Agreement

WHEREAS, it is the desire of the parties to this AGREEMENT to promote mutual cooperation and understanding and to formulate rules to govern the relationship between the parties, to those ends the parties hereto have entered into this AGREEMENT.

Section 1. The Company recognizes the Union as the exclusive bargaining representative with respect to rate of pay, hours of work and other conditions of employment for all regular, full-time production and maintenance employees employed by the Company at its Huntington, Indiana Plant, (including its warehouse facility), but excluding those supervisory employees as defined in the Act: guards; watchmen; office and plant clerical employees; technical and professional employees; electronic, and quality technicians.

Section 2. (a) The Company shall not discriminate against any of the employees in the payment of wages, assignment of jobs, seniority, promotion, transfer, lay off, discipline, discharge, or any other terms or conditions of employment due to race, creed, color, religion, marital status, sex, age, national origin, handicap, veteran's status or sexual orientation.

(b) The Union or its members, agents or representatives will not discriminate against any employee because of race, creed, color, religion, marital status, sex, age, national origin, handicap, veteran status or sexual orientation.

(c) The Company and Union agree to obey all applicable Federal and State Laws and regulations.

Section 3. Any reference to employees in the feminine gender also applies equally to male employees, and any reference to employees in the male gender also applies equally to female employees.

Whenever the term "Company" or "Plant" is used, it shall mean UT Electronic Controls, Incorporated located at 3650 W. 200 N. Huntington, Indiana and 1600 River Fork Drive East, Huntington, Indiana.

Section 1. All employees covered by this agreement, and all employees subsequently hired must become and thereafter remain members of the Union in good standing after completion of 90 calendar days or after thirty one days after the execution of this agreement, whichever is later, as a condition of employment.

Section 2. (a) Deductions shall begin in the month succeeding the month in which the Company receives such written authorization.

(b) The Company agrees that it shall deduct from the 3rd pay period of each month and turn over to the Union for the duration of this agreement, initiation fees and/or dues of such members of the Union, upon receipt by the company of the following written assignment signed by individual members of the Union.

"I hereby authorize and direct UT Electronic Controls, Inc. to deduct from my pay, Union membership initiation fee and/or dues in the amounts fixed in accordance with the by-laws of Local Union 983 and the constitution of the International Brotherhood of Electrical Workers and pay same to said Local Union in accordance with the terms of the Bargaining Agreement between the Company and the Union."

(c) The Company requires the Union to provide thirty (30) days written advance notice of any change in union dues as a result of a general wage increase or other Union event.

Section 3. The Union agrees to indemnify the Company and hold it harmless against any and all suits, claims and demands and other liabilities arising out of, or resulting from the application of the provisions of this Article.

Section 4. Each month after deductions have been made, and before the end of the month, the Company will remit to Local 983, the amount of the dues collected through a wire transfer. The Company will furnish the Union two (2) active payroll lists of all bargaining unit employees as of the pay period ending in which the Union dues were deducted.

Section 1. For the purpose of handling grievances or other matters relative to the Application of the terms of this agreement, the Company agrees to recognize a Grievance Committee of four (4) members who are employees of the Company.

Section 2. There shall be four (4) Stewards and one (1) Master Steward for the day shift, four (4) Stewards and a Master Steward on the 2nd shift, and two (2) Stewards and a Master Steward on the 3rd shift. The parties hereby agree that they shall mutually agree upon the geographical area that a Steward shall service and that the number of Stewards, (increase or decrease), can occur predicated upon the total number of employees in the bargaining unit. The activities of the Steward shall be limited to the work area which they are designated to represent.

Section 3. The Union will furnish the Company with a current listing of Officers, Stewards and Committeemen, and the Company shall not be obligated to recognize any employee as being in such capacity until it has received proper notification from the Union.

Section 4. It is agreed that Committeemen and Stewards have full time work to perform in the plant. However, they shall not leave their workstations without prior permission from their Coach, and such permission shall not be arbitrarily delayed or denied. When Committeemen or Stewards are processing or discussing pending grievances beyond Step 1 of the grievance procedure, or attending meetings with Management for the purpose of same, there shall be no compensation by the Company for any time so spent. Where it does not interfere with orderly operation of the plant, meetings may be held during working hours.

