Document:

EX-10.16

 

Exhibit 10.16

IAM

AGREEMENT

2007 — 2010

ARTICLE I — RECOGNITION

	1	 	Chart Energy & Chemicals Inc., (hereinafter referred to as the “Company”) recognizes Local
Lodge 2191 of District Lodge 66 of The International Association of Machinists and Aerospace
Workers, AFL-CIO (hereinafter referred to as the “Union”) as the sole and exclusive bargaining
agent for its employees at its La Crosse, Wisconsin manufacturing facility for the purpose of
collective bargaining with respect to the wages, hours and working conditions of said
employees.
	 
	2	 	As used in this Agreement, the terms “employee” and “employees” shall include all production
and maintenance employees, including all craters, receiving clerks and tool room employees,
but shall exclude all administrative employees, factory office clerical employees, engineers
and technical employees, standards and factory cost department employees, professional
employees, guards, safety inspectors, nurses, student trainees and all supervisory employees
as defined in the Labor Management Relations Act.
	 
	3	 	Employees in the above excluded jobs are not covered by this Agreement; but if employees
currently in such jobs subsequently take other jobs within the coverage of this Agreement,
then such employees shall be eligible to membership in the Union upon such notification to
them by the Company.
	 
	4	 	This Agreement shall be binding on any and all successors and assigns, who by purchase,
lease, transfer of stock or merger, acquire control of the Company’s manufacturing facility in
La Crosse, Wisconsin.

ARTICLE II — UNION SECURITY

	5	 	Employees eligible for Union membership as defined in this Agreement shall be required at the
expiration of their probationary period to become and remain members of the Union in good
standing with respect to the payment of uniformly levied initiation fee and periodic dues as a
condition of employment.

ARTICLE
III — NON-DISCRIMINATION

	6	 	The Company or the Union shall not discriminate against employees because of color, race,
sex, religious affiliation, nationality, age, handicap or status as a disabled veteran or
Vietnam era veteran, as prescribed by applicable state or federal law. Pronouns in the male
gender appearing in this Agreement are intended to include the female gender.

 

 

ARTICLE IV — HOURS

Regular Work Day and Week

	7	 	Eight (8) hours shall constitute a regular day’s work and not more than forty (40) hours
shall constitute a regular week’s work. The regular workweek will begin at 11:00 p.m. on
Sunday and will end on Friday.

Shift Hours

	8	 	The shifts may consist of one day and two night shifts. The regular working hours are as follows:

3rd Shift 11:00 P.M. to 7:00 A.M.

1st Shift 7:00 A.M. to 3:00 P.M.

2nd Shift 3:00 P.M. to 11:00 P.M.

	 	 	Third shift weekly start will be 11:00 P.M., Sunday.
	 
	9	 	Regular Lunch Periods.

1st Shift 12:00 Noon

2nd Shift 8:00 P.M.

3rd Shift 4:00 A.M.

	10	 	Employees shall also be provided during their shift one (1) rest period not to exceed ten
(10) minutes in accordance with operational requirements. Normally, the break times will be as
specified below:

1st            shift: 9:30 am to 9:40 am

2nd            shift: 5:30 pm to 5:40 pm

3rd            shift: 1:30 am to 1:40 am

	11	 	The consumption of food items and visits to the lunch room shall be limited to designated
lunch and break periods and will not be permitted during other work hours. Beverages will be
allowed at the work stations.

	 
	12	 	All employees are assigned to a three-shift basis and will have a paid 15-minute lunch period
starting at one of the times listed above in this paragraph.

Article V — Weekend Shift

	13	 	The Company will have the right to establish a supplemental weekend shift. This schedule will
consist of a day and night shift, each of 12 hours in accordance with the times outlined below
and shall be of no less than three (3) months duration.
	 
	14	 	The three (3) shifts on a five (5) day Monday through Friday schedule shall continue to be
the main shift in the plant.
	 
	15	 	Notification and Selection
	 
	 	 	A minimum of one (1) month advance notice shall be given to the employees before the
implementation of the weekend shift.
	 
	16	 	The opportunity for this shift is strictly voluntary. Employees selected from the
volunteer list will be assigned to the shift for a 3-month period. For each 3-month period (if
the weekend shift is still required), a new volunteer list will be posted. The senior
qualified employee volunteers on the list will be selected to work the shift. Bumping in
accordance with Article X,
paragraph 95 will not apply to this shift because each 3 months, a new volunteer list is
required.

 

 

	17	 	The maximum number of employees assigned to each shift shall be twenty (20) for the entire
plant. No more than six (6) employees per 

    department, per shift will be assigned.
	 
	18	 	Rate of Pay

	 
	 	 	Employees working the Weekend Schedule shifts will be paid at a rate equivalent to forty (40)
hours pay for thirty-six (36) hours worked for all hours worked during their regular thirty-six
(36)-hour work schedule.

	19	 	The pay period for weekend shift employee remains Monday through Sunday.

	 	 	 	 	 
	 

	 	a.
	 	Shift Hours will be:
	 

	 	 	 	Shift 4 —
	 

	 	 	 	Saturday Shift beginning on Friday evening
	 

	 	 	 	7:00 p.m. to 7:00 a.m.
	 

	 	 	 	Sunday Shift beginning on Saturday evening
	 

	 	 	 	7:00 p.m. to 7:00 a.m.
	 

	 	 	 	Monday Shift beginning on Sunday evening
	 

	 	 	 	7:00 p.m. to 7:00 a.m.
	 
	 	 	 	 
	 

	 	b.
	 	Shift 5 —
	 

	 	 	 	Saturday Shift beginning on Saturday morning 7:00 a.m. to 7:00 p.m.
	 

	 	 	 	Sunday Shift beginning on Sunday morning
	 

	 	 	 	7:00 a.m. to 7:00 p.m.
	 

	 	 	 	Monday Shift beginning on Monday morning
	 

	 	 	 	7:00 a.m. to 7:00 p.m.

	20	 	Overtime:

a. At the rate of time and one-half for hours paid for:
any hours on a workday other than their shift in any given workweek.

b. At the rate of double time for hours worked

 (1) In excess of twelve (12) hours in the employee’s workday;

          or

(2) On the day a holiday is observed by all employees

(3) All overtime hours worked which exceed sixteen (16) hours in any one workweek.

	21	 	Break Times:

a. There will be two (2) paid rest periods of fifteen
(15) minutes duration each.

b. There will be a fifteen (15) minute paid lunch period.

	22	 	Vacation
	 
	 	 	The 3-day x 12-hour shift employees will be entitled to the same number of vacation hours as
all other employees. Observed vacation is charged at the applicable rate (1.112 for each hour
of observed vacation).

	23	 	Holidays

All Weekend employees will:

(a) Observe Holidays and Holiday time that falls on their shift schedule.

(b) Receive Holiday pay at the rate of 12 hours times your base rate including applicable
premiums for all Holidays that fall upon the weekend shift schedule (totaling 13.33 hours
of pay) and receive their entire shift off on that day.

(c) Receive Holiday pay at the rate of 8 hours times your base rate including applicable
premiums for all holidays that fall off of the weekend shift schedule as an addition to
your pay that week. Holiday pay under this provision is not to be used in
overtime rate calculations.

 

 

(d) All holiday qualifiers apply for those Holidays that fall on the shift.

(e) For the weekend shift only, the Good Friday Holiday will be moved to Easter Sunday
each year.

(f) Holidays observed are in accordance with Paragraph 52

	24	 	Transition to Weekend Shift

Upon notification to or from the Weekend Shift, the transition will take place on the
2nd Monday following notification.

	 	(a)	 	On to the Shift:

In the week the employee goes to the weekend shift, the employee is required to work the
Monday, Saturday, and Sunday of the shift.

	 	(b)	 	Off of the Shift:

In the week the employee goes off of the shift, the employee must request an opportunity
to work Monday, or take Monday as a day of rest. This is optional for the employee and no
attendance considerations

 

 

                  will apply if the employee observes a day of rest and does not work 40 hours in
that week.

	25	 	Overtime Notification
	 
	 	 	Weekly overtime offered to the weekend shift that is offered after the midpoint of their Monday
shift, will not be charged if

 

 

refused, however, will be charged only if worked.

26 A weekend employee that was on a day-at-a-time vacation, when overtime is scheduled, that is
eligible and qualified to work overtime, will be eligible to work the overtime, provided the
employee notifies their supervisor of their intent to work such overtime. If such employee
replaces another employee, the employee being replaced is not charged for that overtime.

27 Mandatory overtime language will not apply to the weekend shift employees.

ARTICLE VI — OVERTIME

General

28 Union members will cooperate in working of necessary overtime; however, an employee shall
have the right to refuse to perform overtime work where the Company is able to secure someone
else who is experienced to perform the work.

29 An employee shall have the right to refuse to accept overtime work whenever they have a
reasonable excuse or where the length of time is so excessive so as to endanger their health.

30 It shall be the policy of the Company to ask for overtime before 12:00 pm for the day shift
or before 9:00 pm for the second shift and the day before for the third shift for daily
overtime. In no event shall a first or second shift employee be required to work Saturday or
Sunday when notification is given later than the end of the employee’s Thursday shift nor
where the Saturday shift is more than five (5) hours. For first and second shift employees,
the Company will schedule consecutive 5-hour shifts on Saturday and/or Sunday except when
production needs require another schedule. When two shifts are being scheduled, the first and
second shifts will be scheduled for the same number of hours. Third shift employees will not
be required to work Saturday or Sunday when notification is given later than one hour after
the beginning of the Thursday shift. The normal Saturday or Sunday shift for third shift
employees is eight (8) consecutive hours. If a change in schedule is necessary, the Shop
Committee will be notified and given the reason for such deviation — this will be done before
the deviation whenever possible. 1st and 2nd shifts will

 

 

have the right to work five (5) hours starting on their regular Saturday and Sunday shift,
since the regular shift on weekends is five (5) hours.

31 In no event shall an employee be forced to work more than three (3) weekend days (Saturday or
Sunday) per month.

 

 

Overtime Premium

32 All hours worked in excess of eight (8) in a work day will be paid at one and one-half
(1-1/2) times the regular straight time hourly rate.

33 When an employee works hours prior to or after their normal shift they will be paid overtime
at time and one-half. The exception to this is when an employee requests earlier starting and
stopping time and the Management agrees, then the Company is not obligated to pay overtime
hours before or after their regularly scheduled shift.

34 The Management has agreed to pay double time for all overtime hours worked which exceed
sixteen (16) hours in any one week with the understanding with the Shop Committee that the
Management has a right to replace the employee that is working and has put in sixteen (16)
hours overtime. The Management will make the transfers in such cases. The Management will
replace the employee with an employee from within the department as follows:

a. With an employee from the same department and shift.

b. If possible with an employee from the same department on another shift.

c. Where employees for replacement are not available within the department, employees capable of
performing the work will be transferred in from other Departments.

35 Hours worked on a day observed, as a holiday under this Agreement will be included in such
sixteen (16) hours under this paragraph.

Saturday
and Holiday Pay

36 All Saturday work shall be paid for at the rate of one and one-half (1-1/2) times the hourly
rate including third shift Saturday work which starts at 11:00 p.m. on Friday. All work done
on Sunday and legal holidays shall be paid for at the rate of double time except where a
regular third shift starts on a Sunday or a holiday and then the regular working hours shall
be compensated at the applicable regular rate.

 

 

Overtime Charging

37 An employee’s overtime record shall be credited with overtime when they are asked whether
they work or not. If the department works overtime, an absent employee’s overtime record
shall be charged with any overtime for which they would have been eligible

 

 

had they not been absent, including an employee on vacation or sick leave.

38 An employee that was on a day-at-a-time vacation, when overtime is scheduled, that is
eligible and qualified to work overtime, will be eligible to work the overtime, provided the
employee notifies his supervisor of their intent to work such overtime. If such employee
replaces another employee, the employee being replaced is not charged for that overtime. An
employee’s absence on Thursday will not jeopardize that employee’s rights to weekend overtime
if they return to work on Friday. However, it will be the employee’s responsibility to
communicate with management no later than the start of the lunch period of their Friday shift
to determine if weekend overtime is available.

39 Where the applicable rate of pay is time and one-half, the employee will be charged with one
and one-half hours overtime for each overtime hour.

40 Where the applicable rate of pay is double time, the employee will be charged with two hours
overtime for each overtime hour.

41 An employee asked to work additional overtime after the deadlines defined in Paragraph 30,
where the overtime is in a department or
shift other than their own, will not be charged with such overtime refused but will be charged
if they work such overtime.

42 An employee, who is asked to work additional overtime while working a weekend overtime shift,
will not be charged for such additional overtime if refused, but will be charged if they work
such additional overtime.

43 Telephone offers of overtime where management reaches the employee are charged whether or not
the overtime is worked. Where a message is left with someone other than the employee, and the
employee fails to work, the overtime will not be charged. All work, or refusal of work, on a
day observed as a holiday under this Agreement is charged.

44 An employee who accepts an overtime assignment but fails to report for and work such
assignment without being excused by management will be recorded with an unexcused absence.

45 No employee will be subject to an unexcused absence being recorded for an overtime assignment
missed due to hospitalization of the employee or death or hospitalization of a member of the
employee’s immediate family.

 

 

46 When an employee is transferred to a different Department, they will get the average overtime
for that Department. When they are transferred back to their Home Department, they will
receive the overtime average of their Home Department.

 

 

Overtime Distribution

	47	 	The supervisor will keep daily records of all overtime worked by the employees. In order
that the overtime within the department is distributed as evenly as possible, those with the
least amount of overtime shall be asked to work first among those qualified to do the work.
It is recognized that an employee may be qualified to do the overtime work without holding the
applicable job classification. If an employee is eligible for overtime but declines the hours
that are offered, the overtime may be offered to the next qualified employee. The
supervisor’s copy of the overtime record will be posted at the supervisor’s desk and kept as
current as possible. The names and work centers, where applicable, of those scheduled for
weekend overtime work in the department and shift will be displayed in the department area by
the supervisor prior to the overtime work to permit checking by employees so they may
determine before the overtime is worked if any errors in selection have been made. This
information is to be used by employees to point out any overtime assignment errors to the
supervisor before the overtime is worked, wherever possible. When an entire shift in a
department is scheduled for weekend work, a notice displayed to that effect need not include
names and work centers.
	 
	48	 	The Company will continue its practice of distributing overtime as equally as possible on the
shift in a department.

49 It is further agreed that the Company will maintain as close a balance of overtime hours
among the shifts within a department as production necessities and individual skills allow.

Overtime Entitlement on Transfer or Probation

50 A transferred employee shall have to work five (5) days before they are entitled to overtime.
However, they may work if all other people in the Department have been asked.

51 Probationary employees will not be asked to work until all employees with seniority working
in the department and on the shift, including transferred employees, have been asked to work;
except that when all employees in the department on all shifts who are qualified for the work
involved have been asked to work and more employees are needed, qualified probationary
employees may be asked.

you will immediately be terminated. No excuses will be accepted for not meeting the terms of this
agreement.

	 	 	 	 	 
	 	 	 
	Human Resources Manager

	 	Date	 	 

I have read and been given a copy of this Last Chance Agreement. I have been informed that I should
review this agreement with an attorney before I sign it. I understand that this is my last chance
to keep my job and that if I violate this agreement I will be terminated.

	 	 	 	 	 
	 

	 	Employee
	 	Date
	 

	 	 	 	 

LAST CHANCE AGREEMENT

It is the policy of Chart Energy & Chemicals Inc. to maintain a work environment for all its
employees that is conducive toward maximum safety and optimum work standards. In application of
this policy, the use or possession, and/or sale of drugs by an employee is prohibited. Having
detectable amounts of alcohol/drugs in your body while on Company premises is also prohibited.

It is the policy of Chart Energy & Chemicals Inc. to take action whenever alcohol and/or drugs are
detected through urinalysis/drug testing. Under such circumstances, the employee will be subject to
disciplinary action up to and including immediate discharge, as outlined in the Chart Energy &
Chemicals Inc. substance abuse policy.

 

 

On ___, you tested positive for drugs and/or alcohol for the second time. The Company will
provide you with an opportunity to rehabilitate yourself. The Company has agreed to provide you
with a leave of absence, if necessary, for your rehabilitation.

If you elect to participate in and successfully complete a rehabilitation program, the Company is
prepared to allow you to continue employment under the following conditions:

	1.	 	You must successfully complete the rehabilitation program, including any recommended
follow-up and provide the Company with reports with regard to your attendance and your
completion of such programs. A plan of action must be agreed upon before hand.

	2.	 	You agree, by your signature below, that your representatives of the Employees Assistance
Program and rehabilitation program are authorized to release to Chart Energy & Chemicals Inc.
information related to your attendance and progress in an approved treatment and
rehabilitation program.

	3.	 	You will not possess, use, sell, or be under the influence of drugs and/ or alcohol on
company premises or during work hours at any time in the future.

	4.	 	You agree that the Company may require you to be tested for the presence of alcohol and/ or
drugs in your system at any time for any reason or for no reason at all in the next six (6)
months. Such tests will be conducted by a medical testing facility using any appropriate
testing procedure. If you are requested to take such an examination and refuse to take the
examination or test positive, you agree that you will be immediately terminated.

In accepting the terms of this Last Chance Agreement, you agree that if you fail to live up to any
of the terms of this agreement,

ARTICLE VII — HOLIDAYS

Paid Holidays

52 All employees on the seniority list shall receive eight (8) hours pay at their regular
straight time hourly rate inclusive of shift premiums for the following holidays: New Year’s
Day, Good Friday, Memorial Day, Fourth of July, Labor Day, Thanksgiving Day, day after
Thanksgiving Day, December twenty-fourth, Christmas Day and December thirty-first, providing
the employee has worked a major part of their last scheduled work day before and the major
part of their first scheduled work day after the holiday, providing such days are in the same
work week as the holiday; except where this work requirement is specifically waived by the
Company for reasons of personal urgency.

Note: See Weekend Shift language (Article V) for specifics on Weekend shift Holiday observance
and pay provisions.

53 When December twenty-fourth and December thirty-first fall on Saturday or Sunday, the
holidays will be observed on the preceding Friday. When any other holiday listed above falls
on Saturday, it will be observed on the preceding Friday.

54 With the approval of the company and the majority consensus of the 3rd shift
employees, a holiday may be moved for the 3rd shift to the following day of the
holiday.

On Layoff and Sick or Military Leave

55 Employees who have been laid off work in a reduction of work force during the workweek prior
to or during the week in which the holiday falls shall receive pay for such holiday.

56 In the event one of the paid holidays falls during an employee’s vacation, they have the
option of substituting the day(s) before or the day(s) after their vacation for said
holiday(s).

57 Employees who go on sick leave during the workweek prior to or during the week in which the
holiday falls shall receive pay for such holiday.

58 Employees who go on military leave during the first or second workweek prior to or during the
week in which the holiday falls shall receive pay for such holiday.

 

 

ARTICLE VIII — OTHER PAY PROVISIONS

Call Back Pay

59 Any employee called back
for work outside their
regularly scheduled hours
shall receive not less than
three (3) hours pay at their
applicable rate.

Reporting Pay

60 When an employee reports for work and no work is available, they shall be paid up to four (4)
hours at their regular straight time rate for the time lost during the first half of their
shift unless they were notified in advance of the starting time of their shift not to report
for work. However, if stoppage of work is due to fire, lightning, failure of power lines or
other causes beyond the Company’s control no payment for lost time shall be made.

61 An employee shall be notified not to report for work by either, the supervisor of their
department, the Human Resources Department or other supervisory personnel, provided the
employee has furnished the correct phone number to the Company. If the correct phone number
is not provided and the employee cannot be contacted, no reporting pay will be paid.

Time Lost Due to Injury

62 If it has been established that an injury to an employee has arisen out of and in the course
of their employment with the Company, and the employee is instructed by the Company to receive
outside treatment for the injury during the current shift, they will be paid for time
necessary to obtain such treatment. If follow-up outside treatment is required which cannot
be scheduled outside the employee’s regular working hours, the employee will be paid up to
three (3) hours at their regular straight time hourly rate for time lost from their regular
working hours for any such follow-up visits.

63 In the event an employee is instructed by the Company to receive subsequent outside treatment
during their regular shift because of their inability to continue work due to the original
injury, they will be paid for time necessary to obtain such treatment.

64 In any case in which an employee believes outside treatment for the injury is necessary
during their regular working hours even though the Company has refused to instruct them to
receive such outside treatment, the employee may at their option leave work to receive outside
treatment. Should it be determined that the treatment was necessary in order for the employee
to continue work or if it is determined that they are unable to continue work, the employee
will be paid for the time lost from their regular working hours in accordance with Paragraphs
62, 63, and 65.

65 If the employee loses time and the attending physician determines they are physically unable
to work the balance of the shift on which they received outside treatment due to the severity
of the injury, they shall be paid for the balance of that regular shift, but not to exceed
eight (8) regular hours, upon furnishing proof of the physician’s

that I will have an opportunity to be interviewed by the MRO to review my status, my medical
history and any relevant biomedical factors prior to Chart Energy & Chemicals Inc., being informed
whether I passed or failed the test.

I understand that a confirmed positive drug or alcohol test will result in my referral to Chart
Energy & Chemicals Inc., EAP and that I will be required to complete a rehabilitation program. No
disciplinary action will be taken against me unless I refuse to sign this consent and release form,
refuse to take a drug/alcohol test, refuse the opportunity for rehabilitation, fail to complete a
rehabilitation program successfully, or again test positive for drugs/alcohol within two (2) years
of completing an appropriate rehabilitation program. I understand that such disciplinary action, as
described herein, may include dismissal from Chart Energy & Chemicals Inc.

A copy of this form shall be provided to Local Lodge No. 2191.

I,                      , hereby consent and willingly submit to drug and alcohol
testing, as stated
above, to be performed upon me and hereby authorize the Medical Review Officer to review such
tests. I further agree to have released, any positive test results and/or confirmation that the
test was performed to Chart Energy & Chemicals Inc. through its Human Resource Manager.

