Document:

exv10w1

Exhibit 10.1

CONTRACT

BETWEEN

STILLWATER MINING COMPANY

AND

USW INTERNATIONAL UNION

And ITS Local 11-0001

July 9, 2011  —  June 1, 2015

 

 

	 	 	 	 	 

	ARTICLES OF AGREEMENT
	 	 	4	 
	ARTICLE 1 — RECOGNITION
	 	 	4	 
	ARTICLE 2 — TERM OF AGREEMENT
	 	 	5	 
	ARTICLE 3 — NON DISCRIMINATION
	 	 	5	 
	ARTICLE 4 — UNION SECURITY
	 	 	5	 
	ARTICLE 5 — MANAGEMENT-UNION COMMITTEE
	 	 	6	 
	ARTICLE 6 — GRIEVANCE AND ARBITRATION
	 	 	7	 
	ARTICLE 7 — MEDICAL ARBITRATION
	 	 	9	 
	ARTICLE 8 — HEALTH AND SAFETY
	 	 	9	 
	ARTICLE 9 — SENIORITY
	 	 	11	 
	ARTICLE 10 — JOB POSTINGS
	 	 	12	 
	ARTICLE 11 — PROBATIONARY PERIOD
	 	 	14	 
	ARTICLE 12 — PERFORMANCE IMPROVEMENT
PLAN/ PROGRESSIVE DISCIPLINE/ ATTENDANCE
	 	 	14	 
	ARTICLE 13 — HOURS OF WORK AND OVERTIME
	 	 	16	 
	ARTICLE 14 — SICK/PERSONAL LEAVE
	 	 	17	 
	ARTICLE 15 — LAY-OFF AND RECALL
	 	 	19	 
	ARTICLE 16 — SEVERANCE PAY
	 	 	20	 
	ARTICLE 17 — CLASSIFICATION AND WAGES
	 	 	20	 
	ARTICLE 18 — BENEFITS
	 	 	21	 

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	ARTICLE 19 — HOLIDAYS
	 	 	23	 
	ARTICLE 20 — VACATION
	 	 	25	 
	ARTICLE 21 — UNION LEAVES OF ABSENCE
	 	 	27	 
	ARTICLE 22 — FAMILY AND MEDICAL LEAVE
	 	 	27	 
	ARTICLE 23 — MILITARY SERVICE
	 	 	29	 
	ARTICLE 24 — BEREAVEMENT LEAVE
	 	 	29	 
	ARTICLE 25 — JURY AND WITNESS DUTY
	 	 	29	 
	ARTICLE 26 — CONTRACTING OUT
	 	 	30	 
	ARTICLE 27 — MANAGEMENT RIGHTS
	 	 	30	 
	ARTICLE 28 — MINE/PLANT CLOSURE
	 	 	31	 
	ARTICLE 29 — NO STRIKE
	 	 	32	 
	ARTICLE 30 — PAST PRACTICE
	 	 	32	 
	ARTICLE 31 — VALIDITY
	 	 	32	 
	ARTICLE 32 — MISCELLANEOUS
	 	 	32	 
	ARTICLE 33 — COMPLETE AGREEMENT
	 	 	35	 

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ARTICLES OF AGREEMENT

This Agreement dated July 9, 2011, is made and entered into by and between Stillwater Mining
Company (hereinafter referred to as the “Company”) its successors and assigns, and the USW
International Union, Local 11-0001 (hereinafter referred to as the “Union”) its successors and
assigns. The general purpose of this agreement is to foster and promote a consistent, stable and
cooperative relationship between the Company and its represented employees and to promote the
mutual interests of the Company and the Union. By setting forth mutual promises and obligations
herein assumed, the parties agree as follows:

ARTICLE 1

RECOGNITION

Section 1. The Company recognizes the Union as the sole and exclusive bargaining
representative for the purpose of collective bargaining with respect to rates of pay, benefits,
hours of employment and other conditions of employment pertaining to all Stillwater Mining Company
employees employed by the Company at the facilities at 2562 Nye Road, Nye, Montana; and the
facilities at 1891 1st Avenue South and 1730 1st Avenue South, Columbus,
Montana, to wit: All hourly production and maintenance employees, including warehouse employees,
laboratory technicians and custodians; but excluding all temporary employees, student summer hires,
professional and technical employees, office clerical employees, guards, dispatchers and
supervisors, and those above the rank of supervisor, as defined in the act; National Labor
Relations Board case number 27-RC-7563, Certification dated December 19, 1995.

Section 2. The Company recognizes that the Union’s Workers’ Committee is the duly selected body
which represents Union interests to the Company. The Workers’ Committee shall be selected by the
Union, and consist of seven (7) members, including the Local Union President who shall be Chair.
The six (6) remaining members of the Workers’ Committee shall consist of three (3) from the Mine,
one (1) from the Concentrator/Surface, one (1) from the Smelter/BMR/Laboratory, and one (1) from
Maintenance/Warehouse. Alternates may be selected from any department by the Union to replace
members of the Committee who may be absent.

Section 3. The Local Union President shall promptly notify the Company, in writing, of the names of
the members of the Workers’ Committee and such stewards as it may select. The Company will be
notified, in writing, of any changes and shall not be required to recognize the above until
notified in writing.

Section 4. The Company recognizes the Workers’ Committee as the bargaining committee for purposes
of collective bargaining; as representatives in the Management-Union Committee meetings as set
forth in Article 5; and as Chief Stewards as set forth in Article 6. The
Company

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recognizes the
role of the International Union Representative. As such, the International Union Representative
may be present at meetings between Management and the Union, provided notice is given in advance.
The Union agrees that such activities will not result in any disruption of the Company’s
operations, and employees will not neglect their duties and responsibilities.

ARTICLE 2

TERM OF AGREEMENT

Section 1. This agreement shall remain in effect from 12:01 a.m. July 1, 2011 until 11:59 p.m.
June 1, 2015, 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, shall continue in effect thereafter until terminated by
either party upon ninety (90) days written notice of its desire to terminate or modify this
Agreement.

ARTICLE 3

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.

Section 2. There shall be no discrimination or harassment by the Company, its officers, or agents,
or the Union, or its members against any employee because of membership or non-membership in any
lawful union, participation or non-participation in any lawful union activity, or because any
employee has exercised or failed to exercise any right specifically provided under this Agreement.

ARTICLE 4

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.

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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 as set forth in Article 11, or by the thirtieth
(30th) calendar day following the effective date of this Agreement, whichever is later.

Neither the Union or Company, nor any of their officers, agents or members shall 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 shall be submitted directly to
the arbitration clause, as set forth in Article 6 for determination.

The Union shall indemnify and save the Company harmless against any and all claims, demands, suits
or other forms of liability that shall arise out of or by reason of action taken by the Company in
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, provided each employee from whose check Union dues are to
be deducted has on file a signed payroll deduction authorization.

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 under Article 6) affecting the
workplace can be freely discussed, with a view to exploring solutions, which are acceptable and
beneficial to the Union and the Company. Without limiting the opportunity for the Union and the
Company to meet informally at the Nye or Columbus facilities, 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.
Alternates will be selected by the Union. The Company representatives will be comprised of
Management personnel from equally covered departments.

Section 3. MUC meetings will be held during regular business hours, normally on at least a monthly
basis. Logistics for the meeting will be mutually agreed upon, and coordinated through the Human
Resources Department. Senior Management from the Nye and Columbus facilities will discuss agenda
items with the Local Union President prior to the meeting. A formal meeting agenda will be given
to all committee members at least five (5) days prior to the meeting.

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Section 4. For employees, time spent at MUC meetings will be considered as time worked and will be
paid at an employee’s normal base rate, including reasonable travel time. Members attending the
MUC meetings during their normally scheduled work hours will be made whole for any lost wages
incurred as a result of attendance at the MUC meeting. The Company will make every reasonable
effort to schedule the MUC members on shift during MUC meetings.

Section 5. The Union and the Company agree that the Management-Union Committee is limited to joint
discussions and consultation, and it is in no way 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, or to interfere with or attempt to
renegotiate any of the provisions of this Agreement, except as set forth in Article 33.

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 Chief Steward. If the disagreement cannot be resolved between the
parties, a grievance may be filed. A “grievance” is a dispute as to the 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 or filing Union Steward, Chief
Steward, or Union President 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 

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	 	 	 	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.
	 
	 	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.

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

Section 9. If it is necessary for a steward or Chief Steward 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 Chief Steward 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 Chief Steward
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.

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 shall first be made.

Section 2. If no satisfactory conclusion is reached by the above, and the Union 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 shall be final and binding
on both parties to the Agreement and retroactive to the date the dispute arose.

Section 3. The Company shall bear the expense of the physician of its choice, and the Union shall
bear the expense of the physician of its choice. The expense of the third physician shall 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 shall be borne equally by the parties.

ARTICLE 8

HEALTH AND SAFETY

Section 1. The Company and the Union believe an effective health and safety 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

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shall 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) Joint Health and Safety Committee for the Nye
facilities and one (1) Joint Health and Safety Committee for the Columbus facilities. The Nye
Committee will consist of six (6) Union representatives and six (6) Management representatives.
The Company and the Union will keep each other informed of their respective Committee members.
These Committees will meet monthly to discuss health and safety issues, recommend corrective
actions, and communicate health and safety information back to employees.

Section 3. Time spent in Joint Health and Safety Committees meetings and approved activities will
be considered as time worked. All matters considered and handled by the Joint Health and Safety
Committees will be reduced to writing, and the joint minutes will be maintained and communicated at
the monthly Joint Health and Safety Committee meetings.