Section 5. The Business Manager of Local 983 and/or the International Representative of the International Union may be given access to the plant premises when necessary and at reasonable time during working hours provided advance notice is given to the Human Resources Manager or designee.

Section 6. When the Local Union decides it is necessary to employ a Business Manager on a full time basis, the Company shall grant the employee a leave of absence for a period up to one (1) year and such leave may be renewed for further one (1) year periods, as long as the employee remains in the Business Manager position. The Company also agrees to provide a weekly payment of four (4) hours per week to the Business Manager at the current rate of pay for the classification last held by the Business Manager. This payment will be made to the Business Manager for his/her services on various committees and council meetings. These earnings will be considered compensable earnings and will only be paid to allow the Business Manager to participate in the Savings Plan as outlined in Article XIV of this agreement.

Furthermore, if an employee is called to temporary/full time duty by the Local Union or International Union, he/she shall be granted a leave of absence for up to three (3) months. However, there shall never be more than one (1) individual at anytime on such temporary/full time leave.

The Union shall provide a thirty-(30) day notice to the Company prior to the commencement of any such leave(s) including probable duration. During such leave(s), the employer shall continue to provide all benefits specified in Article X, Insurance. The Union will reimburse the Company on a weekly basis for the employees’ contribution(s) for medical and dental coverages. Pension will be credited for the time on Union leave provided the employee(s) return from such leave. If the member, who is granted a leave of absence, is from one of the upper classifications, such position will be filled with a temporary-permanent upgradeable. When the leave ends, the member will return to his/her classification if seniority allows. Employees shall accumulate seniority for the entire leave of absence specified in the notice to the Company.

Section 1. Nothing in the Agreement shall be construed to limit or impair the right of the Company to exercise its own discretion on all of the following matters, whatever may be the effect upon employment, when in its sole determination it may determine it advisable to do any or all of the following: to manage the business generally; to manage the manufacturing operations and to determine the products to be manufactured; to determine the processes of manufacturing and/or assembling, together with the designing, engineering and the control of raw materials, semi-manufactured and finished parts which may be incorporated in the product manufactured; to decide all machine, tools and equipment to be used; to direct and assign the working forces; to decide the number and location of plants; to expand existing production facilities and to move or remove the plant or any of its parts to other areas; to determine the schedules of production and to establish or re-establish speeds of operation, production quotas and production standards; to decide what work shall be performed in the plant or by employees, and to subcontract the rest regardless of prior methods or practices; to maintain order and efficiency in its plants and operations to determine and redetermine job content; to schedule the work week and working hours, the starting and quitting times and the number of hours to be worked; to institute new or combined, or to eliminate existing job groups; to hire, promote, demote, assign, transfer, suspend, discipline and discharge employees; to relieve employees because of lack of work and for other legitimate reasons; to introduce new and improved methods, materials, equipment or facilities, and among the responsibilities vested exclusively in the Company. The above rights of Management are not all-inclusive; but indicate the type of matters or rights, which belong to and are inherent to Management. Any of the rights, powers and authority the Company had, at common law or otherwise, including those exercised unilaterally in the past are retained by the Company except as expressly and specifically abridged or modified by this Agreement.

Section 2. It is the prerogative of the Company to make and revise such reasonable rules and regulations, not in conflict with this Agreement, as it may from time to time deemed best for the purpose of maintaining order, Environmental, Health and Safety, products reliability, and/or effective operation of the Company plant, and to require compliance therewith by employees.

Section 1. The following procedures as set forth shall be the sole and exclusive procedure for the adjustment of any grievances between the employees and/or the Union and the Company and/or the employees and the Union.

Section 2. (a) A grievance is hereby defined as an allegation of a violation of this Agreement.

(b) All grievances alleging improper discipline or discharge shall be presented to the Company in writing within five (5) working days of the discharge or disciplinary action, and unless so presented shall be deemed not to exist.

