THIS AGREEMENT, effective as of May 1, 1996 by and between Kansas City Power & Light Company, a Corporation (hereinafter referred to as the "Company"), and Local Union No. 1613 of the International Brotherhood of Electrical Workers, affiliated with the American Federation of Labor and the Congress of Industrial Organizations (hereinafter referred to as the "Union").

WHEREAS, the National Labor Relations Board has certified the Union as the exclusive representative of all of the non-supervisory office and clerical employees of the Company, exclusive of such employees in the Production department and exclusive of all confidential, professional and administrative employees, for purposes of collective bargaining in respect to rates of pay, wages, hours of employment and other conditions of employment; and

WHEREAS, the Company and the Union have agreed (with the consent of other Local Unions affected) that certain job classifications included by the National Labor Relations Board in said certification can be represented more conveniently by other Local Unions representing employees of the Company;

NOW THEREFORE, in consideration of the foregoing premises, of the mutual covenants herein contained and of the valuable considerations and benefits to be derived here from by the parties to this Agreement and those represented by them, it is hereby agreed as follows:

(a) The purposes of this Agreement are: to provide a procedure for the adjustment of individual grievances and a procedure for the adjustment of all questions or disputes regarding interpretation or application of any provision of this Agreement, including final resort to arbitration if necessary; to recognize the Union as the sole and exclusive bargaining agency for the present and future classifications of employees in the bargaining unit herein before referred to, and to provide for its security; to prescribe the wage rates, hours of work, working conditions and other conditions of employment of said classifications of employees; and to set forth various other provisions relative to the rights, privileges, duties and obligations of the parties hereto and of those persons affected hereby.

(b) To the extent permitted by law, the parties agree that in the event of (1) the sale by the Company of all or substantially all of its assets, (2) a purchase of 10% or more of the stock of the Company, including where there is a resulting change in a majority of its Board of Directors, or (3) the merger of the Company with another corporation, this Agreement shall be binding on the purchaser, successor or such merged corporation as the case may be.

This Agreement shall become effective as of May 1, 1996, and shall remain in force and effect to and including March 31, 1999, (hereinafter referred to as the "initial term"), and thereafter from year to year, subject to termination, modification or amendment as hereinafter in this Article provided. Either party may terminate this Agreement on March 31, 1999, or any succeeding March thirty-first, by serving a written notice to that effect upon the other party not later than sixty calendar days prior to the proposed date of termination.

Section 2. Changes

(a) At the expiration of the initial term of this Agreement or at the expiration of any succeeding contract year thereafter, if said Agreement be then in effect and notice of termination has not been given, changes may be made herein by agreement between the contracting parties. The party desiring such change or changes shall notify the other party in writing of the desired change or changes in such reasonable detail as to make same clear and understandable not later than sixty calendar days prior to March 31, 1999, or any succeeding March thirty-first thereafter while this Agreement is in force; whereupon the change or changes so requested shall be promptly considered by the duly accredited representatives of the Union and the duly accredited representatives of the Company in joint session, and any change or changes agreed upon shall be incorporated in and become a part of this Agreement, effective as of such date (in no event prior to March thirty-first next succeeding the date of such notice) as the parties may specify; and should the parties be unable to agree by March thirty-first next succeeding the date of such notice upon the change or changes desired or the effective date thereof after all reasonable efforts to do so, the provisions of Article XIV shall no longer be applicable.

(b) The list of employees with incumbency rights and recall rights set forth in Appendix E are incorporated by reference into the principal collective bargaining contract herein and together with the principal collective bargaining contract, represent the written understanding of the parties for the term of the principal contract.

(c) The provisions of this Agreement can be amended, supplemented, rescinded or otherwise altered only by mutual agreement in writing hereafter signed by the parties hereto.

(a) The Company recognizes the Union as the exclusive representative of all present and future employees of the Company within the job classifications set forth by name and number in Appendix B and any job classifications established in the bargaining unit after the effective date of this Agreement (and this Agreement covers only such job classifications) for purposes of collective bargaining in respect to rates of pay, wages, hours of employment and other conditions of employment.

(b) The Company and the Local have agreed that word processing equipment will be assigned to employees where needed without regard to whether the work will be performed by

a member of the Local or a management employee, much the same as data processing terminals are assigned at present. The Local has agreed not to challenge these assignments through the grievance and arbitration procedure or through the NLRB or any other forum.

(a) All present regular employees of the Company covered by this Agreement shall, as a condition of continued employment, remain members in good standing of the Union or tender to the Union on a monthly basis the equivalent of dues required by the Union as a condition of retaining "BA" membership.

(b) Any person now or hereafter employed as a probationary employee of the Company covered by this Agreement shall, as a condition of continued employment, obtain a work card from the Union on the 30th day following the date of employment, and shall maintain such working card in effect by tendering to the Union a sum equivalent to the monthly dues required by the Union as a condition of retaining "BA" membership. Such employee, on the 180th day following the date of employment, as a condition of continued employment, shall either become a member of the Union in good standing, or shall tender to the Union a sum equivalent to initiation fee and on a monthly basis a sum equivalent to the dues required by the Union as a condition of retaining "BA" membership.

(a) The Company will make monthly deductions of membership dues (or their equivalent) on behalf of the Union from the wages of any employee covered hereby who may authorize the Company in writing to do so. Sums so deducted will be paid to the Financial Secretary of the Union.

(b) The Company will make deductions for a political action committee from the wages of any employee covered hereby who may authorize the Company in writing to do so. Sums so deducted will be paid to the Financial Secretary of the Union.

(a) The Union recognizes that the management of the Company, including the rights to employ, transfer, promote, demote, direct, and discipline for just cause, the employees covered by this Agreement, to prescribe, put into effect, and change work schedules so long as such action is not contrary to any provision of this Agreement, to plan and control Company operations, and to lay off employees because of lack of work, is vested exclusively in the Company.

(b) The Union also recognizes that the right to discontinue the services of probationary employees is vested exclusively in the Company.

(c) The Company retains the right to determine and implement an appearance code for `employees as required.

(d) The Company retains the right to determine manning requirements for equipment and crews with due regard to safety requirements concerning the work to be performed.

(a) The Union agrees that its members will individually and collectively perform safe, efficient, faithful, and diligent service; that it will use its influence to cause its members to protect the property of the Company from injury; and that it will at all times cooperate with the Company in raising the standard of ability and efficiency of the employees in order that they may become increasingly proficient in their duties and thereby make the service of the Company more desirable, economical and attractive to the public.

(b) The Company and Union agree to cooperate with each other in promoting safety, harmony and efficiency among the employees covered by this Agreement.