Section 4. The Joint Health and Safety Committee will assign (at their respective leadman rate) one
bargaining unit employee to act as a Health and Safety Representative for the Nye mine. The Health
and Safety Representative shall serve at the discretion of the Joint Health and Safety Committee
and will be reviewed annually by the Nye facilities Joint Health and Safety Committee. The
Committee shall establish duties and responsibilities as well as qualifications for the
Representative. The Representative shall provide updates to the Committee on a monthly basis and
administratively shall report to the Nye Safety Manager.

Section 5. The Company will conduct occupational health and medical monitoring to measure
exposures in the workplace as appropriate, or upon the recommendation of the appropriate Health and
Safety Committee. Results will be distributed to the appropriate Health and Safety Committees and
the Local Union President, to the extent that employee confidentiality is not compromised.

Section 6. 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. Required medical examinations must be scheduled on employees day off and
the Company will pay employees at their base rate pay, four (4) hours pay for any Company required
medical examination.

Section 7. Personal protective equipment (PPE) required by statute, Company policy 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 PPE is
damaged or destroyed through abnormal conditions, not attributed to abuse, will receive replacement
PPE through the warehouse at Company expense. Employees will receive replacement PPE, excluding
boots, when the PPE is damaged or worn out and not attributable to abuse and is returned to their
supervisor.

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Section 8. Prescription safety glasses will be provided at a rate of one (1) pair per year.
Replacement non-prescription safety glasses will be available.

Section 9. The Company will provide for an ongoing health and safety training program. The content
of health and safety training courses will be reviewed with the Health and Safety Committees prior
to selection. Time spent on Company approved training will be 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 10. 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 9

SENIORITY

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

Section 2. Union seniority shall be determined from the employee’s date of original employment with
the Company in bargaining unit positions at its facilities covered by this agreement, or with
predecessor companies Chevron or Manville, if there had been no break in service.

Section 3. Union seniority shall be lost if:

	 	A.	 	the employee quits.
	 
	 	B.	 	the employee is discharged for just cause.
	 
	 	C.	 	The employee fails to work for any reason for two (2) years, or length of
service, whichever is less.
	 
	 	D.	 	The employee fails to return to work after discharge from the military service in
accordance with USERRA.
	 
	 	E.	 	the employee fails to return to work upon termination of a leave of absence.

In addition beginning with the effective date of this agreement, an employee’s seniority shall
be lost if the employee is promoted to a full-time non-bargaining position for a period in excess
of ninety (90) calendar days.

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.

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Section 4. A seniority list shall be compiled and revised as necessary, but no less often than
every six (6) months. The current seniority list will be posted in the workplace, with a copy to
the Local Union President.

Section 5. In the event there is a tie based on seniority dates, seniority shall, in each
application, be decided by the birthday rule. For example, a January 1 birth date would be senior
over any other date in a calendar year, without the employee’s age being a factor.

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 bulletin covering such classification on the bulletin
boards in all of the following departments:

     a. Mine

     b. Concentrator/Concentrator Maintenance/Surface

     c. Mine Maintenance

     d. Warehouse

     e. Metallurgical Complex/Smelter/BMR/Laboratory/Maintenance.

The bid will remain posted for ten (10) consecutive days. Employees desiring to bid on the vacancy
shall apply in writing to the Human Resources Department within the allotted ten (10) days. Upon
request, a copy of the job posting and of all bids shall be provided to the Local Union President.
At the end of the ten (10) days, the successful, senior qualified candidate will be determined
based on union seniority. If no qualified candidate from within the bargaining unit applies or no
bid is received within the time frame set forth above, the job may be filled by the Company from
any other sources. Any job posting that has not been filled within sixty (60) days of the date of
original posting shall expire.

For purposes of this Article, it is understood that an employee’s qualifications to perform a job
will be based on any relevant job-related criteria, utilizing established Job Classification —
Task Proficiency Matrices. 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:

     a. one (1) or more suspensions, or

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

     c. one (1) or more MSHA/OSHA medical reportable/recordable incidents

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Section 2. If a new test is to be created or an existing test changed or eliminated, the company
will first work with the Union President and the Chief Steward of the affected department to reach
mutual agreement on the new test. 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 3. Laid off employees, who have seniority rights, shall be eligible to bid on all job
postings, in accordance with Article 15, Lay-Off and Recall.

Section 4. From time to time, temporary vacancies of less than ninety (90) calendar days may occur
due to illness, injury or an abnormal increase in workload. Vacancies of this nature will be
filled at the Company’s discretion. Full-time job assignments so filled shall be open for bidding
within forty-five (45) calendar days as set forth above.

Section 5. 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. Any employee determined to be unsatisfactory after the 30 day period will be notified in
writing with a copy to the Worker’s Committee member from that area. The employee will be returned
to the previous job classification with no loss of seniority.

Section 6. The Company will award the bid and, to the extent practicable, will transfer the
successful bidder to the awarded position within twenty (20) days of acceptance. In the event the
Company cannot allow the employee to transfer without negatively impacting the respective
operation, the employee will be paid at the higher rate of pay beginning the twenty-first
(21st) day after acceptance.

An employee who is awarded a job posting outside his/her 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.

Section 7. The Company shall have fifteen (15) days to respond in writing to all upgrade requests
made using the Upgrade Request Form. If the upgrade request is denied, the written response will
include the reason for denial and include a plan describing what is necessary for the employee to
qualify for an upgrade. Such plan will give the employee opportunity to fulfill all needed
requirements in a timely manner. Failure to do so may be grieved.

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ARTICLE 11

PROBATIONARY PERIOD

Section 1. All new employees (including persons who have broken prior service) will be
considered probationary employees for a period of seven hundred eighty (780) hours worked.
Probationary employees shall be subject to transfer, promotion, demotion, layoff and/or discipline
including discharge, at the sole discretion of the Company.

Section 2. Employees continued in employment after the end of the probationary period shall become
full-time employees and shall be credited with continuous service from the original date of hire.

Section 3. 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.

ARTICLE 12

PERFORMANCE IMPROVEMENT PLAN /

PROGRESSIVE DISCIPLINE

Performance Improvement Plan

Section 1. The purpose of the performance improvement process is to provide the Union and the
Company with a uniform and fair method of addressing job performance issues.

Section 2. When a job performance problem has been identified and the severity of the problem does
not warrant progressive discipline, the following procedure will be used in an attempt to improve
performance and/or to modify behavior.

A meeting will be held with the employee within seven (7) working days of the Company’s last
indication of the performance problem. At the meeting, the following will take place: The problem
will be identified, and the Company representative will listen to the employee’s perspective on the
problem and will be counseled. The Company will make an evaluation if the problem is likely to
recur. If it is unlikely that the problem will recur, the issue will be dropped.

Section 3. If there is a probability that the problem will recur, then a Performance Improvement
Plan (PIP) will be developed with the employee.

The plan will include: a statement of the plan’s objective, a description of the way in which
performance improvement will be measured and identification of the date when the plan will be
reviewed, the “plan completion date” must be stated on the PIP and cannot exceed one year in
duration. All plans will be given to the employee with a copy to the Union President.

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When a Performance Improvement Plan has been successfully completed, it will remain in the
supervisor’s working file until twenty-four (24) months after it was originally written. After
successful completion, it can only be cited as a basis for other PIP’s or discipline when the
behavior involved is the same as or similar to the behavior which caused the writing of the
original PIP. Twenty-four (24) months after the date the PIP originated, it will not be cited for
other PIP’s, discipline or job performance issues. The PIP original copy will remain in the
employee’s personnel file, located in the Human Resources Office.

Progressive Discipline

Section 1. If an employee fails to successfully complete or repeats the problem the
Performance Improvement Plan was designed to correct, a meeting will be held with the employee, the
Union and the Company. The Company will listen to the employee’s reasons for not successfully
completing the PIP. As a result of this meeting, the Company has the right to begin the
progressive disciplinary procedure as follows:

          Step 1: Written Warning

          Step 2: One (1) day suspension without pay

          Step 3: Three (3) day suspension without pay

          Step 4: Discharge

Any employee required to have a working suspension, shall not work at their regular job, but shall
perform safety related tasks.

Section 2. The type of progressive discipline given will be based upon the severity of the problem.
Progressive disciplinary procedures may be taken by the Company for just cause. In cases of
written warnings and suspensions, the Company will meet with the employee regarding the Performance
Improvement Plan. The employee will also be informed that further failure to improve performance
will result in the more severe discipline up to and including discharge.

Termination of employment will be in cases where the severity of the problem justifies termination
or in cases where other progressive disciplinary steps have been taken.

Section 3. A Union representative will be present, if available, at the meeting with an employee
establishing a PIP plan or upon the issuing of discipline. An employee may elect not to have a
Union representative present.

Section 4. Records of disciplinary action will remain in the employee’s personnel file for
twenty-four (24) months from the date it was originally written. Twenty-four (24) months after the
date it originated, the disciplinary action will not be cited for other progressive discipline or
job performance issues.

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ARTICLE 13

HOURS OF WORK AND OVERTIME

Section 1. The normal workweek will begin at 7:01 a.m. each Tuesday and end at 7:00 a.m. the
following Tuesday. Overtime will be 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
in a MUC meeting prior to implementation and will be included on the agenda, distributed to the
members prior to the scheduled meeting.

Section 3. An employee who has been requested by the Company to remain at work after his regular
scheduled shift or an employee who is required to work on his regularly scheduled day off will be
paid at the time and one-half rate (11/2) for work actually performed.

Section 4. An employee who is required to attend a company sponsored training program which is not
at his regularly scheduled work site shall be paid his regularly scheduled hours of work at his
base rate.

Section 5. 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 four (4) hours at the time and one-half (11/2) rate. A
called out employee shall also receive 1 hour at time and one-half rate (11/2) in lieu of travel time
and mileage.