Section 3. A grievance must state the respective articles and sections of the Collective Bargaining Agreement alleged to have been violated and specific circumstances surrounding the alleged violation. The parties mutually agree on the following steps for processing a grievance:

Step 1. ORAL. (a) It is agreed that when a grievance arises the employee involved will, within five (5) working days of the occurrence or knowledge of the situation, condition, or action of Management that gives cause for a grievance, first discuss the circumstances with the involved Coach, with his Steward present if the employee so desires. The involved Coach will meet with the employee as soon as is practical and render an answer to the grievance within three (3) working days (Saturday, Sunday and holidays excluded). If the grievance is not resolved at this step, the employee then moves to Step 2 of the grievance procedure.

(b) If the employee is dissatisfied with the decision rendered by the Coach, then the employee may within (2) working days appeal to the Unit Manager who is responsible for the factory in which the alleged grievance is said to have occurred. The Unit Manager will consider the facts of the alleged grievance, and render a decision within three (3) working days after the appeal was first made.

(c) If the employee is dissatisfied with the decision rendered by the Unit Manager, the employee may within two (2) working days appeal the grievance to the Human Resources Department. The Human Resources Department will investigate and consider the facts of the alleged grievance, and render a decision within three (3) working days after the appeal was first made. If the grievance is not settled through the ORAL phase of the grievance procedure, as described above, the employee may move to Step 2 of the grievance procedure.

Step 2. WRITTEN. The employee shall submit the alleged grievance in writing with specificity, stating the violation of the Agreement the employee believes to have taken place. This written grievance is to be submitted to the Human Resources Department by the Business Manager of the Local Union within three (3) days after completion of Step 1, ORAL. The grievance will then be discussed by the Union and the Company at the next Labor Relations Council Meeting. If the parties are unable to come to mutual resolution on the grievance during the Labor Relations Council Meeting, the grievance can proceed to Step 3 of the grievance procedure.

Step 3. The parties agree to meet in conference within fifteen (15) working days from decision in Step 2 in an effort to determine if final resolution of the grievance can be achieved. Attendees at this meeting shall include the following representatives from each party: Union: Local Union Business Manager and IBEW International Representative. Company: Human Resources Manager, Director of Operations or his/her designated representative.

Step 4. ARBITRATION. If the grievance is not settled at the 3^rd Step as described above, either party may, within thirty (30) days, file for arbitration with the Federal Mediation and Conciliation Service of the Federal Government by requesting a panel of arbitrators. When requesting a panel of arbitrators, the parties agree to select a panel of at least five (5), and one arbitrator will then be selected from the panel by mutual agreement of the parties. The parties further agree that the utilization of a striking procedure shall be utilized in determining the arbitrator who will hear the case. A coin toss shall determine which party shall strike from the list of arbitrators first, and the parties will continue to take turns in striking arbitrators until one arbitrator is left and such arbitrator will be recognized as the one who will hear and have jurisdiction over the case. The decision of the arbitrator shall be final and binding and must be recognized by the parties.

Section 4. Workdays as used in Article V shall refer to Monday through Friday when the plant is scheduled to operate. The time limits herein may be extended by mutual understanding of the parties.

Section 5. The arbitrator shall not have authority to add to, subtract from, or to amend or modify in any way the expressed terms of this Agreement or any supplementary agreement. The authority of the arbitrator shall, in any event, be limited to cases involving the interpretation, application, or claim of breach or violation of specific clauses expressly contained in this Agreement.

Section 6. The arbitrator shall have authority to consider only one (1) grievance on any hearing unless mutually agreed otherwise. The hearing shall be neither on Company time nor on the property of the parties. The fees and expenses of the Arbitrator, the fees and expenses of the hearing room and of a transcript if jointly requested, shall be borne equally by the parties. Each party shall bear the expenses of preparing and presenting its own case, including those of witnesses and representatives at such hearing.

Section 7. Any disposition or settlement of a grievance or the decision of the arbitrator, shall constitute a final and complete settlement thereof, and shall be final and binding upon the Union, the employee or employees involved and the Company. In the event a case is appealed to an arbitrator and he finds he has no power to rule on such case, the matter shall be referred back to the parties without decision or recommendation.

Section 8. In any grievance involving a potential back pay award against the Company, such liability for back pay shall not be retroactive for any period prior to three (3) days prior to the date on which the grievance was presented at Step 1, ORAL.

