services.

Section 5. The Company’s failure to exercise any right or function reserved to it, or the exercise
of a management right in a particular way, will not prevent the Company from exercising any of its
rights in the future or in some other way not in conflict with this Agreement. The only
restrictions on management rights are those expressly provided for in this Agreement.

Section 6. The exercise of these rights alleged to be in conflict with any other provision of this
Agreement will be subject to the grievance and arbitration procedures.

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ARTICLE 5

MANAGEMENT-UNION COMMITTEE

Section 1. The Company and the Union recognize the benefits of an open forum where information,
mutual concerns, interests, and complaints (not covered by the grievance and arbitration
procedures) affecting the workplace can be freely discussed, with a view to exploring possible
solutions which are acceptable and beneficial to employees, the Union and the Company. Without
limiting the opportunity for the Union and the Company to meet informally at the East Boulder
Operations, the parties agree to establish a Management-Union Committee (MUC).

Section 2. The Workers’ Committee will serve as representatives for the Union at MUC meetings.
The Company representatives will be comprised of Senior Management personnel.

Section 3. MUC meetings will normally be held during regular business hours, as necessary, on at
least a quarterly basis. Logistics for the meeting will be mutually agreed upon and coordinated
through the Human Resources Department. Senior Management from the East Boulder Operations will
discuss agenda items with the Local Unit Chairman prior to the meeting. A formal meeting agenda
will be given to all Committee members at least five (5) days prior to the meeting, whenever
possible.

Section 4. For employees on their regularly scheduled shifts, time spent at MUC meetings will be
considered as time worked and will be paid at an employee’s normal base rate. The Company will
make every reasonable effort to schedule the MUC members on shift during MUC meetings.

Section 5. The MUC is limited to joint discussion and consultation, and is not intended to limit
or restrict the rights reserved to the Union or the Company by this Agreement. The Committee is
not intended to take the place of normal communication between employees and the Company, or to
serve as an alternative to the grievance and arbitration procedures of this Agreement.

ARTICLE 6

GRIEVANCE AND ARBITRATION

Section 1. It is recognized that, from time to time, dispute(s) between the Company and its
employees may occur. The employees will try to settle these differences as quickly as possible
with their immediate foreman or supervisor. The employee has the right to be accompanied and
assisted by a Steward or Committee Member. If the disagreement cannot be resolved between the
parties, a grievance may be filed. A “grievance” is a dispute as to the

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interpretation, application, or alleged violation of any of the provisions of this Agreement.

Section 2. Should a grievance arise that is not verbally settled with the immediate supervisor, an
earnest effort will be made to settle such grievances in the following manner:

Step 1: The grievance shall be presented in writing to the Human Resources Department
within fifteen (15) days from the time the employee has knowledge of the occurrence. The
supervisor has fifteen (15) days to respond in writing to the grievance. If the supervisor’s
written answer is not accepted, the Union must advance the grievance through the Human Resources
Department to the applicable manager or his designee in writing within fifteen (15) days
following the supervisor’s written answer.

Step 2: The applicable manager or his designee will have up to fifteen (15) days to
conduct a grievance meeting. The meeting will be comprised of no more than three Union
Representatives and up to three Company Representatives, to include at least one representative
from the department from which the grievance arose. In an earnest effort to resolve the dispute,
the Company and Union will disclose throughout the grievance process, facts and information
relied upon. Following the meeting the Company will have fifteen (15) days to respond in writing
to the grievance. The Union will have fifteen (15) days to respond in writing to the Companies’
answer from the second step meeting.

Section 3. Failure by either party to comply with the time limits set forth in this Article shall
result in the grievance being advanced to the next step. The time limits set forth in this Article
may be extended, in writing, by mutual agreement, on a case-by-case basis. The Company will pay
for time spent by Union representatives in grievance meetings that are scheduled during their
regular working hours.

Section 4. If the answer from the grievance Step 2 meeting is not accepted by the Union, the
grievance will automatically be referred to arbitration. The Company and Union will agree on a
tentative date for the arbitration, not to exceed 50 days following the Union’s notice to the
Company that they do not accept the Company’s Step 2 response.

	 	A.	 	The Company and the Union mutually agree to select a three (3)-member arbitration panel.
The arbitrators will normally reside in the State of Montana and will have direct experience
in collective bargaining disputes. The parties will establish a rotation for the
arbitration panel. Following the hearing, the arbitrator’s decision will be reduced to
writing and submitted to both parties within five (5) working days from the date of the
hearing.

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	 	B.	 	Should the members of the panel be unavailable or in instances where the Company and the
Union determine not to use a member of the Panel, the following procedure will be utilized.
The parties shall refer the grievance to the Federal Mediation and Conciliation Service.
The parties shall request the Federal Mediation Service to submit a panel of seven (7)
arbitrators. Each party shall have the right to reject one panel of arbitrators. Striking
of the first name shall be determined by the flip of a coin and then the parties shall
alternately strike a name until one arbitrator is left. The arbitrator shall be notified of
selection by a letter from the parties requesting that the arbitrator set a time for the
hearing, subject to the availability of the Company and the Union representative.
Arbitration hearings shall be held in Billings, Montana.

Section 5. In rendering a decision, the arbitrator will be governed and limited by this
Agreement’s provisions, applicable law, and the expressed intent of the parties as described in
this Agreement. The arbitrator will have no power to add to, subtract from, or modify any of the
terms and provisions of this Agreement, or substitute his judgment for that of the Company. The
arbitrator will confine his judgment strictly to the facts submitted in the hearing, the evidence
before him, and this Agreement’s express terms and provisions. The arbitrator’s decision will be
final and binding upon the parties.

Section 6. The Company and the Union shall bear the costs of their respective expenses, and shall
share, equally, the cost of the arbitrator.

Section 7. The Union and the employees waive their right to pursue any judicial or administrative
remedy against the Company as to any matter subject to the procedures established in this Article
until such procedures are exhausted. Any settlement under the procedures established under this
Article, short of arbitration, will be binding upon the Company, the Union, and the employees and
will preclude any further administrative or judicial relief.

Section 8. Any employee has the right to have a Steward or Committee Member present if they are
called into a meeting, which may result in disciplinary action.

Section 9. If it is necessary for a Steward or Committee Member to take time off during their
regularly scheduled shift to investigate or resolve a grievance, they shall request the permission
of their immediate supervisor, which permission shall not be unreasonably withheld. When a Steward
or Committee Member enters an area other than their normal work area, they shall inform the
supervisor of that area of their presence and reason for being there. As well, a Steward or
Committee Member shall inform their supervisor when returning to their normal work area or duties.

Section 10. Grievances dealing with suspensions and/or discharges will be moved immediately to
Step 2 of the grievance procedure.

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Section 11. The Union, by not exercising any functions thus reserved to it or by exercising any
such function in a particular way, shall not be deemed to have waived its right to exercise such
function as set forth in this Agreement.

ARTICLE 7

MEDICAL ARBITRATION

Section 1. In the event a dispute arises concerning the physical fitness of an employee to return
to work or to continue to work, an attempt to resolve the dispute by conference or consultation
between a licensed physician selected by the Company and a licensed physician selected by the
Union, will first be made.

Section 2. If no satisfactory conclusion is reached and the Union or the Company so elects, a
Board of three (3) licensed physicians will be selected, one by the Company, one by the Union, and
one by the two so-named, who will decide the case. The decision of the Board will be final and
binding on both parties to this Agreement and retroactive to the date the dispute arose.

Section 3. The Company will bear the expense of the physician of its choice, and the Union will
bear the expense of the physician of its choice. The expense of the third physician will be paid
by the losing party. In the event that the decision of the Board does not result in a clear-cut
losing party, the expense of the third physician will be paid equally by the parties.

ARTICLE 8

SENIORITY

Section 1 . Company seniority will be determined by an employee’s date of original
employment with the Company, or predecessor companies Chevron or Manville, if there has been no
service break. Company seniority will apply only for purpose of applicable benefit plans and
earned vacation.

Section 2. Union seniority will be determined from the employee’s date of original employment with
the Company at its facilities covered by this Agreement or date of employment if there had been a
break in service. An employee’s union seniority will be lost if the employee:

	 	A.	 	Quits.
	 
	 	B.	 	Is discharged for just cause.
	 
	 	C.	 	Fails to work for any reason for two (2) years, or length of service, whichever is less.

	 
	 	D.	 	Fails to return to work upon termination of a leave of absence.

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In addition, an employee’s Union seniority shall be lost if the employee is promoted to a full-time
non-bargaining unit position for a period in excess of one (1) year. If the employee returns to
the bargaining unit, he/she must make the Union whole.

