ESCALADE INC
10-Q, EX-10.13, 2000-07-28
SPORTING & ATHLETIC GOODS, NEC
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<PAGE>   1
                                                                   EXHIBIT 10.13


                                      INDEX

<TABLE>
<CAPTION>
                                                               PAGE                PARAGRAPH
<S>                                                           <C>                 <C>

AGREEMENT.................................................       2                     2

ARBITRATION...............................................       5-6                   14-17

ATTENDANCE & PERSONAL DAY.................................       17                    74

BARGAINING UNIT WORK,
                  NON-PERFORMANCE OF......................       2                     6

BREAK AND LUNCH PERIOD....................................       14                    63-64

DEATH IN IMMEDIATE FAMILY.................................       15                    67

DISABILITY OPERATION ASSIGNMENT...........................       15                    66

DUES DEDUCTION, WEEKLY....................................       3                     8

EQUAL EMPLOYMENT OPPORTUNITY..............................       14                    62

GRIEVANCE PROCEDURE.......................................       4-5                   13

HOLIDAYS..................................................       17                    75-77

HOURS OF WORK.............................................       6                     19-20

JURY DUTY.................................................       16                    68

LAY-OFF...................................................       8-9                   27-33

LAY-OFF, DEFINITION OF....................................       8                     25-26

LEAVES OF ABSENCE.........................................       12-13                 48-56

MANAGEMENT RESPONSIBILITIES...............................       2                     5

MILITARY..................................................       14                    61

NO STRIKE - NO LOCKOUT....................................       6                     18

NOTIFICATION OF ADDRESS, TELEPHONE
         NUMBER AND MARITAL STATUS........................       10                    38

OCCUPATIONAL INJURY, ILLNESS
         OR ALLERGY.......................................       15                    65

OPENING STATEMENT.........................................       1                     1
</TABLE>





<PAGE>   2



                                      INDEX

<TABLE>
<CAPTION>
                                                               PAGE                PARAGRAPH
<S>                                                           <C>                 <C>

OVERTIME..................................................    11-12                 45-47

PAY, RATES OF.............................................    19                    83-88

PAY, REPORT IN............................................    13                    59

PLANT VISITATION..........................................    3                     9

POSTING AND BIDDING OF OPEN JOBS..........................    10-11                 39-44

RECALL.....................................................   9-10                  34-37

RECOGNITION...............................................    2                     3-4

RETIREMENT................................................    18-19                 82

SANITATION, HEALTH AND SAFETY.............................    14                    60

SAVINGS AND SEPARABILITY CLAUSE...........................    19                    89

SENIORITY.................................................    6-7                   21-24

SHIFT ASSIGNMENT..........................................    16                    71

SHIFT PREMIUM.............................................    16                    69-70

TERMINATION AND RENEWAL...................................    20                    90

TRANSFER OF EMPLOYEES.....................................    13                    57-58

UNION REPRESENTATION......................................    3-4                   10-12

UNION SECURITY............................................    2                     7

VACATIONS.................................................    16                    72-73

WELFARE BENEFITS..........................................    17-18                 78-81

EXHIBIT "A"

LETTERS
</TABLE>



<PAGE>   3
                                OPENING STATEMENT

 1.      Our goal is to establish Local 848 and Escalade Sports' working
         relationship as the standard of excellence. The employees of Escalade
         Sports recognize that the Company exists because of our customers and
         Escalade's success is dependent on meeting their expectations.

         Each employee must be committed to providing:

                  *        A quality product

                  *        At a cost that lets us compete with anyone

                  *        Delivered on time

                  *        With excellent customer and consumer service

         To achieve this commitment, each employee has the responsibility to:

                  *        Be dependable, dedicated and honest

                  *        Perform their work with pride, care and accuracy

                  *        Maintain a high level of output

                  *        Continually strive to find improvements

                  *        Be receptive to change

                  *        Help fellow employees do their job better

                  *        Have concern for the safety of self and others

                  *        Keep a positive attitude

                  *        Always show consideration and respect for others

                  *        Maintain open lines of communication.

         The parties to this Agreement recognize that the security of both are
         best achieved by mutually striving for efficient and profitable plant
         operations and the maintenance of harmonious relations between the
         parties.




                                       1
<PAGE>   4



                                    AGREEMENT

 2.      This Agreement is entered into on May 1, 2000 by Indian Industries,
         Inc, dba Escalade Sports at its location presently at 817 Maxwell Ave.,
         Evansville, Indiana, and the International Union of Electronic,
         Electrical, Salaried, Machine and Furniture Workers, AFL-CIO, and Local
         848.

                                   RECOGNITION

 3.      The Company agrees to recognize the Union as the exclusive bargaining
         agent with respect to wages, hours and other working conditions for its
         employees.

 4.      The term "Employee" as in this Agreement shall include all production
         and maintenance employees of the Company employed at its Evansville,
         Indiana facility presently located at 817 Maxwell, Evansville, Indiana
         including group leaders, shipping clerks and plant clerical; excluding
         all office clerical employees, professional employees, guards and
         supervisors as defined in the act.

                           MANAGEMENT RESPONSIBILITIES

 5.      The Company retains the right to operate, control and manage its
         business, and the supervision and direction of the employees in that
         business are and shall continue to be the exclusive right and
         responsibility of management. All of the rights of management, which
         are not restricted by a specific provision of this Agreement, are
         retained by the Company.