Neither the Company nor the Union, through their respective officers, representatives, agents, committees or members, shall engage in any activity of any kind for the purpose of defeating or evading the terms of this Agreement.

(a) The Company and the Union agree to continue their policy of non-discrimination in compliance with all applicable Federal, State, and Municipal laws. The parties also agree they will disregard any indicated preference for members of one sex or members of a particular age group contained in any job descriptions or specifications previously adopted by the parties insofar as such an indicated preference may conflict with Local, State or Federal law.

(b) References to "he," "his" or "she" or "her" in this Agreement are not intended to refer to one gender but are equally applicable to both sexes. In addition, any reference to sex, age, race, religion or physical condition in this Agreement or in any documents the parties might rely on such as job descriptions is not intended to indicate a preference for one group over another and such information will only be used as permitted by Local, State and Federal laws and in accordance with the parties' commitment to a policy of providing equal opportunities in all aspects of employment.

The Company will permit the Union to use the Company's bulletin boards for the posting of notices announcing dates and places of meetings and elections and all other official Union business. Each notice posted on a bulletin board shall bear the signature of an officer of the Union. It is expressly understood that the posting of notices on the Company's property is a privilege, and shall not be abused.

(a) The term "employees" shall include "probationary" and "regular" employees as hereinafter in this subsection defined. The term "probationary employee" means any individual engaged by the Company for regular employment without limitation as to time who has not completed six months of continuous service with the Company. The term "regular employee" means any individual engaged by the Company for regular employment without limitation as to time who has completed six months of continuous service with the Company.

(b) The term "seniority rights" means the rights accruing to regular employees thorough job seniority or Company Service which entitles them to the preferences provided for in this Agreement. An employee who resigns from the Company or is discharged for cause or whose layoff has become permanent as provided in Section 2(d) of this Article shall lose all seniority rights.

(c) Temporary employees (those hired to work less than six months consecutive service) will be exempt employees not covered by the provisions of this Agreement. A temporary employee will be limited to two periods of employment of less than six months. If after one period of employment of less than six months it is felt the employee should be retained for a second such period, written justification for this action must be submitted by the Department Head to the Division Executive of Human Resources. It is understood a small number of temporary employees will continue to be available to work short periods of time for temporary replacement in various departments as an exception to the two temporary periods referred to above. It is further understood temporary employees will be limited to filling openings in bid job vacancies and bottom jobs in lines of progression except when there are no employees in lower jobs in lines of progression qualified for temporary step-ups.

(d) The "geographical districts" of the Company are the Kansas City District, the South District and the East District.

(e) A "line of progression" is a sequence of related job classifications within a geographical district, department or division providing advancement for qualified employees therein. All lines of progression are specifically set forth in Appendix A.

(a) After a probationary employee has completed six consecutive months of employment, the employee establishes six months of "Company Service" or "Service" and becomes a regular employee. Once having established Company Service, the employee will accumulate additional Company Service according to the employee's total length of employment with the Company unless broken by resignation, discharge or permanent layoff.

(b) After a probationary or regular employee has completed six consecutive months of employment in a job classification, the employee establishes six months of "Job Seniority" or "Seniority" therein in the employee's line of progression. Once having established Seniority in a job classification in the employee's line of progression, the employee will accumulate additional Seniority therein according to the employee's total length of employment in that job classification, unless broken by resignation, discharge or permanent layoff. If the same job

classification appears in two or more departments or geographical districts, the employee's Seniority will be confined to the employee's line of progression or geographical district in which the employee's employment occurred.

(c) As of the effective date of this Agreement, all regular employees shall have the Company Service and Job Seniority shown on the Company's records. Correction of errors in such records not heretofore resolved will be made by the Company provided same is requested within sixty days after the date of this Agreement. In computing Service and Seniority after the effective date of this Agreement, no deduction shall be made for a temporary layoff for causes beyond the control of the employee or for any absence permitted under the terms of this Agreement.

(d) If a regular employee is absent because of illness or injury, or is laid off, the employee shall retain the employee's seniority rights and continue to accrue Seniority and Service for two years provided the employee has five years or more of Service, and one year if the employee has less than five years of Service, the employee's name to remain on the seniority lists during such absence. An employee will be considered absent for purposes of this subsection until the employee has returned to work for 30 consecutive working days or more. By mutual agreement between the Company and the Union, the times specified in this subsection may be extended in cases of illness or injury; provided, that such extension shall not extend vacation accruals. (The time limitations set forth in this subsection (d) shall not be applied in connection with employees laid off eligible for recall under Article V, Section 6 (g) provided the employees involved remain in job classifications represented by Local 1613. Such employees will continue to accrue seniority in the job classification from which they were laid off for an indefinite period of time if they remain in job classifications represented by Local 1613.)

(e) If an employee is temporarily transferred to another job, the employee accumulates Seniority only in the employee's regular job.

(f) In case of merger of departments, or the reorganization of a department, the Job Seniority of affected employees will be adjusted by agreement between the parties hereto.

(g) Employees transferring after July l, 1966 from other bargaining units on the Company's property do not carry with them any Company Service or Job Seniority established prior to the transfer except for such matters as length of vacation, amount of pension and severance pay and similar benefits, and for consideration on job bids for job classifications established as open to Company-wide bidding.

Section 3. Seniority and Service Lists

(a) Lists showing the Job Seniority and Company Service dates of all employees covered by this Agreement will be furnished to the Union and posted by the Company annually on all Seniority Boards that are accessible to employees covered by such lists.

(b) These lists shall be grouped by job classification in the order of Seniority, and shall show the employee's name, Company Service date and Seniority date.

(c) In the absence of objection by the Union to the correctness of the lists within sixty days after receipt, they will be considered approved.

(d) Each month the Company will inform the Union of personnel changes affecting the seniority lists.

(a) A "promotion" is an advancement to a higher paying job classification in a line of progression. A "higher paying job classification" is one carrying a higher maximum rate.

(b) If a permanent vacancy occurs in a job classification in a line of progression, it shall be offered, in accordance with Job Seniority, to other qualified employees in the department in the same job classification but at other work locations before it is filled by recall or promotion. (Data Processing Department scheduled temporary vacancies, such as for vacation or extended illness, in the Console Operator classification will be filled by step-up of the senior Data Processing Equipment Operator with no lateral transfers in the Console Operator classification. Scheduled temporary vacancies in the Data Processing Equipment Operator classification will be filled when required by transfer by seniority of an employee in this classification from the shift that would be least impacted as determined by the Supervisor. Unscheduled vacancies will be filled only if warranted by work requirements and when filled will be from the shift involved if adequate manpower is available including step-up to Console Operator of the senior Data Processing Equipment Operator on the shift involved. In the event that sufficient manpower is not available on the shift requiring overtime, the overtime will be offered first

within the classification in which the vacancy exists.)