 

 

	 	 	 	 	 
	 	 	 
	Signature of Employee

	 	Date	 	 

	 	 	 	 	 
	 	 	 
	Witness

	 	Date	 	 

determination. If an employee is injured while working in the plant and such injury arises out
of and in the course of their employment, and the injury is of such nature as to prevent the
employee’s return to work for an initial period of three (3) or more consecutive calendar days
excluding Sunday or paid holiday or vacation following the day of injury, then the Company will
pay such employee a sum equal to the current sickness and accident daily benefit rate for each
of such three (3) days; provided however, that such payment shall not be made if the Workmen’s
Compensation carrier of the Company is required to pay the employee Workmen’s Compensation for
the three (3) day period following the day of injury.

66 Under the following circumstances the Company will pay for up to two and one-half (2-1/2)
hours for working time lost by an employee on Monday:

	a.	 	An employee is injured at work on a Saturday and obtains outside treatment.
	 
	b.	 	An injured employee is instructed by their doctor to report for medical evaluation on the
following Monday morning before going to work.
	 
	c.	 	The employee notifies their supervisor in advance that they won’t be in on time.
	 
	d.	 	The employee reports for work on the Monday involved before 9:30 a.m.

Bereavement

67 An employee with seniority, who is working at the time, will be granted three (3) regular
working days off with pay in the event of a death in the employee’s immediate family.
Immediate family is defined as the employee’s wife, husband, father, mother, son, daughter,
brother, sister, father-in-law or mother-in-law. An employee may take the time off with pay
later than the day of death or funeral if circumstances warrant and are a direct result of the
death. An employee with seniority, who is working at the time, will be granted one (1)
regular workday off with pay to attend the funeral of a grandparent or grandchild of the
employee.

Jury Duty

68 An employee with seniority shall be excused from work on a work day on which they are called
to perform jury service in a court of record, provided they give prior notice to the Company.

69 An employee with seniority who is excused from work for jury service and who furnishes the
Company with a statement from management personnel listed below. The Company will conduct the Policy in a manner calculated to
preserve the employee’s privacy and dignity.

In the event a grievance is filed as a result of a positive substance test, the Company shall
obtain from the laboratory its records relating to the drug test and, if necessary, any record
which might be in the possession of the Medical Review Officer. The Company shall provide copies of
all information to the Union, provided that the employee authorized the release of the medical
records. The Union and the Company shall confer and adopt a mutually acceptable release form.

 

 

	 	 	 	 	 
	 	 	 
	Human Resources Manager

	 	Date	 	 

	 	 	 	 	 
	 	 	 
	Manager of Manufacturing

	 	Date	 	 

The Union reserves the right to grieve and/or arbitrate:

The Union reserves the right to grieve and/or arbitrate any or all of this Policy if it is deemed
necessary as determined by the Union.

CONSENT and RELEASE FORM for Drug/Alcohol Test Program

I acknowledge that I have received a copy of, have been duly informed, and understand the Chart
Energy & Chemicals Inc., drug and alcohol testing policy and procedures. I have been provided with
the information concerning the impact of the use of alcohol and drugs in the work place. In
addition, I have been informed on how the tests are conducted, what the test can determine and the
consequence of testing positive for drug/alcohol use.

I have been informed of Chart Energy & Chemicals Inc., Employee Assistance Program (EAP). I
understand that if I voluntarily come forward and ask for assistance to deal with a drug or alcohol
problem through EAP, that, I will not be disciplined by the employer.

I understand how drug/alcohol tests are collected and further understand that there are medical
tests that are conducted under the auspices of a Medical Review Officer (MRO). I understand that
the MRO will review and interpret any positive test results, and the court with regard to jury pay received and time spent on jury service will be reimbursed by
the Company as follows:

a. All employees will receive eight (8) hours pay at their regular straight time rate including
all applicable premium pay less the amount received as jury pay for each day they are called
to serve as a juror.

	 	b.	 	A day of jury duty is defined as any day for which the employee is required to appear
regardless of having served, certified by written statement from the court.
	 
	 	c.	 	Hourly rate of pay shall be limited to sixty (60) workdays annually commencing with
the first day of jury service paid.

ARTICLE IX — SENIORITY

70 It shall be the policy of the Company to recognize seniority. To accomplish this, there
shall be one seniority list covering all employees in all production departments. Where two
or more employees gain seniority on the same day, their relative seniority shall be determined
by last name alphabetical sequence with, for example, an employee whose last name begins with
“A” being regarded as senior to one whose last name begins with “B”. Last name changes due to
marriage, etc., which occur after the day on which employee gains seniority, shall not affect
seniority.

71 In the event that, before June 1, 1988, a person who, as of the effective date of this
agreement, is an employee of the Trane Company temporarily assigned to ALBRAZE International
(Chart Energy & Chemicals Inc.) the ALBRAZE (Chart E&C) seniority date of said person will be
January 5, 1986. Notwithstanding the provisions of Paragraph 70, above, the relative
seniority of employees whose ALBRAZE (Chart E&C) seniority date is January 5, 1986 shall be
determined by the amount of Trane Company seniority which

 

 

they possessed as of the effective date of this Agreement.

Probationary Period

72 An employee shall have no seniority rights until the completion of their probationary period.
The probationary period shall consist of sixty (60) actual days worked. This calculation does
not include overtime outside the normal schedule. The date given the employee for their
seniority standing will be the day following the end of their probationary period. For
probationary employees working the weekend schedule, each day worked would equal 1.67 days
worked toward the probationary period.

73 An employee shall lose their seniority rights for the following reasons:

  a. If they voluntarily terminate their employment with the Company.

Section 17. Conflict With Other Laws:

This article is in no way intended to supersede or waive any constitutional or other rights that
the employee may be entitled to under Federal, State or Local Statutes.

Section 18. Non-Workplace Drug Related Convictions:

Any employee who is convicted of an illegal drug-related crime (does not apply to ordinance
violations) shall notify the Company immediately of such convictions. For the purpose of this
Policy, a “conviction” means finding of guilt (including a plea of nolo contendere) or imposition
of sentence, or both, by any judicial body with the responsibility to determine violations of
federal, state or local criminal statutes. Information concerning any such conviction for
violation of any statute based upon conduct occurring away from the Company’s premises and outside
work time shall not be a basis for imposing discipline under the collective bargaining agreement or
for requiring probable cause testing without the observation required by this Policy.

Section 19. Diversion Agreement:

Any employee who accepts a diversion agreement, wherein the employee pleads guilty to an offense
but, the guilty plea is not accepted by the court if certain conditions are met within a prescribed
time line, will be required to notify the Company under this policy if and when the employee’s
guilty plea is accepted because of the employee’s failure to meet the set conditions.

Section 20. Training:

The training of Company and Union representatives shall be from a formal training program endorsed
by a local Hospital and/or Law Enforcement Agency in detecting signs and symptoms of substance
abuse through speech, breath odor and conduct which indicates the need for testing.

The Company and Union will have an equal number of people trained to recognize individuals under
the influence of drugs and/or alcohol. It remains the responsibility of the Company to determine
testing of employees.

Section 21. Confidentiality:

The Company will designate an official who will be responsible for receiving and maintaining
records regarding all substance tests administered under this Policy. These records shall be
maintained in separate files from routine personnel files and the Company shall limit access to
those specifically authorized

b. If they have been discharged for just cause.

c. After being laid off, if an employee fails to report for work within five (5) days after
being notified through the Company Human Resources department. Notification to return to work
will be confirmed by certified letter to the employee. However, no employee shall lose their
seniority rights if their failure to report is the result of sickness or causes beyond their
control, in which case the employee shall furnish written proof as to that fact.

 

 

d. If for any reason an employee has had twenty-four (24) consecutive months of unemployment
with the Company or a period equal to one-half (1/2) of their seniority, whichever is greater.

Layoff

74 When it becomes necessary to reduce the working forces, the last employee on the plant
seniority list shall be the first employee laid off, etc., and the last employee laid off
shall be the first employee recalled, etc., except as hereinafter provided. Before any
layoffs or recalls of any employees occur, a list of employees to be laid off or recalled will
be presented to the Shop Committee as to the employees laid off or recalled and the effect on
seniority; but this shall not in any way interfere with the right of the Company to reduce its
force.

Voluntary Layoff

75 a. Senior employees not affected by the layoff will be allowed to volunteer to replace the
most senior people on the layoff list. Employees volunteering for layoff status are required
to accept the layoff for two (2) months unless the employees involved are recalled before that
time.

	 	b.	 	An employee opting for and receiving voluntary status may exercise this option one
(1) time per calendar year, unless all employees identified on the list with less
seniority have been asked for voluntary layoff, they could be asked again.
	 
	 	c.	 	This voluntary layoff procedure will be administered through one (1) list per layoff
date. When an employee on a two (2) month voluntary layoff returns to work, the junior
employee will be laid off unless another senior employee has signed the list for the
specific layoff or until the list is exhausted.
	 
	 	d.	 	A new list will be used for each successive layoff date and the procedure stated
above will apply. The previous list will be cancelled at this time. Employees

company if benefits are not provided by another plan.

Any employee, who tests positive the first time shall be medically evaluated, counseled and treated
for rehabilitation as recommended by an E.A.P. Counselor. Employees who complete a rehabilitation
program can be re-tested randomly at least once every quarter for the following six (6) months, if
an employee tests positive a second time during the six (6) month period, they shall be subject to
a disciplinary action. The employee will be reevaluated by an E.A.P. Counselor to determine if the
employee requires additional counseling or treatment. The employee will also receive a last chance
agreement. If the employee does not sign the last chance agreement, he/she will be subject to
disciplinary action up to and including dismissal. If the employee tests positive a third time
during this subsequent six (6) month period, he/she will be dismissed from his/her position with
the company.

Section 13. Duty Assignment After Treatment:

Once an employee successfully completes rehabilitation, they shall be returned to their regular
duty assignment. Once treatment and any fol1ow-up care is completed, and two (2) years have passed
since the employee entered the program, the employee’s personnel file shall be purged of any
reference to his/her drug or alcohol problem.

Section 14. Right of Appeal:

The employee has the right to challenge the results of the drug or alcohol tests and any discipline
imposed in the same manner that any of the employer actions under the terms of this agreement is
grievable.

Section 15. Union Held Harmless:

This drug and alcohol-testing program was initiated at the request of the employer. Chart Energy &
Chemicals Inc. assumes sole responsibility for the administration of this policy and shall be
solely liable for any legal obligations and costs arising out of the

 

 

provision and/or application of this policy relating to drug and alcohol testing. The Union shall
be held harmless for the violation of any worker rights arising from the administration of the drug
and alcohol-testing program.

Section 16. Changes in Testing Procedures:

The parties recognize that there may be improvements in the technology of testing procedures, which
provide more accurate testing. In that event, the party’s shall bargain in good faith whether to
amend this procedure to include such improvements.

not receiving voluntary layoff on previous lists will be allowed to sign these new lists to
determine the availability and opportunity for voluntary layoff status.

	 	e.	 	The Company retains the right to recall those on a voluntary layoff at any time based
on production needs or if the skills of the volunteer are required. The Company also
retains the right to deny voluntary layoff if the volunteer’s skill is needed at the time
of layoff.
	 
	 	f.	 	The Company agrees to pay their share of all insurance premiums for any employee on
voluntary layoff. Also, the employee agrees to pay their share of all insurance premiums.
All other benefit restrictions will apply as for employees on normal layoff. Insurance
payments are due the first of the month of applicable coverage.

Exemptions and Deviations From Layoff

76 All welders, electricians, and tool room employees are exempt from the seniority clause as to
layoff as long as they are needed on their exempted jobs. It is understood that an exempted
employee must have demonstrated the capability to perform the required job. If the Company
replaces an employee exempted in one of the above jobs with an older qualified employee, the
exempted employee will be laid off.

77      Deviations from straight plant seniority in addition to those listed above can only be made
for justifiable reasons, that is, when an employee’s qualifications are essential on available
work and no senior employee not subject to layoff has the necessary qualifications. The
Company will specify such exemptions to the Shop Committee sufficiently in advance of the
layoff giving the specific reasons for such deviations in each case. The Company will
endeavor to find alternate qualified employees not subject to layoff for such exempted
employees to replace those so exempted. The Company will not be required to make more than
two transfers to replace one employee under this paragraph.

78 The parties may discuss from time to time the problem of deviations from seniority on layoff.

79 If the Union does not agree with certain exemptions, the Company and the Shop Committee shall
make every effort to resolve their differences before resorting to the grievance procedure.

Layoff Notice

80 When layoffs, because of lack of work, are in accordance with straight seniority, the
employees affected shall be given five (5) working days notice before being laid off for a
period of two (2) weeks or more. It is further agreed that in case of material shortages
resulting from conditions beyond the

Review Officer of any positive results. The results of a positive drug or alcohol test can only be
released to the Employer by the Medical Review Officer once he has completed his review and
analysis of the laboratory’s test. The employer will be required to keep the results confidential
and it shall not be released to the general public.

Section 10. Testing Program Costs:

When the Company has proven a probable cause to believe that an employee is under the influence of
a substance, which is impairing job performance, the employee will be immediately placed on a
mandatory leave of absence from work, for the remainder of the shift involved, and sent for a
drug/alcohol test. The employee will report to work at the start of the next regular shift. The
Company will pay the employee for all hours (to include overtime hours) missed from work due to the
mandatory leave of absence upon receipt of verification of a negative substance test. If the
result of the substance test is positive, the Company will not pay the employee for

 

 

any hours missed from work due to the mandatory leave of absence.

For all costs associated with drug and alcohol testing, the Company will pay the medical testing
facility and Medical Review Officer.

Section 11. Transportation:

The Company will provide transportation, at its expense, through a local taxi service to the
medical facility conducting the substance test. Both Management and the Union reserve the right to
have a representative accompany the employee to the testing facility.

The Company will provide transportation, at its expense, through a local taxi service from the
medical testing facility to the employee’s home and their return to work the following day through
a local taxi service. In no instance will the employee be permitted to drive himself or herself
home.

Section 12. Rehabilitation and Offenses and Penalties Program:

Any employee may voluntarily enter rehabilitation without a requirement for prior testing.
Employees who enter a program on their own initiative shall not be subject to testing. The
treatment and rehabilitation shall be paid for by the medical benefits plan, in which the employee
participates, to the extent provided by the plan. Employees who have chosen to opt out of the
Company’s Health Insurance Plans will first, apply for benefits under the plan that covers them and
secondly, be covered by the

Company’s control, the five (5) days’ notice provision will be waived. Employees exempted from
layoff who are to be laid off because they are no longer needed on the work for which they are
exempted may be laid off without notice. However, first and second shift exempted employees
will work to the end of the shift in which layoff notice is given. Paragraph 60 will apply to
third shift exempt employees who are to be laid off without notice.

One-Day Layoffs

81 Layoffs, due to lack of work or material shortages, will be made by seniority in a
department, provided such a layoff does not exceed eight (8) hours in any one week. For any
layoff in excess of eight (8) hours in any one-week, the procedure set forth in Paragraphs
74-78 will be followed. This paragraph is not intended to be used to establish a regular work
week of less than five (5) days for the employees in any department, and shall be applied in
such a way that no employee is affected in their department more than six (6) times nor more
than three (3) consecutive weeks in a twelve (12) month period. The Union Committee will be
notified in advance of any layoff under this paragraph.

Inventory

82 In the event that production is interrupted due to the taking of inventory, the parties will
meet to discuss appropriate work assignments.

ARTICLE X — TRANSFER

Requests for Transfer

83 All requests for permanent transfers by employees may be granted by the mutual consent of the
Shop Committee and Management. The selection of employees shall be based upon the Job
Selection Guidelines.

84 When an employee is granted a job or department transfer at their own request they shall have
a trial period of up to thirty (30) days. The exception to the foregoing sentence is in cases
where an extension of a trial period, due to skills is requested by the Company or the Union,
and such extension is agreed to by the Company and the Union. They will receive the rate of
the job they are performing while on transfer if they are qualified. If it is decided to make
the transfer permanent, the employee will be given a rating for which they are qualified.

	a.	 	When such request is made, the Union and the employee and the supervisor will receive a
written notification.

 

 

	b.	 	In the event that an employee is accepted for training on a job with a labor grade higher
than their present job

Marijuana metabolites       15 ng/ml

Cocaine metabolites          150 ng/ml

Opiates

      Codeine      2000 ng/ml

Phencyclidine       25 ng/ml

Amphetamines

If confirmatory testing results are negative all samples shall be destroyed and records of the
testing expunged from the employee’s file.

	1.	 	If immunoassay is specific for free morphine the initial test level is 25 ng/ml
	 
	2.	 	Delta-9-tetrahydrocannabinol-9-carboxylic acid
	 
	3.	 	Benzoylecgonine

Section 7. Alcohol Testing:

A Breathalyzer or similar test equipment shall be used to screen for alcohol. An initial positive
alcohol level shall be, .04 grams per 210L of breath. If initial testing results are negative,
testing shall be discontinued, all samples destroyed and records of the testing expunged from the
employee’s file. Sampling handling procedures, as detailed in Section 5, shall apply.

Section 8. Medical Review Officer:

The Medical Review Officer shall be chosen and agreed upon between the Union and the Employer and
must be a licensed physician with a knowledge of substance abuse disorders. The Medical Review
Officer shall be familiar with the characteristics of drug tests (sensitivity, specificity, and
predictive value), the laboratories running the tests and the medical conditions and work exposures
of the employees. The role of the Medical Review Officer will be to review and interpret the
positive test results. The Medical Review Officer must examine alternate medical explanations for
any positive test results. This action shall include conducting a medical interview with the
affected employee, review of the employee’s medical history and review of any other relevant
biomedical factors. The Medical Review Officer must review all medical records made available by
the tested employee when a confirmed positive test could have resulted from legally prescribed
medication.

Section 9. Laboratory Results:

The laboratory will advise only the employee and the Medical

they shall, when they complete the trial period, be paid the time and grade rate of the new
job but not less than their time and grade rate on their former job.

c. In a posting requesting multiple employees for the same labor grade and classification, the
senior employee will not be paid less than the time and grade rate of the junior employee(s).

Temporary/Forced Transfers

85 Employees will be considered as temporarily transferred until notified of being forced to
accept a permanent job or department transfer due to shortage of work, material, manpower,
etc. Said employee shall carry their present classification and pay rate for a period not
less than six (6) months. Employees will receive the rate of the job they are performing
while on transfer if

 

 

they are qualified and if the rate is higher than their current rate. After six (6) months the
employee will be given a rating in the new department for which they are qualified.

86 If, up to three (3) months from the employee’s date of forced transfer a position opens up in
their home department, the employee will have the option to return to their home department,
if they are qualified for the position.

Seniority Principle

87 It shall be the policy of the Company to follow the principle of seniority whenever skill is
not a consideration when moving transferred employees out and returning employees to their
home department. Employees will be transferred from their home department by inverse
seniority regardless of shift assignment provided the remaining employees are qualified to
perform the work.

88 When it is necessary to transfer employees and the position to be transferred to is a job of
a higher labor grade than in the department, employees are to be transferred by seniority.
Senior employees will be offered said transfer prior to junior employees being forced to
transfer, provided the remaining employees are qualified to perform the work. Transferred
employees will be returned to their home department on the basis of seniority whenever skill
is not a consideration.

Exception for Union Representatives

89 a. A department steward or a member of the Shop Committee may be transferred or farmed, by
inverse seniority, from their home department, but not subject to being replaced on their
shift. This provision shall not be construed to give extra seniority to such representative
in the event of a layoff, nor to prevent such Union Representative from exercising their
seniority.

Union and the Employer. The laboratory used shall also be one whose procedures are periodically
tested by the NIDA where they analyze unknown samples sent to an independent party. The results of
employee’s tests shall be made available to the Medical Review Officer. Collection of urine samples
shall be conducted in a manner, which provides the highest degree of security for the sample and
freedom from adulteration. Recognized strict chain of custody procedures must be followed for all
samples as set by NIDA. The Union and the Employer agree that security of the biological urine
samples is absolutely necessary therefore the Employer agrees that if the security of the sample is
compromised in anyway, any positive test shall be invalid and may not be used for any purpose.

Urine samples will be submitted as per NIDA Standards. Employees have the right for Union or legal
counsel representative to be present during the submission of the sample.

A split sample shall be reserved in all cases for an independent analysis in the event of a
positive test result. All samples must be stored in a scientific acceptable preserved manner as
established by NIDA. All positive confirmed samples and related paperwork must be retained by the
laboratory for at least six (6) months or for the duration of any grievance, disciplinary action or
legal proceedings whichever is longer. At the conclusion of this period, the paperwork and
specimen shall be destroyed.

Tests shall be conducted in a manner to ensure that an employee’s legal drug use and diet does not
affect the test results.

Section 6. Drug Testing:

The laboratory shall test for only these substances and within the limits for the initial and
confirmation test as provided within the NIDA Standards. The initial test shall use an
immunoassay, which meets the requirements of the Food and Drug Administration for commercial
distribution.

Marijuana metabolites     50 ng/ml

Cocaine metabolites        300 ng/ml

Opiate metabolites        2000 ng/ml

Phencyclidine     25 ng/ml

Amphetamines 1000 ng/ml

 

 

If initial testing results are negative, testing shall be discontinued, all samples destroyed
and records of the testing expunged from the employee’s file. Only specimens identified as
positive on the initial test shall be confirmed using gas chromatograph/mass spectrometry (GC/MS)
techniques at the following listed cutoff values.

	b.	 	In the event the selection of “a” safety steward is other than a department steward, the
language of paragraph a. above will 

           apply to said safety stewards.

Calling Back Transferred Employees

	90	 	When it is established that there is a need for additional personnel for ten (10) working
days or more in a Department, with employees out on transfer such employees will be returned
to their Home Department to fill the need in accordance with Paragraph 85 unless such need is
being met temporarily by an employee with physical limitations who is unable to perform their
normal duties. Such needed employees will be returned to their home department as soon as
possible but not later than thirty (30) calendar days. Presence of a physically limited
employee in a Department will not result in a senior employee on transfer losing their rate or
job.

	 
	91	 	Except where production needs reasonably require otherwise, employees shall not be placed in
a department where employees are transferred out prior to returning those on transferred back
to their home department by seniority.

	 
	92	 	It is recognized that in order to use the work force efficiently and keep people working in
so far as possible, the company requires flexibility in farming or transferring employees for
a period of time, due to the reduction of work in the Home Department, or their specific skill
is needed in another department, or because of the production need of another department. The
farming of an employee shall be by inverse seniority by shift, and will not exceed 15 working
days.