If an employee is re-employed subsequent to termination for an above-stated cause, said employee
shall be considered a new employee for seniority purposes.

Section 3. Department Mine, Concentrator, Underground Maintenance and Warehouse seniority will be
determined by the date on which the employee begins continuous service in one of the following
departments:

	 	A.	 	Mine
	 
	 	B.	 	Concentrator/Concentrator Maintenance/Surface
	 
	 	C.	 	Underground Maintenance
	 
	 	D.	 	Warehouse

The employee will lose department seniority in any previous department once department seniority is
established in any other department.

Section 4. The Company will annually provide the Union with a current seniority list which will
also be posted in the workplace.

Section 5. If employees are hired on the same day, seniority will be decided by the flip of a
coin.

ARTICLE 9

PROBATIONARY PERIOD

Section 1. All new employees will be considered probationary employees for a period of seven
hundred eighty (780) hours worked.

Section 2 Unless Company policies provide otherwise, probationary employees will not be eligible
for any benefits granted to regular employees under this Agreement. No terms of this Agreement
other than this Article and the appropriate wage rate will apply to probationary employees.

Section 3. Employees continued in employment after the end of the probationary period will become
full-time employees and will be credited with continuous service from the original date of hire.

-8-

 

ARTICLE 10

JOB POSTINGS

Section 1. Whenever the Company determines a vacancy, other than a temporary vacancy, exists in
any biddable job classification, or a new job becomes available, the Company will post a job
posting on the bulletin boards for ten (10) consecutive days. Employees desiring to bid on the
vacancy will apply in writing to the Human Resources Department within the allotted ten (10) days.
Laid off employees, who have seniority rights, will be eligible to bid on all job postings. Upon
request, a copy of the job posting and of all bids will be provided to the Local Unit Chairman.

Section 2. The Company will determine the successful candidate based on relevant job-related
criteria utilizing job skills assessment. The requisite skills, knowledge and ability to perform
the relevant tasks of the job may be determined through tests, licenses or certifications.
Employees who have incurred any of the following in the twelve (12) months prior to bidding or
promotion are not entitled to consideration for advancement:

one (1) or more suspensions, or

two (2) or more written safety-related disciplinary actions, or

one (1) or more safety-related lost time incidents, or

one (1) or more MSHA medical reportable incidents.

Section 3. Temporary vacancies of less than ninety (90) days may be filled at the Company’s
discretion.

Section 4. If the successful bidder proves unsatisfactory after a thirty (30) day evaluation
period, or chooses not to continue in the new position within the thirty (30) day evaluation
period, the employee will be returned to the position last held with no loss of seniority. The
Company will then fill the position with the next senior qualified candidate from the original
posting.

Section 5. An employee who is awarded a job posting outside his department cannot bid for another
job for a period of one (1) year. An employee who is awarded a job posting within his department
cannot bid for another job for a period of four (4) months.

ARTICLE 11

LAY-OFF AND RECALL

Section 1. For the purpose of lay-off and recall, qualifications to perform the job(s) concerned
and seniority shall apply. The employee(s) with the least
departmental seniority in the affected classification within the department shall be the first
full-time employee laid off in each department, and so on. Employee(s) displaced from their
classification(s) shall first be entitled to displace the junior

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employee in their department
provided they are qualified to perform the work involved. Employee(s) not qualified to displace
junior employees within their department shall be entitled to displace the junior employee in other
departments, based upon Union seniority, provided they are qualified to perform the work involved.
Upon recall, the last full-time employee laid off will be the first full-time employee recalled,
providing such employee is qualified to perform the job in question, utilizing Union seniority.
Temporary employees and probationary employees will be laid off prior to employees on the seniority
list, unless the temporary or probationary employees have special skills not held by regular
employees.

Section 2. An employee has fifteen (15) days to respond to a recall to work by certified mail.
The fifteen (15) days will begin running when the Company makes its initial attempt to recall.
Unless other arrangements are made, the recalled employee will have up to fifteen (15) days to
return to work after responding to the Company’s offer. Failure to respond or return to work
within the time limits outlined in this Section will result in a loss of seniority.

Section 3. The Company will meet with the MUC Committee to discuss any layoffs or
reduction-in-force prior to implementation. The Company will notify the Union of any pending
layoff or reduction-in-force as far in advance as possible. If a layoff is less than ninety (90)
days in duration, the Company will pay its portion of the cost of fringe benefits during the
layoff.

Section 4. For purposes of this Article, it is understood that an employee’s qualifications to
perform a job will be based on relevant job-related criteria utilizing job Skills Assessment. The
requisite skills, knowledge and ability to perform the relevant tasks of the job may be determined
through tests, licenses or certifications.

Section 5. The proposed creation of a new test, or the elimination or change of an existing test,
shall first be discussed with the area Chief Steward of the affected department. If the parties
aren’t able to agree on such new test or changes, the Union may file a grievance as to the
reasonableness of the test as set forth in this Agreement.

Section 6. Employees on lay off are required to inform the Company of any address changes via
Certified Mail.

Section 7. If a laid-off employee, with recall rights, refuses a reinstatement offer, the employee
forfeits his/her Union seniority.

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ARTICLE 12

SEVERANCE PAY

Section 1. Any full-time employee who loses seniority because of a long-term layoff or a permanent
mine closure will be entitled to one (1) week of severance at the employee’s base rate of pay for
each full year of continuous service with the Company up to a maximum of fifteen (15) weeks of pay.

Any full-time employee who is laid off and granted severance pay pursuant to this section, if
re-employed and subsequently laid off through a reduction-in-force, shall be denied a second
severance pay allowance unless continuous service since re-employment has been one year or more.
Any employee who, is laid off or whose employment is severed and granted severance pay pursuant to
this Section, returns to active work within a length of time which is less than that paid as
severance, may continue to reimburse the Company the excess severance pay within sixty (60) days of
recall. Any excess severance pay repaid to the Company as set forth above, shall be paid to the
employee in the event of a subsequent lay-off.

ARTICLE 13

HOURS OF WORK AND OVERTIME

Section 1. The normal workweek will begin at 7:01 a.m. each Sunday and end at 7:00 a.m. the
following Sunday. Overtime will paid for all hours worked in excess of forty (40) hours during a
workweek.

Section 2. Changes in working schedules (other than temporary incidental changes) will be
discussed with the MUC prior to implementation.

Section 3. An employee who is called back for immediate work after leaving Company
property or who is called for immediate work outside their scheduled working hours, and actually
begins working, will be paid time and one-half (11/2) for work actually performed. Under this
Section, employees will be called out and paid for a minimum of five (5) hours at the time and
one-half (11/2) rate (in lieu of travel time and mileage).

Section 4. If an employee’s regularly scheduled shift is canceled less than ninety (90) minutes
before it is scheduled to begin, the employee will either work a minimum of four (4) hours or be
paid four (4) hours at this regular hourly rate in lieu of work.

Section 5. Upon prior approval of the supervisors involved, employees may mutually agree to
exchange shifts or days off provided the exchange does not cause any disruption or increased cost
to the Company, and that the exchange
does not cause the employee to be on duty more than sixteen (16) hours in any twenty-four (24) hour
period.

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Section 6. The Company agrees that overtime will be distributed as uniformly and equally as
possible and practical within each classification. Employees will not be forced to work overtime
as long as there are employees in their classification who are qualified and willing to work such
overtime. If no qualified employees volunteer to accept requested overtime, the Company will
assign the overtime to a qualified employee, based on reverse order of department seniority.
Employees who decline offered overtime will be charged for the overtime offered as if it has been
worked for the purpose of overtime allocation.

Section 7. Any employee who has worked sixteen (16) consecutive hours will be compensated at
double (2) time for all hours worked over sixteen (16). Any employee who has worked sixteen (16)
or more hours will be allowed a rest period of at least eight (8) hours with no loss of overtime
pay.

Section 8. Pyramiding of overtime is prohibited.

Section 9. For the purpose of computing weekly overtime the following will be considered as time
worked: holidays, jury/witness service, union business involving contract administration or
negotiations for the purpose of renewing this Agreement, which fall on an employee’s regularly
scheduled work day; or meetings, training and conferences required by the Company. These hours
will not exceed the number of hours in the employee’s normal work day.

Section 10. Except for the first shift worked for each work rotation, an employee will
be given twenty-four (24) hours notice of a change in shift. In the event that such twenty-four
(24) hours notice is not given, the employee shall receive one and one-half (11/2) times their base
rate for all hours worked on the first shift of the change. This does not apply to employees
requesting change of rotation.

Section 11. Employees who work a shift other than day shift will be paid a shift differential of
fifty cents ($.50) per hour.