Section 6. 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 his regular hourly rate in lieu of work.

Section 7. 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. Such requests may not be unreasonably withheld and
will not be considered as flex time.

Section 8. 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 union 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. The existing overtime practices will be continued through the
life of this Agreement.

16

 

Section 9. 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 10. Pyramiding of overtime is prohibited.

Section 11. 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 workday.

Section 12. 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 13. Employees who work a shift beginning at 2:00 p.m. but no later than 4:00 a.m.
will be paid a shift differential of fifty cents ($.50) per hour.

ARTICLE 14

SICK/PERSONAL LEAVE/ATTENDANCE

Section 1. Effective January 1, 2012 and each January 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. 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 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 March 2013, each year thereafter, employees shall be paid a bonus for all
sick/personal days not used from January 1 of the previous year to January 1 of the current year.
Such bonus shall be paid as follows:

17

 

	 	 	 
	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

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

	 	1.00 X hours/shift X base rate X 1 day

Section 4. Pursuant to the Family and Medical Leave provisions in Article 22, employees who qualify
for Short Term Disability 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 requirement 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 contract year. Employees completing their probationary period in January, February or March
are eligible for four (4) sick/personal days; in April, May or June, three (3) days; in July,
August, or September, two (2) days; or in October, November, or December, 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 Dispatch 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 report to work within ninety
(90) minutes at the Nye mine site or ninety (90) minutes at the Columbus facility from the start of
his/her scheduled shift. Employees that will be tardy should make reasonable efforts to contact
the Company prior to the start of their 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
calendar year, 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

18

 

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

ARTICLE 15

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 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 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 shall notify the Union of any pending
layoff or reduction-in-force as far in advance as possible. In the event of a short-term layoff
(less than ninety (90) days in duration), the Company will maintain its portion of the cost to
maintain Company benefits during said layoff.

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

Section 5. If a new test is to be created or an existing test changed or eliminated, the
company will first work with the Union President and the Chief Steward of the affected department
to reach mutual agreement on the new test. 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.

19

 

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

ARTICLE 16

SEVERANCE PAY

Section 1. Any full time employee who is laid off as a result of a long-term
reduction-in-force (90 days or more), and having been in continuous full-time service of the
Company for at least one (1) year immediately prior to such lay-off shall be given one (1) week’s
pay for each year of service with the Company at the employee’s present base rate up to a maximum
of fifteen (15) weeks’ pay to be paid within thirty (30) days of lay-off.

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 17

CLASSIFICATION AND WAGES

Section 1. The classifications and rates of pay attached hereto as Appendix “A” shall be made
a part of this Agreement and shall continue in effect for the duration of this Agreement.

Section 2. The proposed creation of a new classification(s) or the elimination or change of an
existing classification(s) shall first be discussed at a meeting of the MUC Committee. If the
parties are unable to agree on such new classification(s) or changes, the Union may file a
grievance as set forth in this Agreement.

Section 3. 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 4. Supervisory or other management personnel shall not perform work which is normally
performed by bargaining unit personnel, except for training or instruction, investigation, testing,
emergencies, and situations in which no qualified bargaining unit employee is available to do the
job required.

20

 

Section 5. 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 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.

Section 6. Employees classified as leadmen or when day-rated as leadmen are not empowered to take
disciplinary action, discharge, evaluate, schedule time off, medically test and medically report.

ARTICLE 18

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 & Wellness Program (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: $200 Individual, $400 Family
	 
	 	•	 	Deductible applies to all services, excluding preventive care
	 
	 	•	 	Out-of-Pocket Maximum: $1,000 Individual, $2,000 Family
	 
	 	•	 	Deductible does not apply to Out-of-Pocket Maximum
	 
	 	•	 	Preventive care services: No deductible. Payable at 100% of the allowable fee.
	 
	 	•	 	Prescriptions

	 	 	 	 	 

	 

	 	Generic $5
	 	(30 day supply)
	 

	 	Formulary $20
	 	(30 day supply)
	 

	 	Non-Formulary $30
	 	(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.
	 
	 	•	 	Accident benefit: No deductible. Payable at 100% of the allowable fee, provided
services are obtained 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.
	 
	 	•	 	Wellness program participation: $75/month premium rebate, for each employee and
spouse covered by the plan.

21

 

	 	•	 	Wellness Committee will consist of no less than one (1) Union representative from
Columbus, and two (2) Union representatives from Nye.
	 
	 	•	 	Dental work involving crowns are designated Type II service.

	 	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

	 	•	 	Eligibility: All full-time active employees who regularly work at least 30 hours per
week and have completed one (1) year of continuous service.
	 
	 	•	 	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%. Commencing on January 1, 2012 the match will increase to 7%.
Commencing on January 1, 2013 the match will increase to 8%.
	 
	 	•	 	Employer matching contributions made in non-restricted Company stock
	 
	 	•	 	Maximum employee deferral rate will be no less than 20%; subject to Plan guidelines
and limitations
	 
	 	•	 	During the term of this Agreement, the Company retains the ability to change the
form of match (cash or stock).

E.   Vision Service Plan

F.   Company Sponsored Life Insurance and Accidental Death & Dismemberment

G.   Employee Assistance Plan and Nurse Advisor

H.   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.

22

 

ARTICLE 19

HOLIDAYS

Section 1. The following days shall 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 **

 

			
	**	 	Personal Holiday: Any day during the calendar year which the employee elects to take with
advance notice to, and approval from, the Company as set forth in Section 3 of this Article.

Section 2.

Pay for Holidays Worked

Employees who have completed the probationary period and work on any of the above holidays will
receive:

	 	A.	 	pay at the rate of time and one-half (1 1/2) for all hours worked, and
	 
	 	B.	 	pay at the regular straight-time rate for all hours worked on the holiday.

However, an employee absent on either the scheduled workday before or after the holiday will not
receive pay under Section 2.B. of this Article if the absence is not approved by the Company. To be
approved, the reason must be both verifiable by and acceptable to the Company.

Pay for Holidays Not Scheduled to Work

Employees who have completed the probationary period and are not scheduled to work on any of the above holidays will receive:

	 	A.	 	pay at the regular straight-time rate for eight (8) hours;

However, an employee absent on either the scheduled workday before or after the holiday will not
receive pay if the absence is not approved by the Company. To be approved, the reason must be both
verifiable by and acceptable to 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.

23

 

Pay for Holidays Scheduled, But Not Worked

	 	A.	 	Employees who have completed the probationary period and are scheduled to work
on any of the above holidays but fail to work will not receive holiday pay.

Section 3. 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) week’s notice is given
to the Company. Scheduled annual vacation shall take precedence over the scheduling of personal
holidays. The employee’s personal holiday or one of the employee’s eligible vacation days may be
used as a No Notice day without prior approval as described above. Proper call off
procedures must be followed to use this No Notice provision.

In the case where more than one employee per crew requests to take a personal holiday on the same
day, union seniority will govern if the personal holiday has 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, not unreasonably denied. No more than one (1) person per crew shall be allowed off on
personal holiday on any particular day, except at Company discretion.

If the personal holiday is not used 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.

Full-time employees with at least one (1) year of continuous service who terminate or are laid off
shall receive pay in lieu of the current year’s unused personal holiday.

Section 4. An employee who works on a higher rated job, other than their regular job, on the last
scheduled shift immediately preceding and the first scheduled shift following an unworked holiday
will receive holiday pay for such holiday at the rate of the higher rated job. An employee who
works on a higher rated job, other than their regular job, on a holiday shall be paid for such
holiday at the holiday rate for the higher rated job.

24

 

ARTICLE 20

VACATION

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

	 	 	 
	In Each Calendar Year In Which an Employee Completes	 	Amount of Paid Vacation Available
	 	 	 
	1st through 4th year of service

	 	80 hours
	5th through 9th year of service

	 	120 hours
	10th through 20th year of service

	 	160 hours
	21st year of service

	 	170 hours
	22nd year of service

	 	180 hours
	23rd year of service

	 	190 hours
	24th year of service

	 	200 hours
	*25th year of service or more

	 	240 hours

 

			
	*	 	Employees beginning their 25th year or more of service will be credited new hours on
January 1, 2012.

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. Upon
successful completion of their probationary period, employees who have credited service prior to
January 1 of the current year will be eligible for a pro-rated regular vacation. Such pro-rated
vacation shall be based on time worked in the preceding year and shall be scheduled, paid and
administrated in a manner equal to other regular vacation. Vacation must be taken in full-shift
increments, unless shift scheduling dictates otherwise. Vacation may, at Company request, be
“carried over” into the next calendar year. All unused vacation will be paid to the employee.
Vacation requests must be pre-authorized by the supervisor at least one calendar week in advance.
One of the employee’s eligible vacation days or personal holiday may be used as a No Notice day
without prior approval as described above. Proper call off procedures must be followed to use this
No Notice provision.

Section 3. At the beginning of each calendar year, full-time employees who have completed fourteen
(14) through twenty four (24) years of continuous service will receive a one thousand dollar
($1,000) bonus.

25

 

Section 4. Vacation schedules shall be posted or circulated among employees during the month
of January of each year for employees to indicate their vacation preference. Vacation request
forms will be utilized, with a copy of the approved form returned to the employee by February
15th. 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 union
seniority. Where an employee elects to split vacation, that employee’s Seniority rights shall
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 a
operational conditions dictate; however, no employee shall be forced to take vacation which has
already been approved at a time undesirable to the employee.

Section 5. 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. If the employee elects to extend
the vacation it will be their next scheduled shift.

