THE LABOR AGREEMENT BETWEEN HARPER CONTAINER COMPANY (HCC) AND

LOCAL 14 OF THE UNITED CHEMICAL AND PLASTICS WORKERS UNION (UCPW), AFL-CIO

This agreement is entered into on ________ by the Harper Container Company (HCC) and Local 14 of the United
Chemical and Plastics Workers Union (UCPW).

Article I

Recognition  The company recognizes the UPCW as the sole and exclusive collective bargaining agent in all
matters pertaining to rates of pay, wages, hours of employment, and other conditions of employment for all
production and maintenance employees, excluding professional employees, storeroom employees, guards, and
supervisors, as defined in the National Labor Relations Act.

Article II

Union Security  The company agrees not to interfere with the right of employees to join the Union and will not
discriminate against employees who are Union members. Employees in the bargaining unit are completely free to
participate in the affairs of the Union, provided that such activities do not interfere with their work duties and
responsibilities.
While no employee will be required to join the Union as a condition of employment, union dues will be
deducted from any bargaining unit employee’s pay check, provided proper written notification is given to the
Company. At the end of each pay period, the Company will forward the collected dues, minus a 5 percent
administrative fee, to the Union.

Article III

Management Rights  All management functions of the enterprise that are not specifically limited by the express
language of this agreement are retained by the Company. The functions and rights listed here are examples of
the exclusive responsibilities retained by the Company and are not intended as an all-inclusive list: to manage the
manufacturing operations and methods of production; to direct the workforce; to decide what work shall be
performed in the plant by subcontractors or by employees; to schedule working hours (including overtime work);
to hire, promote, demote, and transfer; to suspend, discipline, and discharge for cause; to relieve employees due
to lack of work or for other legitimate reasons; to create and enforce reasonable shop rules and regulations; to
establish production standards and rates for new or changed jobs; to introduce new and improved methods,
materials, equipment, and facilities; to change or eliminate existing methods, materials, equipment, and facilities.

Article IV

No Strike and No Lockout  The company agrees that during the life of this agreement there shall be no lockout
of bargaining unit employees. The Union agrees that during the life of this agreement there shall be no strike,
work stoppage, slowdown, work refusal, delay of work, refusal to report for work, or boycott.
Article V

Hours of Work  The normal workweek shall consist of eight (8) hours per day, forty (40) hours per week, for a
five (5) day week, from Monday to Friday. The starting time shall be made by the Company, and it can be
changed by the Company to suit varying conditions of the business. Such changes in working schedules shall be
made known to the Union representative in the plant as far in advance as possible. Employees shall be notified
by a written bulletin or other communications medium.

Article VI

Grievances and Arbitration Procedures  Grievances arising out of the operation and interpretation of this
agreement shall be handled and settled in the following manner:

Step 1. The aggrieved employee and/or shop steward shall discuss the grievance with his or her supervisor.
Step 2. Should the answer provided by the supervisor not produce a satisfactory solution to the grievance, the
grievance shall be reduced to writing and shall state the provision of the agreement which has been violated.
The department head shall arrange for a meeting of the aggrieved employee, the shop steward, the supervisor,
the employee relations supervisor, and himself or herself for the purpose of discussing the grievance. The
department head shall provide a written answer to the grievance after the close of the meeting.
Step 3. If a satisfactory conclusion is not reached, the grievance can be referred to the plant manager by the
Union. The plant manager shall schedule a meeting to discuss the grievance with the Union. The local Union
can bring in a representative of the International Union at this step, and the plant manager can bring in anyone
who he or she feels may aid in the resolution of the grievance.
Step 4. If a grievance is appealed to arbitration, the Company and the Union shall attempt to select an
arbitrator. If this attempt fails, the Company and/or Union shall ask the Federal Mediation and Conciliation
Service to submit a list of seven (7) arbitrators. Each party shall eliminate three (3) names from the list by
alternatively striking one name in turn, and the person whose name remains shall serve as the arbitrator.

The arbitrator shall render a decision in writing that shall be final and binding upon the parties. The arbitrator
to whom any grievance is submitted shall have the authority to interpret and apply the provisions of this
agreement, and the arbitrator’s decision must be in accordance with and based upon the terms of this agreement
or of any written amendment thereto. But the arbitrator shall have no jurisdiction or authority to add to, subtract
from, or modify any of the terms of this agreement.
The Company and local Union shall each pay its own expenses incurred in connection with the arbitration and
one-half of the expenses and fees of the arbitrator and the facilities used in the arbitration hearing.