(c) In selecting an employee for promotion, the determining factors shall be ability, qualifications and seniority. If the ability and qualifications of the employees under consideration are equal, the employee with the greatest Job Seniority will be promoted. If the Job Seniority of qualified employees is equal, length of service in line of progression shall govern; and if length of service in line of progression is equal, length of time in this bargaining unit shall govern; and if length of time in this bargaining unit is equal, Company Service shall govern. However, where two or more jobs promote to a single job, Job Seniority will be disregarded and length of service in line of progression shall govern; and if in such circumstances length of service in line of progression is equal, length of time in this bargaining unit shall govern; and if length of time in this bargaining unit is equal, Company Service shall govern.

(d) In case of promotion, if the employee with the greatest Seniority is not selected, the Company will inform the employee and the employee's Steward (in writing if requested) of the reasons why the employee was not selected.

(e) Employees who refuse to accept temporary step-ups, training or permanent promotion for a job higher in the line of progression will be eligible for step-up or promotion to that job classification only after employees who do accept such temporary step-ups, training or permanent promotion. Waivers of promotions shall be in writing and copies of such waivers shall be furnished to the Union. (Data Processing Department - Employees in the Data Processing Equipment Operator classification, Job 495, who are not on job protection will be permitted to select the Tuesday through Saturday shift which is scheduled to step up one day per week to Console Operator, Job No. 483, by seniority without affecting their position for permanent promotion to Console Operator, Job No. 483. It is understood the provisions of this subsection will be applicable for all other situations.)

(f) Employees with promotional rights under Appendix A-1 line of progression may refuse a promotion and retain such rights, subject to provisions of subsection (e) of this

section, until an employee covered under A-2 is promoted around the A-1 employee. Once a job classification in the line of progression converts from Appendix A-1 to A-2, all Appendix A-1 employees in the line of progression will have waived future promotional rights in that line of progression.

The exception to the above would occur if an Appendix A-2 employee promotes in the line of progression while an Appendix A-1 employee is out of the A-1 line of progression due to a legitimate reason, such as bidding but returns during the first six months as provided for under Article V, Section 5(g) or due to illness. Under these circumstances the Appendix A-1 employee would still be eligible for future promotion opportunities until waived.

If an Appendix A-1 employee voluntarily demotes within the line of progression under the provisions of Article V, Section 6(c), the employee will no longer be eligible to promote in such line of progression.

The parties agree that Labor Relations and the Union will review each situation before the line of progression converts from Appendix A1 to A2.

(a) Except as provided in subsections (b) and (e) of this Section 5, and except in cases of reclassification, if a new job classification is created, or if a vacancy occurs in a job classification to which there is no line of progression and no employee is eligible for recall, or if the vacancy is in a line of progression but no qualified employee is available for promotion or recall, the Company will post a notice of the vacancy (hereinafter referred to as a "Bid Job") on bulletin boards accessible to employees covered by this Agreement for a period of six working days. Such notice shall show the job title, a description of the work, the location of the work, the qualifications required and the minimum and maximum wage rate.

(b) Whenever an employee covered by this Agreement is unable to perform the normal duties of the employee's job because of illness or injury, the employee will be considered for placement in another job in the manner set forth in Article XVII.

(c) The only bids which will be considered are those received from regular employees represented by the Union. Any such employees desiring to be considered for a bid job shall submit their bid in writing within said period of six working days upon a standard form furnished by the Company. The Company shall have twenty working days (Monday through Friday, less holidays) after selection of an employee to transfer the employee to the new classification. An employee not transferred within twenty working days after selection will begin receiving the rate of the new job on the 21st working day after selection and will accrue seniority in the new job starting on that date. The Company shall not be required to consider employees who fail to bid as prescribed herein. All employees transferred on bid jobs will be required to complete the full six month probationary period. Upon completion of the probationary period, employees will be eligible for the second step increase; however, future merit increases will be granted using the seniority date computed under this section.

(d) If only one employee bids on a Bid Job the employee will be selected only if the employee is qualified. If two or more qualified employees bid on a Bid Job, the employee with the best qualifications will be selected. If two or more qualified employees bid on a Bid Job and two or more of the best qualified bidders have qualifications which are substantially equal, the job will be awarded to whichever one of such equally qualified bidders has the most seniority in this bargaining unit (except jobs open to Company-wide bidding) and if seniority in

this bargaining unit is equal to whichever one of such equally qualified bidders has the most Company service. No credit will be given for knowledge or experience gained by an employee while filling the job temporarily prior to the time it was posted for bid.

(e) It shall not be necessary to post for a vacancy which will be filled on a temporary basis for less than six months. If, however, the Company decides to fill such position permanently or for six months or more, the vacancy will be posted.

(f) The Union shall be furnished a copy of each job notice and shall be promptly notified of the names of the bidders and the name and starting wage of the person selected.

(g) If an employee who is selected to fill a Bid Job proves to be incompetent to perform the work of the job during the first six months, or if such an employee does not desire to remain in the job for six months, the employee will be returned to the employee's former job classification and the employee's Job seniority in the former job classification will be credited with the time spent in the Bid Job. The employee will not be eligible for any promotions in the employee's former line of progression until after the employee has actually returned.

(h) Any employee who bids on and is selected for a Bid Job must wait one year from the date of the employee's assignment to the new job before bidding on another Bid Job. If such an employee returns to the employee's former job within six months after the employee's selection for a Bid Job, the employee must wait one year from the date of the employee's return before bidding on another Bid Job.

(i) Probationary, temporary and part-time employees will not be permitted to bid.

Section 6. Demotions and Layoffs

(a) It is the parties' intent that a senior employee will not be laid off before a junior employee without reasonable justification from the established history of poor job performance documented through disciplinary action, above the level of a verbal warning, balanced against the employee's seniority. Only discipline issued within 3 years of the demotion or layoff may be considered by the Company. Disciplinary actions that are being challenged through the grievance procedure shall not be considered until there is a final determination on said grievance.

(b) If demotions become necessary due to reduction of the force, the determining factors shall be seniority and performance record based on disciplinary history as described in subparagraph (a). Employees with the least job seniority will be demoted first, except as described in subparagraph (a). If Job seniority is equal, length of service in line of progression shall govern, and if length of service in line of progression is equal, seniority in this bargaining unit shall govern, and if seniority in this bargaining unit is equal, Company Service shall govern.