Section 6. Employees who do not take unused vacation at Company request may be paid in lieu of, in
addition to the amount earned by the employee based on time actually worked. If, due to an extreme
situation, the Company 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. Subject to the provisions of Section 2 of this Article, employees may choose to receive
pay in lieu of time off for vacation. For purposes of this Article, a full-shift of vacation will
be determined by the number of hours that the employee is normally scheduled to work. Example: An
employee working a 10-hour shift will be required to take 10 hours vacation per day.

Section 7. An employee may request their vacation date be changed and the Company may grant such
request, based on operating needs and the existing approved vacation scheduled.

Section 8. An employee terminating service with the Company, for any reason, who has not taken the
vacation due that year, shall be paid for the same at the time of termination. In the event part
of the vacation has been taken, the employee will be paid for the unused portion not taken. In
addition, for each complete calendar month worked during the current year, employees will receive
1/12 (one-twelfth) of their earned vacation allotment.

Section 9. Full-time employees with a least one (1) year of continuous service who are laid off or
whose employment is terminated shall receive pay for any unused vacation, including a pro-rated
amount earned in the current year.

26

 

ARTICLE 21

UNION LEAVES OF ABSENCE

Section 1. The Company may grant a leave of absence, without pay, for Union officials or
members to attend Union functions. Such leaves shall be granted based on operating requirements of
Company, but shall not be unreasonably withheld. Employees shall retain service, seniority and
benefits during such leaves of absence.

Requests for such leaves must be made by the Union to the Company, and should be made with as much
advance notice as possible, but not less than fourteen (14) calendar days except in extenuating
circumstances.

Section 2. Upon thirty (30) days written notice from the Union, a leave of absence to perform work
for the Union will be granted for one (1) employee for a period of time of 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. Such employee will hold and
accumulate seniority and continuous service for all purposes during such 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 22

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.

27

 

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.

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.

28

 

ARTICLE 23

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 24

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, half brothers, half
sisters, stepbrothers, stepsisters, great grandparents, 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 member listed above.

ARTICLE 25

JURY AND WITNESS DUTY

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

29

 

Regular full-time employees who are absent because of jury duty, government subpoena where the
Company is not a party, or Company subpoena, will be paid the difference between the jury duties or
specified witness pay and their normal base wages for scheduled shifts missed. Employees will be
required to provide documentation of such service to receive applicable pay.

ARTICLE 26

CONTRACTING OUT

Section 1. The Company, having the availability of equipment, skills, manpower, or the time to
do the work, shall 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 shall 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 Union President or designee, 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 Union President or designee, to discuss information concerning
contracting out. Requests for such meetings shall not be unreasonably denied.

ARTICLE 27

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 to by the parties. These rights rest exclusively in
management who are the sole decision makers regarding the operation of the business. The following
list of specific management rights is not intended to be all-inclusive, but simply sets forth 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.

Section 2. Management retains 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, 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.

30

 

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. Management retains 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; and, to use independent contractors to perform any work or services provided
such contracting does not result in the layoff of employees covered by this Agreement.

Section 5. Management’s failure to exercise any right or function reserved to it, or the exercise
of a management right in a particular way shall not prevent the Company from exercising any of its
rights in the future or in some other way not in conflict with the express provisions of this
Agreement. The only restrictions on management rights will be any documented memorandum of
understanding with the Workers Committee 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 shall be subject to the grievance and arbitration procedures herein.

ARTICLE 28

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.

31

 

ARTICLE 29

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 30

PAST PRACTICE

Section 1. This Agreement supersedes 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 negotiation for this Agreement.

ARTICLE 31

VALIDITY

Section 1. Nothing contained in this Agreement shall be construed in any way as interfering
with the obligation of the parties hereto to comply with any and all State and Federal laws, or any
rules, regulations, and orders of duly constituted authorities pertaining to matters covered

Section 2. If any court shall hold any part of this Agreement invalid, such decision shall not
invalidate the entire Agreement.

ARTICLE 32

MISCELLANEOUS

Section 1. The Company and the Union desire every employee to be familiar with the provisions
of the Collective Bargaining Agreement and employee’s rights and duties under it. 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.

32

 

Section 2. The Company shall provide a safety shoe/boot allowance for all represented employees in
the amount of $200.00 payable in July of each year. In addition the Company shall provide a safety
shoe/boot allowance for all employees normally working underground at the Nye mine of $150.00 in
the months of November and March. Probationary employees are entitled to the allowance after
completing their probationary period and each contract year thereafter during the life of this
Agreement. For the purpose of this article employees eligible for safety shoe/boot allowance shall
be paid as per their classification on the last day of the month prior to the payment due.

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 shall 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, with the employee’s permission.

Entries placed in an employee’s permanent personnel file shall be in writing. A copy of such
entries shall, upon request, be given to the involved employee. An employee may elect to provide a
copy to their Union representative. The employee may also make a written reply to any disciplinary
action and have same placed in the permanent personnel file.

The Company will provide, upon request, relevant and necessary information, to the Union, in order
to administer the contract during its term.

Section 5. Required notices may be made by personal service, confirmed facsimile transmission,
e-mail 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. Employees that have completed probation and have less than one (1) year of service may
request an Emergency Leave of Absence for the reasons set-forth below in subsection (b). Before
any leave of Absence can be considered under this article, the employees must have used all their
vacation, sick/personal leave and personal holiday, and have a reasonable assurance of returning to
work unrestricted.

	a.	 	Upon an employee making the request for the Leave of Absence under this section of the
Collective Bargaining Agreement, the Company and Union will meet to review the

33

 

	 	 	employee’s
request and determine whether he or she has the special circumstance to qualify for such
leave.

	b.	 	This leave of absence will be utilized only for legitimate medical reasons. For
purposes of this section, a legitimate medical reason is defined as one that satisfies the
requirements for Family Medical Leave Act.

	c.	 	Any occurrence which exceeds thirty (30) calendar days requires the employee to request
an extension in writing to the Company’s Human Resource Department. Upon receipt of an
extension request, the Company and Union will meet and determine if the extension will be
approved.

Any occurrence request for leave under this section will require the employee to provide proof of
medical condition.

34

 

ARTICLE 33

COMPLETE AGREEMENT

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

35

 

APPENDIX A

STILLWATER MINING COMPANY

BARGAINING UNIT BASE RATES STRUCTURE

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Current	 	 	7/9/2011	 	 	7/1/2012	 	 	7/1/2013	 	 	7/1/2014	 
	Position Title	 	Base Rate	 	 	Base Rate	 	 	Base Rate	 	 	Base Rate	 	 	Base Rate	 
	 