ARTICLE 14

SICK/PERSONAL LEAVE/ATTENDANCE

Section 1. Effective July 1, 2005 and each July 1 during the term of this Agreement, employees who
have completed their probationary period shall have available six (6) full or partial, paid or
unpaid days for sick/personal leave each year as well as one (1) vacation day. The vacation day
may be taken at random and is to be used at the employee’s discretion to cover attendance issues.
This leave is intended for time for which the employee is absent for reasons of non-work related
sickness, injury or accident, emergency or personal business.

Section 2. In order to receive payment for hours absent in a shift under this Article, employees
shall be required to submit on the first shift worked after the

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absence(s), a doctor’s statement
verifying the employee’s inability to work due to his/her own non-occupational illness or injury.

Section 3. Commencing September 2006 and each year thereafter, employees shall be paid a bonus for
all sick/personal days not used from July 1 of the previous year to July 1 of the current year.
Such bonus shall be paid as follows:

	 	 	 
	No. of Unused Days	 	Bonus Calculation
	6

	 	2.00  X  hours/shift  X  base rate  X  6 days
	5

	 	1.75  X  hours/shift  X  base rate  X  5 days
	4

	 	1.50  X  hours/shift  X  base rate  X  4 days
	3

	 	1.50  X  hours/shift  X  base rate  X  3 days
	2

	 	1.25  X  hours/shift  X  base rate  X  2 days
	1

	 	1.00  X  hours/shift  X  base rate  X  1 day

Section 4. Employees who qualify for Short Term Disability (“STD”) benefits are required
to use available vacation, the personal holiday and/or sick /personal days (or a combination
thereof) to satisfy the waiting period. The Company will waive the advanced notice requirements
for an employee electing to use paid vacation.

Section 5. Upon completion of their probationary period, employees shall be granted a pro-rated
number of full or partial, unpaid or paid sick/personal days available for use in the remainder of
the year. Employees completing their probationary period in July, August or September are eligible
for four (4) sick/personal days; in October, November or December, three (3) days; in January,
February or March, two (2) days; or in April, May or June, one (1) day.

Section 6. To maintain order and efficiency in the Stillwater Mining Company operation, employees
must be available to perform their work on a full-time basis. Good attendance, including reporting
to work on time, is a condition of continued employment.

Section 7. Any excused time off covered in the Collective Bargaining Agreement or under State or
Federal employment law will be excluded from this Article; however, proper reporting off procedures
must be followed for all absences.

Section 8. Reporting Off. Employees must call the designated call off number at least thirty (30)
minutes prior to the start of their shift and state the reason for the absence. Calls must be made
by the employee and not from spouses, family
members or others. Employees who report off properly will use one (1) sick/personal day for each
absence.

Section 9. Tardy. Employees will be considered Tardy should he/she call off properly and then
report to work within three (3) hours from the start of his/her

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scheduled shift. Employees who are
tardy will use one (1) sick/personal day upon the third offense. Every tardy thereafter, and
within the twelve (12) month period, will result in the use of one sick/personal day.

Section 10. Employees who fail to properly report off shall be defined as AWOL and shall be
charged sick/personal days as follows:

	 	A.	 	Employee fails to report off properly, but calls within one hour after the start of shift
– uses 2 sick/personal days
	 
	 	B.	 	Employee does not call off – uses 3 sick/personal days

Section 11. Employees who have further absence(s), not otherwise provided for in this Agreement,
will be discharged.

ARTICLE 15

CLASSIFICATION AND WAGES

Section 1. The classifications and rates of pay are attached to this Agreement and will continue
in effect for the duration of this Agreement.

Section 2. Employees temporarily assigned to work in a classification other than their current
classification will continue to be paid the rate of pay for their current classification.

Section 3. Management personnel may perform bargaining unit work when training, investigating,
testing, and in emergencies, or situations in which no qualified bargaining unit employee is
available to do the job required.

Section 4. If a full-time employee is demoted, through no fault of their own, from their regular
classification, the employee will receive the higher rate of pay for a period of one (1) week for
each full year of service at the previous classification, at the time assigned to the lower
classification. There will be no pyramiding of rate retention under this Article.

ARTICLE 16

SAFETY AND HEALTH

Section 1. The Company and the Union believe an effective safety and health program is essential
for employee morale and well-being, as well as the long-
term viability of the Company. Accordingly, the Company recognizes its obligation to prevent,
correct and eliminate all unhealthy and unsafe working conditions and practices. Employees are
also expected to recognize, address and report unhealthy or unsafe working conditions. Further,
employees will

-14-

 

follow all Company safety and health rules and procedures and comply with applicable
State and Federal regulations.

Section 2. The Company will recognize one (1) Safety and Health Committee for the East Boulder
Operations. The respective Safety and Health Committees will consist of representatives elected
annually by members of each work group at each location. These Committees will meet monthly to
discuss safety and health issues, recommend corrective actions, and communicate safety and health
information back to employees.

Section 3. There will be a Joint Safety and Health Review Committee (“JSHRC”) at each location
where a Safety and Health Committee exists. It will be composed of four (4) members of the Safety
and Health Committee and will meet at least quarterly. There will be equal representation of
Company appointees and Union appointees on the JSHRC. Time spent in JSHRC_meetings and approved
activities will be considered as time worked. All matters considered and handled by the JSHRC will
be reduced to writing, and the joint minutes will be maintained and communicated at the monthly
Safety and Health Committee meetings.

Section 4. The Company will conduct occupational health and medical monitoring to measure
exposures in the workplace as appropriate, or upon the recommendation of the JSHRC. Results will
be distributed to the appropriate Safety and Health Committees and the Local Unit Chairman, to the
extent that employee confidentiality is not compromised.

Section 5. The Company will pay for required medical examinations and the results will be kept in
the employee’s confidential medical file. Upon request, a copy of these records will be provided
to the affected employee.

Section 6. Personal protective equipment required by statute or for special tasks not regularly
performed will be provided by the Company at no cost to the employee. Upon employment, the Company
will provide a one-time allocation of other Company required personal protective equipment. The
Company will allow employees to purchase subsequent or additional personal protective equipment
through the warehouse at Company cost. Employees whose personal protective equipment is damaged or
destroyed through abnormal conditions, not attributed to abuse, will receive replacement personal
protective equipment through the warehouse at Company expense.

Section 7. Prescription safety glasses will be provided at a rate of one (1) pair per year.
Replacement non-prescription safety glasses will be available.

Section 8. The Company will provide for an ongoing safety and health training program. The
content of health and safety training courses will be reviewed with the JSHRC prior to selection.
Time spent on Company approved training will be

-15-

 

considered as time worked. The cost of Company
approved training will be paid by the Company and expenses reimbursed based on current Company
policy.

Section 9. No employee will perform unsafe work or be required to perform unsafe work. Employees
performing unsafe work or unsafe practices will be subject to disciplinary action, up to and
including discharge. Refusal to perform unsafe work will not warrant or justify any present or
future disciplinary action.

ARTICLE 17

BENEFITS

Section 1. The Company will provide bargaining unit members with the benefits described in this
Article.

Section 2. There will no unilateral changes by the Company to benefit levels during the life of
this Agreement, except those required by regulatory agencies.

Section 3. BENEFIT PLANS

	 	A.	 	Health Insurance (medical, dental and prescription)

	 	•	 	The Company will pay 80% of premium and Employee will pay 20% of the premium.
Employee premiums will be deducted on a pretax basis. Employee contributions will
be subject to adjustment on January 1 of each year of this Agreement.
	 
	 	•	 	Deductible does not apply to most provider services
	 
	 	•	 	$1,000 / $2,000 out-of-pocket maximum amounts
	 
	 	•	 	Diagnostic and preventative services: No deductible. Payable at 100 percent of
the allowable fee. Dental work involving crowns are designated Type II service.
	 
	 	•	 	Prescriptions

	 	 	 	 	 	 	 
	Generic

	 	$	10	 	 	(maximum 30 day supply)
	Formulary

	 	$	20	 	 	(maximum 30 day supply)
	Non-Formulary

	 	$	30	 	 	(maximum 30 day supply)

	 	•	 	Some maintenance type prescriptions, i.e., high blood pressure, cardiovascular,
insulin. etc., are available in a 90-day supply for the price of (2) co-pays through
a mail order pharmacy.

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	 	•	 	Accident benefits are payable only for services provided within 90 days of the
Accident. After 90 days or $500, whichever comes first, general Plan Benefits
apply.
	 