                     NON-PERFORMANCE OF BARGAINING UNIT WORK

 6.      The Company agrees that management will not perform work customarily
         performed by employees except in emergencies, to instruct or train
         employees, to prepare samples, to replace an absent employee for whom a
         qualified replacement is not then available, to do developmental work
         on or to test equipment, products or methods, to take inventory, or
         when production difficulties arise or as a management trainee for an
         amount of time up to 80 hours.

                                 UNION SECURITY

 7.      All present senior employees as well as new hires after completion of
         the (90) ninety day probationary period, as a condition of continued
         employment, will be covered by this Agreement and will maintain good
         standing membership in the Union by paying uniform initiation fee and
         membership dues.



                                       2
<PAGE>   5



                             WEEKLY DUES DEDUCTIONS

 8.      After the completion of the probationary period, the Company will
         deduct the initiation fee and weekly dues upon receipt of the
         appropriate authorization form signed by the employee. All monies will
         be remitted to District 8, International Union, and to the Financial
         Secretary -Treasurer(s), Local 848, no later than five (5) business
         days after deduction. The Union will defend and indemnify the Company
         against any claim or suit arising out of Company action for dues or
         initiation fee deductions.

         The Company also agrees to provide for voluntary C.O.P.E. deductions
         and to remit the amounts deducted within 14 days of the end of each
         calendar quarter. The Union will be responsible for developing the
         deduction authorization form and handling both the initial enrollment
         and an annual enrollment. Except for new seniority employees who will
         be allowed to enroll upon hire, no new enrollments or changes to
         deduction amounts will be permitted other than at the annual
         enrollment, provided however that any enrolled employee may discontinue
         his deduction in its entirety at any time. The Union agrees to pay the
         company a one time amount of $100 for establishing the voluntary
         C.O.P.E. deduction program and a quarterly amount of $35 for on-going
         administrative costs.

                                PLANT VISITATION

 9.      Appropriate Union Representative(s) are welcome at the Company to
         assist in the constructive resolution of issues.

                              UNION REPRESENTATION

10.      The following areas will be represented by a designated Steward and
         plant Chief Steward.

         Archery, Customer Service:                              Depts. 200,604
         Pool:                                                   Dept.  400
         Receiving, Basketball, Powder Coat, Welding & Kit Area: Depts. 070,500,
                                                                        110,120
         Table Tennis, Press Shop, Paint Line:                   Depts. 100,300,
                                                                        305
         Shipping:                                               Dept.  095
         Maintenance, Mach.:                                     Depts. 80, 85

         Whenever a second or third shift is employed, there will be one Steward
         for each shift. An additional Steward will be added if more than
         thirty-five (35) are employed. No disciplinary actions shall be taken
         during overtime hours unless the District Steward is working and
         available if requested.

11.      District Steward, Chief Steward, President and grievant (where
         applicable) shall be paid for time lost while participating in the
         steps of the Grievance procedure. President and Chief Steward will be
         allowed necessary in-house paid time off the job to help resolve issues
         and investigate grievances.



                                       3
<PAGE>   6



12.      For continuity of Union leadership, the President, Chief Steward, and
         District Stewards will have top seniority on their then shift in their
         classification and district for layoff, bumping by other employees who
         are exercising shift preference, and recall from layoff only, provided
         they are capable of performing the available work with a minimum amount
         of training. The number of Union officials on the negotiation team will
         be limited to 2 in any classification, if more than 2, the junior(s)
         will be given options 90 days prior to the termination of the current
         contract. The employee(s) that vacate a job for this reason will
         receive the rate of pay of the job to which they are placed or their
         regular rate of pay whichever is higher. The vacated job shall be
         filled first by recall if anyone holds recall rights, or by temporary
         transfer. After the contract talks are concluded the employee(s) will
         be returned to the job vacated.

                               GRIEVANCE PROCEDURE

13.      To resolve issues an employee should:

         Step 1. Discuss the issue with their supervisor or appropriate
         management representative within five (5) working days from date the
         issue arose. The issue will be answered promptly and if settled at Step
         1 will not set a precedent by either party.

         If a Union Steward is requested, the Steward will be allowed time to
         discuss the issue with the employee. If the issue is not settled at
         Step 1 then the issue will be reduced in writing and proceed to Step 2
         within three (3) working days from the answer given at Step 1.

         Step 2. The Chief Steward, involved Union Steward, Company
         Representatives and employee, if requested, will meet within five (5)
         working days from the Step 2 appeal to resolve the issue.

         All facts will be provided by the parties to help understand and
         resolve the issue. The Company shall give its answer within five (5)
         working days of the Step 2 meeting. If the issue is not settled at Step
         2 then within three (3) working days of the Step 2 answer it can be
         referred to Step 3.

         Step 3. The International Representative, President of the Union, Chief
         Steward, and employee, if requested, will meet with Company
         Representatives within ten (10) working days from the Step 2 answer.
         The Company shall give its answer within five (5) working days from the
         date of the Step 3 meeting. Any issue with respect to disciplinary
         suspension and/or discharge of a seniority employee shall start at Step
         3. A Union Steward or an officer of the Union is to be present at the
         time of disciplinary suspension and/or discharge, if available. If a
         Union Representative was not present, then the Company will notify the
         Union of such action within one (1) working day. Such issue shall be
         considered barred if not presented to the Company within three (3)
         working days of the meeting (if Union representation was present) or
         the date the Union was notified, whichever applies.