Wage Rate Handling

	93	 	When an employee is transferred into a job classification they previously carried, they shall
receive the rate for that job retroactively, after accumulating three (3) full days, provided
such a rate is higher than they are carrying. If they continue on the job for a period of six
(6) months, their short-term rate shall become their new classification.

Notice of Transfer

	94	 	The Company will endeavor to give each employee a Notice to Report Form on the day preceding
the transfer or shift change by 12:00 P.M. (noon) on the first shift, 9:00 P.M. on the second
shift and 4:45 A.M. on the third shift.

New Technology, Product Transfer or Discontinuance

	95	 	The Company and the Union agree that it is to both their mutual benefit and a sound economic
and social goal to utilize the most efficient machines, processes, methods
employment, must successfully complete a pre-employment physical examination by, in relevant part,
testing negative through urinalysis or similar tests administered to detect the use or abuse of
drugs and/ or alcohol. Such pre-employment testing bears a direct, material, and timely
relationship to an applicant’s capacity to perform his or her duties safely and effectively.

Section 3. Informing Employees About Drug and Alcohol Testing:

All employees shall be fully informed of the company drug and alcohol testing policy. Employees
will be provided with information concerning the impact of the use of alcohol and drugs on job
performance. In addition, the employer shall inform the employees on how the tests are conducted,
what the tests can determine and the consequence of testing positive for drug use. All newly hired
employees will be provided with this information on their initial date of hire. No employee shall
be tested before this information is provided to him/her. The Employer shall not discipline
employees who voluntarily come forward and ask for assistance to deal with a drug or alcohol
problem. Prior to any testing, the employee will be required to sign the attached consent and
release form. No disciplinary action will be taken against an employee unless he/she refuses to
sign the consent and release form, refuses to take a drug/alcohol test, refuses the opportunity for
rehabilitation, fails to complete a rehabilitation program successfully, or again tests positive
for
drugs/alcohol within two (2) years of completing an appropriate rehabilitation program.

 

 

Section 4. Employee Testing:

Employees shall not be subject to random medical testing involving urine or other similar or
related tests for the purpose of discovering possible drug or alcohol abuse however, if objective
evidence exists establishing probable cause to believe an employee’s work performance is impaired
due to drug or alcohol abuse, the employer will require the employee to undergo a medical test
consistent with the conditions set forth in this Policy. An employee that is ordered to
participate in a drug and alcohol test shall have the right to consult with the Medical Review
Officer, Treating Physician or Attending Physician following the testing process.

Section 5. Sample Collection:

The collection and testing of the samples shall be performed only by a laboratory and by a
physician or health care professional qualified and authorized to administer and determine the
meaning of any test results. The laboratory performing the test shall be one that is certified by
the National Institute of Drug Abuse (NIDA). The laboratory chosen must be agreed to between the

FREE STANDING AGREEMENT

LOCAL LODGE 2191 AND CHART HEAT EXCHANGERS

It is agreed; the company and Union will discuss the possibility of exceeding the Voluntary Shift
Exchange Language [more than one (1) week] due to manpower moves.

As in the past, these discussions will take place to allow employees the opportunity to change
shifts with other employees in excess of the limit stated in the current Labor Agreement.

This agreement is based on the additional requirements stated in the current Labor Agreement,
Voluntary Shift Exchange [more than one (1) week], and mutual agreement between the Company and
Union Shop Committee.

Any agreement to allow this to take place will be agreed to on a non-precedent basis.

It is recognized that the Company will have final say in decisions associated with the above stated
language.

DRUG AND ALCOHOL TESTING POLICY AND PROCEDURES

Purpose:

Chart Energy & Chemicals Inc., is committed to providing and maintaining a safe, healthful and
productive environment for all of its employees. An integral part of such an environment is a
workforce free from individuals who are illegally and unsafely abusing drugs or alcohol.
Therefore, it is in the best interest of the Company, its customers, and its employees to recognize
that illegal drug use by employees would be a threat to the welfare and safety of Company
personnel.

Policy:

Section 1.

It is the goal of this policy to eliminate or absolve illegal drug usage through education and
rehabilitation of the affected personnel. The possession, use or being under the influence of
alcoholic beverages or unauthorized drugs shall not be permitted at the Employer’s work site and/or
while an employee is on duty.

 

 

Section 2. Pre-employment Testing:

As a precondition to obtaining employment with Chart Energy & Chemicals Inc., to become a Chart
Energy & Chemicals Inc. employee, all applicants, following a conditional offer of
and/or materials. In this way, the Company will be able to compete effectively in the market
place and, thereby, provide economically secure jobs for its employees.

	96	 	When the Company changes technology, transfers a product line or a portion thereof from La
Crosse, or discontinues the manufacture of a product line or portion thereof at La Crosse, or
merges two or more departments and as a result of such action a department is dissolved or a
major portion of the regular employees in such department are no longer needed on their jobs,
each employee in the department whose job is abolished because of this action will be subject
to the following procedure:

	 
	a.	 	Prior to the implementation of any of the above, the Company will meet with the Union to
discuss the impact.
	 
	b.	 	The Company agrees to train displaced employees within a reasonable period of time (6 months
or less) for available positions.

	 
	c.	 	Employees in classifications and areas will be handled in a manner consistent with marginal
paragraph 84 of the agreement.

New Department

	97	 	A new department is created when a new product line is originally manufactured in a separate
plant area, and such department is assigned a new department number. When a new department is
created, the Company and the Union will agree upon a procedure for the distribution of
information regarding the department and the minimum requirements therefore. The selection of
the employees will be made in accordance with Paragraphs 83 and 107 and the provisions of
Paragraph 84 shall also apply.

	 
	98	 	The Job Selection Guidelines will be the determining factor when making the selection.

Upgrading

	99 a.	 	The Company will continue to upgrade employees to higher skilled jobs where possible to do
so. The fact that an employee is proficient on their current job will not in itself be the
cause to prevent their being upgraded to a higher skilled job.

	 
	b.	 	When a successful bidder is selected to report to the posted/notice job they can be held up
to thirty (30) days in their current job. If it is necessary to hold the employee beyond the
thirty (30) days, the employee will be reimbursed for any monetary loss upon the successful
completion of the training/trial period for the new job.

     Agreed
to this 7th day of Fabruary

 

 

	 	 	 	 	 	 	 
	Chart Energy & Chemicals Inc.

	 	 	 	LOCAl LODGE 2191 OF DISTRICT LODGE 66 OF

THE INTERNATIONAL ASSOCIATION OF

MACHINISTS AND AEROSPACE WORKERS, AFL-CIO	 	 
	 
	 	 	 	 	 	 
	/s/   W. WILLIAM BEDNARCZYK

	 	 	 	/s/   Rick A. MICKSCHL	 	 
	/s/  JOEL A. GUBERUD

	 	 	 	/s/  DENNIS A. GERKE	 	 
	/s/  PHILLIP A. HEIMBERKER

	 	 	 	/s/  JAMES J. JONES	 	 
	 

	 	 	 	/s/  THOMAS M. CONRAD	 	 
	 
	 	 	 	 	 	 
	W. William Bednarczyk
 

	 	 
	 	Rick A. Mickschl
 

	 	 
	Joel A. Guberud
 

	 	 
	 	Dennis A. Gerke
 

	 	 
	Phillip A. Heimberker
 

	 	 
	 	James J. Jones
 

	 	 
	 

	 	 	 	Thomas M. Conrad
 

	 	 
	 
	 	 	 	 	 	 
	/s/  W.
WILLIAM  BEDNARCZYK
	 	 	 	 	 	 
	/s/  JOEL A.GUBERUD
	 	 	 	 	 	 
	/s/  PHILLIP A. HEIMBECKER
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	W. William Bednarczyk
 

	 	 	 	 	 	 
	Joel A. Guberud
 

	 	 	 	 	 	 
	Phillip A. Heimbecker
 

	 	 	 	 	 	 

Transfer to Lighter Work and Incapability

	100	 	When a senior employee, who is at the time working, requests a transfer to light work, or the
Company determines that such an employee can no longer perform their job due to advanced age,
physical incapacity or is incapable of performing their regular job, the Company and the Union
will discuss the problem with the intent of:

	 	a.	 	Assigning them to available work which they are able to perform and which needs to be
performed, and
	 
	 	b.	 	Paying for such work at the wage rate of the job they would be performing.

	101	 	It is understood that the above does not obligate the Company to make-work for an employee or
to assign an employee to work which they cannot perform satisfactorily.

Leaving or Returning to Bargaining Unit

	102	 	Any member of the bargaining unit who has been promoted or transferred or is promoted or
transferred to a position outside the bargaining unit described to a position outside the
bargaining unit described in Article I shall maintain the amount of seniority they had at the
time of such promotion or transfer and will not continue to accumulate seniority within the
bargaining
unit.

 

 

	103	 	Should such employee request to return to the bargaining unit or should the Company decide to
return such employee to the bargaining unit, they will be reinstated with the amount of
seniority they maintained at the time of their promotion or transfer. The Company agrees that
it will not return employees to the bargaining unit for the purpose of temporarily reducing
the staff of non-bargaining unit employees. When such employee returns to the bargaining
unit, their job and department assignment will be at the discretion of the Company. The Union
will be notified of the job and department assignment five (5) days prior to such assignment
wherever possible. However, they will not be placed in a department where their assignment
would cause the transfer of a regular department employee then working in the department or
where there are employees out of such department on transfer, or where there is not a need for
them in the department for at least ten (10) working days. Furthermore, upon return to the
bargaining unit, such an employee will be assigned a labor grade no higher than the highest
they held in the three-year period just prior to their promotion from the bargaining unit.

	104	 	Nothing, however, contained in Paragraph 103 shall be construed as limiting the Company’s
right to discharge any
or article or parts thereof, are in conflict with federal or state rulings, laws, or executive
orders, such federal or state rulings, laws or executive orders shall apply.

     Agreed to this                     day of
                                        
, 2007.

Chart Energy & Chemicals Inc. LOCAL LODGE 2191 OF

   DISTRICT LODGE 66 OF THE

   INTERNATIONAL ASSOCIATION OF

   MACHINISTS AND AEROSPACE

   WORKERS, AFL-CIO

     /S/ RICK A. MICKSCHL

/S/ JOEL A. GUBERUD               /S/ DENNIS A. GERKE

/S/ PHIL A. HEIMBECKER          /S/ JAMES J. JONES

     /S/ THOMAS M. CONRAD

	 	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 

	 	 	employee promoted or transferred from the bargaining unit for cause.

	105	 	Should any employee who has been promoted or transferred from the bargaining unit and then
returned to the bargaining unit under the above procedures, be subsequently again promoted or
transferred from the bargaining unit, they will lose all seniority status in the bargaining
unit on the date of such promotion or transfer.

	106	 	An initial temporary vacation replacement assignment of up to 3 months outside the bargaining
unit will not be counted toward the limitations of this paragraph.

 

 

Transfers Not Covered

	107	 	All transfers not covered elsewhere in this Agreement shall be discussed with the Shop
Committee before such transfers are made.

ARTICLE XI — SHIFT TRANSFERS

Voluntary Shift Exchange (up to 1 week)

	108	 	Voluntary shift exchanges, which are approved by management, will be permitted between two
(2) employees in the same department on a temporary basis (up to 1 week) if such exchange
conforms to the Walsh-Healey Act and does not cause overtime payments. No changes in night
shift premium will be made for either employee involved in temporary shift exchange under this
paragraph.

	109	 	For all voluntary shift exchanges, both employees must report to the department and shift
from which they intend to switch for a minimum of one (1) week.

Voluntary Shift Exchange (more than 1 week)

	110	 	A request for an exchange of shifts — for up to one (1) year by two employees in the same
department will be permitted providing:

	 	a.	 	Neither employee puts in more than eight (8) hours in a 24-hour period in making the
exchange, to conform with the Walsh-Healey Act.
	 
	 	b.	 	Neither of the employees making the exchange may do so more than three (3) times within a
year.

	 	c.	 	The qualifications and experience of both employees are relatively equal.

	111	 	Relatively equal is defined as:

	 	a.	 	Two (2) employees who can perform similar job(s).

employees who do not terminate the violation promptly. The question of whether an employee
participated in or had any responsibility for such violation shall in every case be subject to
the grievance procedure. In the event that the Union, using immediate action, is unable to
induce the employee or employees to terminate such unauthorized action, the Company will not
hold the local Union or its officers or the International Union or its officers financially
responsible therefor.

ARTICLE XXVII

SEVERANCE
PACKAGE — PLANT CLOSING

	293	 	In the case of the Plant Closing, the employees affected at the Chart Energy & Chemicals
Inc., Division in La Crosse, WI, will fall under the following guidelines:
	 
	294	 	Monetary Compensation as follows:

	 
	 	 	
One (1) week of pay for every two (2) years of service up to a maximum of twelve (12) weeks. Years of service to be
defined as no break in seniority.
	 
	295	 	Checks are to start one (1) week after said closing and will be paid on a weekly basis until pay entitlement is exhausted.
	 
	296	 	 Insurance:
	 
	 	 	
Paid in the same format (employee contribution) as if working during the paid severance period. Insurance benefits will
remain in effect until the last day of the month following the last severance payment.

 

 

ARTICLE XXVIII

DURATION OF AGREEMENT

	297	 	This Agreement shall remain in full force and effect until 11:59 p.m. on February 6, 2010 and
on a year to year basis thereafter unless on or before December 5, 2009(or in the event of a
year to year extension, at least sixty (60) days prior to the Agreement expiration date),
either the Company or the Union serves upon the other party a written notice of its desire to
terminate this Agreement and negotiate a succeeding Agreement.
	 
	298	 	No other agreement can modify the terms of this Agreement unless entered into as a written
amendment or supplement hereto.
	 
	299	 	It is understood that if any of the above articles

	•	An employee that is not from the department must be approved by the cell leader (engineer)
and department supervisor affected to determine what job(s) they can perform or have working
knowledge of, before any trade with a Home Department employee.

	 
	 	c.	 	Such request must be in writing to the Company, signed by the employees involved,
specifying the duration of the voluntary shift exchange, with a copy to the Union.

	 	d.	 	With respect to this paragraph, all other provisions of this Agreement shall apply.
	 
	 	e.	 	For all voluntary shift exchanges, both employees must report to the department and
shift from which they intend to switch for a minimum of one (1) week.

Shift Preference

	112	 	An employee upon attaining seniority may replace a junior employee in the same skill on a
different shift in the same department subject to the following:

	 	a.	 	When an employee gains seniority they can be replaced by a senior employee.
	 
	 	b.	 	Where the senior employee is replacing an employee in the same or a lower rated labor grade,
the Company will in all instances where possible train a replacement within three (3) months
for the senior employee so that they will be able to exercise their shift transfer. The
training period will start within a one (1) week period after the employee’s written request
is acted on at the regular meeting.

	 
	 	c.	 	Employees shall have the right to change shifts under this Section no more than four (4)
times within each calendar year.

Transfer to Night Shift

	113	 	When it is necessary to transfer a first shift worker to the second or third shift or a
second shift worker to the third shift or the starting of a second or third shift, the
youngest employee by seniority in the department capable of doing the work involved shall be
so transferred, unless a senior employee has preference to be transferred to the shift
involved.

ARTICLE XII — POSTED VACANCIES

	114	 	Should a vacancy occur within the Department due to retirement, termination, promotion, etc.,
the Company will discuss with the Union if said vacancy needs to be filled.

	 	a.	 	Employees from within the department where the opening is
will be based on the applicable provisions of the Fair Labor Standard Act and the company
travel policy.

	287	 	The Company policy presently provides that an employee traveling on Company business outside
la Crosse will receive an additional 20% (or more for certain international trips) added to
their earnings applicable to paid travel time and work performed on the trip with the
exception of authorized time off before and/or after a trip, travel for purposes of the
employee’s own training, and any trip completed within one day.

 

 

	288	 	Employees are considered first shift employees for purposes of determining normal working and
sleeping hours while traveling.
	 
	289	 	Travel, including time outside normal working hours, will be compensated according to the
Company travel policy.

ITEMS FOR DISCUSSIONS

	290	 	The Company and Union will discuss the following items should future conditions warrant:

	 	a.	 	Applicability and/or Method for handling National Health Care or State Health Care should
it be instituted.
	 
	 	b.	 	Catastrophic economic conditions creating hardships for either party.

ARTICLE XXVI — STRIKES AND LOCKOUTS

No Strike — No Lockout

	291	 	Since the procedures set forth in this Agreement provide the means for peaceable settlement
of all differences, disputes, complaints, and grievances that may arise between the Company
and the Union, it is agreed that, during the term of this Agreement, neither the Union nor any
of its members shall authorize, encourage, or participate in any strike or slowdown, and that
there shall be no lockouts by the Company.

Violation of Clause

	292	 	In the event of an illegal, unauthorized or uncondoned strike, sit down, slowdown or
interference with the operation by an employee or employees in violation of this Agreement,
the Union will undertake all reasonable means at its disposal to terminate such action.
Employees who participate in or are responsible for such violation may be discipline or
discharged, and such discipline or discharge shall be subject to the grievance procedure
except as to
will be offered said openings by seniority before moving to step b of this paragraph.

	 	b.	 	When a vacancy exists, the posting shall indicate the department, shift and for information
purposes only, an identification of the major department function(s), and a listing of typical
labor grades in the department.

	 	c.	 	If the posted vacancy is filled by an employee from the posted department from another
shift, this transfer may result in a vacancy on their shift, which in that event will be
posted. No further transfer or postings will be made.

	 	d.	 	If the posted vacancy is not filled by someone from the posted department, it may be filled
by a bidder from another department.
	 
	 	e.	 	If an employee, after having received a posted vacancy, returns to their home department, a
second employee from the original list of bidders may be selected to fill the vacancy.
	 
	 	f.	 	If an employee is selected for a posted vacancy and subsequently returns to their home
department at their own request, they shall be restricted from bidding on another posting for
a period of six (6) months from the date of transfer to the posted vacancy.

	 	g.	 	Vacancies will be filled based on the Job Selection Guide-lines established and agreed to
by the Union and Company.

	 	h.	 	When additional personnel are required the Company will post a notice.
	 
	 	i.	 	The Company and Union will review notices prior to publication.

	 	j.	 	When an employee is selected for a position and completes the training period, said
employee will be restricted from
bidding on another posting or notice for four (4) months. This is not intended to prevent an
employee from bidding on a higher skilled job during this four (4) month period.

 

 

ARTICLE XIII — RULES AND REGULATIONS

	115	 	a. Stealing or taking away of any Company property, including scrap without the written
permission of the Manager of Manufacturing or other supervisory
personnel is prohibited.

	 	b.	 	Falsification by an employee of their own starting and stopping time is prohibited.
	 
	 	c.	 	Carelessness of an employee which contributes to the injury of a fellow employee; any act of
an employee which does or might contribute to the serious injury of an employee, which
contact an employee by telephone, the message will be given to the person answering the
telephone. It is the employee’s responsibility to inform the Human Resources department of
their current phone number and address.

Physical Exam at Company Request

	280	 	An employee will take a physical examination at Company expense upon the request of the
Company. Before an employee is sent for such physical examination, the Company will inform
the Union and discuss the reasons for the physical examination. The time spent for such an
examination will be paid at the rate of straight time.

Wash Up Period

	281	 	A three (3) minute wash up period before the stopping signal will be granted for fin press
operators and also vacuum furnace operators to the extent that they have been working with
graphite.

Posted Union Notices

	282	 	The Shop Committee will submit to the Company all proposed notices prior to the posting on
Company premises.

Educational Aid

	283	 	An educational aid program will be made available to members of the bargaining unit.

Cellular Manufacturing and Quality Improvements

	284	 	It is agreed between the Company and the Union that the parties will work together on the
implementation of cellular manufacturing and quality improvement, and will meet whenever
necessary to discuss issues relating to cellular manufacturing and quality improvement.

Sub-Contracting:

	285	 	In cases where competition, schedule or workload require the transfer of work to outside
vendors, the Company will advise the Union of such need and the reasons for doing such prior
to the sub-contracting.

Out of Town Assignments

	286	 	The Company will inform the Shop Chairman when members of the bargaining unit have been sent
on repair assignments outside La Crosse. Compensation while on such assignments
includes fighting on Company property; or any intentional act which results in the
destruction, the defacing of Company property, or the writing of indecent language, drawing
obscene drawings on cards, bulletin boards, walls, or any other part of the Company property,
is prohibited.

 

 

A VIOLATION OF ANY OF THE RULES 115a THROUGH 115c WILL BE CAUSE FOR IMMEDIATE DISCHARGE.

	 	d.	 	Those employees who are capable of performing their assigned job efficiently and
capably, but who fail to do so, will receive a written warning, a copy of which will be
given to the Shop Committee. The employee will be given at least thirty (30) days to show
satisfactory improvement. If following receipt of the written warning, the employee fails
to show satisfactory improvement; they will, not earlier than thirty (30) days and not
later than sixty (60) days following such receipt, be given a one (1) week suspension.
Where an employee’s previous service record has been good, the length of suspension may be
modified. If the employee receives a second written warning within six (6) months of the
beginning of their suspension, they will be given at least thirty (30) additional days to
show satisfactory improvement. If, following receipt of the second written warning, the
employee fails to show satisfactory improvement, they may, not earlier than thirty (30)
days and not later than sixty (60) days following such receipt, be discharged. In all
cases under this rule, an employee’s previous Company service record shall be given
consideration before the discharge penalty is invoked.
	 
	 	e.	 	Insubordination.
	 
	 	f.	 	The refusal of any employee to obey the work orders of their immediate
supervisor(s)is prohibited.

	 	g.	 	Extreme insubordination will be cause for discharge.

	h.	 	Any employee who directly or indirectly willfully
slows down or limits production of himself or another employee, or machine, will have violated
these Rules.

	116	 	ANY VIOLATION OF RULES 115e THROUGH 115h SHALL SUBJECT THE EMPLOYEE TO A ONE (1) WEEK
SUSPENSION WITHOUT PAY FOR THE FIRST VIOLATION AND DISCHARGE FOR THE SECOND VIOLATION WITHIN A
PERIOD OF ONE (1) YEAR FROM THE DATE OF THE FIRST VIOLATION.

	 	i.	 	The employees agree not to loaf during regular
working hours.
	 
	 	j.	 	Employees are prohibited from doing other than Company work
during working hours or using Company machinery, tools,
equipment or materials for personal use.

	 	
after the first pair, because of a change in prescription needs, the employee will furnish a
copy of the prescription and the Company will pay the cost of the lenses, according to
Paragraph 272.