	 	•	 	Treatment of Chemical Dependency is subject to pre-authorization and case
management

	 	B.	 	Short Term Disability

	 	•	 	Eligibility: All full-time active employees who regularly work at least 30 hours
per week and have completed one (1) year of continuous service.
	 
	 	•	 	Elimination Period: Loss of wages for 40 hours or 5 scheduled shifts, whichever is
less, for Disability due to a non-occupational injury or illness.
	 
	 	•	 	Schedule of Benefits

Less
than 1 year of Company seniority ................ no benefits

1 year of Company seniority, but less than

5 years
of Company seniority ................ 60% benefit up to 26 wks

5 years or more of Company seniority          100% benefit up to 26 wks

	 	C.	 	Long Term Disability

	 	•	 	Waiting Period: 180 days
	 
	 	•	 	Benefit: 60% of regular pay, not to exceed $6,000 per month subject to reduction
by deductible sources of income or Disability Earnings
	 
	 	•	 	Maximum Period: Age 65

	 	D.	 	401(k) Plan and Trust

	 	•	 	Employer contributions are equal to a 1 to 1 match based on an employee’s pretax
contributions up to 6%.
	 
	 	•	 	Employer matching contributions made in non-restricted Company stock
	 
	 	•	 	Maximum employee deferral amount will be 60%; subject to Plan guidelines and
limitations
	 
	 	•	 	During the term of this Agreement, the Company will maintain the current matching
contribution level for the 401(k) Plan and retains the ability to change the form of
match (cash or stock)

-17-

 

	 	E.	 	Vision Service Plan
	 
	 	F.	 	Company Sponsored Life Insurance and Accidental Death & Dismemberment
	 
	 	G.	 	Employee Assistance Plan and Nurse Advisor
	 
	 	H.	 	Employee Stock Purchase Plan
	 
	 	I.	 	Flexible Spending Accounts

Section 4. Revised benefit brochure will be distributed to all employees periodically. This
information is being provided as a summary only and not intended to replace or amend and benefit
Plan Documents or Summary Plan Descriptions.

ARTICLE 18

HOLIDAYS

Section 1. The following days will be considered holidays:

	 	 	 
	New Year’s Day

	 	Good Friday
	Memorial Day

	 	Independence Day
	Labor Day

	 	Thanksgiving
	Day after Thanksgiving

	 	Christmas Eve
	Christmas Day

	 	Personal Holiday

Section 2. Employees who are required to work on any of the above holidays will receive pay at the
rate of time and one-half (11/2) plus holiday pay for all hours worked. Each full-time employee not
required to work on these holidays will receive eight (8) hours pay for such holidays at their
regular rate of pay. Employees scheduled to work on a holiday who fail to report to work will not
receive holiday pay.

Section 3. When a Saturday or Sunday holiday is observed on a weekday, the holiday pay will apply
on that weekday. Employees scheduled to work a rotating shift, will be paid holiday pay on the
calendar day on which the holiday occurs. The actual holiday schedule will be posted each year, as
soon as practical.

Section 4. An employee absent on either the scheduled workday before or after the holiday will not
receive pay if the absence is not scheduled and approved by the Company. An employee who is
receiving disability benefits on both the scheduled workday before and after the holiday will not
receive pay for the holiday.

-18-

 

Section 5. Employees will be entitled to one (1) personal holiday which may be taken after the
employee has completed their probationary period, provided at least one (1) rotation’s notice is
given to the Company. Scheduled annual vacation will take precedence over the scheduling of
personal holidays. In the case where more than one employee per crew requests to take a personal
holiday on the same day, department seniority will govern if the personal holiday had been
scheduled between January 1 and March 31 of any year. Personal holidays will be allocated on a
first come, first serve basis if scheduled after April 1 of any year. Personal holidays will be
allocated and granted based on operational needs and the wishes of the employee. No more than one
(1) person per crew will be allowed off on personal holiday on any particular day, except at
Company discretion. When an employee takes the personal holiday immediately prior to or
immediately after a holiday, the employee will be paid according to this Article, provided that the
employee works the last scheduled shift prior to and the next scheduled shift after the holiday and
the personal holiday. If the personal holiday is not scheduled to be taken in the calendar year,
the employee will be paid for eight (8) hours for the personal holiday at their base rate.
Personal holidays may not be banked or carried over into the next year.

ARTICLE 19

VACATION

Section 1. Employees will be eligible for paid vacation time in accordance with the following
provisions.

	 	 	 	 	 
	Amount of Paid
	Years of Service	 	Vacation Available
	1 through 4
	 	80 hours
	5 through 9
	 	120 hours
	10 or more
	 	160 hours

Section 2. At the beginning of the calendar year, each full-time employee who has completed one
year of continuous service will be credited with vacation based on length of service. Employees
who have less than one year of service, but have completed their probationary period, will be
credited with a pro rata amount of vacation on January 1.

Section 3. At the beginning of each calendar year, full-time employees who have completed fourteen
(14) or more years of continuous service will receive a one thousand dollar ($1,000) bonus.

Section 4. Employees may choose to receive pay in lieu of time off for vacation. Pay in lieu of
time off will also be provided when the Company requests an employee to forego his vacation. If,
due to an extreme situation, the Company

-19-

 

requires an employee to work during a previously scheduled
vacation, the Company will make the employee whole for any verifiable, non-refundable expenses
incurred by the employee. Vacation cannot be carried over into the next calendar year without the
Company’s approval. Vacation must be taken in full-shift increments, unless shift scheduling
dictates otherwise.

Section 5. Vacation schedules will be posted or circulated among employees during the month of
January of each year for employee to indicate their vacation preference. Vacation request forms
will be utilized, with a copy of the approved form returned to the employee. Vacation will be
scheduled to meet the preference of employees whenever possible. In case of conflict over any
vacation period, vacation will be granted in order of department seniority. Where an employee
elects to split a vacation, that employee’s seniority rights will prevail only for the first choice
until all other employees in the vacation unit have had their first choice. It is understood that
the Company retains the right to schedule vacations as operational conditions dictate. However, no
employee will be forced to take vacation which has already been approved at a time undesirable to
the employee. Vacation requests must be pre-authorized by the supervisor at least one (1)
rotation’s notice in advance.

Section 6. Holidays falling during an employee’s vacation will be compensated for by holiday pay
or by a one-day extension of the vacation, as the employee elects.

Section 7. Employees terminating service with the Company will be paid vacation earned in the
current year.

Section 8. For employees on a 12-hour shift schedule, vacation will be taken and paid in ten (10)
hour shift increments.

ARTICLE 20

UNION LEAVES OF ABSENCE

Section 1. The Company may grant a short-term unpaid leave of absence for Union officials or
members to attend Union functions. These leaves will be granted based on the Company’s operational
requirements. Employees will retain service, seniority and benefit during this leave of absence.
Requests for
these leaves must be made by the Union to the Company not less than fourteen (14) days before the
leave.

Section 2. Upon thirty (30) days written notice from the Union, a long-term unpaid leave of
absence to perform work for the Union will be granted for one (1) employee for up to one (1) year.
The employee may elect to return to the employee’s previous classification with a thirty (30) day
written notice for reinstatement from the Union to the Company. The employee will hold and

-20-

 

accumulate seniority and continuous service for all purposes during the leave. Upon request, the
employee will be allowed to continue in the Company Group Health Plan, and any Disability Plans, by
paying the full cost of the benefits during the leave. Reinstatement will be granted if the
employee is physically able to return to the previously held classification, as determined by the
Company paid physical examination. If the employee is physically unable to return to the previous
held classification, the employee will be allowed to return to a job the employee is qualified to
perform, if such job exists.

ARTICLE 21

FAMILY AND MEDICAL LEAVE

Section 1. The Company will comply with all applicable State and Federal laws, which address
employees’ rights to request or obtain family or medical leaves. Employees who have been employed
for at least one (1) year and worked at least 1250 hours during the preceding twelve (12) month
period, shall be granted leave of absence in the event of: the birth of a child and in order to
care for that child; the placement of a child for adoption or foster care, and to care for the
newly placed child; care for a spouse, child, or parent with a serious health condition; or a
serious health condition that makes the employee incapable of performing the essential functions of
his/her job.

Such leave will be guaranteed for up to a maximum of twelve (12) weeks in a rolling twelve (12)
month period. Leave while an employee is off work receiving short-term disability benefits or
worker’s compensation benefits will be designated as Family Medical Leave, to the extent that it
qualifies under State or Federal law, and will run concurrently with Family Medical Leave Act
“FMLA” leave.

Section 2. Request for such leave shall be made through the Human Resources Department. When the
need for leave is foreseeable, the employee shall provide at least thirty (30) days advance notice.
An employee may request more than one (1) family leave within a twelve (12) month period, but the
total time on leave within that period may not exceed twelve (12) weeks.