                                       4
<PAGE>   7



         Any of the times provided for throughout the issue resolution language
         may be extended in writing by mutual agreement. The term "working days"
         as used in the issue resolution procedure means Monday through Friday.
         An issue not appealed within the time limits shall be considered
         settled on the basis of the Company's last answer. If the Company fails
         to comply with any of the time limits herein, the grievance shall be
         resolved in favor of the Union.

                                   ARBITRATION

14.      Any issue which is not settled in Step 3 of the issue resolution
         procedure may be submitted to an impartial arbitrator. Notice of intent
         to appeal any issue to an impartial arbitrator shall be filed in
         writing with the other party within fifteen (15) days after the final
         decision has been given by the Company in Step 3; otherwise, such
         grievance shall be considered settled on the basis of the decision so
         given. The fifteen (15) day period provided for in this paragraph will
         be extended an additional fifteen (15) days at the request of the
         Union. If such a request is made, there shall be no liability on the
         Company for back pay or any other liability for the fifteen (15) day
         extended period.

15.      A panel of potential arbitrators will be obtained from the Federal
         Mediation and Conciliation Service. The Company or the Union may reject
         the panel in total within 15 working days and a new panel will be
         obtained from the F.M.C.S. Neither party may reject two consecutive
         panels.

         After a panel is approved by both the Company and the Union, the
         Company and the Union will meet within two weeks to select an
         arbitrator. The Company and Union will alternate in rejecting
         individual arbitrators from the list. The last arbitrator remaining
         will be utilized.

         If a single issue is involved in more than one unsettled grievance that
         has been appealed following step 3, all such grievances will be
         submitted together for determination by one arbitrator. Unsettled
         grievances involving multiple issues will not be submitted to a single
         arbitrator for a determination at one time unless otherwise agreed by
         the Company and the Union.

         The arbitrator will be requested to render a decision within fifteen
         calendar days after closing the proceeding and to send two copies of
         the signed decision to each of the parties. The decision of the
         arbitrator shall be final and binding on both parties.

         The losing party, as determined by the arbitrator, shall pay the
         arbitrator's fee and the cost of the hearing room. In cases of split
         decisions, as determined by the arbitrator, the Company and the Union
         shall share equally the arbitrator's fee and the cost of the hearing
         room.

16.      The arbitrator shall have no power to add to, subtract from, or modify
         any of the terms of this Agreement or any supplemental agreement.




                                       5
<PAGE>   8



17.      The arbitrator will make a decision based upon the evidence submitted
         by both parties and where the arbitrator so decides, in cases where the
         employee was penalized by loss of working time, the Company will pay
         such employee's back wages computed on the basis of actual lost wages
         during the lost working time, less unemployment compensation and
         compensation from any other source, which such employee may have
         received during the period of separation from the payroll of the
         Company.

                              NO STRIKE-NO LOCKOUT

18.      The Parties agree there will be no strike or lockout during the terms
         of this Agreement. Participation of any employee in a strike, slow down
         or work stoppage shall be grounds for disciplinary action up to and
         including discharge. No employee shall be required to cross a picket
         line at any work site other than at the Company's plant location.

                                  HOURS OF WORK

19.      This paragraph defines the normal hours of work and shall not be
         construed as a guarantee of hours of work per day or per week. The
         normal work week will be Monday through Friday. The work shift shall
         normally consist of eight (8) hours of work plus an unpaid lunch period
         of thirty (30) minutes.

20.      The shifts are normally scheduled between the following hours:

         First Shift  -  7:00 A.M. -   3:30 P.M.
         Second Shift -  3:30 P.M. -  12:00 A.M.
         Third Shift  - 11:00 P.M. -   7:00 A.M.

         Except in the case of emergency or because of production requirements
         where the Company may pre-arrange a shift schedule for employees. In
         the case of a shift change for production requirements, the Company
         will give twenty-four (24) hour notice where possible.

                                    SENIORITY

21.      There shall be a probationary period of ninety (90) days. The Company
         can extend the probationary period for an additional thirty (30) days
         for new employees initially hired into the machinist/maintenance
         classifications. Seniority will be plant wide at the end of the
         probationary period, except that a new seniority employee will not hold
         any classification until the earlier of:

         A) the completion of an additional ninety (90) days of service, or

         B) lay-off of all probationary employees.



                                       6
<PAGE>   9



22.      If a seniority employee, who is laid off and whose seniority expires
         without being recalled, is rehired within one (1) year of his date of
         layoff, such employee's seniority will date from date of last hire
         prior to such rehire, and the probationary period will be waived. If a
         probationary employee, who is laid off before acquiring seniority, is
         rehired within one (1) year of his date of layoff, such employee's
         seniority will date from date of last hire prior to such rehire, and
         the probationary period previously served while on the active payroll
         will be credited. This paragraph does not apply to employment
         termination other than as specified in this paragraph.

23.      When two (2) or more employees have the same hire date, their position
         on the seniority list shall be established alphabetically, A, B, C,
         etc. being the most senior; a later change in last name will not change
         an employee's seniority rank. Until such time as a new employee has
         acquired seniority rights, the new employee shall be considered a
         temporary employee with no seniority at the Company and shall have none
         of the rights, privileges, or benefits set out in this Agreement for
         seniority employees.