	 	 	 	 	 	 	5.0	%	 	 	5.0	%	 	 	4.0	%	 	 	4.0	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Leadman — Mechanic (Mine
Maint/Concentrator/Smelter/BMR)
	 	 	30.80	 	 	 	32.34	 	 	 	33.96	 	 	 	35.32	 	 	 	36.73	 
	Leadman — Electrician (Mine
Maint/Concentrator/Smelter/BMR)
	 	 	30.80	 	 	 	32.34	 	 	 	33.96	 	 	 	35.32	 	 	 	36.73	 
	Leadman (Lab)
	 	 	30.80	 	 	 	32.34	 	 	 	33.96	 	 	 	35.32	 	 	 	36.73	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Mechanic 1 (Mine Maint/Concentrator/Smelter/BMR)
	 	 	28.28	 	 	 	29.69	 	 	 	31.18	 	 	 	32.43	 	 	 	33.72	 
	Electrician 1 (Mine Maint/Concentrator/Smelter/BMR)
	 	 	28.28	 	 	 	29.69	 	 	 	31.18	 	 	 	32.43	 	 	 	33.72	 
	Hoistman 1
	 	 	28.28	 	 	 	29.69	 	 	 	31.18	 	 	 	32.43	 	 	 	33.72	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Leadman (Mine/Concentrator/Smelter/BMR)
	 	 	28.12	 	 	 	29.53	 	 	 	31.00	 	 	 	32.24	 	 	 	33.53	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Leadman (Warehouse)
	 	 	27.29	 	 	 	28.65	 	 	 	30.09	 	 	 	31.29	 	 	 	32.54	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Mechanic 2 (Mine Maint/Concentrator/Smelter/BMR)
	 	 	26.04	 	 	 	27.34	 	 	 	28.71	 	 	 	29.86	 	 	 	31.05	 
	Electrician 2 (Mine Maint/Concentrator/Smelter/BMR)
	 	 	26.04	 	 	 	27.34	 	 	 	28.71	 	 	 	29.86	 	 	 	31.05	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Miner 1
	 	 	25.54	 	 	 	26.82	 	 	 	28.16	 	 	 	29.28	 	 	 	30.46	 
	Sublevel Miner 1
	 	 	25.54	 	 	 	26.82	 	 	 	28.16	 	 	 	29.28	 	 	 	30.46	 
	Operator 1 (Concentrator/Smelter/BMR)
	 	 	25.79	 	 	 	27.08	 	 	 	28.43	 	 	 	29.57	 	 	 	30.75	 
	U/G Construction 1
	 	 	25.79	 	 	 	27.08	 	 	 	28.43	 	 	 	29.57	 	 	 	30.75	 
	Lab Tech 1
	 	 	25.79	 	 	 	27.08	 	 	 	28.43	 	 	 	29.57	 	 	 	30.75	 
	Hoistman 2
	 	 	25.79	 	 	 	27.08	 	 	 	28.43	 	 	 	29.57	 	 	 	30.75	 
	Diamond Driller 1
	 	 	25.54	 	 	 	26.82	 	 	 	28.16	 	 	 	29.28	 	 	 	30.46	 
	Raisebore 1
	 	 	25.54	 	 	 	26.82	 	 	 	28.16	 	 	 	29.28	 	 	 	30.46	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Heavy Equipment Operator 1
	 	 	24.58	 	 	 	25.81	 	 	 	27.10	 	 	 	28.18	 	 	 	29.31	 
	Miner 2
	 	 	24.35	 	 	 	25.57	 	 	 	26.85	 	 	 	27.92	 	 	 	29.04	 
	Sublevel Miner 2
	 	 	24.35	 	 	 	25.57	 	 	 	26.85	 	 	 	27.92	 	 	 	29.04	 
	Sand Plant Operator
	 	 	24.58	 	 	 	25.81	 	 	 	27.10	 	 	 	28.18	 	 	 	29.31	 
	Sandfiller
	 	 	24.58	 	 	 	25.81	 	 	 	27.10	 	 	 	28.18	 	 	 	29.31	 
	U/G Equipment Operator 1
	 	 	24.58	 	 	 	25.81	 	 	 	27.10	 	 	 	28.18	 	 	 	29.31	 
	Warehouse 1
	 	 	24.58	 	 	 	25.81	 	 	 	27.10	 	 	 	28.18	 	 	 	29.31	 
	U/G Construction 2
	 	 	24.58	 	 	 	25.81	 	 	 	27.10	 	 	 	28.18	 	 	 	29.31	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Mechanic 3 (Mine Maint/Concentrator/Smelter/BMR)
	 	 	22.15	 	 	 	23.26	 	 	 	24.42	 	 	 	25.40	 	 	 	26.41	 
	Electrician 3 (Mine Maint/Concentrator/Smelter/BMR)
	 	 	22.15	 	 	 	23.26	 	 	 	24.42	 	 	 	25.40	 	 	 	26.41	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	U/G Equipment Operator 2
	 	 	21.21	 	 	 	22.27	 	 	 	23.38	 	 	 	24.32	 	 	 	25.29	 
	Diamond Driller 2
	 	 	21.01	 	 	 	22.06	 	 	 	23.16	 	 	 	24.09	 	 	 	25.05	 
	Heavy Equipment Operator 2
	 	 	21.21	 	 	 	22.27	 	 	 	23.38	 	 	 	24.32	 	 	 	25.29	 
	Operator 2 (Concentrator/Smelter/BMR)
	 	 	21.21	 	 	 	22.27	 	 	 	23.38	 	 	 	24.32	 	 	 	25.29	 
	Lab Tech 2
	 	 	21.21	 	 	 	22.27	 	 	 	23.38	 	 	 	24.32	 	 	 	25.29	 
	U/G Construction 3
	 	 	21.21	 	 	 	22.27	 	 	 	23.38	 	 	 	24.32	 	 	 	25.29	 
	Miner 3
	 	 	21.01	 	 	 	22.06	 	 	 	23.16	 	 	 	24.09	 	 	 	25.05	 
	Sublevel Miner 3
	 	 	21.01	 	 	 	22.06	 	 	 	23.16	 	 	 	24.09	 	 	 	25.05	 
	Raisebore 2
	 	 	21.01	 	 	 	22.06	 	 	 	23.16	 	 	 	24.09	 	 	 	25.05	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	U/G Equipment Operator 3
	 	 	18.64	 	 	 	19.57	 	 	 	20.55	 	 	 	21.37	 	 	 	22.23	 
	Heavy Equipment Operator 3
	 	 	18.64	 	 	 	19.57	 	 	 	20.55	 	 	 	21.37	 	 	 	22.23	 
	Warehouse 2
	 	 	18.64	 	 	 	19.57	 	 	 	20.55	 	 	 	21.37	 	 	 	22.23	 
	Operator 3 (Concentrator/Smelter/BMR)
	 	 	18.64	 	 	 	19.57	 	 	 	20.55	 	 	 	21.37	 	 	 	22.23	 
	Lamp Repairer
	 	 	18.64	 	 	 	19.57	 	 	 	20.55	 	 	 	21.37	 	 	 	22.23	 
	Lab Technician 3
	 	 	18.64	 	 	 	19.57	 	 	 	20.55	 	 	 	21.37	 	 	 	22.23	 
	Custodian
	 	 	18.64	 	 	 	19.57	 	 	 	20.55	 	 	 	21.37	 	 	 	22.23	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Trainee/Laborer
	 	 	16.50	 	 	 	17.33	 	 	 	18.19	 	 	 	18.92	 	 	 	19.68	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

36

 

Memorandum of Understanding

Between

Stillwater Mining Company

AND

USW International Union

The Company agrees to pay represented employees providing EMS service to Stillwater Mine and the
Columbus facilities within the following guidelines.

	 	•	 	The Company will schedule appropriate EMS continuing education sessions at site.
	 
	 	•	 	The Company will schedule adequate sessions for each EMS employee to keep their
certification active and up to date.
	 
	 	•	 	The Company will make reasonable efforts to schedule these sessions in such a fashion
that the EMS employees will not have to miss any regularly scheduled work.
	 
	 	•	 	It is expected, to the extent practicable, that represented EMS employees participate in
continuing education classes that are scheduled on other than the employees’ regular
shifts.
	 
	 	•	 	Time spent in the EMS continuing education classes will be considered as worked time.
	 
	 	•	 	Represented employees that attend and participate in EMS continuing education classes
will be paid at their regular classified rate of pay for the time spend in such classes.

This agreement will remain in effect until the end of the current term of the CBA, unless modified
or extended by mutual consent.

	 	 	 

	Stillwater Mining Company
	 	 
	 
	 	 
	 
	 	 
	 	 	 
	 
	 	 
	Company Official
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	USW International Union
	 	 
	 
	 	 
	 
	 	 
	 	 	 
	 
	 	 
	Union Official
	 	 
	 
	 	 
	Signed this _____ day of __________, 2011
	 	 

37

 

Memorandum of Understanding

Between

Stillwater Mining Company

AND

USW International Union

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

	 	 	 

	Stillwater Mining Company
	 	 
	 
	 	 
	 
	 	 
	 	 	 
	 
	 	 
	Company Official
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	USW International Union
	 	 
	 
	 	 
	 
	 	 
	 	 	 
	 
	 	 
	Union Official
	 	 
	 
	 	 
	 
	 	 
	Signed this _____ day of __________, 2011
	 	 

38

 

Memorandum of Understanding

Between

Stillwater Mining Company

AND

USW International Union

Each year, employees classified as mechanics and electricians will receive a tool allowance of
$500.00 and $300.00, respectively.

The Company agrees to continue to provide the Union with tool inventory guidelines and requirements
for employees classified as mechanics and electricians in each of their respective departments.

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

	 	 	 

	Stillwater Mining Company
	 	 
	 
	 	 
	 
	 	 
	 	 	 
	 
	 	 
	Company Official
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	USW International Union
	 	 
	 
	 	 
	 
	 	 
	 	 	 
	 
	 	 
	Union Official
	 	 
	 
	 	 
	 
	 	 
	Signed this _____ day of __________, 2011
	 	 

39

 

Memorandum of Understanding

Between

Stillwater Mining Company

AND

USW International Union

Stillwater Mining Company (Company), and USW International Union, Local 11-0001 hereby agree as
follows:

The Company agrees to provide busing for employees to the Stillwater Mine.

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

	 	 	 

	Stillwater Mining Company
	 	 
	 
	 	 
	 
	 	 
	 	 	 
	 
	 	 
	Company Official
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	USW International Union
	 	 
	 
	 	 
	 
	 	 
	 	 	 
	 
	 	 
	Union Official
	 	 
	 
	 	 
	 
	 	 
	Signed this _____ day of __________, 2011
	 	 

40

 

Memorandum of Understanding

Between

Stillwater Mining Company

AND

USW International Union

Stillwater Mining Company (Company), and USW International Union hereby agree to the following:

Hourly employees represented by the USW International Union, Local 11-0001, Nye mine will be able
to transfer to available hourly positions listed in the Collective Bargaining Agreement in place at
the East Boulder mine under the following conditions:

	 	•	 	Employees wishing to transfer from Nye to East Boulder must contact their site Human
Resource department.
	 
	 	•	 	Employees requesting a transfer must have completed their probationary period under
the CBA.
	 
	 	•	 	The Company will determine the transfer qualifications 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
transfer are not eligible for transfer consideration:
	 	 	 	one (1) or more suspensions, or
	 	 	 	two (2) or more written safety-related disciplinary actions, or
	 	 	 	one (1) or more MSHA medical reportable incidents
	 
	 	•	 	Employees may be given one transfer opportunity per rolling 12 months regardless
whether they assume the position they are awarded or if they decline the position they
are awarded.
	 
	 	•	 	In the event the Company cannot afford to allow the employee to transfer at the
requested time (due to manpower, required skill, etc.) the Company will put the
employee on a list to be transferred at a time when the Nye operation will not be
negatively impacted.

41

 

	 	•	 	Employees will establish new department seniority at the transferred location
beginning with their first day of work at that facility. Company seniority will not be
adversely affected for the purpose of vacation entitlement and 401-k vesting.

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

	 	 	 

	 
	Stillwater Mining Company
	 	 
	 
	 	 
	 	 	 
	 
	 	 
	Company Official
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	USW International Union
	 	 
	 
	 	 
	 
	 	 
	 	 	 
	 
	 	 
	Union Official
	 	 
	 
	 	 
	 
	 	 
	Signed this _____ day of __________, 2011
	 	 

42

 

Memorandum of Understanding

Between

Stillwater Mining Company

AND

USW International Union

Stillwater Mining Company (Company), and USW International Union, Local 11-0001 hereby agree as
follows:

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

	 	•	 	Pay each of the employees assigned continuously to the Sandfill/Sand Plant Operator area
(as determined by the Mine Department Deployment listings) after January 1, 2001, and after
being assigned to either one or both of the areas for 90 or more days, the hourly wage
rated listed for the Sandfiller/Sand Plant Operator in the Collective Bargaining Agreement.
	 
