Tacoma Labor Agreement

THIS AGREEMENT by and Between Simpson Tacoma Kraft Company, LLC Tacoma, Washington hereinafter referred to as the Signatory Company, party of the first part, and the PAPER, ALLIED-INDUSTRIAL CHEMICAL

& ENERGY WORKERS INTERNATIONAL UNION (PACE)(an unincorporated association) and its affiliated Locals No. 8-237 and 8-586, hereinafter referred to as the Signatory Union, party of the second part, executed as of September 1, 2003.

WITNESSETH:

SECTION 1 - GENERAL PURPOSE OF AGREEMENT:

1.01 The general purpose of this Agreement is, in the mutual interest of the employer and employee, to provide for the operation of the plant hereinafter mentioned under methods which will further, to the fullest extent possible, the safety, welfare and health of the employees, economy of operation, quality and quantity of output, cleanliness of plant and protection of property. It is recognized by this Agreement to be the duty of the Company and the employees to cooperate fully, individually and collectively, for the advancement of said conditions.

1.02 Management of the Signatory Company agrees to explain fully the terms of this Agreement to all officials, foremen and the others engaged in a supervisory capacity.

SECTION 2 - RECOGNITION:

2.01 Simpson recognizes the PACE acting as the sole collective bargaining representative for all employees performing production work listed in the wage schedule of this agreement, but does not include employees engaged as clerical or professional employees, security or supervisory employees as defined by the N.L.R.A. sales, engineering, drafting, research or technical occupations requiring professional training. Such recognition is limited to employees of Simpson working at the facilities of the Simpson Tacoma Kraft Company, LLC located at 801 Portland Avenue, Tacoma, Washington, and no others.

2.02 In the hiring of the employees, the Signatory Company will give preference to former employees who are qualified to perform the work available.

2.03 All employees shall, as a condition of employment, become and remain a member of the Signatory Union on or after the thirtieth day following the beginning of such employment, or the effective date of this Agreement, whichever is the later. The period of thirty days named above may be extended, as to any individual employee, by mutual agreement between the Local Union concerned and the local management of the Signatory Company. In the event that the Local Union and the local management do not agree as to the propriety of any such extension, the extension may be made by mutual agreement between the Signatory Union and the Signatory Company. Any such extension shall be for the purpose of avoiding hardship or inequity to the employee concerned, and for promoting the general purpose of this Agreement.

2.04 The Signatory Union, or its Local Union involved, may request the Signatory Company to discharge an employee on account of his or her failure to comply with the provisions of this Section 2. Any such request shall be in writing and shall include written evidence offered in support thereof, and copy shall be delivered to the Company and the employee involved. Within ten days after receipt by both the Company and the employee of such request, and after the Company has held a hearing, if demanded by any affected party, the Company shall determine and, in writing, notify the Union and employee of its finding. If such findings be adverse to the employee, he or she shall thereupon be discharged, effective as to the commencement of his or her next shift. Should Simpson discharge any employee at the direction of the Union and findings later indicate that the discharge was incorrect, the Union will hold the company harmless for any subsequent penalties or back pay liability that may result.

2.05 This recognition clause shall not be construed to alter any party's rights regarding the transfer of work or contracting out of work.

SECTION 3 - PAYROLL DEDUCTION OF UNION DUES:

3.01 Upon the filing with the Signatory Company, by the Financial Secretary of the Local Union, of a written authorization, in form satisfactory to the Company, signed by any individual employee who is a member of said Local Union, the Company during the life of this Agreement shall deduct from the wages due such employee the amounts specified in said authorization on account of Union initiation fees and dues. Each such authorization shall be irrevocable until the termination date of this Agreement or until one year from the date of the authorization, whichever occurs sooner. The authorization shall thereafter remain in force until revoked by the employee by written notice to the Company.

3.02 The Financial Secretary of the Local Union, or an authorized representative of the Local Union, whose authorization has been filed in writing with the Company shall certify to the Company (1) that he has witnessed the employee's signature of the authorization, and (2) that the Signatory employee is a member of the Local Union, and (3) the amount of regular dues to be deducted, which may be revised only by written notice from the Financial Secretary given in advance to the Company.

3.03 The Signatory Company shall pay over to the Financial Secretary of the Local Union the amount of deductions made in accordance with authorization filed and shall receive therefore the written receipt of the said Financial Secretary in the name of the Local Union. The details as to making of deductions and payments of same to the Local Union shall be arranged by the said Financial Secretary and the Signatory Company in such manner as most conveniently fits into the established payroll procedures of the Company and results in payments to the Local Union once a month or oftener.