Article VII

Seniority  “Seniority” as used in this agreement shall be the period of continuous service in the job or plant from
the date of the employee’s appointment.
“Probationary employment” consists of a period of one hundred twenty (120) days of employment.
 Layoffs shall be made in the following order:

a. Probationary employees
b. Other employees in order of job seniority

Recall shall be made in the following order:

a. Employees in order of job seniority, given equal job ability

b. Probationary employees

Promotions shall be made on the basis of qualifications, merit, and seniority. Promotions out of the bargaining
unit remain management’s prerogative.
An employee who quits or is discharged for cause shall lose all seniority rights.
If the Company decides to terminate any operation or job and the employees remain on layoff for a period of
twelve (12) months, the employees shall be considered to have been terminated for cause at the expiration of
said twelve (12)-month period.

Article VIII

Wages and Classifications  Job classifications and a wage schedule setting forth the rates of pay of the various
job classifications are included in Schedule A and are hereby made part of this agreement.
If and when the Company creates a new job classification or modifies, alters, amends, or combines existing
jobs, or revises the skills and responsibilities of a job, job descriptions will be drawn and a wage rate assigned.
The Union shall have a maximum of five (5) working days to examine the job description to determine whether it
accurately describes the principal functions and whether the pay range is consistent with established job
classification pay ranges.
If the Union takes exception, it can review both factors with the Company. If the issue cannot be resolved, the
Union can take the issue through the grievance procedure.
Job classifications are for pay purposes only and do not pertain to whoever might perform the work in that
classification—unless modified by the terms of the agreement.

Article IX

Insurance  An employee who has completed ninety (90) days of employment is eligible for enrollment in the
company group insurance programs on the monthly premium date for each particular insurance coverage that
next follows the completion of ninety (90) days of employment.

1. Group Life Insurance Accidental Death and Dismemberment

$200,000 $200,000
 2. Accident and Health Insurance. One-half of the employee’s weekly pay up to a maximum of $150. It is
understood and agreed that the cost of the hospitalization, medical and health insurance, major medical
insurance, accident and health and life insurance will be borne 50 percent (50%) by the Company and 50
percent (50%) by the employee, when subscribed to by the employee. It is understood and agreed that in
the event that the Company wishes to change carriers, there is no obligation to negotiate with the Union
prior to instituting the change.

Employees on medical leave for a period in excess of ninety (90) consecutive days may continue to be covered
under the group insurance program after the first ninety (90) days, providing the employee pays the total
insurance premium.

Article X

Pension Plan  A pension plan for bargaining unit employees of the company is hereby incorporated as a part of
this agreement.
As of October 6, 2007, the normal retirement benefit for all years of service continues to be $20 per month
per year of service.

Article XI

Holidays and Miscellaneous Days  All employees, after completing six (6) months of service with the
Company, shall be paid seven (7) hours’ pay for the following days:

  New Year’s Day

  Independence Day
  Labor Day
  Thanksgiving Day
  Christmas Eve Day
  Christmas Day

 FourTwo (42) miscellaneous days

To be eligible for holiday pay, the employee must have worked the days immediately preceding and following the
holiday. Legitimate excuses for absences will be considered.

Article XII

Vacation  Employees shall qualify for vacation with pay in accordance with the following (determined June 1 of
each year):
Vacation pay shall be computed on the basis of each employee’s average weekly earnings from June to June.
Payment will be made on the work day prior to the vacation period.

Article XIII

Sick Leave  A full-time employee is eligible for sick leave after completing six (6) months’ service with the
Company. An eligible employee will accumulate sick leave at the rate of one-half day per month of service from
date of hire. Sick leave will not accumulate from one year (January 1 to December 31) to the next, and it can be
used only for personal illness not covered by workers’ compensation. The Company retains the right to require a
doctor’s certificate as proof that absence was due to a legitimate injury or illness.

Article IX

Section 2.1—Nondiscrimination  The Company and the Union mutually agree not to discriminate in making
decisions and determinations concerning hiring, promotion, employment termination, transfer, compensation, and
terms or conditions of employment. Both parties agree that all such decisions and determinations will be made
without regard to race, color, religion, sex, age, disability not related to job performance, national origin or
ancestry, or because an individual is disabled or a Vietnam era veteran.

Article X

Complete Agreement  This agreement is complete. It may be amended by mutual agreement in writing. Such
amendment may be effective during the term of this agreement and may extend the term of this agreement. This
agreement does not operate to include, nor does it obligate the Company to continue in effect, any working
condition, benefit or past practice which is not covered or contained in the agreement.

Article XI

Duration of Agreement  This agreement shall become effective as of ______, and shall continue in effect until
11:59 P.M., ________. Thereafter, it shall renew itself for yearly periods unless written notice of termination is
given by one party to the other not less than sixty (60) nor more than ninety (90) days prior to the expiration of
this agreement.