Section 1. The Union and its members and the employees covered by this Agreement agree that they will not, either collectively or individually, during the term of the Agreement, cause or permit to cause, instigate, condone, sanction, contribute to or participate in any strike, sit-down, stay-in, slow-down, curtailment of or refusal to work, restriction of production, secondary boycott, picketing, recognition of picket lines, or any other activity, which would tend to interfere with the orderly operations at this or any of the Company's plants. The Company agrees that there shall be no lockout during the term of this Agreement.

Section 2. Participation by any employee or employees in any act or acts violating the provisions of Section 1 of this Article in any way will subject such employee or employees to disciplinary action including discharge.

Section 3. In the event of an alleged violation of Section 1 of this Article, the aggrieved party has the right to select any impartial arbitrator who is registered with American Arbitrator Association or the Federal Mediation and Conciliation Service. Such arbitrator shall hold a prompt hearing within forty-eight (48) hours after notice of alleged violation (or as soon thereafter as is practicable depending upon the arbitrator's schedule) and shall render an award within twelve (12) hours after the hearing. In such case, the arbitrator shall make findings of fact concerning the alleged violation and shall prescribe appropriate relief, including an order of the arbitrator shall be final and binding on the parties of this Agreement. The expenses of such arbitration shall be borne in accordance with the arbitration section of the labor Agreement. Nothing herein contained shall be deemed as a waiver by the Company or Union of the right to institute legal proceedings where the strike or slow-down or lockout is in violation of this agreement.

Section 1. Seniority is defined as an employee's length of continuous service beginning with his first day of current employment with the Company. It is further defined as the relationship between employees, and is meant to protect and secure an employee's rights in relation to the rights of other employees.

Section 2. Employees shall be regarded as probationary employees until they gain seniority and the Company shall not be responsible for the re-employment of probationary employees if they are terminated for any reason during this period. At the completion of the period of probation an employee shall be placed on the seniority list, according to his last date of hire, in his respective job group. Employees hired on the same day shall be listed in alphabetical order.

Section 3. New employees will gain seniority after 90 calendar days, which shall be deemed to be the probation period, at which time their seniority will be recognized.

Section 4. Seniority shall be used to determine the relative rights of employees as and only as, expressly set forth in this Agreement.

Section 5. An employee shall cease to have seniority and his name shall be removed from the seniority list whereby his relationship with the employer is automatically terminated in the event:

d. He gives a false reason to obtain a leave of absence or works for another employer during such leave.

e. He remains off the active payroll for a period of twenty-four (24) months due to layoff for lack of work or medical leave

f. He makes a false statement on his application for employment or medical history.

g. He fails to report for work after a layoff from the plant within three (3) days after he has been notified to return to

h. He is absent from work for three (3) consecutive days without reporting such absence to the Company, provided such notice

Section 6. It is the employees’ responsibility to be sure their current post office address and telephone number are on record with the Company. The Company will be fully entitled to rely on same where notice to such employee is necessary, and no employee shall receive consideration who fails to receive notice because of his failure to comply with this provision.

Section 7. Job groups shall be those classifications which are established when necessary, by both parties, and which presently are those listed in Exhibit "A" attached hereto and made a part thereof.

Section 8(a). An evaluation from both parties will determine if a position shall be classed as temporary or permanent. Temporary will be a time period up to six (6) months. Permanent will be a time period after or beyond six (6) months. When an employee is temporarily transferred, his pay will be handled as follows:

2. If the employee has been transferred to a higher paying job group, he shall receive the higher rate of pay for the time

(b). Permanent vacancies for the upper classification positions shall be filled, by the Company, through the upgradeable pool of employees designated for the upper classification position that needs to be filled. Therefore, the following process will be used:

4) Company posts open bid for upper classification position for a three (3) day period

5) Eligible upgradeable employees (in the pool for the upper classification, on all shifts) can post for the position. Most senior upgradeable for the upper classification is awarded the bid.

6). If none of the eligible upgradeable employees bid for the position, the position will be re-posted plant-wide for three (3) days and the most senior eligible employee will be awarded the bid.

7). When employees, who are not from the upgradeable pool, are permanently transferred to another job group, they shall gain seniority in such new job group after thirty (30) days of actual work therein, at which point, seniority will date back to the date of last hire.