	274	 	When it is necessary to replace an employee’s prescription safety glasses because they are
pitted to such an extent that they are no longer serviceable, the Company will pay for the
cost of the new lenses (according to paragraph 272) if the employee has had the glasses for a
period of more than two (2) years. If the employee has had the glasses for less than two (2)
years, the Company will pay the cost of the new lenses unless there has been negligence on the
part of the employee.

Damaged Glasses

	275	 	Safety glasses damaged without the fault of the employee will be repaired or replaced at no
cost to the employee; however, it will be the employee’s responsibility to maintain the
glasses in acceptable condition and to replace them if they are lost, or if they are damaged
through misuse or improper care.

General

	276	 	The Company will maintain adequate facilities for necessary minor repair of safety glasses.
First aid attendants will perform these functions.

	277	 	All prescription safety glasses will be purchased through the Company. (Any exceptions must
be approved by the Health and Safety Coordinator.)

 

 

ARTICLE XXV — MISCELLANEOUS

Limitation on Supervisor Doing Bargaining Unit Work

	278	 	The policy of the Company is to have supervisors perform supervisory work. Supervisors and
other non-bargaining unit employees of the Company shall not perform the work of employees in
the bargaining unit other than for instructive purposes, or in case of emergencies, and when
attempting to eliminate trouble on a job when employees who can eliminate the trouble or
handle the emergency are not readily available, but the work so performed shall not take away
any work from any employee.

Notices to Employees

	279	 	All employees will be sent a notice to their address as it appears on the Company records.
If it is necessary to
to their supervisor no matter how small it may seem. In case the supervisor is out of their
department, the injured employee shall report the injury to the department steward or
designated employee.
	 
	268	 	If it is necessary for an employee to go to the First Aid Room, they will notify their
supervisor. In case of an injury requiring emergency attention, the employee should go to the
First Aid Room immediately.
	 
	269	 	Medical attention for industrial injuries must be authorized by the Company prior to
receiving attention, except in cases of emergency.

Eye Protection

	270	 	In line with the Company’s policy of providing the employee with a safe place in which to
work, the Company will maintain a 100% comprehensive eye protection program.
	 
	271	 	The type of eye protection, required to be worn by employees, must meet ANSI standards. The
Company will provide such eye protection to all employees. In addition, the Company will
provide equipment for protecting the eyes from damage due to grinding, burnishing, arc
welding, etc.

When Company Furnishes Prescription Glasses

	272	 	In the event it is determined that an employee with seniority needs corrective lenses in
their safety glasses due to near-far vision problems, the employee will furnish a copy of the
prescription and the Company will pay the cost of the glasses as follows:

	 	a.	 	The Company pays

	 	•	 	100% of the cost of basic single vision, bifocal, and trifocal lenses
	 
	 	•	 	100% of the cost of Basic or Group 1 frames
	 
	 	•	 	100% of the dispensing fee
	 
	 	•	 	100% of the cost of progressive lenses for all employees

	 	b.	 	The Employee pays

	 	•	 	100% of the cost of miscellaneous lens options (transition, tints, coatings, etc.)
	 
	 	•	 	100% of charges for frame upgrades (frames other than Basic or Group 1)
	 
	 	•	 	100% of the eye exam charge (may be submitted to health insurance)

	273	 	When it becomes necessary to replace prescription lenses
	 
	117	 	ANY VIOLATION OF RULES 116i OR 116j SHALL SUBJECT THE
EMPLOYEE TO A ONE A YEAR OF THE DATE OF THE FIRST VIOLATION WILL
SUBJECT THE EMPLOYEE TO DISMISSAL.
(1) WEEK SUSPENSION WITHOUT PAY FOR THE FIRST VIOLATION. A SECOND VIOLATION WITHIN THREE (3) MONTHS OF THE DATE OF THE FIRST VIOLATION OR THREE
VIOLATIONS WITHIN A YEAR OF THE DATE OF THE FIRST VIOLATION WILL SUBJECT THE EMPLOYEE TO DISMISSAL.

 

 

	 	k.	 	Employees shall be at their work at the designated
starting and stopping times. Washing up, except
when designated by the supervisor or for safety
or hygienic purposes, shall be done after the
designated stopping times.
	 
	 	l.	 	Employees shall observe designated starting and stopping times.
	 
	m.	 	Leaving the plant without permission.

	118	 	FOR THE FIRST VIOLATION OF THE RULES 117k THOUGH 117m THE EMPLOYEE WILL BE SUBJECT TO A
WRITTEN WARNING. FOR A SECOND OFFENSE WITHIN SIX (6) MONTHS FROM THE DATE OF THE FIRST
VIOLATION, THE EMPLOYEE WILL BE SUBJECT TO SUSPENSION FOR ONE (1) WEEK. FOR A THIRD OFFENSE
WITHIN ONE(1) YEAR FROM THE DATE OF THE FIRST VIOLATION, THE EMPLOYEE WILL BE SUBJECT TO
DISCHARGE.

	119	 	If an employee’s attendance record is good, permission to leave for personal reasons will be
granted by their supervisor provided the request is made not later than one-half (1/2) hour
after the beginning of their work shift.

	 
	120	 	It is agreed that the intent of this paragraph is to enable an employee with a good
attendance record to leave work to attend to pressing matters not readily attended to outside
their regular working hours. Any abuse of this intent by an employee will be a violation of
Rule 117m.

	 
	121	 	Permission to leave the plant shall be granted in cases of extreme emergency (death, serious
illness or accident in family, etc.). However, in such emergency cases, the employee shall
notify their supervisor or other company representative before their departure.

Reporting Absence

	122	 	All employees must call into the Central Reporting System no later than twenty (20) minutes
before the start of the employee’s shift when they are unable to report for work, unless their
absence has been approved in advance by their supervisor. Employees calling into the Central
Reporting System must clearly give the reason for their absence and when they expect to return
to work.

Excused Absence Defined

	123	 	The following absences will be excused when approved by the

Penalties

	255	 	Penalties for the above violations will be as follows:

	256	 	1ST VIOLATION: Violator will be presented with a violation slip, and instructed in accident
prevention and warned against future violations.

	257	 	2ND VIOLATION: Violator will be presented with a violation slip and be suspended for a period of five (5) hours.
	 
	258	 	3RD VIOLATION: Violator will be presented with a violation slip and be suspended for a period of two (2) days.
	 
	259	 	4TH VIOLATION: Violator will be presented with a violation slip and will be suspended for a period of one (1) week.
	 
	260	 	SUBSEQUENT VIOLATIONS: Violators shall be subject to further disciplinary action including discharge.
	 
	261	 	The above penalties are based on cumulative violations within any one-year period.

 

 

General Safety Guides

	262	 	Employees are not required or expected to take any risks from which they cannot protect themselves by care and judgment.
	 
	263	 	Employees are not to rely on the watchfulness of others,
but must protect themselves when and where their own
safety is involved.

	264	 	In view of the possible effect on safety, no employee shall change any customary safety
method or work without first consulting the supervisor.
	 
	265	 	Learn the location of fire extinguishers in the work area and be familiar with their use and
purpose.

First Aid

	266	 	Trained first aid attendants will be provided at the facility. A list of authorized first
aid attendants will be posted in a prominent place near each first aid office and will be
revised as necessary, with a copy to the Union. First Aid Attendants will receive fifteen
(.15) cents per hour for these duties.

Reporting Injuries

	267	 	An employee shall not fail to report an injury immediately
Company and will not be subject to the progressive discipline procedure:

	 	a.	 	Jury duty, military duty, funeral leave, occupational illness/injury, supervisory
pre-approved leaves of absence, vacation, paid holidays, not scheduled for work, Union
business, sickness, and situations that are caused by extenuating circumstances not
preventable by the employee.

	 
	 	b.	 	Employee must provide medical proof acceptable to the Company upon returning to work, if they
have excessive absenteeism, as defined in Par. 124c.

Unexcused Absence Defined

	124	 	Unexcused absence is defined as:

	 	a.	 	Failure to notify the Company before the absence
or failure to notify the Company in accordance with
Paragraph 106, except where the employee furnishes
proof that it was impossible to give such required
notice, the absence will be excused.
	 
	 	b.	 	Absence, which is not excused by the Company even
though it is reported on time.

	 	 	The following language will apply when an employee has reached the THIRD STEP of the Unexcused
Absence Discipline as defined in Paragraph 125 of the current labor agreement

	 	c.	 	An employee having an excessive absentee record must furnish proof acceptable to the
Company that their absence was the result of sickness or causes beyond their control to be
excused for such absence.

 

 

Unexcused Absence — Discipline

	125	 	Unexcused absences will be subject to the following schedule of discipline:

  Step 1: An unexcused absence for any violation for any
regular workday will result in a documented verbal
warning to the employee for the first violation.

  Step 2: A second unexcused absence within a period of six
(6) months from the date of the first violation
will result in a second documented verbal
warning.

  Step 3: A third unexcused absence within a period of six
(6) months from the date of the second
documented verbal warning will result in a
written warning.

  advised of the condition, they will secure proper assistance. Electrical cabinets are not
to be blocked or used for storage.

	 	r.	 	Lift properly — with the knees and legs, and not the back. Get help rather than risk a
strain.
	 
	 	s.	 	All injuries, no matter how minor, are to be reported promptly to a supervisor and then to
the appropriate medical facility.

	 
	 	t.	 	Horseplay, scuffling, throwing of objects, and running is unsafe and it is forbidden. This
applies to all Company premises, including the parking lots.

	 
	 	u.	 	Industrial gases are to be stored in a safe manner, in keeping with standards established
for their storage.
	 
	 	v.	 	No employee shall remove, displace or damage any safety device or safeguard furnished and
provided for use in any employment or place of employment, nor interfere in any way with the
use thereof by any other person, nor shall any such employee interfere with the use of any
method or process adopted for the protection of any employee in such employment or place of
employment or frequenter of such place of employment, nor fail or neglect to do every other
thing reasonably necessary to protect the life, health, safety or welfare of such employees or
frequenters. (Extracted in part from the Wisconsin Industrial Commission statutes and
provision).

	 
	 	w.	 	The above safety rules are not meant to be inclusive nor do they supersede existing plant
rules, which may imply stricter measures.

	 
	 	x.	 	No employee shall be disciplined or discharged for refusing to work on a job if refusal is
based on a reasonable claim that said job is not safe or might unduly endanger the employee’s
health and safety.

	 
	 	y.	 	$130.00 per person total, life of contract for the purchase of safety toe footwear.

Reporting Violations

	254	 	The reporting of violations will be conducted in the following manner: the supervisor will
make out violation forms in quadruplicate; the supervisor will retain one (1) copy and send
three (3) copies to the Health and Safety Coordinator. One completed copy will be sent to the
Union.

  Step 4: A fourth unexcused absence within a period of
six (6) months from the second documented
verbal warning will result in a three (3) day
suspension without pay.

  Step 5: A fifth unexcused absence within a period of
nine (9) months from the second documented
verbal warning will result in a five (5) day
suspension without pay.

  Step 6: A sixth unexcused absence within a period of one
(1) year from the second documented verbal
warning will subject the employee to immediate
discharge.

 

 

MEDICAL DOCUMENTATION REQUIRED

	126	 	Employees must obtain medical documentation from the attending physician, when they are
requesting an excused absence(s). The documentation must state that it is medically necessary
to be off work and must designate the date(s) the employee is requesting to be excused and a
return to work date. Medical documentation that simply states that the employee was “seen and
treated” will not be accepted.

	 
	127	 	Medical documentation should not include a diagnosis or details of the employee’s medical
condition, unless the medical excuse is for a work related injury or illness. However, it is
important to provide documentation regarding any work limitations an employee may have upon
return to work.

	 
	128	 	Documented medical appointments will be excused
absences when notice is given to the employee’s
supervisor by the end of the shift prior to the day
of the appointment.

	 
	129	 	Medical excuses will not be accepted that retroactively excuse absences prior to the date
the employee received medical care. If an employee cannot see a doctor on the first day due to
the illness and they see a doctor on the second day, the previous sick day will be excused if
acceptable documentation is provided. In these cases, the doctor must specifically identify
that due to medical reasons, the employee was unable to work and missed the first day due to
illness. The employee must see the doctor on their own time.

	 
	130	 	The intent of these guidelines is to insure the information provided the Company for excused
time off is specific and necessary and is not intended to diminish an employee’s potential
excessive absentee record.
machine, which an individual does not normally operate. All safety guards on machines
must be in place and functional.

	 	g.	 	A lockout on the power switch must be used while performing any maintenance work on a
machine, which requires placing any part of the body into or near its mechanism.
	 
	 	h.	 	Individuals must not reach through or behind a safety guard while a machine is running.
	 
	 	i.	 	Before cleaning, oiling, or adjusting the moving parts of a machine, it is mandatory that
the machine be completely shut down and locked out.
	 
	 	j.	 	Cranes must be operated only by individuals familiar with their operation.
	 
	 	k.	 	Only authorized personnel are permitted to operate industrial power trucks or power hand
trucks. Such authorized personnel will comply with the General Operating & Safety Rules for
Power Vehicles.
	 
	 	l.	 	Defective or damaged hand tools, mushroomed chisels, punches, etc., and files without
handles are not to be used.
	 
	 	m.	 	Aisles must not be blocked. If at any time anything is placed in an aisle, it must be
moved. If the aisle is to be blocked for any period of time, the area supervisor will notify
the appropriate personnel.

 

 

	n.	 	There will be no smoking during the period between the starting and stopping time of
your designated shifts up to and including overtime worked. Smoking will be allowed during
the employee’s designated break periods outside all Chart buildings.

	 
	o.	 	Compressed air is to be used with caution. Never use compressed air for cleaning clothing,
exposed parts of the body, or for cooling purposes. Nozzles must have an approved relief
vent. Unapproved alteration of air nozzles is prohibited.

	 
	p.	 	Projecting nails in boxes, boards, or barrels, which are exposed, are to be bent over or
removed. Other dangerous sharp projections should either be eliminated or protected.

	 
	q.	 	Electrical apparatus should be repaired only by authorized personnel, regardless of how
minor the problem seems to be. The supervisor is to be

Consecutive
regular working days of unexcused absence will be considered as
a separate violation.

Tardiness

	131	 	If an employee is tardy, they will be excused provided they have a reason for their tardiness
acceptable to the Company. In deciding on the acceptability of such reason, the Company will
not act in an arbitrary manner.

	 
	132	 	An employee who has an unexcused tardy two (2) times or more will receive a written warning
slip from the Company. Receipt of three (3) warning slips within one (1) year will subject an
employee to a three (3) day disciplinary suspension.

	 
	133	 	Receipt of three (3) warning slips within six (6) months of the date of the three (3) day
suspension warning will result in a five (5) day suspension.

	 
	134	 	Receipt of three (3) warning slips within six (6) months of the five (5) day suspension
warning will subject the employee to immediate discharge.

Discipline or Discharge

	135	 	When it is necessary to discipline or discharge an employee for just cause, the Company will
issue a written notification to the employee and to the Union within four (4) working days
after the Manager of Manufacturing or designated Company representative has knowledge of the
improper conduct or performance, unless special investigation is required and the Union is so
notified. A disciplined or discharged employee must file a written grievance within five (5)
working days of the foregoing notification otherwise the discipline or discharge will be
final.

When Union Representation is Required

	136	 	If a Union employee is summoned into the office to answer a charge of violating the rules and
regulations, they shall have Union representation.

ARTICLE XIV

 GRIEVANCE PROCEDURE AND ARBITRATION

GRIEVANCE PROCEDURE

Preamble

	137	 	It is the conviction of the Parties that prompt and fair handling of complaints of employees
and charges of violation and provisions of this Agreement will lead to more efficient
operations and more harmonious relations among the employees, the Union and the Company.

 

 

	138	 	        In order to be considered within the grievance procedure a complaint of an employee or a
charge of violation of this Agreement must be brought to the attention of the Company within
ten (10) calendar days of the event causing the complaint or charge or within ten (10)
calendar days after the date on which such event should reasonably have become known.

Step 1

	139	 	A complaint by an employee not resolved above shall be discussed in an attempt to resolve, by
the employee and steward with the Supervisor within five (5) regular working days following
the initial meeting/discussion between the employee and Supervisor.

	140	 	If no resolution is met, the steward will present the matter to the Shop Committee Chairman
who will within five (5) regular working days, present the written grievance and discuss the
matter with the Supervisor and Human Resources Representative.

	141	 	The Supervisor or Human Resources Representative will forward their written answer to the
Shop Committee within five (5) regular working days after their discussion.

	142	 	It is understood that no settlement at Step 1 can establish a precedent for future cases. It
is further understood that no settlement at any Step of the grievance procedure can be
inconsistent with the provisions of this agreement.

	143	 	If the complaint or charge (herein after referred to as a “grievance”) is not carried to Step
2 within five (5) working days from the time of the supervisor or Human Resources
Representative’s answer, it shall be considered settled.

Step 2

	144	 	In investigating a grievance and in discussing it with the supervisor, the department steward
or Shop Committee Chairperson will take only such time as is reasonably necessary.

	145	 	If the grievance is not settled in Step 1, the Union will present the grievance to the
Manager of Manufacturing within five (5) regular working days after receipt of the
Supervisor’s or Human Resources Representative’s answer. If the grievance is not presented to
the Manager of Manufacturing within the five (5) regular working day time limit, it shall be
considered settled.

	146	 	Any grievance involving disciplinary time off or discharge may be initiated by the Shop
Committee directly at Step 2.

	250	 	        The Union and employees agree that they will cooperate in promoting safety and health
programs and will comply with all safety rules and regulations and to use safety equipment as
required by OSHA and the Company.

	251	 	        The general rules of safety must be observed. Failure to do so will incur the penalties as
set forth in the Safety Code. The Company and employees will cooperate to see that these
rules of safety are observed by all employees.

Selection of Committee

	252	 	        The Company and Union Safety Committee representatives will be chosen by the Health and
Safety Coordinator and Shop Chairman respectively, and will serve for a period of one year.
Stewards selected will serve the full period whether or not they continue as stewards for the
full term. A replacement who fills a vacancy shall serve out the balance of the term of their
predecessor and may serve the next full term, if selected.

Safety Codes

	253	 	        The purpose of these safety rules is to protect the employees as they work and ensure that
they work safely. By following these rules, they should avoid injury to themselves or fellow
employees. Strict enforcement of these safety rules will materially reduce the possibility
that someone else will commit an unsafe act which could endanger them.

	   a.	 	The work place is to be kept clean and orderly.

	   b.	 	The Safety equipment prescribed for any particular job shall be used in a proper manner at
all times.

 

 

	c.	 	Safety glasses and/or approved eye protection are to be worn as prescribed, in all
designated areas at all times.

	d.	 	Rings, bracelets, wristwatches, loose garments or neckties are not permitted while operating
a machine. Clothing worn shall be appropriate for the shop floor environment and shall not
pose a threat to safety.

	e.	 	Safety toe footwear is required by all employees on the shop floor. Safety toe footwear
worn must comply with all current American National Standard Codes (A.N.S.I. Z41-1991
Directive) and O.S.H.A. guidelines that are in effect.

f. Complete instructions and permission must be obtained from a supervisor before operating any

c. To investigate reports of hazards and unsafe practices and effect correction. Reports made
by the inspection team and any other reports from the Safety Committee will be reviewed at
the monthly safety meeting and any unsafe conditions or practices will be called to the
attention of the supervisor of the department involved. Every reasonable effort will be made
to have the unsafe condition or practice corrected promptly.

d. Upon the request of the Shop Chairman or their designated representative where evidence
exists that a chemical or substance to which an employee is exposed in the workplace may be
toxic and hazardous, the Company will provide the Union and the employee with the Company’s
safety data sheets or their equivalent, including information about any available remedies
and antidotes for such materials.

e. In case of a serious injury to an employee, the Safety Technician and the Health & Safety
Coordinator will be notified promptly so that they can investigate the accident.

f. In the event of a disagreement as to the liability of the Company in the case of an injury
of an employee, the Manager of Manufacturing will, upon request, review the pertinent facts
of the case with the Shop Chairman. The Company agrees to pay for the time lost by the Shop
Chairman from regular working hours for such review with the understanding that this
privilege will not be abused. No such review will be made if the case is given to an
attorney.

g. The Safety Steward will be permitted to carry out their duties relating to safety and
health.

h. The Safety Committee is responsible for making proper decisions on Safety, consistent with
established safety practices.

i. The Company will be responsible for any and all discipline resulting from any safety
violation.

Safety Cooperation

	249	 	   The Safety Committee realizes that a safe plant is an efficient one and will devote its
energies to this accomplishment. In order to carry out this program, the Safety Committee
will need 100% cooperation of all employees of the company. The committee encourages the
making of suggestions.

	147	 	Within ten (10) regular working days, after the grievance is presented to the Manager of
Manufacturing a meeting will be held between the Managers of Manufacturing, a Human Resources
Representative, and the Shop Committee. A representative of the IAMAW may be present and
participate in this meeting.

	148	 	The Manager of Manufacturing will forward their written answer on the grievance to the Shop
Chairman within five (5) regular working days after the Step 2 meeting.

Step 3

	149	 	If no settlement is reached at Step 2, the following
will apply:

	150	 	If the grievance involves a potentially continuing liability to the Company, a request for
arbitration must be made within seven

 

 

(7) working days following receipt by the Union of the Company’s Step 2 answer. The IAMAW
representative must make such request in writing to the Manager of Manufacturing of the
Company. If no such request is made within the seven (7) regular working day time limit, the
grievance will be considered settled.

	151	 	If the grievance does not involve a potentially continuing liability to the Company, a
request for arbitration must be made within sixty (60) calendar days following receipt by the
Union of the Manager of Manufacturing’s Step 2 answer. The IAMAW representative must make such
request in writing to the Manager of Manufacturing of the Company. If no such request is made
within the sixty (60) calendar day time limit, the grievance will be considered settled.