3.04 Any deductions made by the Company under the provisions of this Section shall be deemed trust funds until remitted to the Local Union, but such funds need not be kept separate from the Company's general funds. The Signatory Union agrees the Company shall be saved harmless with respect to all deductions made and paid to its Local in accordance with the provision of this Section.

SECTION 4 - JURISDICTION:

4.01 It is understood that the Signatory Company will not be asked to act upon any question regarding jurisdiction which may arise between the Signatory Union and any other Union affiliated with the American Federation of Labor and Congress of Industrial Organization.

4.02 This section recognizes that there are many cooperative work practices existing under the current Labor Agreement. This section is not meant to change those existing practices, but to enhance the current practices to ensure the efficient operation of the mill.

4.03 The Company and the Union will form a committee made up of representatives of the Company and the Union to meet periodically and discuss ways to enhance the use of this section and discuss concerns about the use of this section prior to utilizing the formal grievance procedure. If there is an issue of dispute the committee will try and resolve the dispute in accordance with the intent of this Agreement. If the committee cannot resolve the dispute, the issue may be submitted to arbitration by either party, without going through the grievance procedure. It is understood that the committee may involve others who may contribute to the resolution as they mutually decide. During the period of any dispute the Company agrees not to continue or implement the disputed practice.

4.04 Although employees will be expected to work primarily in their regular jobs, employees will be expected to assist each other, and perform work outside of their regular assignment anywhere in the mill to the extent their skills permit, in order to mitigate immediate safety risks, quality problems, environmental disruptions, or production loss. Employees temporarily assigned to other work under this paragraph will not be replaced on their regular jobs, unless the assignment is necessary in order to provide skills which are not available without the assignment.

4.05 An employee whose regular job is not operating may be assigned to any other work within their Union's jurisdiction for which they are qualified. Employees will be assigned to work outside of their jurisdiction with their consent. Extra Board employees may be assigned to any other work without regard to Union jurisdiction.

4.06 It is understood that all employees are expected to assist other employees as needed to the extent their skill and availability allows, in the preparation and performance of maintenance repair.

4.07 Employees will not receive formal training in order to be assigned under this section. Employees may receive minimal training and orientation in order to complete necessary work and work safely. Employees will not be disciplined for improper work when assigned to work for which they have not received the necessary training.

SECTION 5 - NO INTERRUPTION OF WORK:

5.01 It is expressly agreed that during the term of this contract there shall be no work slowdowns, stoppages, strikes, or sympathy strikes nor picketing of any kind or form whatsoever; these no-strike provisions shall be broadly construed to prohibit all strikes by employees, no matter the reason for the strike. It is agreed there shall be no lockouts by the Signatory Company during the period of this Agreement.

5.02 In the event that in violation of the provisions of the preceding paragraph, a strike, walkout, or other interruption of work shall occur in the mill of the Signatory Company, neither the Signatory Union nor the Local Union shall be subject to financial liability for such violation provided that the Signatory Union and the Local Union involved immediately after the beginning of such violation shall have (1) publicly declared such action a violation of this Agreement, and (2) in utmost good faith used its best efforts to terminate such violation, it being further agreed that any employee participating in such violation shall in the discretion of the Signatory Company be subject to immediate discharge or other disciplinary action.

SECTION 6 - HOLIDAYS:

6.01 There shall be fourteen (14) holidays during each year, namely:

Length

Designation (Hrs.) Starting Time Ending Time Restricted

Memorial Day 24 8:00a.m.-Memorial Day 8:00a.m.-Day After no

July 3rd 24 8:00a.m.-July 3 8:00a.m.-July 4 no

Independence Day 24 8:00a.m.-July 4 8:00a.m.-July 5 no

Labor Day 24 8:00a.m.

TABLE OF CONTENTS

Section

1 Purpose

2 Recognition

11 Allowance For Failure To Provide Work

17 Bulletin Boards

18 Safety

19 Seniority

20 Meals

21 Vacations

22 Adjustment of Complaints

23 Arbitration

24 Effect of Agreement

25 Provisions Found to be in Contravention of Law

26 Overtime

27 Night Shift Differential

28 Jury Duty Allowance

29 Funeral Leave

30 Wage Rates

31 Term of Agreement & Changes in Agreement

32 Welfare Plan

33 Nondiscrimination

34 Severance Pay