24.      Seniority will be broken and employment shall be terminated for any
         one of the following reasons:

         (A)  Quit;

         (B)  If an employee is absent from work without notifying the Company
              by the end of the second scheduled shift that they will be unable
              to report they will be considered as having quit;

         (C)  Discharge for just cause;

         (D)  If an employee does not report to work by the start of the
              employee's next scheduled work shift after receiving notice of
              recall from layoff. An employee may delay his recall date for up
              to 5 working days from the date of receiving personal notification
              if they notify the Company within 24 hours of personally receiving
              recall notification from any source;

         (E)  Failure to return from Leave of Absence as specified in paragraph
              50; and,

         (F)  If any employee is laid off for a period of time longer than
              provided in the following schedule for such employee's length of
              employment:

              Length of Employment                        Length of Layoff
              --------------------                        ----------------
              End of probation- up to 6 months               1 year
              Over 6 months - Length of employment           Three years




                                       7
<PAGE>   10




                              DEFINITION OF LAYOFF

25.      The term layoff will mean a reduction of work force due to lack of
         production requirements. Changes or modifications in work schedules up
         to ten (10) working days due to temporary production stoppage as a
         result of, but not limited to, lack of usable materials, equipment
         failure, mechanical difficulties, process difficulties, acts of God,
         and the like, will not be considered a layoff for purposes of any
         paragraph of this Agreement. Company will advise the Chief Steward
         prior to any layoff being conducted.

26.      The Company will assign inventory taking to employees on the basis of
         seniority if such employees are qualified to do the work.

                                     LAYOFF

27.      In the event of a layoff, the Company will determine which
         classifications will be affected by the layoff. Once determined, the
         Company will layoff probationary employees first, then employees with
         the least amount of seniority in the affected classifications provided
         that employees remaining in such classification are qualified to
         perform the work efficiently with adequate training.

28.      A seniority employee being laid off may at his option displace the
         least senior employee in:

         (A)  A previously held and successfully performed job classification in
              Class 2 or 3 with same or lower rate of pay, or;

         (B)  A previously held and successfully performed job classification in
              Class 2 or 3 with a higher rate of pay if held within the last
              five years, or;

         (C)  In a classification in Class 1.

29.      A seniority employee may displace another employee if he has greater
         seniority. If the employee to be laid off cannot perform in the job
         displaced into, the employee will be considered disqualified. He shall
         then:

         (A)  Go to an open job previously bid but not filled or,

         (B)  They will bump the least senior employee holding a Class 1 job
              that he/she has not been disqualified from.

30.      Within a classification experiencing a lay-off, a seniority employee
         may volunteer to take a layoff in place of a less senior employee
         within the same classification. Additionally, a seniority employee
         being displaced in another classification may volunteer to take a
         layoff rather than displacing another employee in a different
         classification. In the case of all such voluntary layoffs, affected
         employees will only be recalled to their primary. If, prior to recall
         any such job is discontinued, the laid off employee will automatically
         be placed on regular layoff and will be recalled in the manner provided
         in paragraph 34. A seniority employee on voluntary layoff may request
         such status be changed to regular



                                       8
<PAGE>   11



         layoff provided such request is made to the Company in writing no less
         than three (3) work days prior to a recall which would provide such
         employee with recall rights to a classification other than his primary.
         An employee may change his voluntary layoff status to regular layoff
         status under this paragraph no more than one (1) time each thirty (30)
         days. If the Company has recalled all regular layoff employees and
         further recall is necessary, the least senior on voluntary layoff who
         is qualified to perform the work will be automatically placed on
         regular layoff and will be recalled.

31.      During the administration of a layoff, the Company may temporarily
         transfer an employee to be laid off from a classification being
         reduced, for a period not to exceed three (3) working days.

32.      It is agreed during periods of layoff and due to the nature of the
         Company's operations, the combination of job classifications is
         necessary and can be made. Where a job classification is combined with
         one or more other job classifications during a layoff, the Union will
         be notified and the most senior employee from among the several
         classifications involved who is qualified to perform the work will be
         assigned the temporarily combined job. The rate of pay for such
         temporarily combined job classification will be the highest standard
         rate of any such combined job classifications.

33.      In an effort to insure continuity in production, employees may be
         retained from layoff up to ten (10) work-days for the sole purpose of
         training their replacement. When additional training time is required,
         it will be mutually agreed upon by the parties.

                                     RECALL

34.      Recall from layoff shall be conducted as follows:

         1.       Employees in the plant to their primary by seniority unless a
                  more senior employee is on voluntary layoff in which case he
                  would be recalled first.

         2.       Then recall from outside the plant the most senior employee:

                  (A) To a previously held job (Class 2 or 3) within the past
                      five (5) years, or

                  (B) To a job in Class 1.

         3.       Then if the job is still not filled it will be posted.

         4.       If the jobs are not filled in this manner and senior employees
                  are still on layoff, the most senior among them who is
                  qualified to perform the work will be recalled to the open
                  job, except as provided in paragraph 30 employees who have
                  volunteered to take a layoff will only be recalled to their
                  primary. Openings for skilled classifications will be filled
                  by recall only from among seniority employees laid off from
                  the affected skilled job classification. An employee on
                  regular layoff who is recalled to a classification other than
                  his primary may change his layoff status to voluntary and
                  remain on layoff, provided that the last sentence of paragraph
                  30 is not applicable.



                                       9
<PAGE>   12



         In the event the Company is unable to reach an employee during layoff
         or recall the Company will place the unavailable employee into a job
         indicated by the employee's selection on a form provided by the
         Company. It will be the responsibility of the employee to change the
         selection form if their options change.