Monetary Adjustment Limitation

	152	 	If any Step 1 settlement, grievance settlement, or arbitration decision involves monetary
adjustment, such adjustment shall be made effective on the date the complaint or charge was
presented to the supervisor at Step 1 or directly initiated at Step 2 and shall not be made
retroactive for any period prior to said date.

Time Limits

	153	 	        The time limits set forth in the grievance procedure may
be extended by mutual agreement.

ARBITRATION

Selection of Arbitrator

	154	 	Following a request for arbitration, The Company and the Union shall jointly request the
Federal Mediation and Conciliation Service to submit a panel of seven (7) arbitrators. Each
party shall have thirty (30) calendar
days to accept or reject the first panel submitted. The thirty (30) calendar days may be
extended by mutual agreement between the parties. If such panel is rejected, the parties shall
immediately request a new panel, which must be used. Upon mutual acceptance of the first panel
or receipt of a second panel, as the case may be, the company and the Union shall alternately
strike a name from the panel until a single name remains and that person shall be the
arbitrator. The Company shall first cross out a name on the first arbitration under this
agreement and thereafter on the odd-numbered arbitration’s. The Union shall cross out a name
on the second arbitration and thereafter on the even-numbered arbitration’s.

	155	 	The cost of the panel of arbitrator’s will be done in the same manner as stated above.

	156	 	The Company will be responsible for the payment of the first arbitration panel and each
odd-numbered panel thereafter and the Union will be responsible for the second arbitration
panel and each even-numbered panel thereafter.

Arbitration Arrangements

	157	 	The arbitrator chosen shall be notified of their selection by the parties. Expenses and
charges by the arbitrator shall be borne equally by the Company and the Union.

	158	 	A date mutually satisfactory to the parties shall be agreed upon and the dispute or grievance
shall be submitted to the arbitrator.

General

	159	 	A question raised by either party as to the arbitrability of a grievance shall be subject to
arbitration. The function of the arbitrator shall be of judicial nature. The decision of the
arbitrator will be final and binding upon the parties, but they shall not have the power to
add to, subtract from or modify the terms of this Agreement and shall decide only the issues
properly before him. An arbitrable grievance must involve a question of interpretation or
application of the terms of this agreement. The decision of the arbitrator will be complied
with as soon as possible.

Resolution of Grievances

 

 

	160	 	The resolution of a grievance shall be recorded and signed by the parties.

ARTICLE XV  —  UNION REPRESENTATIVES

General

	161	 	The Union will inform the Company of the names of all Union officials including stewards. The
number of Union stewards
a costly and permanent injury to yourself or to a fellow employee, which you will think about
for the rest of your life. It is far easier to live with SAFETY than the results of a
careless accident”.

ARTICLE XXIV — ACCIDENT PREVENTION

Safety Committee

	245	 	        The Safety Committee shall consist of the Shop Chairman, Health and Safety Coordinator,
Safety Technician, Safety Steward, and other designated hourly and salaried representatives.

Function of Safety Organization

	246	 	        The function of the Safety Committee shall be to cooperate in reducing accidents by:

a. Reporting of hazards and unsafe practices from their respective departments.

b. Bringing about the cooperation of all employees both Union and Management to carry out the
safety program.

Safety Problems

	247	 	        If a safety problem arises in the department, the steward will call it to the attention of
the Supervisor. Should the safety problem still not be solved within a reasonable period of
time, the steward may call the Shop Chairman to investigate the problem. The Shop Chairman
may discuss the problem with the Health and Safety Coordinator. If the problem still exists,
it shall be placed on the agenda of the next regular Safety Committee meeting. If the problem
exists following consideration by the Safety Committee, the Union may call in an outside
expert to review the problem and discuss it with the Shop committee and the Company with the
objective of obtaining a mutually satisfactory solution.

Safety Committee

	248	 	        The duties of the Safety Committee shall be:

a. To meet at least once during each month to consider and, if appropriate, implement safety
recommendations of the Safety Committee or others.

b. To participate on inspection teams that will make monthly inspection tours of the plant.
The inspection team will consist of members of the Safety Committee or designated
representatives.
container so that it may be identified to the individual worker.

d. The Company shall, through its supervisor, make such inspections of the tools and tool
containers used by each worker as may be required. All inspections of the tools and tool
containers shall be done in the presence of the employee to whom they are charged. No tool
container shall be opened during the absence of the employee to whom they are charged. When
inspection is being made in search of a missing tool, it shall be done in the presence of an
authorized Union steward.

 

 

e. Each worker shall maintain a complete set of tools at all times and shall report any and
all tools or tool containers missing, lost, or stolen from their set to their supervisor for
replacement immediately.

f. Each worker shall reimburse the Company for replacement of Company tools or tool
containers lost or stolen while charged to him. If payment is not made in cash to the crib
clerk, the amount for which the worker is charged shall be deducted from their paycheck. If
the cost is more than three dollars ($3.00), deduction can be made from more than one
paycheck. If the missing, lost or stolen tool is recovered in good condition, suitable
adjustment shall be made to the worker. In the event that a toolbox equipped with tools is
missing, lost or stolen, the Company will be responsible for the cost of such equipped
toolbox.

g. A worker shall only use personally owned tools when authorized by their supervisor.

h. Any improperly identified tools found in a worker’s possession shall be removed and placed
in the tool crib.

i. Any tools or tool containers with identification markings found in any improper area shall
be returned to the worker to whom they are then charged.

	243	 	        Any employee leaving the employment of the Company shall satisfy their tool account before
receiving their final pay.

Safety Creed

	244	 	        “One must not believe that SAFETY begins with your fellow employees, it begins with
YOU! The Safety Program can do everything possible to protect you and your fellow
employees, but if YOU disregard SAFETY, you not only endanger yourself, but
those around you. SAFETY must be practiced twenty-four hours a day, as an accident
requires less than one second to happen. That “second” may mean
may be adjusted by mutual agreement of the Company and Union. It is agreed that no employee
will be discriminated against because of elected status in the Union.

	162	 	The Company will agree to such arrangements as may be necessary for the Shop Chairman and/or
Union stewards to carry on their Union duties. Such arrangements shall include permission for
the Union representatives to leave their department and go to any other department within the
bargaining unit to investigate and/or bring about a proper and expeditious disposition of a
grievance or complaint.

	163	 	The Company will pay the Shop Chairman and/or Union stewards for working time lost in
processing grievances, and joint Union-Company conferences.

	164	 	The view of the Company’s agreement above to compensate Union representatives for working
time lost, the Union agrees that such time will be limited to that which is reasonably
necessary to accomplish the Union duties described above.

Absence for Union Business

	165	 	Regular members of the Shop Committee who are to be absent on legitimate business of the
Union will be excused for such absence, providing advance notification is given to their
supervisor. Upon advance notice from a designated officer of the Union to the Manager of
Manufacturing or their designated representatives, employees other than Union representatives
will be excused from work to perform legitimate Union business provided the number requested
does not interfere with production requirements.

	166	 	Any time spent on Union business in accordance with this paragraph is considered as time
worked in qualifying for vacations, pension, profit sharing and holidays. It is understood
that the Union will not abuse this privilege.

Pass Procedure

	167	 	None of the department stewards nor representatives of the Union shall leave their
department, except on Company business until they have notified their supervisor.

 

 

ARTICLE XVI  —  LEAVE OF ABSENCE

General

	168	 	An employee must receive permission through their supervisor for time off up to one week.
Any time off in excess of one week must be supported by a leave of absence. It is understood
that an employee shall not deliberately falsify reasons for requesting a leave.

	169	 	The privilege of leave of absence not to exceed (60) days in a year may be granted to any
employee if the application for such leave of absence is approved by the Company and the
Financial Secretary of the Union prior to the time off requested. The Union will be notified
of leaves approved by the Company. In case of sick leaves and emergencies, prior approval is
not necessary.

	170	 	Extension of a leave of absence may be granted by the Company and the Financial Secretary of
the Union for good cause shown.

	171	 	Leave of absence not to exceed sixty (60) days in a year will be allowed for up to two (2)
employees total at any one time for personal reasons providing such leaves of absence are
approved in advance of the requested time off by the Company and the Financial Secretary of
the Union.

	172	 	No employee will receive leave of absence for the purpose of trying another job.

Public Office or Union Position

	173	 	Leave of absence will be granted to an employee elected or appointed to Public Office or
elected or appointed to a Union position with the Local Lodge, the IAMAW, or such other labor
organization as the parties may mutually agree, upon proper application of the Company. Such
leave shall be granted for a period of one year, and will be extended from year to year, but
only for the same purpose for which the leave was granted.

	174	 	Notwithstanding the provisions of Paragraph 73, an employee elected or appointed to Public
Office may renew their leave from year to year for a period equal to their total seniority
with the Company, except that they will not accrue seniority or service beyond a period equal
to one-half their total seniority when they went on leave.

Educational Leave  —  Veteran

	175	 	Leave of absence up to eighteen (18) cumulative months of such leave will be granted upon
request to a military service veteran for the purpose of furthering their education providing
they are eligible for such educational benefits under applicable law and has submitted proof
of enrollment in an institution authorized to conduct such training.

	176	 	Such leave of absence may be extended at the discretion of the Company for a period of up to
an additional eighteen (18) cumulative months of such leave subject to the above conditions.

                        the employee’s name. The payment for each
year is as follows:

	 	 	 	 	 	 	 	 	 
	1st Year
	 	 	—	 	 	$	1,500.00	 
	2nd Year
	 	 	—	 	 	$	1,500.00	 
	3rd Year
	 	 	—	 	 	$	1,500.00	 

Payout will occur on a monthly basis

     (Ex: 12 mos X $125.00 = $1,500.00)

	239	 	Dental

 

 

Employee shares 50% of the total premium.

	240	 	Life Insurance

a. For the life of the agreement employees will be insured to a minimum of $23,000 or a
maximum of one times annual base wage, whichever is greater.

b. Employees may purchase up to three times base wage (minimum $23,000)

ARTICLE XXIII  —  COMPANY OWNED TOOLS

	241	 	In an effort to provide safer and more effective production equipment, the Company and the
Union, do hereby agree to the following:

	 
	242	 	The Company shall loan to each employee, at no cost to him, a set of tools and tool container
with lock (where needed) adequate for the proper and efficient performance of their duties
subject to the following conditions:

	 
	a.	 	The Company shall determine what tools are required for each job, and shall list against each
job the normal tools required for it. Any tools which are to be required at the worker’s
expense shall be listed accordingly.

	 
	b.	 	The Company shall replace worn tools, which are broken through normal use at no cost to the
worker.

	 
	c.	 	The Company shall indelibly mark each tool and tool

Returning From Leave

	177	 	An employee who returns to work within the leave of absence shall be reinstated according to
their position on the seniority list at their former rate of pay plus increases or minus
decreases that may have become effective during their absence, provided they give at least
three (3) days notice of their intention to return.

Returning From Sick Leave

	178	 	An employee must present to the Human Resource Department, documentation acceptable to the
Company for return from Sick Leave to full-time work at full capacity or part-time work at
limited capacity as denoted, if warranted by the employee’s seniority standing and
qualifications, will be offered an assignment to return effective no later than the second
regular working day following the date of such presentation of medical approval. Failure to
meet such offer deadline will require the Company to pay the employee a sum equal to the
current sickness and accident daily benefit rate for each regular working day following the
date of presentation of such medical evidence and continuing until the date such offer of work
is made available to the employee.

Physical Exam Requirement

	179	 	When an employee who is on a leave of absence for medical reasons (non-industrial) desire to
return to work, they may be required to take and pass a physical examination to prove that
they are capable of performing their regular work or the equivalent thereof.

ARTICLE XVII  —  JOB RATING

	180	 	The Job Rating Committee shall consist of two (2) members of the Union, and at least two (2)
members of the Company. Continuity

 

 

of experience in job rating is intended so that proper administration of the plan will result.
When a new job develops, or the requirements of an old job change the job content, the job
shall first be standardized as to methods of production, tooling and equipment etc. Within
thirty (30) calendar days after the job is standardized and is functioning satisfactorily as to
quality and quantity, the Job Rating Committee will rate out the job. The Job Rating Committee
will schedule its regular meeting dates in advance on a monthly frequency. Based on the number
and the urgency of pending ratings, the parties may schedule an interim meeting by mutual
agreement.

Disagreement on Rating

	181	 	In the event of a disagreement between the Company and Union members of the Job Rating
Committee on the job content of a

	 	•	 	Plus 2 Tier (Single/Family) Plan — The Current Chart Hourly
Healthcare plan with NO PLAN DESIGN CHANGES at a 20% Employee cost share plus 100%
of the premium difference between the Chart Hourly Basic Health Care Plan and the
Chart Hourly Plus Health Care Plan during this period.
	 
	 	•	 	Basic 3 Tier (Single, Single +1, Family) Plan — The Chart Group
Plan (See attached pages for plan design) at a 17% Employee Cost Share.
	 
	 	•	 	Plus 3 Tier (Single, Single +1, Family) Plan — The Chart Group
Plan (See attached pages for plan design) at a 17% Employee Cost Share plus 100% of
the premium difference between the Chart Group Basic Health Care Plan and the Chart
Group Plus Health Care Plan during this period.

Effective January 1, 2008 through February 6, 2010

Employee has choice of:

	 	•	 	Basic 2 Tier (Single/Family) Plan — The Current Chart Hourly
Healthcare plan with NO PLAN DESIGN CHANGES at a 20% Employee cost share.
	 
	 	•	 	Plus 2 Tier (Single/Family) Plan — The Current Chart Hourly
Healthcare plan with NO PLAN DESIGN CHANGES at a 20% Employee cost share plus 100%
of the premium difference between the Chart Hourly Basic Health Care Plan and the
Chart Hourly Plus Health Care Plan during this period.
	 
	 	•	 	Basic 3 Tier (Single, Single +1, Family) Plan — The Chart Group
Plan with the current plan design at the current cost share not to exceed 20%
Employee Cost Share.
	 
	 	•	 	Plus 3 Tier (Single, Single +1, Family) Plan — The Chart Group
Plan with the current plan design at the current cost share not to exceed 20%
Employee Cost Share plus 100% of the premium difference between the Chart Group
Basic Health Care Plan and the Chart Group Plus Health Care Plan during this period.

	238	 	Employees who can provide proof of other medical plan coverage may opt out of Chart plans or
HMO and receive a payment during the course of the plan year. The payment may be taken as
either cash, which is taxable, or placed on a pre-tax basis in a flexible spending account in

General

	236	 	a. The group insurance coverage will terminate on
February 6, 2010.

	 	b.	 	There shall be no modification in the benefits provided under the insurance plans
during the policy term except as mutually agreed by the parties or required by law. Any
dividend paid on the insurance policy shall be paid in full to the Company.

 

 

	c.	 	In the event the insurance carrier does not pay full benefit as prescribed in the master
policy without justifiable reasons, the company shall further process the claim on behalf of
the employee with the insurance carrier.

	 
	d.	 	If an employee’s insurance terminates due to temporary layoff or leave of absence, such
employees shall be eligible for insurance on the date of return to full time work.

e. If an employee is not at work on the date the insurance would otherwise become effective,
such effective date of insurance shall be the first day the employee returns to active work.
However, the insurance will become effective as if the employee was at work if such employee
is off work due to vacation or holiday.

f. Alternative Health Plans (HMO’s, POS, PPO plans etc.) will be provided annually in a
similar form or one that has the same benefits as the current plans. During the life of the
agreement, the Insurance Committee will evaluate other Alternative Health Plans for 2008, 2009
and 2010.

	g.	 	Should alternate company health insurance plans become available, the Company and Union will
meet to discuss the opportunity to participate in such plans.

	h.	 	The Company and Union agree that the Section 125 Plan is in effect for the duration of this
agreement.

 Health and Dental Insurance Cost Sharing

	237	 	Effective April 1, 2007 through December 31, 2007
	 
	 	 	       Employee has choice of:

	 	•	 	Basic 2 Tier (Single/Family) Plan — The Current Chart Hourly
Healthcare plan with NO PLAN DESIGN CHANGES at a 20% Employee cost share.

new job or the job content change of an existing job they will conduct a floor review within
thirty (30) calendar days. If, after the floor review is completed, a disagreement still
exists a grievance will be filed. Any grievance over a job rating to be considered timely must
be filed in Step 2 of the grievance procedure within thirty (30) calendar days following the
floor review. Any settlement of such a grievance will be effective on the date of the floor
review.

Newly Created Job

	182	 	On a newly-created job, no permanent assignment will be made until thirty (30) days after the
date of the Committee’s rating or the date the Company-determined rate is put into effect,
whichever is the earlier. If the employee performing the job has a higher rate than that put
into effect, they may accept the lower rate for the job or, within the thirty (30) days,
decide to return to their previous job. However, the Company may retain them on the new job
at their current rate for a period of time adequate for training a replacement.

Effective Date  —  Grievance

	183	 	Where a job is re-rated and the labor grade is increased, an employee performing the job will
receive the higher rate effective on the date of the floor review, provided a timely grievance
concerning the rating of the job was presented to the Company and provided they have completed
the job progression.

	184	 	In the event that the labor grade of a job is to be decreased, the parties will meet to
determine the appropriate means of handling the situation.

ARTICLE XVIII  —  VACATION

 

 

	185	 	The vacation period will run from January 1 through December 31 of each year during the term
of this Agreement. One week of vacation entitlement may be carried over from one year to the
next; however, each year’s vacation may not exceed the annual entitlement plus 1 week
carryover and then only if the employee qualifying for and requesting such consideration meets
the scheduling requirements of Paragraph 192. Accident and Sickness weekly benefits will not
be paid for the same period as vacation except with advance Company approval.

Vacation Entitlement

	186	 	Years of Service

                       as of January 1 Vacation Entitlement

1 but less than 4 2 weeks

4 but less than 8 2.5 weeks

8 but less than 12 3 weeks

12 but less than 16 3.5 weeks

16 or more 4 weeks

	187	 	In the calendar year during which an employee reaches their 4th and
12th anniversary date they shall be entitled to an additional 1/2 week of
vacation. With Company approval, said week may be taken up to one month prior to the
employee’s anniversary date.

Work Requirements

	188	 	        In order for an employee to qualify for a vacation in any vacation period they must have
worked at least six (6) months during the previous vacation period. For the purpose only of
calculating such work requirements, time lost from work due to a compensable work-related
injury during the vacation period in which the injury occurs, will be considered as time
worked.

	189	 	        An employee who has worked for the Company less than one year prior to January 1 of a given
year shall, upon reaching their first anniversary date, become entitled to a two (2) week
vacation during such year provided they have worked at least six (6) of the twelve (12) months
preceding their first anniversary date. In the event that such employee’s anniversary date
falls between December 15 and December 31 their vacation may, with Company approval, be
scheduled to commence up to two (2) weeks prior to their first anniversary date.

If Work Requirements Not met

	190	 	An employee who, as of the beginning of a vacation period has one (1) or more years’ service
and has worked during the preceding year but does not meet the six (6) months’ work
requirement set forth in marginal Paragraph 189 above shall not be entitled to a vacation
during said vacation period, they shall, instead, receive an in-lieu-of vacation payment based
upon the following formula:

	 
	 	 	        Years of Service # of Straight Time

        Earnings as of January 1 During Preceding Year

  1 but less than 4 4%

  4 but less than 8 5%

  8 but less than 12 6%

12 but less than 16 7%

16 or more 8%

Vacation Pay

	191	 	An employee will be paid prior to their vacation of one week or more for the appropriate
number of hours to be taken at this regular rate subject to the above requirements and
appropriate advance scheduling. In order to receive vacation pay in advance of their
vacation, notification must be received by the Company before 9:00 a.m. of the second
to individuals retiring at age 62 or later. This offer is effective from December 21, 1990
through February 3, 2010 on a non-

 

 

	 	 	precedent setting basis. Actual cost of this plan may change on a year-to-year basis as
determined by the health care provider. This provision is no longer applicable when an
individual reaches age 65 or is eligible for Medicare.
	 
	230	 	Cost experience and impact of this group on Health Insurance costs is to be followed.

ARTICLE XXII — INSURANCE

BOOKLET

	231	 	The new Health Insurance Booklet will be distributed to the membership within one (1) month
from the date of receipt by the Company.

	232	 	The Company will maintain an employee assistance program, which is mutually acceptable to the
Company and the Union.

Insurance Committee

	233	 	The insurance committee shall consist of two (2) representatives of the Company and two (2)
representatives of the Union. The Union President or IAMAW representative or their
representative may attend meetings at any time.

	234	 	This committee shall have the necessary time needed to provide Alternative Health Plans
annually and the Company shall pay the time spent. Union Committee representatives shall have
the time spent on this committee applied as hours worked on their shift for each day needed to
investigate Alternative Plans.

Duties of Insurance Committee

	235	 	a. The insurance committee shall meet every three (3) months and the agenda shall be
established prior to the date of the meeting. A representative of the insurance carrier shall
be asked to attend the meetings.

b. The insurance committee shall be authorized to review all financial aspects of the
insurance plan and be furnished complete expenditure and benefit data.

c. Members of the insurance committee shall be authorized to inquire on the status of any
claim submitted by any member of the Union.

	b.	 	The Employer shall continue contributions based on a forty (40) hour work week while an
employee is off work and being compensated for any such time by the employer.

c. Contributions for a full-time employee are payable from the first day of employment.

	d.	 	The I.A.M. Lodge and the Employer adopt and agree to be bound by, and hereby assent to, the
Trust Agreement, dated May 1, 1960, as amended, creating the I.A.M. National Pension Fund and
the Plan rules adopted by the Trustees of the I.A.M. National Pension Fund in establishing and
administering the foregoing Plan pursuant to the said Trust Agreement, as currently in effect
and as the Trust and Plan may be amended from time to time.

	 	e.	 	The parties acknowledge that the Trustees of the I.A.M. National Pension Fund may
terminate the participation of the employees and the Employer in the Plan if the successor
collective bargaining agreement fails to renew the provisions of this pension Article or
reduces the Contribution Rate. The parties may increase the Contribution Rate and/or add
job classifications or categories of hours for which contributions are payable.
	 
	 	f.	 	This Article contains the entire agreement between the parties regarding pensions and
retirement under this Plan and any contrary provision in this Agreement shall be void. No
oral or written modification of this Agreement shall be binding upon the Trustees of the
I.A.M. National Pension Fund. No grievance procedure, settlement or arbitration decision
with respect
to the obligation to contribute shall be binding upon the Trustees of the said Pension Fund.