Section 3. The employee will provide medical certification to the Company confirming the need for
family and medical leave within 15 days of the request
for leave. The request for such leave may require renewal and new medical certification submitted
to the Company every thirty (30) days.

Section 4. Credited service for all purposes under this Agreement will accrue during the period
covered by the family and medical leave of absence. The employee returning from family and medical
leave will be reinstated to the position held prior to the leave, or a comparable position.

-21-

 

Section 5 . Employees will not be disciplined for absences covered under the FMLA.
Employees will not be required to use vacation for approved FMLA absences. However, the Company
will waive the advanced vacation notice requirement for an employee electing to use paid vacation
for this leave.

Available vacation, the personal holiday and/or sick/personal days (or a combination thereof) used
to satisfy the waiting period for short-term disability benefits will not be charged against FMLA
leave entitlement.

Section 6. Represented Employees that are absent from work due to their own
non-occupational illness or injury and are eligible and approved for leave under the FMLA but do
not qualify for STD benefits will be required to substitute paid leave for the unpaid leave
provided under the FMLA.

Employees absent in the above circumstances will be provided the option of using available
regular vacation, personal holiday and/or sick and personal days as paid time to be substituted for
unpaid Family and Medical Leave. The Company will waive the advanced notice requirement for an
employee electing to use paid vacation and/or personal holiday. The order and combination of which
days to be used is at the option of the employee, provided that their selection is made in writing
and received by the Human Resources department no later than 15 days after receiving notice that
such selection needs to be made. If the employee makes no choice to the contrary within the 15
days, the Company will substitute available sick/personal days, regular vacation and the personal
holiday, in that order, for all unpaid Family and Medical leave taken under the circumstances
described herein.

Section 7. Employees will not perform work for pay while on family and medical leave, except with
written permission of the Company.

Section 8. All other requirements and conditions under the FMLA of 1993 shall apply.

-22-

 

ARTICLE 22

MILITARY SERVICE

Section 1. The Company shall accord to each employee who leaves active employment to enter
military service of the United States or Reserve or National Guard, such rights as the employee
shall be entitled to under the Uniform Services and Reemployment Rights Act (USERRA).

Section 2. With the exception of an Executive Order, any employee who is required to attend duty
for the Reserve of the Armed Forces or the National Guard shall be paid, for a period or periods
not to exceed a total of seventeen (17) days per calendar year and such pay shall be the excess of
the employee’s base wages over Government base wage for the period of military leave, not to
include any forms of living expenses.

ARTICLE 23

BEREAVEMENT LEAVE

Section 1. In the event of the death of an employee’s immediate family member, a reasonable period
of unpaid leave will be granted to the employee. Immediate family includes the employee’s spouse,
children, stepchildren, parents, stepparents, brothers, sisters, stepbrothers, stepsisters,
grandparents and grandchildren, and the parents and grandparents of the employee’s spouse.

Section 2. To offset the expenses associated with attending the funeral, any employee who has
completed the probationary period will be paid forty (40) hours of base wages in the event of the
death of a spouse, child or step-child, or twenty-four (24) hours of base wages in the event of the
death of any other immediate family members listed above.

ARTICLE 24

JURY AND WITNESS SERVICE

Section 1. Employees selected for jury duty or subpoenaed for witness service will be allowed the
necessary time off to perform the service. Employees must contact their immediate supervisor prior
to reporting for jury duty or subpoenaed witness service. An employee who reports and is then
released from service must immediately contact the employee’s supervisor to coordinate return to
work. The Company will make reasonable allowances for travel and shift schedules.

Section 2. Regular full-time employees who are absent because of jury duty, government subpoena
where the Company is not a party, or Company

-23-

 

subpoena, will be paid the difference between the jury
duty or specified witness pay and their normal base wages for scheduled shifts missed. Employees
will be required to provide documentation of service to receive applicable pay.

ARTICLE 25

CONTRACTING OUT

Section 1. The Company, having the availability of equipment, skills, manpower, or the time to do
the work, will not contract out classified work now being done by employees of the Company as long
as there are qualified employees or qualified former employees with re-employment rights and
provided such contracting does not result in the layoff of employees or their displacement to other
job classifications covered by this Agreement. This will not apply to the installation of
equipment or construction or any other activities not ordinarily done by employees of the Company.

Section 2. Before commencing any major contract job to be performed on the premises, the Company
will notify the Local Unit Chairman, in writing, describing the nature, scope, and expected
duration of the work to be performed. The Company further agrees that it will meet, as necessary,
with the Local Unit Chairman, to discuss information concerning contracting out. Requests for such
meetings shall not be unreasonably denied.

ARTICLE 26

MISCELLANEOUS

Section 1. In July of each year, mechanics and electricians who are on the seniority list will
receive a tool allowance of four hundred dollars ($400.00) and two hundred dollars ($200.00)
respectively.

Section 2. In July of each year, the Company will provide a one hundred fifty dollar ($150.00)
boot allowance for all employess on the seniority list. It is required that employee’s be in
compliance with Stillwater Mining Company’s safey footwear equipment.

Section 3. The Company will provide a secure bulletin board at each of the locations covered by
this Agreement.

Section 4. Employees in the bargaining unit will have access to their own personnel file, by
appointment with the Human Resources Manager, for the purpose of reviewing it in person. A union
representative may accompany the employee.

-24-

 

Section 5. Required notices may be made by personal service, confirmed facsimile transmission or
certified mail, return receipt requested. The designated party for the Company is the Human
Resources Manager. The designated party for the Union is the International Representative. Each
party will provide the other with the name and address of the individual who is authorized to
receive notices under this Section.

Section 6. Any employee required to work more than two (2) hours beyond the normal quitting time
will be provided with a meal. An additional meal will be furnished for each additional four (4)
hours of continuous work. The Company may, with the agreement of the involved employees, in lieu
of a meal and time to eat the meal, compensate the employee by the payment of one (1) additional
hour at time and one-half (11/2).

Section 7. The Company shall provide reasonable access to East Boulder Mine property to the Local
International Representative, Local President, Local Chairman and Workers Committee members for the
purpose of conducting Union business as provided by existing permits, agreements, plans and
proceedures.

Sectiion 8. The Company shall provide emergency response systems including medical, communication,
and rescue coordination.

Section 9. It was agreed upon that the bus transporting employees to the East Boulder Operations
will not leave the Big Timber designated departure location prior to 5:50 a.m. day shift and 5:50
p.m. night shift, with a site arrival time of fifteen (15) minutes before the start of shift. The
bus is scheduled to depart the property fifteen (15) minutes after the end of shift. If the bus
departs the property more than fifteen (15) minutes after the scheduled departure time as a result
of Company actions, employees will receive one half (1/2) hour of their base pay. It is understood
that employees will arrive at work and be ready on time for their scheduled shift or the Big Timber
departure time will need to be re-adjusted. Bussing shall continue along existing routes including
reasonable locations within the pickup and drop off points as provided by the bussing provider.

Section 10. The Company and the Union shall equally share the expense to print and provide a copy
of this Agreement in booklet form produced by a union print shop, if available, to each employee.

-25-

 

ARTICLE 27

MINE/PLANT CLOSURE

Section 1. The Company agrees it will notify the Union in writing of any mine/plant
closure at least thirty (30) days in advance, or as is practical, in compliance with the Worker
Adjustment Retraining and Notification Act. The Company and the Union shall meet to bargain in
good faith regarding the effect and possible options for employees and the Company.

ARTICLE 28

NO STRIKE

Section 1. During the term of this Agreement, there will be no strike, work stoppage, picketing,
honoring of any picket line at the Company premises, work slowdown, sympathy strike, or any other
form of economic pressure directed against the Company or its services on the part of the Union or
its members covered by this Agreement. The Company will not lock out any bargaining unit employee
during the term of this Agreement.

Section 2. In the event of any breach of this Article, the Union will immediately declare publicly
that such action is unauthorized, will immediately order its members to resume their normal duties
and continue to take any necessary action to correct the problem and restore the Company to full
operation.

ARTICLE 29

PAST PRACTICE

Section 1. This Agreement supercedes any previous oral and written agreements between the Company,
its employees and the Union. The Company will not be bound by any past understandings, practices
and/or customs between the Company, its employees, and the Union on matters not specifically
governed by the terms of this Agreement, except those mutually agreed upon in writing during the
negotiations for this agreement.