(c) If an employee is demoted within a line of progression for any reason, all length of employment in higher job classifications within such line of progression shall be added to the employee's Job seniority in the job classification to which the employee is demoted.

(d) Layoffs from a line of progression due to reduction in the force shall be made from the starting job classification within the line of progression according to seniority in this bargaining unit, except as described in subparagraph (a), after necessary demotions have been made. (Employees in the Transmission and Distribution Clerical Department and the Internal Services Clerical Department as of February 13, 1980, will be considered as a common group

for layoff purposes only from the bottom jobs under Article V of the current Agreement.) (In the event of demotions or layoffs due to reduction in the force the clerical employees who were members of the Administrative Services Department prior to the reorganization (incumbents as of May 9, 1988), will be treated as a common work group.)

(e) Layoffs from the Company due to reduction of the force from job classifications not in a line of progression shall be made according to seniority in this bargaining unit, except as described in subparagraph (a). If the layoff will result in the employee being able to replace/displace another employee, as provided in (f) below, the layoff will be made according to job seniority.

(f) An employee scheduled for demotion or layoff due to reduction in force may, if qualified, use any job seniority the employee has in another job classification, or in the same job classification but in another line of progression, to replace an employee with less job seniority in that job classification.

(g) When vacancies occur in job classifications from which employees have been demoted, transferred or laid off, they shall be filled by recalling such demoted, transferred or laid off employees who are eligible and qualified, as long as such employees are available. An employee who refuses recall to a temporary or regular vacancy shall have no further recall or seniority rights in the job classification involved. A copy of each recall notice shall be sent to the Union promptly. Such employees shall be recalled in the reverse order in which they were demoted, transferred or laid off. If an employee is so recalled and does not report for work within two weeks after notice of recall shall have been mailed to the employee at the employee's last known address, the employee shall have no further recall or seniority rights in the job classification involved.

(h) A regular employee scheduled to be laid off due to reduction in force will be given two weeks notice prior to the layoff.

When an employee is displaced from a work location and a vacancy exists in the employee's job classification at another location, the employee will be required to accept the existing vacancy. The employee will not be allowed to displace another employee at another work location. If two or more employees are displaced, selection of the existing vacancy(ies) will be by seniority.

(a) The Union and the Company agree to provide for alternate work schedules. Alternate work schedules refers to either alternate starting or ending times or a re-designed work week. Alternate work schedules are intended to provide increased job satisfaction, more flexibility in the scheduling of work within individual work groups, or to increase or maintain efficiency and productivity in meeting Company objectives. It is the intent of the Parties that changes be held to a minimum so as not to be disruptive of Company operations nor the employee(s) personal time away from work.

(b) The regular hours of employment for all employees covered hereby shall be eight consecutive hours per day except when time is taken out for lunch and five consecutive days per week, and shall continue as in effect on the effective date hereof unless changed pursuant to Sections 1(c) or 2 of this Article.

(c) The Company may permanently change the regular hours of employment for an employee and/or a work group, as long as the revised work schedule is no more than ten consecutive hours per day, except when time is taken out for lunch, and no more than five consecutive days per week and does not exceed 40 hours.

(d) If the parties are unable to agree on a change in the regular hours of employment proposed by the Company, the dispute is subject to the grievance and arbitration procedure under Article XII; provided, the Company shall have the right to institute the change until such dispute is resolved.

(e) For the purpose of timekeeping, the date to which the basic work day is to be allocated shall be the date on which the majority of the employee's regularly scheduled hours falls. Whenever an employee works outside the employee's regularly scheduled hours, the time shall be allocated to the calendar day on which such work is performed and the employee shall be paid the premium applicable to that calendar day, provided, that if an employee is called in to work the employee's normal shift on one of the employee's days off, the date to which such work is to be allocated shall be the date on which the majority of such work is performed.

Section 2. Changing Working Hours, Jobs, or Shifts

(a) No employee will be required to lose any working time by reason of a change in working hours, jobs, or shifts.

(b) Any employee may be required to change shift without receiving an overtime rate if at least 48 hours notice of such change is given the employee. If 48 hours notice is not given, the employee is entitled to receive the appropriate overtime rate until such time as the 48 hour notification period has expired.

(c) Employees may be required to change their working hours during their normal work week without receiving an overtime rate as long as at least 48 hours notice is given and no more than 40 hours are worked during a work week. Where 48 hours notice is not possible, the employee(s) may be allowed time off during the work week in lieu of overtime, if both the employee(s) and management mutually agree. The following rules, not all inclusive, will govern changes in regular working hours.

(a) A premium payment of 60 cents per hour above the regular rate of pay shall be applicable to all hours worked on the second (intermediate) shift, and a premium payment of 90 cents per hour above the regular rate of pay shall be applicable to all hours worked on the third (night) shift.

(b) Shift differential will be paid for the full 8 hour shift when the shift begins prior to 6:00 a.m. or concludes after 6:00 p.m. No shift differential will be paid if the hours of the shift are contained between 6:00 a.m. to 6:00 p.m.

(c) The second (intermediate) shift shall be defined as a shift which begins at or before 6:00 p.m. The third (night) shift shall be defined as a shift which ends at or after 6:00 a.m.

(a) Except as otherwise provided with respect to holidays in Section 8 of this Article and to changing working hours, jobs, or shifts, in Sections 1 and 2 of this Article, double time shall be paid for all overtime work performed by an employee on Sunday if it is one of the employee's regular days off, and time and one-half shall be paid for all other time worked outside of the scheduled hours of the basic work week of the employee.

(b) When neither of the employee's regular days off falls on Sunday, the second day off in the employee's work week shall be considered the employee's double time day.

(c) Overtime pay shall be distributed as equitably as is practicable among the qualified employees in the job classification in which such overtime work is to be performed. A record of all overtime hours received by the various employees will be posted by the Company on appropriate bulletin boards every 28 days coinciding with every other pay period. Overtime lists will be posted on the Monday following every other pay period, or if Monday is a holiday on the following Tuesday. They become effective at the end of the regular hours on Monday

for non-shift workers. They become effective at 11:00 p.m. Sunday for shift workers on the 11-7, 7-3 and 3-11 hours of work. If an employee is offered an opportunity to work overtime and refuses the same, the hours refused will be regarded as hours worked for the purpose of calculating the equity of distribution of overtime. Overtime will be offered by position on the overtime list with the low eligible employee given the first opportunity to work. The following rules will apply:

(d) When an employee is called out for unscheduled overtime work, the employee shall be paid at the prevailing overtime rate for such time (not exceeding thirty minutes) as is necessarily consumed in traveling to the job.