For the job groups of Quality Control Inspector, Material Specialist, Truck Driver, Solder Wave Operator, Surface Mount Operator and Maintenance job groups, the Company will continue to test for these jobs as openings occur in the upgradeable pool.

(c). Employees returning from Workers Compensation Leave shall return to their former classification, line, area and shift, provided they remain qualified and able to perform their duties. When it's necessary to temporarily replace an injured employee, the Company shall replace such position as temporary. If an employee returns after six (6) months, they will return to their classification and/or shift where their seniority will allow. Temporary replacements will be used for a period of up to six (6) months, after which, the position shall be deemed permanent and the steps shall follow to permanently replace such positions.

Section 9 (a). Where there is a decrease in the work force, for greater than five (5) consecutive working days, in any job group because of insufficient work, the affected employees shall be placed in openings before they displace the least senior Manufacturing Associate in the plant, provided the affected employee's seniority is greater than the seniority of the least senior Manufacturing Associate in the plant, and provided that the affected employees are capable of immediately and efficiently performing the available work.

A displaced employee may request to be downgraded from his job group in order to remain on the shift, provided his seniority is greater than the least senior Manufacturing Associates.

Employees who are laid off from their shift may displace probationary employees before being assigned to the openings.

(b). Probationary employees will be terminated before any regular employees are permanently laid off.

(c). In case of an emergency layoff of five (5) working days or less, which results from a breakdown of equipment, lack of material, change in schedule or production requirements, taking of inventory, or any other temporary situation, the employees on the jobs, lines, machines, or operations affected may be laid off without regard to seniority provided, however, consideration will be given to the most senior employees. Layoffs that extend beyond this period shall be made in accordance with the seniority provisions set forth above.

(d). Whenever an employee is displaced from a bid as a result of a reduction in workforce, the employee will have recall rights to that job group and will be recalled to the job group in order of seniority before the job opening is permanently filled. If the employee bids on a higher paying job classification, that employee will relinquish recall rights to the lower paying classification.

Once notified of recall, an employee shall respond within three (3) days. Any employee who refuses recall or fails to respond will be removed from the recall list, and must bid to return to be an upgradeable for an upper classification. However, an employee that refuses recall may not bid for that classification for a period of six (6) months.

Any absence of three (3) days at the time of opening will deem the person not available for work, and the person will be disqualified for recall for that opening, but will remain on the recall list.

Section 10 (a). An employee who desires a transfer to another shift and/or line in the same job group will sign the shift and/or line transfer request form that will be posted for two (2) days. Only within these two (2) days can an employee revoke his/her decision to transfer by taking his/her name off the request.

An active request will be honored in accordance with seniority, provided however, that the Company shall be permitted to maintain a balance of skilled and/or trained employees on each shift and/or line within each job group. Once the employee is awarded a shift and/or line transfer, per their request, the employee must transfer to the shift and/or line requested on the effective date of the transfer. An employee may not apply for another transfer to any shift and/or line within the same job group for a period of four (4) months from the effective date of the shift and/or line transfer.

(b). An employee’s request to downgrade from an upgradeable or upper classification position will be permitted at the point of recertification or for medical reasons approved by the Company’s Medical Department. In cases of downgrade at recertification, upper classification employees will automatically be placed in the upgradeable pool for that position unless they notify the Human Resources Department, in writing, of their intent to not be placed in the upgradeable pool. In cases of a medical downgrade, an employee must seek approval through the Company’s Medical Department prior to rebidding. The downgraded upper classification employee may be absorbed by the line and/or shift from where he/she is downgrading provided manpower requirements allow.

Employees in upper classification positions will be allowed to downgrade to hold their shift only if there is a reduction in their classification.

Section 11. Seniority lists will be revised not less than quarterly and copies given to the Union.

Section 12. An employee who is transferred by the Company to a position outside the bargaining unit, who within one (1) year is subsequently returned by the Company to the bargaining unit, shall be given seniority credit for all time spent in the employ of the Company less the time spent outside the bargaining unit. Provided, however, the employee's total seniority, including time spent outside of the bargaining unit, will be used in determining the benefits (insurance and vacations) under this Agreement.