35.      If all open positions are not filled in the affected job
         classification(s) in the manner provided in paragraph 34, the Company
         can fill the position in any way.

36.      If an employee is recalled to a labor grade that results in a promotion
         this classification becomes their primary.

37.      In lieu of layoff, an employee transferred into another job
         classification, may request such job classification as his new primary
         job classification provided he has demonstrated the ability to perform
         the job proficiently.

                    NOTIFICATION OF ADDRESS, TELEPHONE NUMBER
                               AND MARITAL STATUS

38.      Employees will promptly notify the Company in writing of changes in
         address, phone, or marital status. When the Company notifies
         employee(s) the notice will be properly given by phone or sent
         certified mail to the last address of the employee on the Company's
         record.

                         POSTING AND BIDDING OF OPEN JOB

39.      When the Company determines that there is a vacancy, the Company will
         post such vacant job for twenty-four (24) hours on the bulletin boards
         and seniority employees on the then active payroll of the Company may
         sign their names to any such job postings. The Company may temporarily
         fill a vacancy pending final selection of an applicant. The Company
         will render a decision within five (5) working days as to who, if any,
         among the eligible seniority employees who signed their names to such
         posting was selected to fill the vacancy. The five (5) working day
         period shall begin the first full day after the bid is removed from the
         bulletin boards.

40.      The normal bidding procedure does not apply to skilled jobs, however,
         the Company will notify employees of vacancies and consideration shall
         be given to employees who may be qualified.

41.      The senior bidder having the acceptable qualifications to perform the
         job shall be awarded the job bid. Testing will accurately reflect the
         qualifications necessary to perform the job.

42.      The term "qualification" in this Agreement refers to a combination of
         skill, capability, physical suitability, applicable previous
         experience, education, dependability and work record. The terms
         "qualify" or "qualified" in this Agreement mean that the particular
         employee possesses the above items to the degree necessary to perform
         the job in question.



                                       10
<PAGE>   13


43.      A seniority employee may bid for and be awarded up to 3 bids during a
         period of 12 consecutive months. If an employee bids off the awarded
         job within 60 days, the job will not be considered as having been held
         when considering layoff and recall. Employees are eligible to bid after
         5 months of employment since last hired.

44.      If an open job is posted and filled, then vacated within twenty (20)
         days from the effective date it was filled, such job need not be
         re-posted but may be filled on the basis of the original bid sheet
         posted as provided in paragraph 39.

                                    OVERTIME

45.      Time and one half shall be paid for all work in excess of eight (8)
         hours per day and on Saturday. Double time will be paid for Sunday.
         Straight time shall be paid for the first eight (8) hours worked Monday
         through Friday (Sunday through Thursday for third shift). There shall
         be no pyramiding of premium pay.

46.      A reasonable amount of overtime is expected. Personal reasons will be
         considered when assigning overtime.

         1. After three (3) consecutive Saturdays employees may decline the
            following Saturday.

         2. Sunday and holidays are voluntary.

         3. After three (3) consecutive weeks when the total overtime worked
            exceeds forty (40) hours, overtime during the fourth week may be
            declined. In case of emergencies, overtime will be expected. Once
            accepted, voluntary overtime will be considered as scheduled work.

47.      Overtime will be assigned as follows:

         1. First to employees currently holding the classification performing
            the work.

         2. Then to employees with the most seniority currently holding the
            classification able to perform the work.


         3. Then to employees who last performed the work who don't currently
            hold the classification.

         If possible, employees will be notified by mid-shift of the day
         overtime is to be worked and if possible, employees will be notified
         twenty-four (24) hours in advance for Saturday, Sunday, or a holiday
         except in case of emergency.



                                       11
<PAGE>   14



                                LEAVES OF ABSENCE

48.      All requests for leaves of absence must be in writing stating the start
         and ending dates and the reason. The reason need not be given for sick
         leave. The Union will be notified of any leave and employees on leave
         will maintain and accrue seniority. Except for compelling
         circumstances, the employee will give at least five (5) working days
         prior notice to the day on which the leave of absence would become
         effective if granted by the Company. The Company also requires a five
         (5) working day notice prior to an employee returning early from their
         leave.

49.      An employee who works for another employer during a leave of absence or
         who fails to return to work without notifying the Company by the end of
         their 2nd scheduled shift after the expiration of their leave will be
         terminated.

50.      Upon return from leave of absence, the employee shall first:

         1.  Return to the job classification which such employee held at the
             time the leave began provided the employee's seniority is greater
             than the least senior employee in such classification and provided
             the employee is qualified to perform the work available in such
             job,

         2.  If such job is not available, the employee may exercise his rights
             under the layoff provisions of this Agreement.

51.      The Company shall have the right to temporarily fill any job left
         vacant due to granting an employee a leave of absence, except that,
         should such period exceed sixty (60) working days such job will be
         considered an open job and will be filled in accordance with the
         provisions of this Agreement.

                                 PERSONAL LEAVE

52.      Personal leaves without pay may be granted. An employee who has
         experienced a death or catastrophic illness in their immediate family
         may be granted a Personal Leave without pay prior to expending their
         vacation or personal day. In all other situations, the employee will
         first be required to use their personal day and all but five (5) of
         their remaining vacation days before a personal leave without pay will
         be granted.