(e) "Scheduled" overtime means overtime work of which the employee has been given not less than eighteen hours' prior notice. "Unscheduled" overtime means overtime work of which the employee has been given less than eighteen hours' prior notice.

(f) If it is confirmed through the grievance procedure that twice in any twelve month period the same employee (who was the lowest employee affected on the overtime list) was improperly bypassed, that employee will be made whole. The parties agree that such employee will be paid at the appropriate straight time rate for the hours not worked, as a result of the improper call-out.

(a) Whenever an employee performs any overtime work during the five-hour period beginning eight hours before the starting time of the employee's next regularly scheduled tour of duty, the employee shall be entitled to a rest period during such next tour of duty, without

loss of pay, equal to the number of hours worked during such five-hour period, and if the employee works the entire five-hour period the employee shall be entitled to be off the employee's entire regular work day with pay. If the employee is not released by the Company at or before the beginning of the employee's regular schedule on a regular work day, the employee shall be paid double time for all work performed until the employee is released, such double pay to be in addition to holiday pay if such regular work schedule falls on one of the employee's holidays; provided, that if the employee is entitled to a rest period of four hours or less and has worked into the employee's regular shift, the employee shall be given the employee's rest period at the end of the employee's regular schedule or be paid double time until the employee is released.

(b) In computing the time worked during such five-hour period, no account shall be taken of periods of less than half an hour, but a half hour or more shall be counted as a full hour. The travel time provision of Article VI, Section 4(d) shall not be considered as time worked in computing rest period entitlements.

(c) Time to eat a meal under the provisions of Article VI, Section 7(b) shall not be considered as time worked in computing rest period entitlements.

(d) Employees will have the opportunity to volunteer for scheduled overtime during the five-hour period referred to in paragraph (a) above. If an employee volunteers under this provision, the employee will not be entitled to a rest period or to the double time pay provided for in paragraph (a).

Each time an employee reports for work pursuant to either call-out or regular assignment the employee will be paid not less than four hours straight time pay (including the travel time allowance specified in Section 4(d) of this Article). However, this will not apply to cases where the overtime work extends into or is continuous with the employee's regular working hours, or to cases in which the employee is prevented from earning the minimum through no fault of the Company. It is understood contacting an employee away from work for information which does not require the employee to actually report for work will not entitle the employee to a minimum time.

(a) When the Company requires an employee to be away from home overnight or longer, the Company will provide necessary lodging, meals, and expenses, and will advance the money therefor, and will also furnish the employee round trip transportation and pay travel time to and from the employee's normal show-up.

(b) Whenever it is necessary for employees to work two hours past their regularly scheduled work day, they shall be paid $7.50 extra to compensate them for the cost of a meal unless provided by the Company, and they shall be paid an additional $7.50 every six hours thereafter while they continue to work, to compensate them for additional meals unless provided by the Company. The compensation for meals will be shown on the employee's time ticket and included on the employee's regular paycheck. Under these circumstances if the employees take time off and leave their post of duty for the purpose of obtaining such meals, they will not be paid for such time off. The Company will, as it deems appropriate, permit employees to obtain meals at intervals of approximately six hours, not to exceed seven hours. On any such overtime job, an employee may be selected by the foreman or employee in charge

and given time off duty without loss of time or pay to go and obtain meals for the employee and others. When an employee earns a meal allowance by working ten consecutive hours on call out overtime, the employee will also be paid a meal allowance for the meal taken six hours before completing ten consecutive hours under the provisions of the above paragraph.

(c) When one employee is filling a shift on overtime where continuous operations are necessary, the Company will bring a satisfactory meal to the employee's work location at the employee's request. In an emergency, or under circumstances where customers will not grant clearances at other times, the employees referred to herein may be required to take any or all of the meals provided for in this subsection as much as one hour early or one hour late without additional cost to the Company.

(d) Employees will be permitted to trade lunch periods if operations are not interfered with, if the trade can be accomplished without additional cost to the Company, and if advance permission is obtained from the supervisor involved at the sole discretion of the Company.

(e) Employees in those job classifications required to maintain or restore service, must have a telephone and provide the number to the Company as a condition of employment. The Company will not pay the cost.

(f) If the Company requires an employee to change the employee's work headquarters and this necessitates moving the employee's home to a new location, the Company will pay the cost of such moving not including unusual items not owned by employees in general.

(g) The Company will not make allowances or payments for employees' meals or other expenses unless specifically provided for in this Section 7.

(a) The following days are to be considered as "holidays" within the meaning of this Agreement:

(b) Work by employees on holidays will continue to be limited to that which is deemed by the Company to be essential to the performance of its obligations to furnish adequate and continuous service to customers. The Company will continue the practice of releasing employees (including shift workers) whose services are not required on a holiday from work without loss of pay, such employees being credited with eight hours' "holiday pay" if so excused; provided, that if work is scheduled on a holiday and an employee is requested to report for work and does not do so, said employee shall automatically forfeit the employee's

pay for that holiday. (Data Processing Department Employees to be released on holidays will be determined by seniority by shift.)

(c) An employee who works on a holiday as part of the employee's basic work week (such as a shift worker) will be paid the employee's time and one-half rate for the hours of the employee's regular schedule on such holiday and two times the employee's regular rate of pay for all hours worked in excess thereof. This is in addition to the regular eight hours of holiday pay.

(d) If an employee normally excused from work on a holiday under the provisions of Subsection (b) of this Section 8 or a shift worker who is not required to work on a holiday as a part of the employee's basic work week is required to work on such holiday, the employee will be paid time and one-half for all hours worked during the employee's basic work day or within the employee's normal shift and two and one-half times the employee's regular rate of pay for hours worked outside of such hours, such payments being in addition to the regular eight hours of holiday pay. The normal shift for an employee who regularly works different shifts or who is changing shifts, will be the hours the employee was scheduled to work on the employee's last regular work day preceding the holiday.

(e) If a holiday occurs while an employee is temporarily upgraded, the employee will receive the employee's upgraded rate of pay as holiday pay only if the employee was assigned to the higher job classification for five or more consecutive basic work days immediately preceding such holiday.

Employees shall be entitled to vacations with regular pay according to the following rules:

(a) Employees with less than one year of Company Service prior to January first of the year in which the vacation is to be taken shall receive a vacation of four hours for each month of such continuous employment, provided that no such employee shall receive a vacation of more than forty hours.