 

 

	g.   	 	Any modification agreed upon between the parties under Section I, Paragraph 222 of this
Article, resulting from negotiations commenced as a result of the sixty (60) day notice
referred to therein shall take effect on the day after the Pension Plan expiration date which
was in effect at the time the sixty (60) day notice was given.

HEALTH INSURANCE (HEALTH AND DENTAL INSURANCE)

	229	 	The Company will offer individuals retiring after December 21, 1990, the opportunity to
participate in the company Health Care Plan for an additional 18 months beyond the 18 month
period allowed by COBRA (Consolidated Omnibus Budget Reconciliation Act), by paying 100% of
the premium cost for coverage of similarly situated individuals. This applies Thursday, which precedes the week in which their vacation is to be taken.

Scheduling Procedure

	192	 	The procedure to be followed in scheduling vacations shall include the following:
	 
	a.	 	The number of weeks of vacation eligibility is determined for each department.
	 
	b.	 	Based on this number, the vacation quota(s) are established for the departments. The Company
follows the policy of allowing vacation weeks to be taken between January 1 and December 31.

	 
	c.	 	During December of each year, employees are asked their vacation preference for the coming
vacation year. The principle of seniority in asking vacation preference is followed within
each department and shift, insofar as possible.

	 
	d.	 	At Company option, operations may be shut down for vacation for up to four (4) working days
each year and vacation pay will be given to employees who elect to take such time as vacation.
Such days must be scheduled in conjunction with Christmas, and/or New Year’s Day, and/or July
4 holidays.

	 
	e.	 	An employee may take a day at a time vacation up to their full entitlement of such vacation.

	 
	f.	 	Seven (7) existing days of current vacation can be taken in 1/2 day increments not to be
coupled with personal business.

	 
	g.	 	Regular vacations plus day-at-a-time vacations on the last regular work day prior to and the
first regular work day after a holiday(s) and the Friday prior to deer season cannot exceed
the department or shift group established quota plus 50%.

	 
	h.	 	Requests for day-at-a-time/half day vacations should be made no later than twenty (20)
minutes before the start of the employee’s shift on the day requested. The twenty (20) minute
notification also applies for 2nd half of shift vacation. If an employee is sick
and calls in on time, they may specify that day as a day of vacation to a maximum of their
full entitlement.

	 
	i.	 	The use of day-at-a-time/half day vacation cannot disrupt production operations.

Pay in Lieu of Vacation

	193	 	An employee who is quitting or retiring will be entitled to pro-rate vacation pay based on
the appropriate percentage
for their length of service for all regular straight time earnings from the beginning of the
vacation period until their termination if they satisfy the work requirements listed in
Paragraph 188 and if they give the Company at least five (5) working days notice of their
intention to quit or retire.

	 
	194	 	Payment in lieu of vacation may be made to any employee for a vacation not taken by the
individual, if they are eligible for a vacation in accordance with the above paragraphs, but
has not actually worked ten (10) months during the qualifying period. Upon

 

 

	     	 	an employee’s death, their beneficiary, as shown in the Group Life Insurance Record, will be
entitled to pro-rate vacation pay based on the appropriate percentage for the employee’s length
of service for all regular straight-time earnings from the beginning of the vacation period
until their death.

Return From Military Service

	195	 	When an employee returns to work from a duly authorized leave of absence to the armed
services, their vacation rights will be determined as follows:

	a.	 	If the employee returns to work between January 1st and June 30th inclusive, they shall be
entitled to full vacation rights for the vacation period in which they return and must take
their vacation.

	b.	 	If the employee returns to work between July 1st and December 31st inclusive, they shall be
depending upon their years of service, entitled to 4%, 5%, 6%, or 8% of their regular straight
time hourly earnings between July 1st and December 31st in lieu of a vacation for the vacation
year during which they return.

	c.	 	All time spent in the armed services which is supported by a duly authorized leave of absence
shall be considered the same as work time for computing vacation rights for the vacation
period which follows the vacation period during which the employee returns to work.

ARTICLE XIX  —  WAGES

New Hire Rate and Progression

	196	 	The new hire rate shall be in accordance with the Wage Rate Schedule below; but, after
consultation with the Shop Committee, the Company may employ applicants with significant
experience at a higher rate than the new hire rate. Upon attaining seniority, an employee
shall receive a seniority rate in accordance with the annual rate schedules following this
paragraph, (unless they were employed at a higher rate) and be assigned a home department. The
rate increases for twelve (12) months, twenty-four (24) months, etc., shown on
demand any change in the Pension Plan nor shall either be requested to bargain with respect to
any change in the Pension Plan, nor during the term of the Pension Plan, nor shall any
modification, alteration, or amendment of said Pension Plan, be an objective of, or reason for,
any strike or lockout or other exercise of economic force or threat by either the Union or the
Company.

Section III: Agreement Retirement Date

	225	 	The normal retirement date of each employee will be the first day of the month following the
month in which the employee’s 65th birthday occurs. An employee who retires after their
normal retirement date shall receive a retirement pension, payable commencing at their actual
retirement date, consisting of the following:

	 
	a.	 	An amount determined as if they had retired on their normal retirement date; plus

	 
	b.	 	For service accrued after their normal retirement date, an amount determined in accordance
with the respective benefit rates in effect for each year or portion thereof in which such
service was accrued.

Other

	226	 	Retirement Death Benefit
	 
	 	 	For those employees retiring after February 4, 2001, the retiree death benefit is $5,000.
	 
	227	 	Medicare Plan “B” Supplement

 

 

	 	 	Actual cost up to a maximum of $55.00/month, life of
agreement

Section IV: IAM NATIONAL PENSION FUND  — NATIONAL PENSION PLAN

	228	 	a. The Employer shall contribute to the I.A.M. National Pension Fund, National Pension Plan
as shown below for each hour or portion thereof for which employees in all job classifications
covered by this Agreement are entitled to receive pay under this Agreement. If the employee
is paid for a portion of an hour, contributions will be made by the employer for the full
hour. The rate will be paid as follows:

$.70 per hour effective February 5, 2007

$.75 per hour effective February 4, 2008

$.80 per hour effective February 2, 2009

          Requested, to the Company and the Union within such fifteen (15) day period.

          Signature:
                                        
”.

	220	 	The Union agrees to indemnify and save the Company harmless against any and all claims,
demands, suits or other forms of liability that may arise out of, or by reason of, action
taken or not taken by the Company in complying with the provisions of this Article, in
reliance upon the Check-Off Authorizations which have been furnished it.

ARTICLE
XXI

CLAUSES RELATING TO PENSION PLAN

Section I: Chart Pension Plan

	221	 	Subject to the provisions of Section 4 of this Article, and unless the parties otherwise
agree, the Pension Plan for Hourly Rated Employees of Chart Heat Exchangers (hereinafter
referred to as the “Pension Plan”) which was effective January 4, 1986, will continue to be
maintained pursuant to the terms of the Pension Plan, except that the Pension Plan will be
frozen and no further contributions shall be made to the Pension Plan after March 31, 1998.
The Company may continue to make such changes in the Pension Plan as, in the opinion of the
Company, are required for compliance with the Employer Retirement Income Security Act of 1974,
as amended, and any rules and regulations promulgated thereunder (hereinafter collectively
referred to as the “Act”), provided that if any such changes diminish benefits under the
Pension Plan, the Company shall attempt to minimize such effect.

	222	 	To be effective, written notice of proposed change(s) must be served by one party upon the
other no less than sixty (60) days prior to any modification or change in the Pension Plan,
except such as may be required to conform with the Act or Section 401(a) of the Internal
Revenue Code of 1954, shall be prospective in its application and shall be made effective as
of the date on which agreement with respect to such modification or change is reached by the
Company and the Union.

Section II: Funding of Benefits

	223	 	The Company will continue to make contributions to the Chart Pension Plan to fund obligations
for past service credit.

	224	 	Neither the Company nor the Union, except under the conditions specified in Paragraph 221 of
this section, shall

	 
	 	 	the rate schedules below shall become effective once the employee in question has actually
worked fifty-two (52) calendar weeks, one hundred and four (104) calendar weeks, etc. on the
job in question. Layoffs of three (3) months or less will be considered as time worked in the
above stated time frames. (The above applies to progression rates only).

 

 

ARTICLE XX  —  CHECK-OFF

	212	 	Upon receipt of a signed authorization of the employee involved, the Company shall deduct
from the employee’s pay the initiation fee and regular monthly dues payable by them to the
Union during the period provided for in said authorization. The amount will be certified by
the Financial Secretary of the Local Lodge.

	213	 	Deductions shall be made on account of the initiation fee and regular monthly dues payable
from the first paycheck of the employee after receipt of the authorization and monthly
thereafter from the second paycheck of the employee in each month.

	214	 	Deductions provided in Paragraphs 212 and 213 shall be remitted to the Financial Secretary of
the Union no later than the fifth (5th) day following the deduction and shall include all
amounts due and those dues not deducted in the previous month. The Company shall furnish the
Financial Secretary of the Union, monthly, with an alphabetical record of those for whom
deductions have been made and the amounts of the deduction.

215 The parties agree that check-off authorizations shall be in the following form:

	216	 	Name of Employee
               
                
             
	 
	 	 	Dept. No.
                                        
                    
	 
	 	 	Clock No.
                                        
                    
	 
	 	 	Date
                                        
                           

	217	 	I hereby authorize and direct the Company to deduct from my pay beginning with the current
month, the initiation fee and regular monthly membership dues in the IAMAW.

	218	 	I submit this authorization with the understanding that it will be effective and irrevocable
for a period of one (1) year from this date, or up to the termination date of the current
collective bargaining agreement between the Company and the IAMAW, whichever occurs sooner.

	219	 	This authorization shall continue in full force and effect for yearly periods beyond the
irrevocable period set forth above unless revoked by me within fifteen (15) days prior to the
end of any such period. I shall also have the right to revoke this authorization at any time
within a period of fifteen (15) days prior to the termination date of any collective
bargaining agreement between the Company and the Union if such termination shall occur within
one of the aforenoted yearly periods. Such revocation shall be effected by written notice,
sent by Registered Mail, Return Receipt

 

 

Wage Rate Schedule A — Apprenticeship and Journeyman

Effective February 5, 2007 through February 3, 2008

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Labor	 	New Hire	 	Seniority	 	Rate After 12	 	Rate After 24	 	Rate After 36	 	Rate After 48	 	Rate After 60	 	Rate After 72
	Job Title	 	Grade	 	Rate	 	Date	 	Mo	 	Mo	 	Mo	 	Mo	 	Mo	 	Mo
	Tool and Die maker
	 	 	J-C	 	 	 	12.17	 	 	 	13.30	 	 	 	14.48	 	 	 	16.42	 	 	 	18.37	 	 	 	20.32	 	 	 	22.16	 	 	 	25.05	 
	Electronic Electrician
	 	 	J-C	 	 	 	12.17	 	 	 	13.02	 	 	 	14.38	 	 	 	15.75	 	 	 	17.13	 	 	 	17.82	 	 	 	21.90	 	 	 	 	 
	Maintenance Mechanic
	 	 	J-C	 	 	 	12.17	 	 	 	13.02	 	 	 	14.38	 	 	 	15.75	 	 	 	17.13	 	 	 	17.82	 	 	 	21.90	 	 	 	 	 
	Maintenance Electrician
	 	 	I-C	 	 	 	12.17	 	 	 	13.02	 	 	 	14.38	 	 	 	15.75	 	 	 	17.13	 	 	 	17.74	 	 	 	19.96	 	 	 	 	 
	Millwright
	 	 	I-C	 	 	 	12.17	 	 	 	12.74	 	 	 	14.11	 	 	 	15.45	 	 	 	16.78	 	 	 	19.32	 	 	 	 	 	 	 	 	 

 

 

Wage Rate Schedule A — Apprenticeship and Journeyman

Effective February 4, 2008 through February 1, 2009

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Labor	 	New Hire	 	Seniority	 	Rate After 12	 	Rate After 24	 	Rate After 36	 	Rate After 48	 	Rate After 60	 	Rate After 72
	Job Title	 	Grade	 	Rate	 	Date	 	Mo	 	Mo	 	Mo	 	Mo	 	Mo	 	Mo
	Tool and Die maker
	 	 	J-C	 	 	 	12.77	 	 	 	13.90	 	 	 	15.08	 	 	 	17.02	 	 	 	18.97	 	 	 	20.92	 	 	 	22.76	 	 	 	25.65	 
	Electronic
Electrician
	 	 	J-C	 	 	 	12.77	 	 	 	13.62	 	 	 	14.98	 	 	 	16.35	 	 	 	17.73	 	 	 	18.42	 	 	 	22.50	 	 	 	 	 
	Maintenance Mechanic
	 	 	J-C	 	 	 	12.77	 	 	 	13.62	 	 	 	14.98	 	 	 	16.35	 	 	 	17.73	 	 	 	18.42	 	 	 	22.50	 	 	 	 	 
	Maintenance
Electrician
	 	 	I-C	 	 	 	12.77	 	 	 	13.62	 	 	 	14.98	 	 	 	16.35	 	 	 	17.73	 	 	 	18.34	 	 	 	20.56	 	 	 	 	 
	Millwright
	 	 	I-C	 	 	 	12.77	 	 	 	13.34	 	 	 	14.71	 	 	 	16.05	 	 	 	17.38	 	 	 	19.92	 	 	 	 	 	 	 	 	 

 

 

Wage Rate Schedule A — Apprenticeship and Journeyman

Effective February 2, 2009 through February 5, 2010

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Labor	 	New Hire	 	Seniority	 	Rate After 12	 	Rate After 24	 	Rate After 36	 	Rate After 48	 	Rate After 60	 	Rate After 72
	Job Title	 	Grade	 	Rate	 	Date	 	Mo	 	Mo	 	Mo	 	Mo	 	Mo	 	Mo
	Tool and Die maker
	 	 	J-C	 	 	 	13.32	 	 	 	14.45	 	 	 	15.63	 	 	 	17.57	 	 	 	19.52	 	 	 	21.47	 	 	 	23.31	 	 	 	26.20	 
	Electronic
Electrician
	 	 	J-C	 	 	 	13.32	 	 	 	14.17	 	 	 	15.53	 	 	 	16.90	 	 	 	18.28	 	 	 	18.97	 	 	 	23.05	 	 	 	 	 
	Maintenance Mechanic
	 	 	J-C	 	 	 	13.32	 	 	 	14.17	 	 	 	15.53	 	 	 	16.90	 	 	 	18.28	 	 	 	18.97	 	 	 	23.05	 	 	 	 	 
	Maintenance
Electrician
	 	 	I-C	 	 	 	13.32	 	 	 	14.17	 	 	 	15.53	 	 	 	16.90	 	 	 	18.28	 	 	 	18.89	 	 	 	21.11	 	 	 	 	 
	Millwright
	 	 	I-C	 	 	 	13.32	 	 	 	13.89	 	 	 	15.26	 	 	 	16.60	 	 	 	17.93	 	 	 	20.47	 	 	 	 	 	 	 	 	 

 

 

Wage Rate Schedule B — Production Rates

Effective February 5, 2007 through February 3, 2008

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Labor	 	New Hire	 	Seniority	 	Rate After 12	 	Rate After 24	 	Rate After 36	 	Rate After 48	 	Rate After 60
	Job Title	 	Grade	 	Rate	 	Date	 	Mo	 	Mo	 	Mo	 	Mo	 	Mo
	Diaform Grinder
	 	 	10	 	 	 	11.44	 	 	 	12.99	 	 	 	15.55	 	 	 	18.35	 	 	 	18.92	 	 	 	20.32	 	 	 	24.34	 
	Welder (Internal Repair)
	 	 	9	 	 	 	11.44	 	 	 	12.89	 	 	 	15.27	 	 	 	18.35	 	 	 	18.92	 	 	 	19.96	 	 	 	20.92	 
	Welder (All Position 863)
	 	 	8	 	 	 	11.44	 	 	 	12.89	 	 	 	15.27	 	 	 	18.35	 	 	 	18.92	 	 	 	19.96	 	 	 	 	 
	Welder (All Position 862)
	 	 	7	 	 	 	11.44	 	 	 	12.78	 	 	 	15.27	 	 	 	17.80	 	 	 	18.71	 	 	 	19.47	 	 	 	 	 
	Machinist
	 	 	6	 	 	 	11.44	 	 	 	12.78	 	 	 	14.98	 	 	 	17.80	 	 	 	18.71	 	 	 	 	 	 	 	 	 
	Vac Furnace Operator
	 	 	6	 	 	 	11.44	 	 	 	12.78	 	 	 	14.98	 	 	 	17.80	 	 	 	18.71	 	 	 	 	 	 	 	 	 
	Tester C
	 	 	6	 	 	 	11.44	 	 	 	12.78	 	 	 	14.98	 	 	 	17.80	 	 	 	18.71	 	 	 	 	 	 	 	 	 
	Fin Press Set-up Operator
	 	 	6	 	 	 	11.44	 	 	 	12.78	 	 	 	14.98	 	 	 	17.80	 	 	 	18.71	 	 	 	 	 	 	 	 	 
	Inspector
	 	 	5	 	 	 	11.44	 	 	 	12.69	 	 	 	14.98	 	 	 	17.43	 	 	 	 	 	 	 	 	 	 	 	 	 
	Stacker
	 	 	5	 	 	 	11.44	 	 	 	12.69	 	 	 	14.98	 	 	 	17.43	 	 	 	 	 	 	 	 	 	 	 	 	 
	Tester B
	 	 	5	 	 	 	11.44	 	 	 	12.69	 	 	 	14.98	 	 	 	17.43	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fabricator C
	 	 	4	 	 	 	11.44	 	 	 	12.69	 	 	 	14.20	 	 	 	16.69	 	 	 	 	 	 	 	 	 	 	 	 	 
	Receiving
Clerk/Checker/Stockroom
	 	 	4	 	 	 	11.44	 	 	 	12.69	 	 	 	14.20	 	 	 	16.69	 	 	 	 	 	 	 	 	 	 	 	 	 
	Tester A
	 	 	4	 	 	 	11.44	 	 	 	12.69	 	 	 	14.20	 	 	 	16.69	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fabricator B
	 	 	3	 	 	 	11.05	 	 	 	11.84	 	 	 	14.06	 	 	 	15.56	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fabricator A
	 	 	2	 	 	 	11.05	 	 	 	11.84	 	 	 	13.88	 	 	 	15.27	 	 	 	 	 	 	 	 	 	 	 	 	 
	Janitor
	 	 	1	 	 	 	11.05	 	 	 	11.61	 	 	 	13.88	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Laborer
	 	 	1	 	 	 	11.05	 	 	 	11.61	 	 	 	13.88	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	employees terminated for disciplinary reasons, no pro-rata distribution will be made.

Probationary Employees

	g.	 	Probationary employees will be paid profit sharing on a pro-rata basis for base wages earned
in a given year. Payment will be made after the probationary employee achieves seniority.

	 
	h.	 	Determination of base wages will be based on wages
from the start date.

Compensation Excluded for Profit Sharing and 401k Match

	i.	 	Compensation excluded from the wage base for purposes of calculating profit sharing and 401k
Match are:

Overtime

Service Trip Premium

S&A Benefits

 

 

Worker’s Compensation

Profit Sharing

	207	 	All other compensation is included in the wage base for determination of profit sharing AND
401k Match.

Shift Premiums

	208	 	The second shift shall receive thirty-five ($.35) cents per hour over the day shift, the
third shift shall receive forty ($.40) cents per hour over the day shift. The 4th
shift, weekend shift employees will receive sixty cents ($.60) per hour over the day shift.
The 5th shift, weekend shift employees will receive forty ($.40) per hour over the
day shift.

Apprenticeship Program

	209	 	The Apprenticeship Committee shall consist of two from the Company and two from the Union.
	 
	210	 	One representative of the Union will be from the Apprenticeship category required; the second
representative shall be the Local Lodge President or a designated appointee.

	 
	211	 	Before any changes are implemented in the Apprenticeship Program, the Company and the Union
Shop Committee will discuss such change.

 

 

Wage Rate Schedule B — Production Rates

Effective February 4, 2008 through February 1, 2009

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Labor	 	New Hire	 	Seniority	 	Rate After 12	 	Rate After 24	 	Rate After 36	 	Rate After 48	 	Rate After 60
	Job Title	 	Grade	 	Rate	 	Date	 	Mo	 	Mo	 	Mo	 	Mo	 	Mo
	Diaform Grinder
	 	 	10	 	 	 	12.04	 	 	 	13.59	 	 	 	16.15	 	 	 	18.95	 	 	 	19.52	 	 	 	20.92	 	 	 	24.94	 
	Welder (Internal Repair)
	 	 	9	 	 	 	12.04	 	 	 	13.49	 	 	 	15.87	 	 	 	18.95	 	 	 	19.52	 	 	 	20.56	 	 	 	21.52	 
	Welder (All Position 863)
	 	 	8	 	 	 	12.04	 	 	 	13.49	 	 	 	15.87	 	 	 	18.95	 	 	 	19.52	 	 	 	20.56	 	 	 	 	 
	Welder (All Position 862)
	 	 	7	 	 	 	12.04	 	 	 	13.38	 	 	 	15.87	 	 	 	18.40	 	 	 	19.31	 	 	 	20.07	 	 	 	 	 
	Machinist
	 	 	6	 	 	 	12.04	 	 	 	13.38	 	 	 	15.58	 	 	 	18.40	 	 	 	19.31	 	 	 	 	 	 	 	 	 
	Vac Furnace Operator
	 	 	6	 	 	 	12.04	 	 	 	13.38	 	 	 	15.58	 	 	 	18.40	 	 	 	19.31	 	 	 	 	 	 	 	 	 
	Tester C
	 	 	6	 	 	 	12.04	 	 	 	13.38	 	 	 	15.58	 	 	 	18.40	 	 	 	19.31	 	 	 	 	 	 	 	 	 
	Fin Press Set-up Operator
	 	 	6	 	 	 	12.04	 	 	 	13.38	 	 	 	15.58	 	 	 	18.40	 	 	 	19.31	 	 	 	 	 	 	 	 	 
	Inspector
	 	 	5	 	 	 	12.04	 	 	 	13.29	 	 	 	15.58	 	 	 	18.03	 	 	 	 	 	 	 	 	 	 	 	 	 
	Stacker
	 	 	5	 	 	 	12.04	 	 	 	13.29	 	 	 	15.58	 	 	 	18.03	 	 	 	 	 	 	 	 	 	 	 	 	 
	Tester B
	 	 	5	 	 	 	12.04	 	 	 	13.29	 	 	 	15.58	 	 	 	18.03	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fabricator C
	 	 	4	 	 	 	12.04	 	 	 	13.29	 	 	 	14.80	 	 	 	17.29	 	 	 	 	 	 	 	 	 	 	 	 	 
	Receiving Clerk/Checker/Stockroom
	 	 	4	 	 	 	12.04	 	 	 	13.29	 	 	 	14.80	 	 	 	17.29	 	 	 	 	 	 	 	 	 	 	 	 	 
	Tester A
	 	 	4	 	 	 	12.04	 	 	 	13.29	 	 	 	14.80	 	 	 	17.29	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fabricator B
	 	 	3	 	 	 	11.65	 	 	 	12.44	 	 	 	14.66	 	 	 	16.16	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fabricator A
	 	 	2	 	 	 	11.65	 	 	 	12.44	 	 	 	14.48	 	 	 	15.87	 	 	 	 	 	 	 	 	 	 	 	 	 
	Janitor
	 	 	1	 	 	 	11.65	 	 	 	12.21	 	 	 	14.48	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Laborer
	 	 	1	 	 	 	11.65	 	 	 	12.21	 	 	 	14.48	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

PROFIT SHARING

	205	 	Profit sharing for the Chart personnel shall be on the following basis, for 2007 — 2010.

	 	a.	 	10% common pool for all Chart employees.
	 
	 	b.	 	Minimum EBIT for profit sharing.
	 