                                   SICK LEAVE

53.      Sick leaves will take effect when an employee is absent three (3)
         consecutive working days beginning with the first day the employee
         sought medical treatment and will be retroactive to that day. Employees
         must provide proper medical documentation before the leave will be
         granted.

54.      Sick leaves may be extended as necessary for up to employee's length of
         service but not to exceed the greater of fifteen (15) months during a
         three (3) year period or twelve (12) weeks in a one (1) year period.
         Exception may be made in rare and unusual cases. For all sick leaves, a
         physician statement is required and the Company may have the employee




                                       12
<PAGE>   15

         examined by a physician of its own choosing. A physician statement
         releasing the employee to return to work is also required.

                               OCCUPATIONAL LEAVE

55.      An employee who incurs an injury or illness arising out of the course
         of employment shall be granted a leave without pay up to one (1) year.

                                   UNION LEAVE

56.      Union leave of absence will be granted without pay for a maximum of
         four (4) employees for up to seven (7) working days and for one (1)
         employee who is appointed to a full time position with the
         International or District for a maximum of two (2) years which may be
         extended.

                              TRANSFER OF EMPLOYEES

57.      The Company may temporarily transfer employees for a period of time
         normally not to exceed ten (10) consecutive working days. In the event
         further temporary assignment is necessary, the supervisor will notify
         the District Steward and the Chief Steward of the reason and the
         approximate duration of the temporary work assignment.

58.      An employee who is temporarily transferred shall receive the rate of
         pay of the job to which he is transferred or his regular rate of pay
         whichever is higher.

                                  REPORT IN PAY

59.      Employees who report to work or who are called back to work after their
         regular shift, will be permitted to work four (4) hours, or, if work is
         not available they shall receive at least four (4) hours of pay at the
         applicable rate unless they volunteer to leave without pay. Except in
         the case of labor disputes, acts of God, or other causes beyond the
         control of the Company like, but not limited to, power and machinery
         breakdowns, faulty material, fire, and flood.

                         SANITATION, HEALTH, AND SAFETY

60.      The Company and the Union recognize the importance of, and are
         committed to maintaining a safe, clean working environment, for the
         benefit of all employees. The Company and the Union further agree to
         cooperate in achieving continued improvement in the effectiveness of
         the present safety program, and to the continued encouragement of
         individual employee safety awareness through individual involvement.

                                    MILITARY

61.      Employees entering the military shall be placed on leave, and shall be
         given all rights provided by applicable law at the time they return.
         Employees who take a Military leave of more than one year shall return
         to work as a new employee for purposes of their absenteeism percentage
         only.



                                       13
<PAGE>   16



                          EQUAL EMPLOYMENT OPPORTUNITY

62.      The Company and Union agree that they will not discriminate because of
         race, religion, creed, national origin, sex, disability, or age.

                             BREAK AND LUNCH PERIODS

63.      Employees working a regular shift will receive two (2) paid twelve (12)
         minute breaks and an unpaid thirty (30) minute meal break. Employees
         working a straight 8 will receive two paid nine (9) minute breaks and a
         paid fifteen (15) minute meal break. An additional paid ten minute
         break will be given between shifts when two (2) hours overtime is
         worked. When one (1) hour overtime is worked before the regular shift,
         an additional paid five (5) minutes will be added to the first break.
         When one (1) hour overtime is worked after the regular shift, an
         additional five (5) minutes will be added to the second break.
         Employees working a seven (7) hour shift on Saturday will receive two
         paid fifteen (15) minute breaks and no meal break.

64.      An additional five (5) minutes for discomfort will be added to the
         second break on the first shift and to the first break on the second
         shift when the heat index is at or above 80. In no event will a break
         exceed seventeen (17) minutes (ie, in no event will both the 5 minutes
         for one (1) hour overtime after the first shift or 5 minutes for one
         (1) hour overtime before the second shift, and the 5 minutes for
         discomfort be given). An additional five (5) minutes for discomfort
         will be added to the ten (10) minute break between shifts when two (2)
         hours overtime is worked after the first shift or before the second
         shift and the heat index is at or above 80.

                     OCCUPATIONAL INJURY, ILLNESS OR ALLERGY

65.      Accidents and/or injuries should be reported immediately. An employee
         who sustains an injury, illness, or allergic reaction out of their
         course of employment will be paid as follows:

         1.  Any time lost on date of injury

         2.  Any time lost for follow up treatments. Treatments will be
             scheduled off work hours when possible, after consulting the
             employee. Any treatments off work hours will be scheduled to avoid
             other responsibilities of the employee.

         The Company will provide transportation on the day of injury, and for
         follow up visits if the employee has no other available transportation.

                         DISABILITY OPERATION ASSIGNMENT

66.      If a seniority employee is unable to perform his current operation due
         to a physical or mental disability or due to a disabling allergy, as
         supported by a Doctor's (M.D.) statement, the Company will make every
         effort to assign the employee to an existing operation in his then job
         classification, or to an open job in the plant, provided that such
         disabled employee is qualified to perform with such major physical
         disability or disabling



                                       14
<PAGE>   17



         allergy, whichever applies, the job to which being permanently
         reassigned, without training and merely upon receiving instructions.
         The employee shall receive the rate of pay for the open job to which
         they are assigned. An open job created by such reassignment will be
         posted for bidding. If the employee cannot be assigned to an existing
         operation in his then job classification, or if there are no open jobs
         he is qualified to perform, the employee will be given the option to
         displace the least senior employee working in the plant in a Class 1
         job that he is qualified to perform without training and merely upon
         receiving instructions. The displaced employee will be given his
         options.