	 	•	 	Change the classification of the Underground Equipment Operators working as Sandfillers
or Sand Plant Operators to the appropriate Sandfiller/Sand Plant Operator classification.
	 
	 	•	 	Develop a Sandfiller/Sand Plant Operator Training Pool position, jointly with the Union,
for the purpose of training and developing employees at the Stillwater Mine in the skills
required to become a Sandfiller or Sand Plant Operator. The Sandfiller/Sand Plant Operator
Training Pool positions will be filled in accordance with Article 10 of the Collective
Bargaining Agreement. Employees will be assigned to the Sandfiller/Sand Plant Operator
Training Pool will retain their current hourly wage rate, not to exceed the Sandfiller or
Sand Plant Operator wage rate as listed in the Collective Bargaining Agreement.

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

Stillwater Mining Company

_________________________________________

Company Official

USW International Union

_________________________________________

Union Official

Signed this _____ day of __________, 2011

43

 

Memorandum of Understanding

Between

Stillwater Mining Company

AND

USW International Union

The Union and the Company recognize that it is the intent of the Company to establish and implement
an Electrician Training Program at Stillwater Mine. The Union and the Company agree that available
Electrician Trainee positions, as determined by Management, will be bid under the terms of the
Collective Bargaining Agreement. It is further agreed that successful applicants for the
Electrician Trainee program will be classified and paid as Electrician 3’s, upon their transfer
date into the training program. Further upgrades as Electricians will depend upon the trainee’s
ability to satisfy the applicable provisions of the CBA, as well as the requirements of the
training program.

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

Stillwater Mining Company

_________________________________________

Company Official

USW International Union

_________________________________________

Union Official

Signed this _____ day of __________, 2011

44

 

Memorandum of Understanding

Between

Stillwater Mining Company

AND

USW International Union

Whenever the Metallurgical Complex determines a Trainee/Laborer vacancy exists, the vacancy will be
posted as per Article 10, Job Postings of the Collective Bargaining Agreement.

For employees who have complete their probationary period, the hourly wage rate for internal
candidates that have been awarded a Trainee/Laborer position will be at the Level 3 position rate
for a BMR/Smelter Operator, Lab Technician, BMR/Smelter Mechanics, or BMR/Smelter Electrician.
Probationary employees will be paid at the Trainee/Laborer rate.

Employees in training will transition to the Level 3 positions provided they have acquired the
requisite skills, knowledge and ability to perform the tasks per the Job Classification -Task
Proficiency Matrix.

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

Stillwater Mining Company

_________________________________________

Company Official

USW International Union

_________________________________________

Union Official

Signed this _____ day of __________, 2011

45

 

Memorandum of Understanding

Between

Stillwater Mining Company

AND

USW International Union

Stillwater Mining Company (Company) at its Stillwater Mine & Columbus Processing facilities and USW
International Union, Local 11-0001 (Union) have established tool lists and the following
administrative guidelines through respective mutual agreements. The intent is to manage the cost
and responsibility between supervision and represented hourly employees. The following points will
govern the way the tool list and replacement of tools are to be done.

	 	•	 	Required Tool List(s): The Union and the Company have jointly agreed upon the list(s)
of tools required for Mechanics and Electricians at the various sites and areas of work.
Employees classified as Mechanics or Electricians will be expected to have all of the
required tools listed for their site, classification and area and that all such tools
will be at site when the employee is working in their classification. Employees promoted
to higher grades within their classification that require additional tools will be
allowed 30 calendar days from their date of promotion to bring the additional tools to
site.
	 
	 	•	 	Replacement of Damaged Tools: The Company will replace the following required tools
that have been jointly agreed upon as “consumable” items. Those items are:
hacksaw/blades, 3 pound hammer, utility knife/blades, small pipe wrench/jaws, (10 to 18
inch), taps, dies, drill bits, tape measure and torpedo level. The employee will need to
have taken reasonable precautions in the care of the tool in question. The employee needs
to bring the core of the tool, if possible, to the supervisor with a reasonable
explanation of the damage to the tool. The Company will replace such items in a timely
fashion.
	 
	 	•	 	Replacement of Lost or Stolen Tools: The Company has a method of investigation the
theft or lost items at SMC. If the situation shows the employee to have been responsible
in the care of the tools in question and through no fault of their own the tool is lost
or stolen the Company will replace the tool with a tool of equal or better quality.
	 
	 	•	 	Air Tools: The Company and the Union agree that the Company will furnish required air
impacts. Effective with date of this MOU, the Company will begin a program to provide the
necessary air impacts. As soon as is practicable, required air impacts will be purchased
by the Company for employee use. As there are distributed, employees will be instructed
to remove their personal air impacts from the property. During this transition period,
the Company agrees to repair or replace employee’s air impacts that become worn out or
damaged through normal use.

46

 

	 	•	 	Tools Needed to do the Job: The Union and the Company understand that as times change
so do the tools needed to do efficient work. If there is a need to change the agreed upon
lists it will be through meetings of the MUC and will be through mutual agreement.
	 
	 	•	 	Employee Responsibility: The Company and the Union agree that employees have the
primary responsibility for the proper care and security of Company provided tools as well
as their own personal tools. It is in the best interest of both the Union and the Company
that employees are allowed reasonable time to inspect, clean and/or secure all tools that
they use. Broken tools should be returned to the manufacturers that provide lifetime
replacement warranty. The Company and the Union also agree that the employees in these
departments will be instructed to take home any and all tools not clearly defined on the
agreed upon tool list.

Stillwater Mining Company

_________________________________________

Company Official

USW International Union

_________________________________________

Union Official

Signed this _____ day of __________, 2011

47

 

Memorandum of Understanding

Between

Stillwater Mining Company

AND

USW International Union

Stillwater Mining Company (Company), and USW International Union, Local 11-0001 hereby agree as
follows:

Based on discussions through the negotiation of the Collective Bargaining Agreement (CBA), the
Company recognizes employee concerns with the Miner’s Incentive Plan (Plan.). The Company will, in
good faith, work to improve communications between the employees, the Union and the Company on all
aspects of the Miner’s Incentive Plan.

The Company will not make Plan reductions in the Miner’s Incentive unless mutually agreed upon with
the Union. Structural changes within the Plan will be discussed with the Union prior to
implementation. Thirty (30) days advance notice of such changes will be given to the Union and to
the employees involved. The Union will also be notified of any incidental or administrative
adjustments, which may become necessary throughout the CBA period. Changes where a rate or payment
reduction is reasonably expected are subject to mutual agreement.

Modifications, exclusive rates or rate adjustments due to abnormal circumstances, for example those
for Ground Types IV and V, that are presently provided for in the Miner’s Incentive Plan are not
subject to mutual agreement.

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

Stillwater Mining Company

_________________________________________

Company Official

USW International Union

_________________________________________

Union Official

Signed this _____ day of __________, 2011

48

 

Memorandum of Understanding

Between

Stillwater Mining Company

AND

USW International Union

Stillwater Mining Company (Company), and USW International Union, Local 11-0001 hereby agree as
follows:

An employee who has qualified for Long Term Disability, Short Term Disability and/or Workers
Compensation will be able to participate in the following benefit plans, Medical/Dental &
Prescription Plan, Vision Service Plan, Employee Assistance Program, Nurse Advisor Program;
provided the employee continues to pay their portion of the premium. Non-payment of premiums will
result in loss of coverage.

The maximum benefit period is two (2) years. Employees will be eligible for COBRA benefits after
the benefit period has been terminated.

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

Stillwater Mining Company

_________________________________________

Company Official

USW International Union

_________________________________________

Union Official

Signed this _____ day of __________, 2011

49

 

Memorandum of Understanding

Between

Stillwater Mining Company

AND

USW International Union

Safety Eligibility — Miner’s Incentive

The current safety eligibility portion of the Miner’s incentive, which results in a 25% or 50% loss
of incentive if a miner incurs a lost time injury, will be suspended for a period of ninety (90)
days, commencing with ratification of the Collective Bargaining Agreement. The Company and Union
will commit to work together to establish a new Safety Metric for the Miner’s Incentive.

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

Stillwater Mining Company

_____________________

Company Official

USW International Union

_____________________

Union Official

Signed this _____ day of __________, 2011

50

 

Memorandum of Understanding

Between

Stillwater Mining Company

AND

USW International Union

Support Incentive Plan

The Support Incentive Plan will continue until June 1, 2015. The Company will administer the plan.

The Company will not make Plan percentage reductions in the Support Incentive Plan unless mutually
agreed upon with the Union. Structural changes within the Plan will be discussed with the Union
prior to implementation. Sixty (60) days advance notice of such changes will be given to the Union
and thirty (30) days to the employees involved. The Union will also be notified of any incidental
or administrative adjustments, which may become necessary throughout the CBA period.

The Company will administer the Support Incentive Plan, a two-part incentive program comprised of a
Production Bonus and Safety Bonus.

Production Bonus

The Production Bonus payment percentage shall range as shown below for an employees’ wages earned
during the bonus month.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	Performance Measure
	 	 	90	%	 	 	95	%	 	 	100	%	 	 	105	%	 	 	110	%
	Incentive Payout
	 	 	1.0	%	 	 	4.0	%	 	 	7.0	%	 	 	11.0	%	 	 	15.0	%

The plan target & metrics shall be established per operational needs.