(b) Employees with one year and less than eight years of Company Service prior to January first of the year in which the vacation is to be taken shall receive a vacation of two weeks (ten working days).

(c) Employees with eight years and less than twelve years of Company Service prior to January first of the year in which the vacation is to be taken shall receive a vacation of three weeks (fifteen working days).

(d) Employees with twelve years and less than twenty years of Company Service prior to January first of the year in which the vacation is to be taken shall receive a vacation of four weeks (twenty working days).

(e) Employees with twenty or more years of Company Service prior to January 1 of the year in which the vacation is to be taken shall receive a vacation of five weeks (twenty-five working days).

(f) In computing the vacation, deductions shall be made on a pro rata basis for each thirty days of continuous absence during the preceding year if such absence resulted from layoff or voluntary leave of absence.

(g) If a holiday occurs on a working day during an employee's vacation, the employee will be allowed an additional day of vacation either at the beginning or the end of the employee's vacation.

(h) A probationary employee is not entitled to vacation.

(a) All vacations shall begin on the day following one of the employee's regularly scheduled days off, unless otherwise agreed between the Company and the employee affected.

(b) Choice of vacation period shall be according to job seniority, as far as practical, but if an employee is permitted to split the employee's vacation, the employee can exercise the employee's seniority rights only once. Combined vacation schedules for two or more job classifications may be maintained for small work groups, by mutual agreement of the parties. When combined schedules are necessary, selection shall be by Local Seniority.

(c) The regular vacation period shall be from April first to December thirty-first of each year, and all employees entitled to vacations shall take them during this period unless by mutual agreement the employee is granted the employee's vacation at another time.

(d) All vacation schedules must be posted on appropriate bulletin boards prior to April first of each year, and may not thereafter be changed without the consent of all persons affected. The employees must submit their scheduled vacations by March 15 to permit management review.

(e) Vacations shall not be allowed to accumulate from one year to another, but if an employee is prevented from taking the employee's vacation due to a prolonged illness and there are not enough days left in the year after the employee recovers, the employee shall be permitted to take the employee's vacation upon recovery from the illness even though it falls in the next year.

In deleting deferred vacation the following rules will be applicable for employees to use vacation previously deferred:

1. Deferred vacation must be scheduled as vacation immediately preceding retirement.

2. Deferred vacation may be used for sick absences after five working days at any time at the employee's option.

3. An employee with thirty (30) years of company service, who resigns prior to retirement, will be allowed to schedule any deferred vacation to be used immediately preceding the scheduled resignation date.

4. The current practice will not change as it relates to an employee terminated for cause. Such employee will not be paid for nor allowed to take any deferred vacation.

(f) If an employee is required by the Company to work during the employee's regularly scheduled vacation, the employee shall be paid (in addition to vacation pay) according to the overtime rates specified in Article VI, Section 4(a) of this Agreement unless the employee elects to change the employee's vacation to another period. If the employee is called back while on vacation, the employee's traveling expenses will be paid by the Company.

For the purpose of computing the vacation allowance, persons employed between the first and fifteenth days of a month will be regarded as having worked the full month, and those employed the sixteenth and thereafter as not having worked at all during the month.

Any regular employee whose services are terminated for any reason will receive a vacation allowance prorated by months to the date of such termination, it being understood that all regular employees accrue their vacations in the year preceding that in which their vacations are normally taken.

An employee entitled to a vacation or a vacation allowance will be paid therefor at the prevailing straight time rate (forty hours' pay for each week of vacation) for the job classification in which such employee is usually employed, except that if any such employee shall become entitled to a vacation while the employee is temporarily upgraded, the employee will receive the upgraded pay rate as vacation pay if the employee was upgraded to the higher job classification for five or more consecutive work days immediately prior to the beginning of the employee's vacation, if, and during the period of time, the employee would have been upgraded to the higher job classification if the employee had been at work.

The Company and Union recognize their continuing obligation to employees entering and returning from the Armed Forces and will treat them in compliance with all Federal, State and Local laws in this area.

Employees will normally report for work in the headquarters of their department in the district in which they are employed. An employee temporarily assigned to a work location other than the employee's normal work location shall, at the election of the Company, travel on

Company time during basic work days or report directly to the employee's temporary work location. For employees with more than one show-up, their normal work location shall be considered the location where they are assigned the majority of time during the work week. If the employee is required to report to the employee's temporary work location directly, the employee will be reimbursed for the round trip mileage between home and the temporary work location, and will also be paid for extra travel time involved, if any, but this shall apply only to the first thirty calendar days of any such temporary transfer. For the purpose of this subsection, the downtown headquarters will include 1201 Walnut and 801 Charlotte and will be treated as a single work location. Employees who occasionally use their private vehicles for Company business will be reimbursed at the Company's established mileage reimbursement rate.

Upon giving twenty-four hours' notice to the Company, employees will be permitted to trade days or shifts with one another for not to exceed one work week (and may also trade holidays) providing same will not interfere with operations and can be accomplished without additional cost to the Company.

The Company will not require employees to perform outside work during inclement weather unless such work is necessary, to protect life or property or to maintain service to the public. This provision shall be utilized by employees only in situations where the weather is such as to prevent the employee from adequately performing the employee's job even with the use of protective clothing furnished by the Company. The Company will determine what constitutes inclement weather with due regard to safety hazards concerning the work to be performed.

The Company agrees to cooperate with its employees so as to insure that reasonable rules and provisions are made for their health and safety during working hours. Changes will be discussed with representatives of the Union prior to being put into effect.

Employees will comply with established health and safety rules, and such rules will be applied uniformly to all employees affected.

(a) In order to promote health and safety among the employees, a Health and Safety Committee of four persons will be established with equal representation to be designated by the Company and the Union. Such Committee shall meet quarterly to review accident records and other data relating to the health and safety of employees and to make recommendations for the correction of any undesirable conditions which may be found to exist.

(b) Quarterly safety meetings will be held among the employees by work groups for the purpose of instruction in safe practices. However, for work groups which the Health and Safety Committee does not deem quarterly meetings necessary, the meeting will be restricted to the Chief Steward, Steward and Supervisors involved.

The Company agrees to furnish adequate safety devices and equipment for the protection of its employees, and the Union agrees that the employees will make full use thereof.

(a) The Company will replace such worn out or broken hand tools (belonging to employees who have had at least one year of Company Service) as may be agreed upon by the parties hereto if such tools are adjudged unsafe by the Safety Department or the supervisor in charge.

(b) Tools provided by the Company under this Section will not bear the Company's name or initials, but may bear some other identifying symbol.