Section 13. The Company and the Union agree to the institution of such methods, equipment, job assignments and plant practices as are necessary for increasing the efficiency and productivity of operations in the plant, including the elimination of wastefulness of unnecessary operations or practices, and also including the merging of operations and jobs where the result will not create unsafe conditions or work loads beyond the normal capacity of operators. The Union shall be notified in advance of any changes to be made under this section, and should any such changes affect the seniority rights of employees in the plant and/or result in the dislocation of any such employees the Company and the Union shall meet for the purpose of agreeing on the reassignment of any such employees.

Section 1. All employees on the seniority list as of May 1st of the year for which vacations are being scheduled, who have as of May 1st the service required by the schedule below, and who have rendered service to and received wages from the Company for a minimum of 1500 hours, will receive 100% of vacation pay and time off. Employees who have rendered service to and receive wages from the company for a minimum of 1250 hours will receive 75% of vacation pay and time off. Employees who have rendered service to and receive wages from the Company for a minimum of 750 hours will receive 50% of vacation pay and time off. The number of hours required for employees with six (6) months up to one (1) year seniority will be 750 hours during the twelve (12) month period immediately preceding May 1st.

The following vacation schedule will apply in conjunction with the previous qualifications for hours of work.

However, employees hired after May 1^st who have rendered service to and received wages from the Company for a minimum of 1500 hours through April 30^th shall be eligible for one (1) week with forty (40) hours pay.

Vacation pay shall be based on the regular straight time hourly rate of the employee as of May 1st of the vacation year. Vacation pay shall be paid on the first pay period of May.

An employee may elect to receive vacation pay in one-week increments after May lst provided the employee has notified payroll on or before April 15th of the desire to receive vacation pay on a date later than May 1st. Vacation pay, when postponed, will be based on the regular straight time, hourly rate of the employee as of May 1st of the vacation year. All vacation pay must be paid by April 1st of the vacation year.

Section 2. The Company shall schedule the vacations for the employees entitled to a vacation, either individually or in groups or by closing the entire plant giving consideration where practical to the desires of employees and to their seniority.

Section 1. An additional holiday will be scheduled during the Company’s Christmas Holiday shut down period.

Good Friday Day after Thanksgiving

a. Employees who have not completed their probationary period shall not be eligible for holiday pay.

b. Employees shall receive holiday pay for any additional holiday falling during their paid vacation. Holidays which fall on Saturday will be observed on the preceding Friday and holidays which fall on Sunday will be observed on the following Monday.

c. Employees who agree to work on a holiday shall forfeit their holiday pay by failure to work on such holiday.

d. Work performed on any of the above holidays shall be paid for at twice the employee's regular straight time rate of pay plus holiday pay.

e. To be eligible for holiday pay, employees must work the Company's last full scheduled workday prior to each such holiday and the Company's first full scheduled workday after each such holiday. Employees shall nevertheless receive holiday pay if the absence was due to a death in the employee's immediate family, vacation, jury duty, or an emergency lay off.

Section 1. The terms and provisions of the Medical Plan that became effective on March 1, 2001, shall remain in effect until July 5, 2004 when the modified CIGNA Managed Care (POS) Plan, CIGNA Preferred Provider Organization (PPO) Plan, CIGNA Medical (Out of Area) Plan, and the new CIGNA Health Preferred Provider (PPO) Plan and the new CIGNA Health Medical Plan shall become effective.

Weekly employee contributions for medical coverage from February 9, 2004 until July 5, 2004 shall continue to be $5.50 for single coverage and $14.15 for family coverage. The modified CIGNA Managed Care (POS), CIGNA Preferred Provider (PPO) Plan, CIGNA Medical (Out of Area) Plan, the new CIGNA Health Preferred Provider (PPO) Plan and the new CIGNA Health Medical Plan shall become effective on July 5, 2004 and shall continue until March 1, 2008. Weekly employee contributions for medical coverage from July 5, 2004 through March 1, 2008 shall be per the following schedule:

CIGNA Managed Care (POS), CIGNA Preferred Provider (PPO), CIGNA Medical (Out of Network)

Medical coverage details for the modified medical and new medical plans, effective July 5, 2004 through March 1, 2008, are set forth in the booklet to be furnished to the Union titled “Medical Benefits for Hourly Paid Represented Employees.” The contents of this booklet include CIGNA POS Network, CIGNA PPO, CIGNA Medical Plan, the new CIGNA Health PPO and the new CIGNA Health Medical Plan. The Drug Prescription Program and the Mental Health Substance Abuse Treatment Program benefit are part of medical coverage. The booklet will be furnished to all employees by August, 2004.