	 	 	 	          2,000,000 each year for the duration of the agreement.

	206	 	Distribution of EBIT Profit Sharing Pool

	 	a.	 	The profit sharing distribution will be made as a % of individual annual base wages except
for exclusions noted in sub-paragraph i.
	 
	 	b.	 	The base wage distribution % is determined as

 

 

follows;

Base Wage Profit Sharing % =

EBIT Pool $

Total Chart Annual

Base Wage Payroll

c. Actual distribution will occur in August of the current year and February of the following
year for current year profit sharing. The August distribution will be 50% of the estimated
common EBIT profit sharing pool based on mid-year EBIT. The reason for a reduced distribution
at mid-year is to allow for possible variations in profit in the last half of the year.

d. Profit sharing will be a 100% distribution of the Common EBIT Pool as a % of base wage.

e. The Profit Sharing Payment Schedule will be as follows;

2007 Pool $ August 2007 February 2008

2008 Pool $ August 2008 February 2009

2009 Pool $ August 2009 February 2010

COMPENSATION BASIS FOR PROFIT SHARING

f. Partial Year Distribution

It is agreed that those individuals who retired during a current year would receive a pro-rata
distribution based on that current year’s base wages earned. The same will also apply to
individuals who left the hourly work force during the duration of this agreement. For

Wage Rate Schedule B — Production Rates

 

 

Effective February 2, 2009 through February 7, 2010

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Labor	 	New Hire	 	Seniority	 	Rate After 12	 	Rate After 24	 	Rate After 36	 	Rate After 48	 	Rate After 60
	Job Title	 	Grade	 	Rate	 	Date	 	Mo	 	Mo	 	Mo	 	Mo	 	Mo
	Diaform Grinder
	 	 	10	 	 	 	12.59	 	 	 	14.14	 	 	 	16.70	 	 	 	19.50	 	 	 	20.07	 	 	 	21.47	 	 	 	25.49	 
	Welder (Internal Repair)
	 	 	9	 	 	 	12.59	 	 	 	14.04	 	 	 	16.42	 	 	 	19.50	 	 	 	20.07	 	 	 	21.11	 	 	 	22.07	 
	Welder (All Position 863)
	 	 	8	 	 	 	12.59	 	 	 	14.04	 	 	 	16.42	 	 	 	19.50	 	 	 	20.07	 	 	 	21.11	 	 	 	 	 
	Welder (All Position 862)
	 	 	7	 	 	 	12.59	 	 	 	13.93	 	 	 	16.42	 	 	 	18.95	 	 	 	19.86	 	 	 	20.62	 	 	 	 	 
	Machinist
	 	 	6	 	 	 	12.59	 	 	 	13.93	 	 	 	16.13	 	 	 	18.95	 	 	 	19.86	 	 	 	 	 	 	 	 	 
	Vac Furnace Operator
	 	 	6	 	 	 	12.59	 	 	 	13.93	 	 	 	16.13	 	 	 	18.95	 	 	 	19.86	 	 	 	 	 	 	 	 	 
	Tester C
	 	 	6	 	 	 	12.59	 	 	 	13.93	 	 	 	16.13	 	 	 	18.95	 	 	 	19.86	 	 	 	 	 	 	 	 	 
	Fin Press Set-up Operator
	 	 	6	 	 	 	12.59	 	 	 	13.93	 	 	 	16.13	 	 	 	18.95	 	 	 	19.86	 	 	 	 	 	 	 	 	 
	Inspector
	 	 	5	 	 	 	12.59	 	 	 	13.84	 	 	 	16.13	 	 	 	18.58	 	 	 	 	 	 	 	 	 	 	 	 	 
	Stacker
	 	 	5	 	 	 	12.59	 	 	 	13.84	 	 	 	16.13	 	 	 	18.58	 	 	 	 	 	 	 	 	 	 	 	 	 
	Tester B
	 	 	5	 	 	 	12.59	 	 	 	13.84	 	 	 	16.13	 	 	 	18.58	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fabricator C
	 	 	4	 	 	 	12.59	 	 	 	13.84	 	 	 	15.35	 	 	 	17.84	 	 	 	 	 	 	 	 	 	 	 	 	 
	Receiving Clerk/Checker/Stockroom
	 	 	4	 	 	 	12.59	 	 	 	13.84	 	 	 	15.35	 	 	 	17.84	 	 	 	 	 	 	 	 	 	 	 	 	 
	Tester A
	 	 	4	 	 	 	12.59	 	 	 	13.84	 	 	 	15.35	 	 	 	17.84	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fabricator B
	 	 	3	 	 	 	12.20	 	 	 	12.99	 	 	 	15.21	 	 	 	16.71	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fabricator A
	 	 	2	 	 	 	12.20	 	 	 	12.99	 	 	 	15.03	 	 	 	16.42	 	 	 	 	 	 	 	 	 	 	 	 	 
	Janitor
	 	 	1	 	 	 	12.20	 	 	 	12.76	 	 	 	15.03	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Laborer
	 	 	1	 	 	 	12.20	 	 	 	12.76	 	 	 	15.03	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

WAGES

	197	 	Sickness and Accident (S&A)
	 
	 	 	Short Term Disability
	 
	 	 	Employees are eligible after completing their probation period.
	 
	198	 	Benefits to be paid at 50% of the weekly rate with a minimum benefit rate of $325.00 and a
maximum benefit rate of $375.00. Benefits are payable for up to twenty-six (26) weeks.
	 
	199	 	Long Term Disability
	 
	 	 	Long-term Disability benefits will be paid at 60% of employee’s
monthly base wage upon completion of the benefit waiting period. The
benefit waiting period will be 180 days of continuous disability. A
period of disability will be considered continuous even if the
employee returns to work for up to a total of 30 days during the
benefit waiting period. The benefit waiting period will be extended
by the number of days the employee temporarily returned to work.
	 
	200	 	Long-term Disability benefits will continue until the earlier of the following dates: date
the employee ceases to be disabled;

 

 

	 	 	    or the date of the employee’s normal retirement to receive
full Social Security Benefits as stated by the Social Security Administration.

	201	 	Effective February 5, 2007, the Company will increase all levels of the progression rates for each job as follows:

	 	 	 	 	 
	Effective 2/5/07
	 	 	$	.70
	Effective 2/4/08
	 	 	$	.60
	Effective 2/2/09
	 	 	$	.55

401K SAVINGS PLAN

	202	 	401K matches will be 50% up to the first 6% of employee’s
base wage saved.

	203	 	The 401K match will be made on the employee’s annual base wage except for exclusions noted in
subparagraph i of paragraph 206 — Compensation Excluded for Profit Sharing and 401K match.

	204	 	The Company agrees to discuss all 401K-plan amendments or plan terminations with the Union
prior to the implementation of such plan amendments or termination of plan benefits.Warrant Agency Agreement

    EXHIBIT
      4.1

     

    WARRANT
      AGENCY AGREEMENT

    

    THIS
      WARRANT AGREEMENT (the “Agreement”), dated as of the 14th day of May, 2007, is
      entered into by and between U.S. Dry Cleaning Corporation, a Delaware
      corporation, (hereinafter called the “Company”) and Interwest Transfer Company,
      Inc., (hereinafter called “Warrant Agent”).

    

    W
      I T
      N E S S E T H

    

    WHEREAS,
      pursuant to a Registration Statement on Form SB-2, Registration Statement No.
      333-139689 filed with the Securities and Exchange Commission (the “Commission”)
      relating to the Company’s proposed public offering of its securities (the
“Public Offering”), the Company proposes to issue up to 3,000,000 units (the
“Units”), each Unit consisting of one share of the Common Stock of the Company
      and one Redeemable Common Stock Purchase Warrant (which is initially exercisable
      to purchase one share of Common Stock on the terms and conditions set forth
      in
      this Agreement (a “Warrant”)). The Warrants are subject to certain limitations
      and restrictions as set forth in this Agreement;

    

    WHEREAS,
      the Company desires the Warrant Agent to act on behalf of the Company, and
      the
      Warrant Agent is willing to so act, in connection with the issuance,
      registration, transfer, exchange and exercise of the Warrants;

    

    NOW
      THEREFORE, in consideration of the premises and mutual agreements contained
      herein, it is agreed as follows:

    

    SECTION
      1. Appointment
      of Warrant Agent.

    

    The
      Company hereby appoints the Warrant Agent to act as agent for the Company in
      connection and accordance with this Agreement, and the Warrant Agent hereby
      accepts the appointment.

    

    SECTION
      2. Form
      of Warrant.

    

    The
      text
      of the Warrant and the form of election to purchase shares to be printed on
      the
      reverse thereof shall be substantially as set forth respectively in Exhibit
      A
      hereto.
      The number of shares issuable upon exercise of the Warrants is subject to
      adjustment on the occurrence of certain events, as described herein. The
      Warrants shall be executed on behalf of the Company by a manual or facsimile
      signature of the present or future president, chief executive officer or vice
      president of the Company, under its corporate seal affixed or in facsimile,
      and
      attested to by the secretary or an assistant secretary.

    

    Warrants
      shall be dated as of the closing date of the Offering commenced on May 14,
      2007
      (the “Effective Date”). 

    

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

     

    SECTION
      3. Countersignature
      and Registration.

    

    The
      Warrant Agent shall maintain books for the transfer and registration of
      Warrants. Upon the initial issuance of the Warrants, the Warrant Agent shall
      issue and register the Warrants in the names of the respective holders thereof.
      The Warrants shall be countersigned manually or by facsimile by the Warrant
      Agent (or by any successor to the Warrant Agent then serving under this
      Agreement), and shall not be valid for any purpose unless so countersigned.
      Warrants may be so countersigned, however, by the Warrant Agent, notwithstanding
      that the person whose manual or facsimile signature appears thereon as the
      proper officers of the Company have ceased to be such officers at the time
      of
      such countersignature and delivery.

    

    SECTION
      4. Transfers
      and Exchanges.

    

    The
      Warrant Agent shall not permit the transfer of any Warrant unless authorized
      in
      writing by the Company. Warrants which have been canceled shall be delivered
      upon request by the Warrant Agent to the Company. Warrants may be exchanged
      at
      the option of the holder thereof, when surrendered at the office of the Warrant
      Agent, for another Warrant or Warrants of different denominations, of like
      tenor, and representing in the aggregate the right to purchase a like number
      of
      shares of Common Stock.

    

    SECTION
      5. Exercise
      of Warrants.

    

    Subject
      to the provisions of this Agreement and the Warrant Certificate in substantially
      the form attached hereto, each registered holder of Warrants shall have the
      right to purchase from the Company, and the Company shall issue and sell to
      such
      registered holder, the number of fully paid and nonassessable shares of Common
      Stock of the Company specified in the Warrants, upon surrender to the Company
      at
      the office of the Warrant Agent of such Warrants, with the form of election
      to
      purchase the Warrants filled out and signed, and upon payment to the Company
      of
      the Warrant Price, as specified herein. Any Warrant may be exercised in whole
      or
      in part. In the event of exercise in part, the Warrant Agent shall issue and
      deliver to the Warrant Holder another Warrant of like tenor representing the
      unexercised number of shares. Payment for the shares upon exercise of Warrants
      shall be in cash or by certified check to the order of the Company. Subject
      to
      the provisions of this Agreement and the Warrant Certificate in substantially
      the form attached hereto, Warrants may be exercised for a period of five years
      beginning at the Closing of the Offering. No adjustment shall be made for any
      dividends on any Common Stock issuable upon exercise of any Warrant. Subject
      to
      Section 5 hereof, upon surrender of Warrants and payment of the Warrant Price,
      the Company shall issue and cause to be delivered with all reasonable dispatch
      to, or upon the written order of the registered holder of Warrants exercised,
      and in such name or names as the holder shall designate, a certificate or
      certificates representing the shares so purchased, together with cash, as
      provided in Section 11 hereof, in respect of any fraction of a share of Common
      Stock otherwise issuable upon surrender. Such certificate or certificates shall
      be deemed to have been issued, and any person so designated to be named therein
      shall be deemed to have become a holder of record of such shares, as of the
      date
      of surrender of the Warrants and the payment of the Warrant Price; provided,
      however, that if, at the date of surrender of such Warrants and the payment
      of
      such Warrant Price,

     

    
      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

    

     

    the
      transfer books for the Common Stock or other class of stock purchasable upon
      the
      exercise of such Warrants shall be closed, the certificates for the shares
      in
      respect of which such Warrants are then exercised shall be issuable as of the
      date of which such books shall be opened, whether before, on, or after 5:00
      p.m., Utah time, on the respective dates of expiration of the Warrants, and
      until such date, the Company shall have no obligation or duty to deliver any
      certificate for such shares; provided, further, however, that the transfer
      books, unless otherwise required by law or applicable rule of any national
      securities exchange, or bylaw of the Company, shall not be closed at any one
      time for a period in excess of 20 days. The Company, whenever requested by
      the
      Warrant Agent, will supply the Warrant Agent with Warrants duly executed on
      behalf of the Company for such purpose. The Company shall pay all taxes and
      other governmental charges (other than income tax) that may be imposed in
      respect of the issue or delivery of the shares issued upon the exercise of
      any
      Warrants. The Company shall not be required, however, to pay any tax or other
      charge imposed in connection with any transfer involved in the issue of the
      any
      certificate for shares in any name other than that of the Warrant holder
      surrendered in connection with the purchase of such shares, and in such case
      neither the Company nor the Warrant Agent shall be required to issue or deliver
      any stock certificate until such tax or other charge has been paid or it has
      been established to the Company's satisfaction that no tax or charge is
      due.

    

    SECTION
      6. Call
      Provision.

    

    In
      the
      event that the closing sales price of a share of Common Stock as traded on
      the
      most senior exchange or quotation medium where the shares are quoted equals
      or
      exceeds $5.00 (appropriately adjusted for any stock split, reverse stock split,
      stock dividend or other reclassification or combination of the Common Stock
      occurring after the date hereof) for at least twenty consecutive trading days,
      the Company, upon 30 days prior written notice (the “Notice Period”) given to
      the Warrant holder, shall have the right to call some or all of the then
      outstanding Warrants at a redemption price equal to $0.05 per share of Common
      Stock then purchasable pursuant to the outstanding Warrants. Notwithstanding
      any
      such notice by the Company, the Warrant holder shall have the right to exercise
      any Warrants prior to the end of the Notice Period. In connection with any
      transfer or exchange of less than all of the Warrants, the Company’s right to
      call the Warrants shall apply pro rata to the shares underlying the Warrants
      with respect to the transferring holder and the transferee holder of the
      Warrants.

    

    SECTION
      7. Replacement
      of Warrant.

    

    Upon
      receipt of evidence reasonably satisfactory to the Company of the ownership
      of
      and the loss, theft, destruction or mutilation of this Warrant and (in the
      case
      of loss, theft or destruction) upon delivery of a lost instrument bond (open
      penalty) satisfactory to the Company and Warrant Agent, or (in the case of
      mutilation) upon surrender and cancellation of the mutilated Warrant, the
      Company will execute and the Transfer Agent will countersign and deliver, in
      lieu thereof, a new Warrant of like tenor.

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    SECTION
      8. Reservation
      of Common Stock.

    

    The
      Company has reserved and shall at all times reserve and keep available out
      of
      its authorized but unissued shares of Common Stock, solely for the purpose
      of
      issuance upon the exercise of this Warrant, such number of shares of Common
      Stock as shall be issuable upon the exercise hereof. The Company covenants
      and
      agrees that, upon exercise of this Warrant and payment of the purchase price
      therefor, all shares of Common Stock issuable upon such exercise shall be duly
      and validly issued, fully paid and nonassessable. The Company will keep a copy
      of this Agreement on file with the Transfer Agent for the Common Stock and
      with
      every subsequent transfer agent for any shares of the Company's capital stock
      issuable upon the exercise of the rights of purchase represented by the
      Warrants. The Warrant Agent is hereby irrevocably authorized to requisition
      from
      time to time such Transfer Agent for stock certificates required to honor
      outstanding Warrants. The Company will supply such Transfer Agent with duly
      executed stock certificates for such purpose and will itself provide or
      otherwise make available any cash which may be required to be paid if the
      Company elects not to issue fractional shares under Section 11 hereof. Any
      Warrant certificates surrendered in the exercise of the rights thereby evidenced
      shall be canceled by the Warrant Agent and shall thereafter be delivered to
      the
      Company, and the Warrant Agent shall confirm to the Company that the number
      of
      shares of Common Stock corresponding to such canceled Warrants have been issued
      upon the exercise of such Warrants. Promptly after the date of expiration of
      the
      Warrants, the Warrant Agent shall certify to the Company the total aggregate
      amount of Warrants then outstanding.

    

    SECTION
      9. Warrant
      Price.

    

    The
      Warrant price at which Common Stock shall be purchasable shall be $3.50 per
      share at any time during the period commencing at the closing date of the
      Offering and until five years after to closing date of the Offering. The Company
      will confirm the expiration date of each warrant to the Warrant
      Agent.

    

    SECTION
      10. Protection
      Against Dilution.

    

    a.     
      Adjustment
      for Subdivisions, Combinations of Dividends.

    

    In
      case
      the Company shall at any time, or from time to time, after the Effective Date
      subdivide or combine the outstanding shares of Common Stock or declare a
      dividend payable in Common Stock, the exercise price of the Warrants in effect
      immediately prior to the subdivision, combination or record date for such
      dividend payable in Common Stock shall forthwith be proportionately increased,
      in the case of combination, or decreased, in the case of subdivision or dividend
      payable in Common Stock, and each share of Common Stock purchasable upon
      exercise of each Warrant shall be change to the number determined by dividing
      the then current exercise price by the exercise price as adjusted after the
      subdivision, combination or dividend payable in Common Stock. Upon the
      occurrence of any subdivision, combination or dividend, the Company will confirm
      to the Warrant Agent the adjusted exercise price of each outstanding
      warrant.

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    b.     
      Adjustment
      for Certain Dividends and Distributions.

    

    In
      the
      event the Company at any time, or from time to time, after the Effective Date
      makes or fixes a record date for the determination of holders of Common Stock
      entitled to receive a dividend or other distribution payable in securities
      of
      the Company other than shares of Common Stock, then and in each such event
      provisions shall be made so that each Warrant holder (the "Holder") shall
      receive upon exercise of the Warrant, in addition to the number of shares of
      Common Stock receivable thereupon, the amount of securities of the Company
      which
      the Holder would have received had its Warrant been exercised into Common Stock
      on the date of such event and had it thereafter, during the period from the
      date
      of such event to and including the date of exercise, retained such securities
      receivable by it as aforesaid during such period, subject to all other
      adjustments called for during such period under this Section 10 with respect
      to
      the rights of the Holder of the Warrant.

    

    c.     
      Adjustment
      for Reclassification, Exchange and Substitution.

    

    If
      the
      Common Stock issuable upon the exercise of the Warrants is changed into the
      same
      or a different number of shares of any class or classes of stock, whether by
      recapitalization, reclassification or otherwise (other than a subdivision or
      combination of shares or stock dividend or a reorganization, merger,
      consolidation or sale of assets, provided for elsewhere in this Section 10),
      then and in any such event the Holder shall have the right thereafter, upon
      exercise of the Warrant, to receive the kind and amount of stock and other
      securities and property receivable upon such recapitalization, reclassification
      or other change, in an amount equal to the amount that the Holder would have
      been entitled to have had the Holder exercised the Warrant immediately prior
      to
      such recapitalization, reclassification or change, but only to the extent the
      Warrant is actually exercised, all subject to further adjustment as provided
      herein.

    

    d.     
      Reorganization,
      Mergers, Consolidations of Sales of Assets.

    

    If
      at any
      time, or from time to time, there is a capital reorganization of the Common
      Stock (other than a recapitalization, subdivision, combination, reclassification
      or exchange of the Common Stock provided for elsewhere in this Section 10)
      or
      merger or consolidation of the Company with or into another corporation, or
      the
      sale of all or substantially all of the Company's properties and assets to
      any
      other person then, as a part of such reorganization, merger, consolidation
      or
      sale, provision shall be made so that the Holder of each Warrant shall
      thereafter be entitled to receive, upon exercise of each Warrant (and only
      to
      the extent such Warrant is exercised), the number of shares of stock or other
      securities or property of the Company, or of the successor corporation resulting
      from such merger or consolidation or sale, to which a Holder of Common Stock,
      or
      other securities, deliverable upon the exercise of the Warrant would otherwise
      have been entitled on such capital reorganization, merger, consolidation, or
      sale.

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    SECTION
      11. Fractional
      Interest.