(a) The Union recognizes that the Company has the right to require employees covered by this Agreement to submit to appropriate medical examinations in connection with a change of jobs.

(b) Any such examination will be governed by the following:

(c) The Company may require an employee to submit to a driving test if the job the employee is taking involves driving an automobile, truck or other motor vehicle.

(d) The Company may require employees to submit to medical examinations at its discretion. An employee required to submit to an examination under this section will be paid for any regularly scheduled basic work hours lost and reimbursed for mileage. The Company will bear the cost of examinations under this subsection.

(e) The Company will pay for any test or lab work required for compliance with the Medical Monitoring Program that is not a part of the personal physician's ongoing plan of care. In addition, compensation for mileage and lost time pay, as specified in this Agreement will be provided.

In order for the Company to determine an employee's eligibility for payment of extraordinary costs, the personal physician will be required to submit written documentation (frequency of visits, lab work or other testing) of the employee's ongoing plan of care, as well as any changes in the plan of care. Without this documentation from the personal physician, the Company will not be responsible for payment.

(a) Upon request the Labor Relations Department will notify Local 1613 by letter of work the Company anticipates contracting out the next calendar quarter.

(b) The Company agrees that the grievance and arbitration procedures may be resorted to by the Union if a controversy develops as to whether or not the contracting of a particular job falls within the intent outlined in this Section. Grievances which question the Company's contracting of work will originate at Step 3 of the grievance procedure. The Company may contract the work in question pending final outcome of an arbitrator's decision.

(c) Emergency maintenance work caused by fire, flood, storm or other major difficulty shall not be subject to the provisions of this Article.

(d) The Company agrees that it will not contract any work which is customarily done by its regular employees if as a result thereof it would be necessary to lay off any such employees.

An employee temporarily stepped up to supervision will not be eligible for temporary step-up in the line of progression until the employee has worked eight hours in their regular job classification or all other eligible employees have been offered the opportunity for step-up.

"Personal illness" as used herein shall mean the incapacity of an employee because of sickness or because of accidental or other injury not arising out of and in the course of Company employment or outside gainful occupation.

All employees covered by this Agreement shall accumulate sick leave privileges as follows:

(a) Employees will be credited with six working days' sick leave privileges at the conclusion of the first six months of their employment, and thereafter they shall be credited with additional sick leave privileges at the rate of one working day per month (the credit to be given on the last day of each month) up to a maximum of one hundred eighty working days.

(b) For the purpose of computing sick leave privileges, persons employed between the first and fifteenth days of a month will be regarded as having worked the full month, and those employed the sixteenth and thereafter as not having worked at all during the month.

(a) No shift worker shall be entitled to avail himself of the employee's accumulated sick leave privileges unless the employee's supervisor (or designated substitute) shall have been notified of the employee's illness at least two hours before such privileges are due to begin, unless the delay of such notification is unavoidable.

(b) No non-shift worker shall be entitled to avail himself of the employee's accumulated sick leave privileges unless the employee's supervisor (or designated substitute) shall have been notified of the employee's illness at or before the time such privileges are due to begin unless the delay of such notification is unavoidable.

(c) Employees in the Meter Reading Department who start their day at 7:15 a.m. who have been off on sick leave, will report in by phone no later than 5:45 a.m. on the day they will return to work.

Holiday pay, rather than sick leave privileges, will be applicable to compensate for straight time lost on a holiday because of personal illness.

(a) Available sick leave will be paid for the pay period in which it occurred on the basis of the employee's time ticket containing supervision's approval.

(b) Where an employee appears to have abused sick leave privileges, the Company may require a doctor's certificate which will certify both the fact and the cause of the illness.

(c) Except as otherwise provided in Sections 3 and 7 of this Article and in subsections (a) and (b) of this Section, any absence on a basic work day on account of personal illness shall be chargeable against the employee's sick leave privileges, if any, hour for hour.

(a) If an employee is unable to complete a basic work day because of an injury resulting from an accident arising out of and in the course of Company employment (hereinafter referred to as a "compensable injury"), the employee shall suffer no loss of pay for such day.

(b) If an employee is incapacitated because of a compensable injury for a period extending beyond the day of the accident, accumulated sick leave privileges will be available to cover loss of pay on basic work days during the waiting period specified in the applicable State compensation law.

(c) If an employee is incapacitated because of a compensable injury beyond the waiting period specified in the applicable State compensation law and is entitled to receive compensation payments therefor, the employee's sick leave privileges will be available to cover the difference between such payments and the straight time pay of such employee in the

employee's usual occupation; provided, that the availability of such privileges will terminate at such time as the Company's physician determines that the employee is able to return to work. Charges against accumulated sick leave privileges used under the provisions of this subsection (c) will be made by deducting the number of hours so paid for from the employee's accumulation of sick leave privileges on an hour for hour basis during the first two weeks of the disability. Thereafter, the employee will continue to receive full wages until the employee's accumulated sick leave privileges have been exhausted, but only one-half the number of hours so paid for will be deducted from sick leave accumulation. If the employee is still unable to return to work the provisions of Section 9 of this Article will apply. An employee who draws upon sick leave after the first two weeks of disability will have that portion of the employee's sick leave usage restored one year after the employee has returned to work from such disability.

(d) No employee will be entitled to receive more money as a result of being involved in a compensable injury, than the employee would have received had the employee been working during the period on the employee's regular schedule and at the employee's regular rate.

Sick leave privileges accumulated during a sick leave or compensable injury absence will be credited to the employee and will be available for that absence if the employee had available sick leave privileges at the beginning of the absence.

An employee entitled to the benefit of sick leave privileges will be paid therefor at the prevailing straight time rate (not more than forty hours' pay for each week) for the job classification in which the employee is usually employed, except that (i) if any such employee shall become entitled to the benefit of sick leave privileges while the employee is temporarily upgraded, the employee will receive the upgraded pay as sick leave pay if the employee was assigned to the higher job classification for five or more consecutive basic work days immediately preceding the occasion giving rise to such benefit.

(a) When an employee having ten or more full years of Company Service has exhausted the employee's sick leave and is still unable to return to work because of an illness (the Company is willing to consider requests for extended sick leave for employees with more than five years of service when extenuating circumstances would warrant consideration of the request), or when a regular employee has exhausted the employee's sick leave in connection with a partial disability resulting from compensable injury and is still unable to return to work because of such partial disability, the following plan shall be applicable. To be eligible for extended sick leave an employee must have 50 percent or more of the maximum possible accumulation of sick leave the employee could have accumulated at the start of the absence.