3/01/04 3/01/05 3/01/06

Life Insurance $25,000 $26,000 $27,000

Accidental Death &

Dismemberment $25,000 $26,000 $27,000

Weekly S&A (26 weeks) $205.00 $210.00 $215.00

Details of the Dental Plan are set forth in the Dental Plan, to be furnished to the Union and all employees by August, 2004. Weekly employee contributions for Dental Coverage shall continue to be $.50 for single coverage and $1.30 for family coverage until July 5, 2004. The new Dental Plan shall become effective July 5, 2004 and shall continue until March 1, 2008. Weekly employee contributions for dental coverage from July 5, 2004 through March 1, 2008 shall be per the following schedule:

The scheduled medical and dental benefits shall be subject to the conditions and provisions for benefits contained in the Master Group Insurance Agreement of the Insurance Carrier. Employees may continue their medical and dental coverage beyond the month in which they were laid off, or commence a leave of absence, for up to a maximum of six (6) additional consecutive months by paying the full premium to the Company not later than five (5) days prior to the beginning of the month.

Section 2. The cost of the medical and dental coverage shall be maintained by the employees and the Company in accordance with the above schedules. Deductions will be made from the employees’ checks on a weekly basis.

Section 3. Effective January 1, 2005 employees can choose to participate in the Healthcare and/or Dependent Care Reimbursement Accounts to pay for certain health and dependent care expenses. These accounts will lower employees’ taxable income for the year by directing part of their pre-tax earnings into these accounts. However, employees must submit expenses incurred during the calendar year and use the entire account balance or forfeit the remaining funds: IRS “use it or lose it” rule applies. Expenses must be submitted by April 15^th of the following year to be reimbursed.

a) Health Care Reimbursement Account can be used to pay for expenses not covered by the employee’s medical plan. Employees can deposit between $120 and $4,000 per year to pay for medical expenses (such as co-payments, amounts above R & C limits, etc.)

b) Dependent Care Reimbursement Account can be used to pay for the care of dependent children under the age of 13, a spouse, or other dependent of any age who is physically or mentally unable to care for him/herself. Expenses must be employment-related for eligible babysitter, nursery schools and eligible day care centers. Employees can deposit between $120 and $5,000 per year.

Coverage	Effective	Effective	Effective	Effective
	7/5/2004	7/4/2005	7/3/2006	7/2/2007
Employee	$ 8.25	$ 9.49	$ 10.91	$ 12.55
Employee + Spouse	$ 19.50	$ 22.43	$ 25.79	$ 29.66
Employee + Child(ren)	$ 15.25	$ 17.54	$ 20.17	$ 23.19
Family	$ 26.50	$ 30.48	$ 35.06	$ 40.32

Coverage	Effective	Effective	Effective	Effective
	7/5/2004	7/4/2005	7/3/2006	7/2/2007
Employee	$ 6.60	$ 7.59	$ 8.73	$ 10.04
Employee + Spouse	$ 15.60	$ 17.94	$ 20.63	$ 23.72
Employee + Child(ren)	$ 12.25	$ 14.09	$ 16.20	$ 18.63
Family	$ 21.20	$ 24.38	$ 28.04	$ 32.25

Coverage	Effective	Effective	Effective	Effective
	7/5/2004	7/4/2005	7/3/2006	7/2/2007
Employee	$ 1.00	$ 1.50	$ 2.00	$ 2.10
Employee + Spouse	$ 2.00	$ 3.15	$ 4.30	$ 4.55
Employee + Child(ren)	$ 2.15	$ 3.30	$ 4.45	$ 4.70
Family	$ 3.00	$ 4.50	$ 6.75	$ 7.10