ARTICLE 30

VALIDITY

Section 1. Nothing contained in this Agreement will be construed in any way as interfering with
the obligation of the parties to comply with any and all State and Federal laws, or any rules,
regulations, and orders of duly constituted authorities pertaining to matters covered by this
Agreement, and such compliance will not constitute a breach of this Agreement.

-26-

 

Section 2. If any court holds any part of this Agreement invalid, that decision will not
invalidate the entire Agreement.

ARTICLE 31

COMPLETE AGREEMENT

Section 1. This Agreement during its life may be amended only by mutual consent of the parties.
Any amendments made to this Agreement will be reduced to written form and will be duly signed by
the authorized representatives of the Company and the Union.

Section 2. The parties acknowledge that during the negotiations resulting in this Agreement, each
had the unlimited right to make proposals with respect to all subjects of collective bargaining.
The understandings and agreements arrived at by the parties after exercise of that right are
included in this Agreement. Therefore, the Company and the Union each waive the right and each
agrees that the other will not be obligated to bargain collectively with respect to any matter
referred to by this Agreement or with respect to any subject not specifically referred to in this
Agreement, except those required by law, even though the subject may not have been within the
knowledge or contemplation of either or both of the parties at the time that they negotiated this
Agreement.

ARTICLE 32

TERM OF AGREEMENT

Section 1. This Agreement will be in effect from July 1, 2005 until noon July 1, 2008, and if not
terminated at the end of that period by sixty (60)_days written notice by one party to the other
prior to this date, will continue in effect until terminated by either party upon ninety (90) days
written notice of its desire to terminate or modify this Agreement.

-27-

 

With their signatures, the authorized representatives of the parties express their agreement.

	 	 	 	 	 
	STILLWATER MINING COMPANY	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	John Stark	 	 
	Date:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Kris Koss	 	 
	Date:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Clayr Alexander	 	 
	Date:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Jeff Sargent	 	 
	Date:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	USW International Union and its Local 1, East Boulder Unit	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Steven Gentry	 	 
	Date:
	 	 	 	 
	 

	 	 	 	 

-28-

 

	 	 	 	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Brad Shorey	 	 
	Date:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Paul Crnkovich	 	 
	Date:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Tom Tollefeson	 	 
	Date:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Randy Aamodt	 	 
	Date:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	By
	 	 	 	 
	 

	 	 	 	 
	 

	 	Hugh Seward	 	 
	Date:
	 	 	 	 
	 

	 	 	 	 

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APPENDIX A

STILLWATER MINING COMPANY

BARGAINING UNIT BASE RATES STRUCTURE

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	7/1/2005	 	7/1/2006	 	7/1/2007
	Position Title	 	Base Rate	 	Base Rate	 	Base Rate
	Leadman — Mechanic
	 	$	25.57	 	 	$	26.33	 	 	$	27.12	 
	Leadman — Electrician
	 	$	25.57	 	 	$	26.33	 	 	$	27.12	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Mechanic 1
	 	$	23.46	 	 	$	24.16	 	 	$	24.88	 
	Electrician 1
	 	$	23.46	 	 	$	24.16	 	 	$	24.88	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Leadman — Mine/Mill
	 	$	23.34	 	 	$	24.04	 	 	$	24.76	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Leadman Warehouse/
	 	$	22.65	 	 	$	23.33	 	 	$	24.03	 
	Construction/Equipment Operator
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Mechanic II
	 	$	21.61	 	 	$	22.26	 	 	$	22.93	 
	Electrician II
	 	$	21.61	 	 	$	22.26	 	 	$	22.93	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Miner I
	 	$	21.41	 	 	$	22.05	 	 	$	22.71	 
	Mill Operator I
	 	$	21.41	 	 	$	22.05	 	 	$	22.71	 
	U/G Construction I
	 	$	21.41	 	 	$	22.05	 	 	$	22.71	 
	Diamond Driller I
	 	$	21.41	 	 	$	22.05	 	 	$	22.71	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Heavy Equipment Operator I
	 	$	20.40	 	 	$	21.01	 	 	$	21.64	 
	Miner II
	 	$	20.40	 	 	$	21.01	 	 	$	21.64	 
	Sand Plant Operator
	 	$	20.40	 	 	$	21.01	 	 	$	21.64	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	U/G Equipment Operator I
	 	$	20.40	 	 	$	21.01	 	 	$	21.64	 
	Warehouse I
	 	$	20.40	 	 	$	21.01	 	 	$	21.64	 
	U/G Construction II
	 	$	20.40	 	 	$	21.01	 	 	$	21.64	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Mechanic III
	 	$	18.37	 	 	$	18.93	 	 	$	19.49	 
	Electrician III
	 	$	18.37	 	 	$	18.93	 	 	$	19.49	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	U/G Equipment Operator II
	 	$	17.60	 	 	$	18.13	 	 	$	18.67	 
	Diamond Driller II
	 	$	17.60	 	 	$	18.13	 	 	$	18.67	 
	Heavy Equipment Operator II
	 	$	17.60	 	 	$	18.13	 	 	$	18.67	 
	Mill Operator II
	 	$	17.60	 	 	$	18.13	 	 	$	18.67	 
	Lead Custodian
	 	$	17.60	 	 	$	18.13	 	 	$	18.67	 
	UG Construction III
	 	$	17.60	 	 	$	18.13	 	 	$	18.67	 
	Miner III
	 	$	17.60	 	 	$	18.13	 	 	$	18.67	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Equipment Operator III
	 	$	15.47	 	 	$	15.93	 	 	$	16.41	 
	Warehouse II
	 	$	15.47	 	 	$	15.93	 	 	$	16.41	 
	Mill Operator III
	 	$	15.47	 	 	$	15.93	 	 	$	16.41	 
	Custodian
	 	$	15.47	 	 	$	15.93	 	 	$	16.41	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Probationary Rate
	 	$	12.37	 	 	$	12.74	 	 	$	13.12	 

 

Stillwater Mining Company

Local 1

Lines of Progression and Bid Positions

Appendix B

 

 

Memorandum of Understanding

Between

Stillwater Mining Company

East Boulder Operation

AND

USW International Union, Local 1

East Boulder Unit

Stillwater Mining Company (Company), and USW International Union (Union), hereby agree as follows:

The following past practices or prior settlements will be continued throughout the duration of this
Agreement:

1. MOU dated 02/28/03, between Company and Union regarding transfer rights to Columbus facilities
of Stillwater Mining Company.

 

Stillwater Mining Company,

East Boulder Operations

 

 

Company Official

USW International Union, Local 1,

East Boulder Unit

 

 

Union Official

Signed this            day of           , 2005.

 

 

Memorandum of Understanding

Between

Stillwater Mining Company

East Boulder Operation

AND

USW International Union, Local 1

East Boulder Unit

Stillwater Mining Company (Company), and USW International Union (Union), hereby agree as follows:

The following past practices or prior settlements will be continued throughout the duration of this
Agreement:

The Company provides a bonus payment to employees who participate in Mine Rescue and EMS at East
Boulder Operations. The Company agrees to continue its current practice through the life of this
Collective Bargaining Agreement.

 

Stillwater Mining Company,

East Boulder Operations

 

 

Company Official

USW International Union, Local 1,

East Boulder Unit

 

 

Union Official

Signed this            day of           , 2005.

 

 

Memorandum of Understanding

Between

Stillwater Mining Company

East Boulder Operation

AND

USW International Union, Local 1

East Boulder Unit

Stillwater Mining Company (Company), and USW International Union (Union), hereby agree as follows:

A Memorandum of agreement will be developed between the Company and USW International Union, Local
1, East Boulder Unit regarding job transfer opportunities for the Nye mine.

Until such memorandum is written, employees wishing to transfer to the Nye mine should contact the
East Boulder Human Resource department. The Human Resource department will place the employee’s
name on a transfer list.

The Company and Union will finalize the memorandum within sixty (60) days of ratification of the
new contract.

 

Stillwater Mining Company,

East Boulder Operations

 

 

Company Official

USW International Union, Local 1,

East Boulder Unit

 

 

Union Official

Signed this            day of           , 2005

 

 

Memorandum of Understanding

Between

Stillwater Mining Company

East Boulder Operation

AND

USW International Union, Local 1

East Boulder Unit

Stillwater Mining Company (Company), and USW International Union (Union), hereby agree as follows:

The Company agrees to assign (at their respective leadman rate) one bargaining unit employee to act
as a Health and Safety Representative for the East Boulder Operation, once the East Boulder
Operation produces 1,800 tons per day on a sustainable basis or if East Boulder Operation’s safety
incident rate exceeds MSHA’s incident rate for Underground Metal/Non-metal mines during any
six-month period.