                            DEATH IN IMMEDIATE FAMILY

67.      Senior employees will be permitted five (5) work days at straight time
         pay for 8 hours per day for the death of a current spouse or child.
         Senior employees will be permitted a maximum of four (4) consecutive
         work days at straight time pay for up to 8 hours per day from date of
         death to the day after the funeral date of the employee's father and
         mother. Senior employees will be permitted a maximum of four (4)
         consecutive work days at straight time pay for up to 8 hours per day
         from date of death to the funeral date of the employee's brother,
         sister, current step parents or current step children. A senior
         employee will be paid up to a maximum of eight (8) hours straight time
         pay if employee needs to be off on the day of the funeral for their
         grandparent, grandchild, current mother-in-law, current father-in-law,
         step brother or step sister.

                                    JURY DUTY

68.      Seniority employees who are summoned for jury duty shall be paid the
         difference between the amount received as a juror and the pay which
         they would have earned up to eight (8) hours straight time base rate if
         they were scheduled to work. When an employee is released from jury
         service, the employee shall immediately report to the Company for work
         assignment if there are four (4) or more hours left on the employee's
         normal scheduled work shift. If a second or third shift employee spends
         four (4) hours or more on jury duty, he shall be excused from work for
         that day. The employee must notify the Company prior to his work shift.
         Proper documentation reflecting date and time employee was in jury duty
         and the amount paid or to be paid by the court is required.

                                  SHIFT PREMIUM

69.      A shift premium of fifteen cents (15 cents) per hour will be paid to
         all second shift employees.

70.      A shift premium of twenty cents (20 cents) per hour will be paid to all
         third shift employees.

                                SHIFT ASSIGNMENT

71.      Seniority employees may exercise shift preference within their
         classification. The employee may exercise this preference a maximum of
         four times a calendar year (not including layoff and recall).



                                       15
<PAGE>   18



                                    VACATION

72.      Seniority employees will be entitled to vacations on the following
         schedule.

         Years of Employment                         Amount of Vacation
              1 year                                 1 week
              3 years                                2 weeks
              8 years                                3 weeks
             12 years                                4 weeks
             20 years                                5 weeks

         Hours lost for worker's compensation will be included in determining
         vacation benefits.

73.      The policy of the Company with respect to vacations in effect prior to
         the effective date of this Agreement shall remain in effect during the
         term of this Agreement, except as provided in paragraph 72 above.

                            ATTENDANCE & PERSONAL DAY

74.      The goal is that all employees be at work on all scheduled workdays.
         There is a no-fault attendance policy. Specifics of the policy as
         negotiated by the Company and the Union is contained in a separate
         document, entitled Escalade Sports Attendance Program.

         Seniority employees on the active payroll of the Company with at least
         six (6) months seniority shall receive eight (8) hours pay at the
         regular straight-time hourly base rate for one (1) personal day not
         worked each calendar year to be taken with at least thirty (30) minutes
         prior notice to the start of the shift (employees are encouraged to
         give as much notice as possible).

                                    HOLIDAYS

75.      Seniority employees on the active payroll of the Company shall receive
         eight (8) hours pay at the regular straight-time hourly base rate for
         each of the holidays not worked as follows:

                  New Year's Eve               Labor Day
                  New Year's Day               Thanksgiving
                  Washington's Birthday        Day after Thanksgiving
                  Good Friday                  Christmas Eve
                  Memorial Day                 Christmas Day
                  Fourth of July

         provided that the employee has worked the last scheduled work day
         immediately preceding the holiday, and the first scheduled work day
         immediately following the holiday, unless the employee has a reasonable
         excuse; except that in the case of Christmas Eve, Christmas Day, New
         Year's Eve and New year's Day, seniority employees will receive holiday
         pay provided the employee has accumulated thirteen hundred (1300)
         working hours during the calendar year.




                                       16
<PAGE>   19




76.      Time worked on any of the above-named holidays shall be paid for at the
         rate of time and one-half in addition to holiday pay (resulting in
         payment of double time and one-half), provided the employee has worked
         all the regularly scheduled hours in the work week in which the holiday
         falls, unless excused.

77.      If a holiday falls on a Saturday, it will be observed on Friday. If a
         holiday falls on Sunday, it will be observed on Monday.

         WELFARE BENEFITS

78.      The Company will provide the same sickness and injury benefits as
         previously provided, except that the weekly benefit amount will
         increase from $150 to $160 effective May 1, 2000.

79.      The Company will provide long-term non-occupational disability
         insurance coverage with a one year waiting period to employees with 5
         or more years of seniority. The monthly benefit will be $600, payable
         to age 65 and integrated with any social security benefits, except that
         in no event will the monthly benefit be reduced to less than $100.

80.      Employees and their dependents, where applicable, will receive the same
         health and medical benefits as received under the prior contract except
         for the changes, effective May 1, 2000, detailed in the letter of
         understanding dated May 1, 2000. The Company can change carriers or
         self insure any and all programs.

         The base weekly employee premium for health and medical benefits will
         be as follows:

                                    5/1/00           4/30/01           4/29/02
                  Single            41.00            45.74             50.53
                  Family            92.00            102.40            113.04

         Each employee will receive discounts toward his health and medical
         benefits premium for participation by the employee and his/her spouse,
         where applicable, in the Escalade Sports Health Promotion and Disease
         Prevention Program (HPDPP). The Company has provided a copy of the
         HPDPP to the Union. The four components of the HPDPP are tobacco free
         lifestyle, weight control, blood pressure control, and cholesterol
         control.