Safety Bonus

Support employees will be eligible to participate in the Safety Bonus Plan and earn up to 5% of
base salary. The various facilities covered by the agreement will establish eligibility
requirements and participation metrics to qualify for the Safety Bonus

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

51

 

Stillwater Mining Company

_____________________

Company Official

USW International Union

____________________

Union Official

Signed this _____ day of __________, 2011.

52

 

Memorandum of Understanding

Between

Stillwater Mining Company

AND

USW International Union

Stillwater Mining Company (Company), and USW International Union, Local 11-0001 hereby agree as
follows:

For the period July 1, 2011 to December 31, 2011, employees who have completed their probationary
period shall have available three (3) full or partial, paid or unpaid days for sick/personal leave.
This leave is intended for time which the employee is absent for reasons of non- work related
sickness, injury or accident, emergency or personal business.

In March of 2012, employees will be paid a bonus for all sick/personal days not used for the period
July 1, 2011 to December 31, 2011. Such bonus shall be paid as follows:

	 	 	 
	No. of Unused Days	 	Bonus Calculation
	3

	 	2.00 X hours/shift X base rate X 3 Days
	 
	 	 
	2

	 	1.50 X hours/shift X base rate X 2 Days
	 
	 	 
	1

	 	1.00 X hours/shift X base rate X 1 Days

Upon completion of their probationary period, employees shall be granted a pro-rated number of full
or partial, paid or unpaid days for sick/personal leave available to use in the remainder of the
period July 1, 2011 to December 31, 2011. Employees completing their probationary period in July,
August or September are eligible for two (2) sick/personal days; in October, November or December,
one (1) day.

Employees will be granted one (1) tardy, as defined in Article 14, Sec. 9 for the period July 1,
2011 to December 31, 2011.

Use of these days will fall under the provisions outlined in Article 14 of the CBA.

53

 

Stillwater Mining Company

_____________________

Company Official

USW International Union

_____________________

Union Official

Signed this _____ day of __________, 2011

54

 

Memorandum of Understanding

Between

Stillwater Mining Company

AND

USW International Union

The Union and The Company recognize that it is the intent of the Company to maintain training
programs for Electricians and Mechanics at Stillwater Mine. The Union and The Company agree that
available Trainee positions, as determined by Management, will be bid under the terms of the
Collective Bargaining Agreement. It is further agreed that successful applicants for the Training
programs will be classified and paid as: Electrician 3’s and Mechanic 3’s, upon their transfer date
into the training program. Future upgrades within the Electrician and Mechanic trainees will
depend upon the trainee’s ability to satisfy the applicable provisions of the CBA, as well as the
requirements of the training program.

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

Stillwater Mining Company

_______________________________________

Company Official

USW International Union

_______________________________________

Union Official

Signed this _____ day of __________, 2011

55

 

Memorandum of Understanding

Between

Stillwater Mining Company

AND

USW International Union

Stillwater Mining Company (Company), and USW International Union, Local 11-0001 hereby agree as
follows:

The Company Health Insurance plan will move to a wellness based plan on January 1, 2012.

The Company match in the 401-K plan will increase to a dollar for dollar match of 7% on January 1,
2012.

The Company match in the 401-K plan will increase to a dollar for dollar match of 8% on January 1,
2013.

Stillwater Mining Company

_______________________________________

Company Official

USW International Union

_______________________________________

Union Official

Signed this _____ day of __________, 2011

56

 

For Reference

Memorandum of Understanding

Between

Stillwater Mining Company

AND

USW International Union

Stillwater Mining Company (Company), and USW International Union, Local 11-0001 hereby agree as
follows:

1. East Boulder Bargaining Unit employees will be provided bidding opportunities from the East
Boulder Bargaining Unit to bargaining unit positions at the Columbus Facilities of Stillwater
Mining Company.

2. In order to ensure that East Boulder Unit Bargaining Unit employees will have the same rights
as other employees of the Company, the Company is entitled to consider eligible and qualified
bidders from the East Boulder Bargaining Unit.

3. East Boulder Bargaining Unit employees will be considered eligible and qualified if they meet
the qualifications provided for in Article 10, “Job Postings”, of the extant Agreement.

4. If an East Boulder Bargaining Unit employee is awarded a bargaining unit position in the
Columbus Facilities, that employee will accrue seniority in the Company’s Nye and Columbus
Bargaining Unit from the date of selection and will forfeit seniority rights in the East Boulder
Bargaining Unit.

The terms of the Memorandum of Agreement recite completely the agreement between the parties and no
oral modifications or interpretations are to be relied on between the Parties, except those
expressly provided for herein or by written modification hereof. This Memorandum of Understanding
will expire with the current Collective Bargaining Agreement.

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

Stillwater Mining Company

_______________________________________

Company Official

USW International Union

______________________________________

Union Official

Signed this _____ day of __________, 2011.

57exv4w1

EXHIBIT 4.1

CERTIFICATE OF CORRECTION OF THE

RESTATED CERTIFICATE OF INCORPORATION OF

USG CORPORATION

     USG Corporation (the “Corporation”), a corporation organized and existing under and by virtue
of the General Corporation Law of the State of Delaware, does hereby certify:

     1. The name of the Corporation is USG Corporation.

     2. That a Restated Certificate of Incorporation of the Corporation was filed with the
Secretary of State of the State of Delaware (the “Secretary of State”) on June 19, 2006 (the
“Restated Certificate of Incorporation”) and said Restated Certificate of Incorporation requires
correction as permitted by subsection (f) of Section 103 of the General Corporation Law of the
State of Delaware.

     3. The inaccuracy or defect of said Restated Certificate of Incorporation to be corrected is
that it inadvertently omitted the Certificate of Designations of Junior Participating Stock, Series
D, which was filed with the Secretary of State on March 30, 1998 and amended on January 31, 2006.

     4. The Restated Certificate of Incorporation is corrected by inserting the following as a new
Section 2.1 immediately preceding Section 3 in Article FOURTH of the Restated Certificate of
Incorporation:

“Section 2.1 Junior Participating Preferred Stock, Series D

     Pursuant to the authority granted to and vested in the board of directors in accordance
with the provisions of the Certificate of Incorporation, the board of directors created a
series of preferred stock designated as Junior Participating Preferred Stock, Series D (the
“Series D Preferred Stock”) by filing a Certificate of Designations with the Secretary of
State of the State of Delaware (the “Secretary of State”) on March 30, 1998. Further, the
board of directors amended such Certificate of Designations by filing an Amendment No. 1 to
the Certificate of Designations with the Secretary of State on January 31, 2006. The voting
powers, preferences and relative, participating, optional and other special rights, and the
qualifications, limitations or restrictions of the Series D Preferred Stock are set forth in
Appendix A hereto and are incorporated herein by reference.”

     5. The Restated Certificate of Incorporation is further corrected by attaching Appendix A
hereto as Appendix A to the Restated Certificate of Incorporation.

 

 

     6. All other provisions of the Restated Certificate of Incorporation remain unchanged.

     IN WITNESS WHEREOF, the Corporation has caused this Certificate of Correction to be executed
as of the 20th day of June, 2011.

	 	 	 	 	 
	 	USG CORPORATION

 	 
	 	By:  	/s/  Richard H. Fleming
 	 
	 	 	Name:  	Richard H. Fleming 	 
	 	 	Title:  	Executive Vice President and
 Chief
Financial Officer 	 

 

 

	 	 	 	 	 

Appendix A

CERTIFICATE OF DESIGNATIONS

of

JUNIOR PARTICIPATING PREFERRED STOCK, SERIES D

of

USG CORPORATION

     Section 1. Designation and Amount.

The shares of such series shall be designated as “Junior Participating Preferred Stock,
Series D” (the “Series D Preferred Stock”) and the number of shares constituting the Series
D Preferred Stock shall be four million (4,000,000). Such number of shares may be increased
or decreased by resolution of the Board of Directors; provided, that no decrease shall reduce the number of shares of Series
D Preferred Stock to a number less than the number of shares then outstanding plus the number of shares reserved for issuance upon the exercise of
outstanding options, rights or warrants or upon the conversion of any outstanding securities
issued by the Corporation convertible into Series D Preferred Stock.

     Section 2. Dividends and Distributions.

	 	(A)	 	Subject to the rights of the holders of any shares of any series of Preferred
Stock (or any similar stock) ranking prior and superior to the Series D Preferred Stock
with respect to dividends, the holders of shares of Series D Preferred Stock, in
preference to the holders of Common Stock, par value $0.10 per share (the “Common
Stock”), of the Corporation, and of any other junior stock, shall be entitled to
receive, when, as and if declared by the Board of Directors out of funds legally
available for the purpose, quarterly dividends payable in cash on the first day of
March, June, September and December in each year (each such date being referred to
herein as a “Quarterly Dividend Payment Date”), commencing on the first Quarterly
Dividend Payment Date after the first issuance of a share or fraction of a share of
Series D Preferred Stock, in an amount per share (rounded to the nearest cent) equal to
the greater of (a) $25 or (b) subject to the provision for adjustment hereinafter set
forth, 100 times the aggregate per share amount of all cash dividends, and 100 times
the aggregate per share amount (payable in kind) of all non-cash dividends or other
distributions, other than a dividend payable in shares of Common Stock or a subdivision
of the outstanding shares of Common

 

 

	 	 	 	Stock (by reclassification or otherwise), declared on the Common Stock since the
immediately preceding Quarterly Dividend Payment Date or, with respect to the first
Quarterly Dividend Payment Date, since the first issuance of any share or fraction
of a share of Series D Preferred Stock. In the event the Corporation shall at any
time declare or pay any dividend on the Common Stock payable in shares of Common
Stock, or effect a subdivision or combination or consolidation of the outstanding
shares of Common Stock (by reclassification or otherwise than by payment of a
dividend in shares of Common Stock) into a greater or lesser number of shares of
Common Stock on or after April 15, 1998, then in each such case the amount to which
holders of shares of Series D Preferred Stock were entitled immediately prior to
such event under clause (b) of the preceding sentence shall be adjusted by
multiplying such amount by a fraction, the numerator of which is the number of
shares of Common Stock outstanding immediately after such event and the denominator
of which is the number of shares of Common Stock that were outstanding immediately
prior to such event.
	 