 

Stillwater Mining Company,

East Boulder Operations

 

 

Company Official

USW International Union, Local 1,

East Boulder Unit

 

 

Union Official

Signed this            day of           , 2005.

 

 

Memorandum of Understanding

Between

Stillwater Mining Company

East Boulder Operation

AND

USW International Union, Local 1

East Boulder Unit

Based on discussions through the negotiation of the Collective Bargaining Agreement (CBA), the
Company recognizes employee concerns with the East Boulder Operational Incentive (Incentive). The
Company will continue to communicate with employees and the Union on all aspects of the East
Boulder Operational Incentive.

The Company will not make Plan changes which on the average reduce the operational incentive unless
mutually agreed upon with the Union. Structural changes within the Incentive will be discussed
with the Union prior to implementation. Normally the Company will give the Workers Committee
thirty (30) days advance notice of such changes and to the employees involved, one incentive period
prior to implementation. The Union will also be notified of any incidental or administrative
adjustments, which may become necessary throughout the CBA period.

Modifications, exclusive rates, or rate adjustments due to special or abnormal circumstances are
not subject to mutual agreement. Examples may include tunnel rehab, unique construction projects
or other infrequent or one time projects.

This Memorandum of Understanding will expire with the Current Collective Bargaining Agreement.

 

Stillwater Mining Company,

East Boulder Operations

 

 

Company Official

USW International Union, Local 1,

East Boulder Unit

 

 

Union Official

Signed this            day of           , 2005.

 

 

Memorandum of Understanding

Between

Stillwater Mining Company

East Boulder Operation

AND

USW International Union, Local 1

East Boulder Unit

The Company and the Union mutually agree to extend the Labor Agreement set to expire on July 1,
2005 at 12:00 noon Mountain Daylight Time (MDT). This extension will remain in effect until 11:59
pm July 9, 2005 MDT.

 

Stillwater Mining Company,

East Boulder Operations

 

 

Company Official

USW International Union, Local 1,

East Boulder Unit

 

 

Union Official

Signed this            day of           , 2005.

 

 

Memorandum of Understanding

Between

Stillwater Mining Company

East Boulder Operation

AND

USW International Union, Local 1

East Boulder Unit

The Company agrees to review how the Safety Reward component applies to individual incentive
distribution. The intent is for the review and resulting changes to East Boulder’s Operational
Incentive to be effective for the incentive period beginning August 1, 2005.

The Safety Eligibility shall apply only to individuals separate from Attendance Eligibility and
will not affect others within the work group.

This incentive modification may be subject to change if East Boulder Operation’s rolling three
month safety incident rate exceeds MSHA’s incident rate for Underground Metal/Non-metal mines.

This Memorandum of Understanding will expire with the Current Collective Bargaining Agreement.

 

Stillwater Mining Company,

East Boulder Operations

 

 

Company Official

USW International Union, Local 1,

East Boulder Unit

 

 

Union Official

Signed this            day of           , 2005.exv10w1

 

Exhibit 10.1

PHARMION CORPORATION

AMENDED AND RESTATED

2001 NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN

          1.     Purpose. The Amended and Restated 2001 Non-Employee Director Stock Option Plan
(the “Plan”) is intended to promote the interests of Pharmion Corporation (the “Company”) by
providing equity-based compensation as an inducement to obtain and retain the services of qualified
persons who are neither employees nor officers of the Company to serve as members of the Board of
Directors of the Company (the “Board”) which compensation is tied directly to shareholder return.
Effective as of April 1, 2005, the Plan amends and restates the Company’s Amended and Restated 2001
Non-Employee Director Stock Option Plan (which was reapproved by the stockholders of the Company on
September 23, 2003), which amended and restated the Company’s 2001 Non-Employee Director Stock
Option Plan (the “Original Plan”). The stockholders of the Company approved an amendment to
increase the number of shares of Stock that may be offered under the Plan by an additional 100,000
shares on June 1, 2005, from 375,000 shares to 475,000 shares. The expiration date of the Plan,
after which no awards may be granted hereunder, shall be September 23, 2013; provided,
however, that the administration of the Plan shall continue in effect until all matters
relating to the payment of Awards previously granted have been settled.

          2.     Rights to be Granted. Options give an optionee the right for a specified time
period to purchase a specified number of shares of common stock, par value $0.001, of the Company
(the “Stock”). Options granted under the Plan are not intended to be “incentive stock options”
within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”).

          3.     Available Shares. Subject to Section 13 hereof, the aggregate number of shares of
Stock reserved and available for issuance pursuant to awards granted under the Plan is 475,000
shares, as increased annually on the date of each annual meeting of the Company’s stockholders
following an IPO (as defined below) by an amount of shares equal to the lesser of (i) 50,000 shares
of Stock or (ii) such lesser number of shares as determined by the Board. Shares subject to the
Plan are authorized but unissued shares or shares that were once issued and subsequently reacquired
by the Company. If any options granted under the Plan are surrendered before exercise or lapse
without exercise, in whole or in part, the shares reserved therefor revert to and continue to be
available for grant under the Plan.

          4.     Administration. The Plan shall be administered by the Board or the Compensation
Committee of the Board or such other committee of the Board comprising of at least two people as
the Board may appoint to administer the Plan (the entity administering the plan from time to time
is hereafter referred to as the “Committee”). The Committee shall have the power to construe the
Plan, to determine all questions thereunder, and to adopt and amend such rules and regulations for
the administration of the Plan as it may deem desirable.

 

 

          5.     Award Agreement. Each award granted under the provisions of the Plan shall be
evidenced by an award agreement, in such form as may be approved by the Committee, which agreement
shall be duly executed and delivered on behalf of the Company and by the individual to whom such
award is granted. Each agreement shall contain such terms, provisions, and conditions not
inconsistent with the Plan as may be determined by the Committee.

          6.     Eligibility and Limitations. Awards may be granted pursuant to the Plan only to
non-employee members of the Board (each, a “Non-Employee Director”).

          7.     Option Price. The exercise price of the Stock covered by the automatic grant of an
option pursuant to Section 8 shall be the “Fair Market Value” of the Stock on the date of grant.
For purposes of the Plan, the Fair Market Value of the Stock as of any date means (i) if the Stock
is listed on a national securities exchange, the closing price on the primary exchange with which
the Stock is listed and traded on the date prior to such date, or, if there is no such sale on that
date, then on the last preceding date on which such a sale was reported; (ii) if the Stock is not
listed on any national securities exchange but is quoted in the NASDAQ National Market System on a
last sale basis, the closing price reported on the date prior to such date, or, if there is no such
sale on that date, then on the last preceding date on which a sale was reported; (iii) if the Stock
is not listed on a national securities exchange nor quoted in the NASDAQ National Market System on
a last sale basis, the amount determined by the Committee to be the fair market value based upon a
good faith attempt to value the Stock accurately and computed in accordance with applicable
regulations of the Internal Revenue Service; or (iv) notwithstanding clauses (i) — (iii) above,
with respect to options granted as of the consummation of an initial public offering (an “IPO”),
the price at which Stock is initially offered to the public in such IPO.

          8.     Automatic Grant of Options.

               (a)     Catch-Up Grants. Prior to February 11, 2003, pursuant to the terms of the Original Plan,
each Non-Employee Director received an initial grant (an “Original Plan Option”) of an option to
purchase 12,500 (adjusted to take into account the 1 for 4 reverse stock split effective as of
September 25, 2003 (the “Reverse Split”)) shares of Stock either on April 17, 2001, the date of the
adoption of the Original Plan (the “Original Effective Date”), or upon such other date that an
individual became a Non-Employee Director (the date upon which such grant was made, the “Original
Grant Date”). Effective as of February 11, 2003, each Non-Employee Director who has received an
Original Plan Option, other than any Non-Employee Director who has received an option to purchase
shares of Stock pursuant to a consulting or similar arrangement with the Company, shall be
automatically granted, without further action by the Committee, an option to purchase 12,500
(adjusted for the Reverse Split) shares of Stock (a “Catch-Up Option”).

               (b)     Initial Grant. Unless action is taken by the Committee to reduce such number, in the
event an individual who was not a Non-Employee Director on February 11, 2003 subsequently becomes a
Non-Employee Director, such Non-Employee Director shall be automatically granted, on the date upon
which such individual first becomes a Non-Employee Director, without further action by the
Committee, an option to purchase 25,000 shares of Stock.