         The employee will receive a eight dollar and fifty cent ($8.50)
         discount in year 1 of the contract for each component of the HPDPP that
         the employee or his/her spouse participates in. The discount will
         increase to $9.50 per component in year 2 and $10.50 per component in
         year 3. The weekly premiums net of the HPDPP participation discounts
         are shown in the May 1, 2000 letter of understanding.

         An employee with family coverage that does not include their spouse
         will automatically receive premium discounts as if their spouse
         participated in all four components of the HPDPP.

         The weekly premium net of discounts for participation in the HPDPP may
         be deducted, as



                                       17
<PAGE>   20



         requested by the employee, on a after tax basis or using pretax dollars
         through the Escalade Sports Benefits Redirection Program.

81.      Employees will be provided $20,000 life insurance benefits and a total
         of $40,000 accidental death benefits (life and AD&D combined).
         Effective 5/1/93.

                                   RETIREMENT

82.      The Company will increase its contribution, for the purpose of
         providing certain retirement benefits as provided in Exhibit D of the
         letter of understanding between the Company and the Union dated April
         8, 1981, thirty cents ($.30) per hour, for each hour worked by
         seniority employees as a group, on May 1, 2000 and to thirty-one cents
         ($.31) per hour, for each hour worked by seniority employees as a
         group, on April 29, 2002.

         The Company and Union recognize that Exhibits B and C of the letter of
         understanding are no longer applicable.

                                  RATES OF PAY

83.      The Company and the Union agree that the Job Classifications and
         applicable standard wage rates listed on Exhibit A will be in effect
         during the length of the contract. Exhibit A reflects the following
         wage increases:

              Date                                Wage Increase
         May 1, 2000                                 $0.50
         April 30, 2001                              $0.35
         April 29, 2002                              $0.35

84.      New seniority employees hired into Class 1 through 4 will receive a
         wage rate no more than one dollar and seventy-five cents ($1.75) below
         the standard rate of the job classification to which hired. The rate
         for probationary employees hired through temporary agencies will be no
         more than two dollars and fifty cents ($2.50) below the standard rate
         for the first 90 days.

85.      At the week closest to the beginning of each calendar quarter, all
         seniority employees not at the standard rate for their classification
         will receive a $0.25 increase (or up to the standard rate, if less)
         provided they have worked 390 hours since their last such increase.

86.      When a seniority employee is promoted to a job classification other
         than a skilled job classification such employee will receive the
         greater of $0.10 per hour increase or one dollar and seventy-five cents
         ($1.75) below the top of the rate.

87.      In cases of recall and transfer, where the employee is being recalled
         or transferred to a job with a higher standard rate of pay, as provided
         in various provisions of this Agreement, the rate of pay will be
         established in the same manner as provided in the promotional
         provisions directly above.

88.      In other cases of recall displacement, transfer, lateral or down job
         bid, the employee shall



                                       18
<PAGE>   21




         receive the standard rate of pay for the job to which they are being
         moved. Exceptions are as follows: If an employee is not currently at
         the top of the rate, they should remain at the same pay rate
         relationship on the job to which they are being moved, unless such move
         is into a previously held and successfully performed classification.

                         SAVINGS AND SEPARABILITY CLAUSE

89.      In the event any portion of this Agreement should be declared invalid
         by a court of competent jurisdiction, the parties shall enter into
         bargaining for the portion affected and all other provisions of this
         Agreement shall remain in effect.

                             TERMINATION AND RENEWAL

90.      This Agreement shall be in effect from 12:00 A.M. 5/1/00 till 11:59
         P.M. 4/27/03. It shall continue in effect from year to year thereafter
         unless, by written notice not less than 60 days prior to its
         expiration, a party gives notice of its termination. If possible,
         contract negotiations shall begin not later than ten (10) days from the
         date of written notice.



                                       19
<PAGE>   22



91.      In witness whereof, the Company and the Union has caused this Agreement
         to be executed this 1st day of May 2000.

         INTERNATIONAL UNION OF               INDIAN INDUSTRIES, INC.
         ELECTRONIC, ELECTRICAL,
         SALARIED, MACHINE AND
         FURNITURE WORKERS, AFL-CIO

         /s/ Mike Allen                       /s/ Daniel A. Messmer
         -------------------------------      ---------------------------------
         Mike Allen                           Daniel A. Messmer
         President                            President


         /s/ Donna Sims                       /s/ Danny R. Franklin
         -------------------------------      ---------------------------------
         Donna Sims                           Danny R. Franklin
         Vice President                       Vice President, Operations
         Recording Secretary

         /s/ Jeff Ragland                     /s/ Douglas P. Joest
         -------------------------------      ---------------------------------
         Jeff Ragland                         Douglas P. Joest
         Chief Steward                        V.P. of Administration
                                              And Accounting

         /s/ Cliff Payton                     /s/ Robyn Taylor
         -------------------------------      ---------------------------------
         Cliff Payton                         Robyn Taylor
         Member, Negotiating Committee        Director of Employment Services

         /s/ Shelba Smith
         -------------------------------
         Shelba Smith
         Member, Negotiating Committee

         /s/ Gary Gardner
         -------------------------------
         Gary Gardner
         Representative, IUE-AFL-CIO




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