	 	(B)	 	The Corporation shall declare a dividend or distribution on the Series D
Preferred Stock as provided in paragraph (A) of this Section immediately after it
declares a dividend or distribution on the Common Stock (other than a dividend payable
in shares of Common Stock); provided that, in the event no dividend or distribution
shall have been declared on the Common Stock during the period between any Quarterly
Dividend Payment Date and the next subsequent Quarterly Dividend Payment Date, a
dividend of $25 per share on the Series D Preferred Stock shall nevertheless be payable
on such subsequent Quarterly Dividend Payment Date.
	 
	 	(C)	 	Dividends shall begin to accrue and be cumulative on outstanding shares of
Series D Preferred Stock from the Quarterly Dividend Payment Date next preceding the
date of issue of such shares, unless the date of issue of such shares is prior to the
record date for the first Quarterly Dividend Payment Date, in which case dividends on
such shares shall begin to accrue from the date of issue of such shares, or unless the
date of issue is a Quarterly Dividend Payment Date or is a date after the record date
for the determination of holders of shares of Series D Preferred Stock entitled to
receive a quarterly dividend and before such Quarterly Dividend Payment Date, in either
of which events such dividends shall begin to accrue and be cumulative from such
Quarterly Dividend Payment Date. Accrued but unpaid dividends shall not bear interest.
Dividends paid on the shares of Series D Preferred Stock in an amount less than the
total amount of such dividends at the time accrued and payable on such shares shall be
allocated pro rata on a share-by-share basis among all such shares at the time
outstanding. The Board of Directors may fix a record date for the determination of
holders of shares of Series D Preferred Stock entitled to receive payment of a dividend
or distribution declared thereon, which record date shall be not more than 60 days
prior to the date fixed for the payment thereof.

     Section 3. Voting Rights. The holders of shares of Series D Preferred Stock shall have
the following voting rights:

 

 

	 	(A)	 	Subject to the provision for adjustment hereinafter set forth, each
share of Series D Preferred Stock shall entitle the holder thereof to 100 votes on all
matters submitted to a vote of the stockholders of the Corporation. In the event the
Corporation shall at any time declare or pay any dividend on the Common Stock payable
in shares of Common Stock, or effect a subdivision or combination or consolidation of
the outstanding shares of Common Stock (by reclassification or otherwise than by
payment of a dividend in shares of Common Stock) into a greater or lesser number of
shares of Common Stock on or after April 15, 1998, then in each such case the number
of votes per share to which holders of shares of Series D Preferred Stock were
entitled immediately prior to such event shall be adjusted by multiplying such number
by a fraction, the numerator of which is the number of shares of Common Stock
outstanding immediately after such event and the denominator of which is the number of
shares of Common Stock that were outstanding immediately prior to such event.
	 
	 	(B)	 	Except as otherwise provided herein, in any other Certificate of Designations
creating a series of Preferred Stock or any similar stock, or by law, the holders of
shares of Series D Preferred Stock and the holders of shares of Common Stock and any
other capital stock of the Corporation having general voting rights shall vote together
as one class on all matters submitted to a vote of stockholders of the Corporation.
	 
	 	(C)	 	Except as set forth herein, or as otherwise provided by law, holders of Series
D Preferred Stock shall have no special voting rights and their consent shall not be
required (except to the extent they are entitled to vote with holders of Common Stock
as set forth herein) for taking any corporate action.

     Section 4. Certain Restrictions.

	 	(A)	 	Whenever quarterly dividends or other dividends or distributions payable on the
Series D Preferred Stock as provided in Section 2 are in arrears, thereafter and until
all accrued and unpaid dividends and distributions, whether or not declared, on shares
of Series D Preferred Stock outstanding shall have been paid in full, the Corporation
shall not:

	 	(i)	 	declare or pay dividends, or make any other distributions, on
any shares of stock ranking junior (either as to dividends or upon liquidation,
dissolution or winding up) to the Series D Preferred Stock;
	 
	 	(ii)	 	declare or pay dividends, or make any other distributions, on
any shares of stock ranking on a parity (either as to dividends or upon
liquidation, dissolution or winding up) with the Series D Preferred Stock,
except dividends paid ratably on the Series D Preferred Stock and all such
parity stock on which dividends are payable or in arrears in proportion to the
total amounts to which the holders of all such shares are then entitled;

 

 

	 	(iii)	 	redeem or purchase or otherwise acquire for consideration
shares of any stock ranking junior (either as to dividends or upon liquidation,
dissolution or winding up) to the Series D Preferred Stock, provided that the
Corporation may at any time redeem, purchase or otherwise acquire shares of any
such junior stock in exchange for shares of any stock of the Corporation
ranking junior (either as to dividends or upon dissolution, liquidation or
winding up) to the Series D Preferred Stock; or
	 
	 	(iv)	 	redeem or purchase or otherwise acquire for consideration any
shares of Series D Preferred Stock, or any shares of stock ranking on a parity
with the Series D Preferred Stock, except in accordance with a purchase offer
made in writing or by publication (as determined by the Board of Directors) to
all holders of such shares upon such terms as the Board of Directors, after
consideration of the respective annual dividend rates and other relative rights
and preferences of the respective Series and classes, shall determine in good
faith will result in fair and equitable treatment among the respective series
or classes.

	 	(B)	 	The Corporation shall not permit any subsidiary of the Corporation to purchase
or otherwise acquire for consideration any shares of stock of the Corporation unless
the Corporation could, under paragraph (A) of this Section 4, purchase or otherwise
acquire such shares at such time and in such manner.

     Section 5. Reacquired Shares. Any shares of Series D Preferred Stock purchased or
otherwise acquired by the Corporation in any manner whatsoever shall be retired and canceled
promptly after the acquisition thereof. All such shares shall upon their cancellation become
authorized but unissued shares of Preferred Stock and may be reissued as part of a new series of
Preferred Stock subject to the conditions and restrictions on issuance set forth herein, in the
Certificate of Incorporation, or in any other Certificate of Designations creating a series of
Preferred Stock or any similar stock or as otherwise required by law.

     Section 6. Liquidation, Dissolution or Winding Up. Upon any liquidation, dissolution
or winding up of the Corporation, no distribution shall be made (1) to the holders of shares of
stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the
Series D Preferred Stock unless, prior thereto, the holders of shares of Series D Preferred Stock
shall have received $100 per share, plus an amount equal to accrued and unpaid dividends and
distributions thereon, whether or not declared, to the date of such payment, provided that the
holders of shares of Series D Preferred Stock shall be entitled to receive an aggregate amount per
share, subject to the provision for adjustment hereinafter set forth, equal to 100 times the
aggregate amount to be distributed per share to holders of shares of Common Stock, or (2) to the
holders of shares of stock ranking on a parity (either as to dividends or upon liquidation,
dissolution or winding up) with the Series D Preferred Stock, except distributions made ratably on
the Series D Preferred Stock and all such parity stock in proportion to the total amounts to which
the holders of all such shares are entitled upon such liquidation, dissolution or winding up. In
the event the Corporation shall at any time declare or pay any dividend on the Common Stock payable
in shares of Common Stock, or effect a subdivision or combination or consolidation of the
outstanding shares of Common Stock (by reclassification or otherwise than by payment of a

 

 

dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock
on or after April 15, 1998, then in each such case the aggregate amount to which holders of shares
of Series D Preferred Stock were entitled immediately prior to such event under the proviso in
clause (1) of the preceding sentence shall be adjusted by multiplying such amount by a fraction the
numerator of which is the number of shares of Common Stock outstanding immediately after such event
and the denominator of which is the number of shares of Common Stock that were outstanding
immediately prior to such event.

     Section 7. Consolidation, Merger, etc. In case the Corporation shall enter into any
consolidation, merger, combination or other transaction in which the shares of Common Stock are
exchanged for or changed into other stock or securities, cash and/or any other property, then in
any such case each share of Series D Preferred Stock shall at the same time be similarly exchanged
or changed into an amount per share, subject to the provision for adjustment hereinafter set forth,
equal to 100 times the aggregate amount of stock, securities, cash and/or any other property
(payable in kind), as the case may be, into which or for which each share of Common Stock is
changed or exchanged. In the event the Corporation shall at any time declare or pay any dividend
on the Common Stock payable in shares of Common Stock, or effect a subdivision or combination or
consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by
payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of
Common Stock, then in each such case the amount set forth in the preceding sentence with respect to
the exchange or change of shares of Series D Preferred Stock shall be adjusted by multiplying such
amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding
immediately after such event and the denominator of which is the number of shares of Common Stock
that were outstanding immediately prior to such event.

     Section 8. No Redemption. The shares of Series D Preferred Stock shall not be
redeemable.

     Section 9. Rank. The Series D Preferred Stock shall rank, with respect to the
payment of dividends and the distribution of assets, junior to all series of any other class of the
Corporation’s Preferred Stock.

     Section 10. Amendment. The Restated Certificate of Incorporation, as amended, of the
Corporation shall not be amended in any manner which would materially alter or change the powers,
preferences or special rights of the Series D Preferred Stock so as to affect them adversely
without the affirmative vote of the holders of at least two-thirds of the outstanding shares of
Series D Preferred Stock, voting together as a single class.

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