2

 

               (c)     Annual Grant. Prior to February 11, 2003, pursuant to the terms of the Original Plan, on
the first anniversary of the Original Effective Date, each Non-Employee Director on such date
received a grant of an option to purchase 1,250 (adjusted for the Reverse Split) shares of Stock.
Unless action is taken by the Committee to reduce such number, commencing on the second anniversary
of the Original Effective Date, each year, on the anniversary of the Original Effective Date (or,
if an IPO has occurred, the date of the Company’s Annual Meeting of Stockholders), each
Non-Employee Director shall be automatically granted on such date, without further action by the
Committee, an option to purchase 5,000 shares of Stock.

          9.     Period of Option. The options granted hereunder shall expire on a date which is
ten (10) years after the date of grant of the options.

          10.     Exercise of Option. Options shall be exercised by the delivery to the Company at
its principal office or at such other address as may be established by the Committee of written
notice of the number of shares of Stock with respect to which the option is being exercised
accompanied by payment in full of the purchase price of such shares. Unless otherwise determined
by the Committee at the time of grant, payment for such shares may be made in cash or by bank check
(acceptable to the Committee) or, in the discretion of the Committee, (i) in shares of Stock
(valued at the Fair Market Value at the time the Option is exercised) having in the aggregate a
value equal to the aggregate exercise price, which either (a) have been held by the Non-Employee
Director for at least six-months, or (b) were acquired from a person other than the Company, (ii)
in other property having a Fair Market Value on the date of exercise equal to the aggregate
exercise price, or (iii) following the date of an IPO, by delivering to the Committee a copy of
irrevocable instructions to a stockbroker to deliver promptly to the Company an amount of sale or
loan proceeds sufficient to pay the aggregate exercise price; provided, however, that the Company
shall not directly or indirectly, extend or maintain credit, or arrange for the extension of
credit, in the form of a personal loan to or for any Non-Employee Director under (iii) above, or
otherwise, in violation of Section 402 of the Sarbanes-Oxley Act of 2002.

          11.     Exercisability and Vesting of Shares; Non-Transferability of Options.

               (a)     Exercisability. Options automatically granted under the Plan pursuant to Section 8 shall
be immediately exercisable and shall vest in accordance with the applicable vesting provisions
contained in subsection (b) hereof. In the event an optionee elects to exercise an option granted
pursuant to Section 8 which is partially or wholly nonvested, the Stock received in respect of the
nonvested portion of the option (the “Special Restricted Stock”) shall initially be nonvested and
subject to repurchase by the Company upon an optionee’s ceasing to be a member of the Board for any
reason, at the exercise price paid per share, with the Special Restricted Stock vesting, and the
Company’s repurchase right on such Special Restricted Stock lapsing, on the same date or dates that
such nonvested portion of the option would otherwise have vested (had it remained unexercised) in
accordance with subsection (ii) and (iii) of subsection 11(b) hereof; provided, however, that in no
event shall any additional shares of Special Restricted Stock vest after the optionee’s cessation
from service as a Non-Employee Director.

3

 

               (b)     Vesting.

                    (i)     Each Original Plan Option and each Catch-Up Option shall vest as to 25% on the Original
Grant Date, and the remainder shall vest ratably on each of the first three anniversaries of the
Original Grant Date.

                    (ii)     Each initial grant of options pursuant to Section 8(b) which is granted at any time on or
after February 11, 2003 shall vest ratably on each of the first four anniversaries of the date of
grant of such options.

                    (iii)     Each annual grant of options described in Section 8(c) hereof shall vest 100% on the
first anniversary of the date of grant of such options.

               (c)     Legend on Certificates. The certificates representing shares of Stock acquired under the
Plan shall carry such appropriate legend, and such written instructions shall be given to the
Company’s transfer agent, as may be deemed necessary or advisable by the Committee or counsel to
the Company.

               (d)     Non-Transferability. Unless otherwise determined by the Committee, either at the time of
grant or prior to the time of transfer, options granted pursuant to the Plan shall not be
assignable or transferable other than by will or the laws of descent and distribution, and shall be
exercisable during an optionee’s lifetime only by him.

          12.     Termination of Option Rights. (a) In the event an optionee ceases to be a member
of the Board for any reason, all unvested options shall be forfeited back to the Company and any
then unexercised options granted to such optionee which were exercisable at the time the optionee
ceased to be a member of the Board may be exercised until the earlier of the last day of the option
term or the date that is three months after the date of such termination as a Board member.

               (b)     In addition to the Company’s right to repurchase Special Restricted Stock as described in
Section 11(a), at any time prior to an IPO, in the event an optionee ceases to be a member of the
Board for any reason, the Committee may, in its discretion, and on terms it considers appropriate,
require an optionee, or the executors or administrators of an optionee’s estate, to sell back to
the Company all shares of Stock (other than Special Restricted Stock) at a price equal to the Fair
Market Value at the time of repurchase.

          13.     Adjustments Upon Changes in Capitalization and other Matters.

               (a)     Awards granted under the Plan, any agreements evidencing such awards and the maximum
number of shares of Stock subject to all awards under the Plan may be subject to adjustment or
substitution, as determined by the Committee in its sole discretion, as to the number, price or
kind of a share of Stock or other consideration subject to such awards or as otherwise determined
by the Committee to be equitable (i) in the event of changes in the outstanding Stock or in the
capital structure of the Company by reason of stock dividends, stock splits, reverse stock splits,
recapitalizations, reorganizations, mergers, consolidations, combinations, exchanges, or other
relevant changes in capitalization occurring after the date of grant of any such option or (ii) in
the event of any change in applicable laws or any change in

4

 

circumstances which results in or would result in any substantial dilution or enlargement of
the rights granted to, or available for, participants in the Plan, or (iii) for any other reason
which the Committee, in its sole discretion, determines otherwise warrants equitable adjustment
because it interferes with the intended operation of the Plan. The Company shall give each
participant notice of an adjustment hereunder and, upon notice, such adjustment shall be conclusive
and binding for all purposes.

               (b)     Notwithstanding the above, in the event of any of the following:

                    (i)     the Company is merged or consolidated with another corporation or entity such that after
such merger or consolidation the Company is not the surviving entity or the ultimate parent of the
surviving entity;

                    (ii)     all or substantially all of the assets of the Company or the Stock are acquired by
another person or entity;

                    (iii)     the reorganization or liquidation of the Company; or

                    (iv)     the Company shall enter into a written agreement to undergo an event described in clauses
(i), (ii) or (iii) above,

then the Committee may, in its discretion and upon at least 10 days advance notice to the affected
persons, cancel any outstanding options and pay to the holders thereof, in cash or Stock, the value
of such options based upon the price per share of Stock received or to be received by other
shareholders of the Company in the event. The terms of this Section 13 may be varied by the
Committee in any particular option agreement.

          14.     Compliance with the Law.

               (a)     The Company is relieved from any liability for the nonissuance or non-transfer or any
delay in issuance or transfer of any shares of Stock subject to award under the Plan which results
from the inability of the Company to obtain, or any delay in obtaining from any regulatory body
having jurisdiction, all requisite authority to issue or transfer shares of Stock of the Company
upon exercise of the options under the Plan or shares of Stock issued as a result of such exercise
of the options, if counsel for the Company deems such authority necessary for lawful issuance or
transfer of any such shares. Appropriate legends may be placed on the stock certificates
evidencing shares issued pursuant to any award to reflect such transfer restrictions.

               (b)     Each award granted under the Plan is subject to the requirement that if at any time the
Committee determines, in its discretion, that the listing, registration or qualification of shares
of Stock issuable pursuant to an award is required by any securities exchange or under any state or
Federal law, or that the consent or approval of any governmental regulatory body is necessary or
desirable as a condition of, or in connection with, the grant of an award or the issuance of shares
of Stock pursuant to an award, no shares of Stock shall be issued, in whole or in part, unless such
listing, registration, qualification, consent or approval has been effected or obtained free of any
conditions or with such conditions as are acceptable to the Committee.

5

 

          15.     Representation of Optionee. The Company may require the optionee to deliver
written warranties and representations upon exercise of the option that are necessary to show
compliance with federal and state securities laws including to the effect that a purchase of shares
under the option is made for investment and not with a view to their distribution (as that term is
used in the Securities Act of 1933).

          16.     Termination and Amendment of Plan. The Board may at any time terminate the Plan
or make such modification or amendment thereof as it deems advisable. Termination or any
modification or amendment of the Plan shall not, without consent of a participant, affect his
rights under an option previously granted to him.

*                    *                    *

As adopted by the Board of Directors of Pharmion Corporation as of February 11, 2003, as amended
and restated as of February 11, 2003, September 23, 2003 and April 1, 2005.

	 	 	 	 	 
	 	 	 
	By:  	/s/ Patrick J. Mahaffy
 	 	 
	Title:  	President and Chief Executive Officer 	 	 
	 	 	 	 
	 	 

6

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