    

    The
      Company shall not be required to issue fractions of Common Stock on the exercise
      of Warrants. If any fraction of a common share would, except for the provisions
      of this Section, be issuable on the exercise of any Warrant (or specified
      portions thereof), the Company shall purchase such fraction for an amount in
      cash equal to the current market value of such fraction based upon the current
      market price of the common share determined in the manner set forth below.
      For
      purposes of this Section, the current market price on each day shall be the
      last
      reported sales price, regular way, in either case on any national securities
      exchange on which the Common Stock is listed or admitted to trading, or, if
      the
      Common Stock is not listed or admitted to trading on any such exchange, the
      average of the bid and asked prices on such day as reported on NASDAQ, or if
      such shares are not then listed on NASDAQ, as furnished by National Quotation
      Bureau Incorporated or any similar organization selected from time to time
      by
      the Company for the purpose. All calculations under this Section shall be made
      to the nearest cent or to the nearest one-hundredth of a share, as the case
      may
      be. 

    

    SECTION
      12. Notices
      of Warrant Holders.

    

    Nothing
      contained in this Warrant shall be construed as conferring upon any Warrant
      Holder hereto the right to vote or to consent or to receive notice as a
      shareholder in respect of any meetings of shareholders for the election of
      directors or any other matter or as having any rights whatsoever as a
      shareholder of the Company. If, however, at any time prior to the expiration
      of
      the Warrant and prior to its exercise, any of the following events shall
      occur:

    

    a.     
      The
      Company shall fix a record date of the Holders of its shares of Common Stock
      for
      the purpose of entitling them to receive a dividend or distribution;
      or

    

    b.     
      The
      Company shall offer to the Holders of its Common Stock any additional shares
      of
      capital stock of the Company or securities convertible into or exchangeable
      for
      shares of capital stock of the Company, or any option (except for options to
      be
      granted to Company's employees pursuant to a stock option plan approved by
      the
      Company's Board of Directors), right or warrant, to subscribe therefor; or
      

    

    c.     
      The
      Company shall call any of the Warrants for redemption; or

    

    d.     
      A
      merger,
      consolidation, dissolution, liquidation or winding up of the Company or a sale
      of all or substantially all of its property, assets and business as an entirety
      shall be proposed;

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    The
      Company shall give written notice of such event to the Warrant Holder at least
      thirty (30) days prior to the date fixed as a record date or the date of closing
      the transfer books for the determination of the shareholders entitled to
      received such dividend, distribution, convertible or exchangeable securities
      or
      subscription rights, entitled to vote on such proposed dissolution, liquidation,
      winding up or sale, or in the case where Warrants have been called for
      redemption, the Company shall give written notice of such event to the Warrant
      Holder at least thirty (30) days prior to the date fixed as a record date.
      Such
      notice shall specify such record date, the date of closing the transfer books,
      or the redemption date, as the case may be. Failure to give such notice or
      any
      defect therein shall not affect the validity of any action taken in connection
      with the declaration or payment of any such dividends or the issuance of any
      convertible or exchangeable securities, or subscription rights, options or
      warrants or any proposed dissolution, liquidation, winding up, sale or
      redemption.

    

    All
      notices, requests, consents and other communications hereunder shall be in
      writing and shall be deemed to have been duly made when delivered, or mailed
      by
      U.S. mail, certified mail, postage prepaid, return receipt
      requested:

    

    a.     
      If to any Warrant Holder, to the address of such Holder as shown on the books
      of
      the Company; or 

    

    b.     
      If to the Company, to the address of the Company on the records of the Warrant
      Agent.

    

    c.     
      If to the Warrant Agent, to 1981 East 4800 South, Ste. 100, Salt Lake City,
      UT
      84117.

    

    The
      Company shall cause copies of all financial statements and reports, proxy
      statements and other documents it shall send to its shareholders to be sent
      by
      U.S. mail, postage prepaid, on the date of mailing to such shareholder, to
      each
      registered Warrant Holder at his address appearing on the Warrant register
      as of
      the record date for the determination of the shareholders entitled to such
      documents.

    

    SECTION
      13. Disposition
      of Proceeds on Exercise of Warrants.

    

    a.     
      The
      Warrant Agent shall account promptly to the Company with respect to Warrants
      exercised and concurrently deposit in a special account in a local bank
      designated by the Warrant Agent for the benefit of the Company all moneys
      received by the Warrant Agent for the purchase of common Stock through the
      exercise of such Warrants.

    

    b.     
      The
      Warrant Agent shall keep copies of this Agreement available for inspection
      by
      holders of Warrants during normal business hours.

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    SECTION
      14. Merger
      or Consolidation or Change of Name of Warrant Agent.

    

    Any
      corporation or company which may succeed to the business of the Warrant Agent
      by
      any merger or consolidation or otherwise to which the Warrant Agent shall be
      a
      party, or any corporation or Company succeeding to the corporate trust business
      of the Warrant Agent, shall be the successor to the Warrant Agent hereunder
      without the execution or filing of any paper or any further act on the part
      of
      any of the parties hereto. In case at the time any of the Warrants shall not
      have been countersigned, any successor to the Warrant Agent may countersign
      such
      Warrants either in the name of the predecessor Warrant Agent or in the name
      of
      the successor Warrant Agent; and in all such cases such Warrant shall have
      the
      full force provided in the Warrant and in this Agreement.

    

    SECTION
      15. Duties
      of Warrant Agent.

    

    The
      Warrant Agent undertakes the duties and obligations imposed by this Agreement
      upon the following terms and conditions, by all of which the Company and the
      Warrant Holders, by their acceptance thereof, shall be bound:

    

    a.    
      The
      statements of fact and recitals contained herein and in the Warrants shall
      be
      taken as statements of the Company, and the Warrant Agent assumes no
      responsibility for the correctness of any of the same except such as described
      pertaining to the Warrant Agent or action taken or to be taken by it. The
      Warrant Agent assumes no responsibility with respect to the distribution of
      the
      Warrants except as herein expressly provided.

    

    b.     The
      Warrant Agent shall not be responsible for any failure of the Company to comply
      with any of the covenants contained in this Agreement or in the Warrants to
      be
      complied with by the Company.

    

    c.     The
      Warrant Agent may consult at any time with counsel satisfactory to it (who
      may
      be counsel for the Company) and the Warrant Agent shall incur no liability
      or
      responsibility to the Company or to any holder of any Warrant in respect of
      any
      action taken, suffered or omitted by it hereunder in good faith and in
      accordance with the opinion or the advice of such counsel.

    

    d.     The
      Warrant Agent shall incur no liability or responsibility to the Company or
      to
      any holder of any Warrant for any action taken in reliance on any notice,
      resolution, waiver, consent, order, certificate, or other paper, document or
      instrument believed by it to be genuine and to have been signed, sent or
      presented by the proper party or parties.

    

    e.    
      The
      Company agrees to pay to the Warrant Agent reasonable compensation for all
      services rendered by the Warrant Agent in the execution of this Agreement,
      to
      reimburse the Warrant Agent for all expenses, taxes and governmental charges
      and
      other charges of any kind and nature incurred by the Warrant Agent in the
      execution of this Agreement and to indemnify the Warrant Agent and save it
      harmless against any and all liabilities, including judgments, costs and
      reasonable counsel fees, for anything done or omitted by the Warrant Agent
      in
      the execution of this Agreement except as a result of the Warrant Agent's gross
      negligence, willful misconduct, or bad faith.

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    f.     The
      Warrant Agent shall be under no obligation to institute any action, suit or
      legal proceeding or to take any other action likely to involve expense unless
      the Company or one or more registered holders of Warrants shall furnish the
      Warrant Agent with reasonable security and indemnity acceptable to Warrant
      Agent
      for any costs and expenses which may be incurred, but this provision shall
      not
      affect the power of the Warrant Agent to take such action as the Warrant Agent
      may consider proper, whether with or without any such security or indemnity.
      All
      rights of action under this Agreement or under any of the Warrants may be
      enforced by the Warrant Agent without the possession of any of the Warrants
      or
      the production thereof any trial or other proceeding relating thereto, and
      any
      such action, suit or proceeding instituted by the Warrant Agent shall be brought
      in its name as Warrant Agent, and any recovery of judgment shall be for the
      ratable benefit of the registered holders of the Warrants, as their respective
      rights or interests may appear.

    

    g.     The
      Warrant Agent and any shareholder, director, officer, partner or employee of
      the
      Warrant Agent may buy, sell or deal in any of the Warrants or other securities
      of the Company or become pecuniarily interested in any transaction in which
      the
      Company may be interested, or contract with or lend money to or otherwise act
      as
      fully and freely as though it were not Warrant Agent under this Agreement.
      Nothing herein shall preclude the Warrant Agent from acting in any other
      capacity for the Company or for any other legal entity.

    

    h.    
      The
      Warrant Agent shall act hereunder solely as agent and not in a ministerial
      capacity, and its duties shall be determined solely by the provisions hereof.
      The Warrant Agent shall not be liable for anything which it may do or refrain
      from doing in connection with this Agreement except for its own gross
      negligence, willful misconduct or bad faith.

    

    i.     
      The
      Warrant Agent may execute and exercise any of the rights or powers hereby vested
      in it or perform any duty hereunder either itself or by or through its
      attorneys, agents or employees, and the Warrant Agent shall not be answerable
      or
      accountable for any act, default, neglect or misconduct, provided reasonable
      care had been exercised in the selection and continued employment
      thereof.

    

    j.     
      Any
      request, direction, election, order or demand of the Company shall be
      sufficiently evidenced by an instrument signed in the name of the Company by
      its
      President or a Vice President or its Secretary or an Assistant Secretary or
      its
      Treasurer or an Assistant Treasurer (unless other evidence in respect thereof
      be
      herein specifically prescribed); and any resolution of the Board of Directors
      may be evidenced to the Warrant Agent by a copy thereof certified by the
      Secretary or an Assistant Secretary of the Company.

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    SECTION
      16. Change
      of Warrant Agent.

    

    The
      Warrant Agent may resign and be discharged from its duties under this Agreement
      by giving to the Company notice in writing, and to the holders of the Warrants
      notice by mailing such notice to holders at the addresses appearing on the
      Warrant register, of such resignation, specifying a date when such resignation
      shall take effect. The Warrant Agent may be removed by like notice to the
      Warrant Agent from the Company and by like mailing of notice to the holders
      of
      the Warrants. If the Warrant Agent shall resign or be removed or shall otherwise
      become incapable of acting, the Company shall appoint a successor to the Warrant
      Agent. If the Company shall fail to make such appointment within a period of
      30
      days after the removal or after it has been notified in writing of the
      resignation or incapacity by the resigning or incapacitated Warrant Agent,
      the
      registered holder of any Warrant may apply to any court of competent
      jurisdiction for the appointment of a successor to the Warrant Agent. After
      appointment, the successor warrant agent shall be vested with the same powers,
      right, duties and responsibilities as if it had been originally named as Warrant
      Agent without further act or deed; but the former Warrant Agent shall deliver
      and transfer to the successor warrant agent all canceled Warrants, records
      and
      property at the time held by it hereunder, and execute and deliver any further
      assurance, conveyance, act or deed necessary for the purpose. Failure to file
      or
      mail any notice provided for in this Section, however, or any defect therein,
      shall not affect the legality or validity of the resignation or removal of
      the
      Warrant Agent or the appointment of the successor warrant agent, as the case
      may
      be.

    

    SECTION
      17. Change
      of Transfer Agent.

    

    Forthwith
      upon the appointment of any Transfer Agent for the Common Stock or of any
      subsequent transfer agent for Common Stock or other shares of the Company's
      capital stock issuable upon the exercise of the rights of purchase represented
      by the Warrants, the Company will file with the Warrant Agent a statement
      setting forth the name and address of such Transfer Agent.

    

    SECTION
      18. Supplements
      and Amendments.

    

    The
      Company and the Warrant Agent may, from time to time, supplement or amend this
      Agreement without the approval of any holders of Warrants in order to cure
      any
      ambiguity or to correct or supplement any provisions contained herein which
      may
      be defective or inconsistent with any other provisions in regard to matters
      or
      questions arising thereunder which the Company and the Warrant Agent may deem
      necessary or desirable and which shall not be inconsistent with the provisions
      of the Warrants and which shall not adversely affect the interests of the
      holders of Warrants.

    

    SECTION
      19. Successors.

    

    All
      the
      covenants, agreements, representations and warranties contained in this
      Agreement shall bind the parties hereto and their respective heirs, executors,
      administrators, distributes, successors and assigns.

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    SECTION
      20. Change;
      Waiver.

    

    Neither
      this Agreement nor any term hereof may be changed, waived, discharged or
      terminated orally but only by an instrument in writing signed by the party
      against which enforcement of the change, waiver, discharge or termination is
      sought.

    

    SECTION
      21. Headings.

    

    The
      section headings in this Agreement are inserted for the purpose of convenience
      only and shall have no substantive effect.

    

    SECTION
      22. Law
      Governing.

    

    This
      Agreement shall for all purposes be construed and enforced in accordance with,
      and governed by, the internal laws of the State of Utah, without giving effect
      to principles of conflict of laws.

    

    The
      parties hereto have caused this Agreement to be signed as of the date first
      above written.

    

    
      	
              U.S.
                DRY CLEANING CORPORATION

            	
              INTERWEST
                TRANSFER COMPANY

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
              By: 
                /s/ Robert Y.
                Lee                                                
                

            	
              By: 
                /s/ Kurt
                Hughes                                                  
                

            
	
              Name:
                Robert Y. Lee

            	
              Name:
                Kurt Hughes

            
	
              Title:
                Chief Executive Officer

            	
              Title:
                President

            

    

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

    

    [FORM
      OF
      FACE OF WARRANT CERTIFICATE]

    

    ______Warrants

    

    VOID
      AFTER _____ , 2012

    

    WARRANT
      CERTIFICATE FOR PURCHASE

    OF
      COMMON
      STOCK

    

    U.S.
      DRY
      CLEANING CORPORATION

    

    

    This
      certifies that FOR VALUE RECEIVED ______or registered assigns (the “Registered
      Holder”) is the owner of the number of Warrants (“Warrants”) specified above.
      Each Warrant represented hereby initially entitles the Registered Holder to
      purchase, subject to the terms and conditions set forth in this Warrant
      Certificate and the Warrant Agreement (as hereinafter defined), one fully paid
      and nonassessable share of common stock, par value $0.001 per share (“Common
      Stock”), of U.S. DRY CLEANING CORPORATION, a Delaware corporation (the
“Company”), at any time prior to the Expiration Date (as hereinafter defined),
      unless the Warrants are earlier redeemed, upon the presentation and surrender
      of
      this Warrant Certificate with the Subscription Form on the reverse hereof duly
      executed, at the corporate office of Interwest Transfer Company, Inc., the
      warrant agent, or its successor (the “Warrant Agent”), accompanied by payment of
      $3.50 (the “Exercise Price”) per share of Common Stock in lawful money of the
      United States of America in cash or by official bank or certified check made
      payable to U.S. DRY CLEANING CORPORATION, Special Account.

    

    This
      Warrant Certificate and each Warrant represented hereby are issued pursuant
      to
      and are subject in all respects to the terms and conditions set forth in the
      Warrant Agreement (the “Warrant Agreement”), dated ______, 2007 by and among the
      Company and the Warrant Agent.

    

    In
      the
      event of certain contingencies provided for in the Warrant Agreement, the
      Exercise Price and the number of shares of Common Stock subject to purchase
      upon
      the exercise of each Warrant represented hereby are subject to modification
      or
      adjustment. Each Warrant represented hereby is exercisable at the option of
      the
      Registered Holder, but no fractional shares of Common Stock will be issued.
      In
      the case of the exercise of less than all the Warrants represented hereby,
      the
      Company shall cancel this Warrant Certificate upon the surrender hereof and
      shall execute, and cause the Warrant Agent to countersign and deliver, a new
      Warrant Certificate of like tenor for the balance of such Warrants.

    

    The
      term
“Expiration Date” shall mean 5:00 P.M. (Utah time) on ______, 2012. If such date
      shall in the State of Utah be a holiday or a day on which banks are authorized
      to close, then the Expiration Date shall mean 5:00 P.M. (Utah time) the next
      following day which in the State of Utah is not a holiday or a day on which
      banks are authorized to close.

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

     

    The
      Company has covenanted and agreed that it will file a registration statement
      registering the shares underlying the Warrants and will use its commercially
      reasonable best efforts to cause the same to become effective and to keep such
      registration statement current, or to file a new registration statement
      registering the same if the Company’s Board of Directors, upon advice of
      counsel, deems necessary while any of the Warrants are outstanding.
      Notwithstanding the foregoing, in no event shall such underlying shares be
      issued, and any Warrant shall not be exercisable, if a registration statement
      covering the shares underlying the Warrants are not then effective or if such
      exercise would result in the opinion of the Company's Board of Directors, upon
      advice of counsel, in the violation of any law.  If the Warrant is not
      exercisable pursuant to the terms set forth herein, under no circumstances
      will
      the Company be contingently or otherwise liable for any cash or other form
      of
      payment to the Registered Holder.

    

    This
      Warrant Certificate is exchangeable, upon the surrender hereof by the Registered
      Holder at the business office of the Warrant Agent, for a new Warrant
      Certificate or Warrant Certificates of like tenor representing an equal
      aggregate number of Warrants, each of such new Warrant Certificates to represent
      such number of Warrants as shall be designated by such Registered Holder at
      the
      time of such surrender.

    

    Prior
      to
      the exercise of any Warrant represented hereby, the Registered Holder shall
      not
      be entitled to any rights of a stockholder of the Company, including, without
      limitation, the right to vote or to receive dividends or other distributions,
      and shall not be entitled to receive any notice of any proceedings of the
      Company, except as provided in the Warrant Agreement.

    

    In
      the
      event that the closing sales price of a share of Common Stock of the Company
      as
      traded on the most senior exchange or quotation medium where the shares are
      quoted equals or exceeds $5.00 (appropriately adjusted for any stock split,
      reverse stock split, stock dividend or other reclassification or combination
      of
      the Common Stock occurring after the date hereof) for at least twenty
      consecutive trading days, the Company, upon 30 days prior written notice (the
      “Notice Period”) given to the Registered Holder, shall have the right to call
      some or all of the then outstanding Warrants at a redemption price equal to
      $0.05 per share of Common Stock then purchasable pursuant to the outstanding
      Warrants. Notwithstanding any such notice by the Company, the Registered Holder
      shall have the right to exercise any Warrants prior to the end of the Notice
      Period.

    

    Prior
      to
      due presentment for registration of transfer hereof, the Company and the Warrant
      Agent may deem and treat the Registered Holder as the absolute owner hereof
      and
      of each Warrant represented hereby (notwithstanding any notations of ownership
      or writing hereon made by anyone other than a duly authorized officer of the
      Company or the Warrant Agent) for all purposes and shall not be affected by
      any
      notice to the contrary.

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

     

    This
      Warrant Certificate shall be governed by and construed in accordance with the
      laws of the State of Delaware.

    

    This
      Warrant Certificate is not valid unless countersigned by the Warrant
      Agent.

    

    IN
      WITNESS WHEREOF, the Company has caused this Warrant Certificate to be duly
      executed, manually or in facsimile, by an officer of the Company thereunto
      duly
      authorized and a facsimile of its corporate seal to be imprinted
      hereon.

    

    

    
      	
               

            	
              U.S.
                DRY CLEANING CORPORATION

            
	
               

            	
               

            
	
              Dated:
                _________________________ 

            	
              By:
                ___________________________________

            
	
               

            	
              Name:

            
	
               

            	
              Title:

            

    

    

    

    Countersigned:

    

    

    Interwest
      Transfer Company, Inc.

    as
      Warrant Agent

    

    

    By:
      ______________________________

    Authorized
      Officer

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

     

    [FORM
      OF
      REVERSE OF WARRANT CERTIFICATE]

    

    SUBSCRIPTION
      FORM

    

    To
      Be
      Executed by the Registered Holder

    in
      Order
      to Exercise Warrants

    

    The
      undersigned Registered Holder hereby irrevocably elects to exercise
      ______Warrants represented by this Warrant Certificate, and to purchase the
      securities issuable upon the exercise of such Warrants, and requests that
      certificates for such securities shall be issued in the name of

    

    PLEASE
      INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER

    ___________________________

    ___________________________

    ___________________________

    ___________________________

    

    [please
      print or type name and address]

    

    and
      be
      delivered to

    

    [please
      print or type name and address]

    

    and
      if
      such number of Warrants shall not be all the Warrants evidenced by this Warrant
      Certificate, that a new Warrant Certificate for the balance of such Warrants
      be
      registered in the name of, and delivered to, the Registered Holder at the
      address stated below.

    

    

    Dated:_______________           
                                      
X ___________________________

    ___________________________

    ___________________________

    ___________________________

    Address

    ___________________________

    Taxpayer
      Identification Number

    ___________________________

    Signature
      Guaranteed

    ___________________________

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

     

    ASSIGNMENT

    

    To
      Be
      Executed by the Registered Holder

    in
      Order
      to Assign Warrants

    

    FOR
      VALUE
      RECEIVED, ______hereby sells, assigns and transfers unto

    

    PLEASE
      INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER

    ____________________________

    ____________________________

    ____________________________

    ____________________________

    

    [please
      print or type name and address]

    

    ______of
      the Warrants represented by this Warrant Certificate, and hereby irrevocably
      constitutes and appoints ________________________Attorney to transfer this
      Warrant Certificate on the books of the Company, with full power of substitution
      in the premises.

    

    

    Dated:
      ____________                                                   X
      ___________________________________

                          
      Signature Guaranteed

    

    

    THE
      SIGNATURE TO THE ASSIGNMENT OR THE SUBSCRIPTION FORM MUST CORRESPOND TO THE
      NAME
      AS WRITTEN UPON THE FACE OF THIS WARRANT CERTIFICATE IN EVERY PARTICULAR,
      WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER, AND MUST BE
      GUARANTEED BY A COMMERCIAL BANK OR TRUST COMPANY OR A MEMBER FIRM OF THE
      AMERICAN STOCK EXCHANGE, NEW YORK STOCK EXCHANGE, PACIFIC STOCK EXCHANGE OR
      MIDWEST STOCK EXCHANGE.

     

    -16-

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