The Company and the Union shall review each such case and determine jointly whether and to what extent and for what period of time the Company shall make further payments to such employee during the employee's illness or disability. After such determination has been made by the parties and if an award of additional payments was made upon such review, the parties shall, after such payments have been completed and if the employee is still ill or disabled, review the employee's situation once more.

(b) The final determination for granting extended sick leave is vested exclusively with the Company. The following formula will be used in determining the amount of sick leave available, based on years of service.

(a) If an employee is found to have abused the sick leave privilege the employee shall be discharged.

(b) The parties reaffirm the policy that sick leave privileges are designated exclusively for legitimate absences caused by illness or injury and subscribe to the principle that use of sick leave should be on a conservative basis.

(a) An employee physically disabled from performing work due to pregnancy, maternity, or childbirth shall have the same sick pay and sick leave privileges as described above, provided the employee continues to work until disabled from performing said work and returns to work as soon as the employee is physically able to work. If the employee elects for personal wishes, convenience, or any other reason to begin or end the leave from work at any other time unrelated to physical capacity to perform work, then the absence will be treated as a leave of absence without pay under Article XII.

(b) Sick pay paid in situations where it is later determined that the employee was not eligible or qualified for said pay shall be repaid to the Company or deducted by the Company from subsequent earnings of the employee.

(c) An employee who takes a leave of absence under Article XII and subsequently becomes ill or disabled while on or during the leave of absence shall not be entitled to sick pay rights under Article X.

(d) An employee who goes on sick leave, with sick pay, but who does not return to work when physically able to do so, may make application for leave of absence under Article XII. If the employee fails to do so, the employee may be terminated.

(e) This section concerning maternity leave will be applied in accordance with all applicable Federal, State and Local laws.

(a) An employee off on sick leave ten working days will be required to provide necessary medical information to the Company's Medical Department to determine the status of the employee before accumulated sick leave will remain available. Such employee must provide necessary information every ten working days thereafter to the Medical Department to remain eligible for sick leave usage.

(b) An employee off on sick leave five working days or more or in other appropriate instances will be required to provide necessary information from their personal physician to the Company's Medical Department and be released before returning to work. The Company will not pay for transportation costs, cost of personal physician, or lost time except the employee may charge lost time to accumulated sick leave when appropriate.

The Company will on a case-by-case basis consider requests from the Local to grant the use of sick leave for preventive or corrective treatment related to extremely serious medical conditions.

The following guidelines will apply to such requests:

(a) Only extremely serious medical conditions will qualify for consideration (i.e. radiation or chemotherapy treatment for cancer or intravenous injections for certain illnesses...)

(b) Routine preventive and follow-up care will not qualify (i.e., dental care, physical examinations, tests...)

(c) The employee must verify through documentation from the treating physician that the treatment cannot be provided outside the employee's regular workday.

(d) Labor Relations will make the final decision on each request.

When an employee having one or more full years of company service has exhausted the employee's sick leave and vacation accruals and is not eligible for Long Term Disability (LTD), the Company will consider requests for sick leave donation by other members of this bargaining unit. The following rules shall apply:

(a) The Business Manager shall make a written request to Human Resources providing the following information:

1. Name of potential recipient
2. Name(s) of donors and amount of sick leave to be donated

(b) Criteria for Recipient:

1. Major illness or serious medical condition
2. Sick leave and vacation exhausted
3. Not eligible for extended sick leave
4. Only eligible for number of hours to qualify for LTD elimination period

(c) Criteria for donor(s)

1. Not currently in a step of sick leave control program
2. Donations must be in increments of eight hours
3. Hours donated will reduce sick leave percentage but will not count as occurrences under the sick leave control program.

(d) Donations will be paid at the recipients rate of pay

(e) The final determination is vested exclusively with the Company.

The Company will permit any employee to be absent from work without loss of pay for one basic work day to arrange for and attend the funeral of the employee's wife (or husband), child, father, mother, sister, brother, father-in-law, mother-in-law, son-in-law, daughter-in-law, sister-in-law, brother-in-law, step-mother, step-father, step-son, step-daughter, step-sister, step-brother, grandchild, grandfather or grandmother. If the employee needs to take additional time off for such reason, the employee may do so and charge the same against available sick leave privileges. The benefits of this Section shall not apply during vacations, sick leave or any other permitted absence.

If an employee accepts a call to serve as a pallbearer for a fellow employee or a member of the immediate family (as defined in Section 1 of this Article) of a fellow employee, the Company will permit the employee to be absent from work on a basic work day without loss of pay for whatever time may be necessary therefor, but not to exceed one day. The benefits of this Section shall not apply during vacations, sick leave or any other permitted absence.

If an employee is absent from work on a basic work day because of jury service, the employee shall be paid the employee's regular rate of pay (less the employee's jury pay) by the Company.

If an employee is absent from work on a basic work day because of required service as a judge or clerk in a general election under the jurisdiction of City or County election officials, the employee shall be paid the employee's regular rate of pay (less the employee's election pay) by the Company.

Duly authorized representatives of the Union or their duly authorized alternates who are employees of the Company will be permitted to be absent from work on a basic workday without loss of pay for time necessarily consumed in meetings with authorized representatives of the Company in connection with Step One and Step Two of the grievance procedure, in connection with meetings called by the Company, and for the purpose of attending meetings of the Health and Safety Committee, and for time necessarily consumed in traveling to and from such meetings. It is understood that the Company will not pay for the lost time for more than two employees in Step Two grievance meetings. At the sole judgment and discretion of the Company the Company may discontinue payment for employees conducting Company related union business if the union and its representatives abuse the privilege in their administration of the Agreement.

The Company assures the Union that an employee shall be permitted to have reasonable time off without loss of pay if the employee can be spared from duty to attend the funeral of a fellow employee or a recently retired employee who was a close friend of the employee seeking to take the time off. Should there be any problem with this request the Business Manager of the Union may confer with the Labor Relations Department who will try to resolve the problem.

a) In place of the one-half day off on Christmas Eve, employees will be given a full day off with pay which may be used under the following conditions with prior approval of supervision:

b) If it is necessary for an employee to work on a day previously scheduled as a personal day off with pay, it will be considered a regular workday for pay purposes. The employee will be given an opportunity to reschedule the day off.

Recognizing the vital role that National Guard and Reserve units play in the defense of the United States, The Company has adopted a policy regarding employees in such units. This policy will insure that employees serving in such units do not lose pay while participating in annual two week training sessions.

Employees who are members of armed forces reserve or National Guard units will be allowed leaves of absence for annual training sessions not to exceed ten working days in a calendar year. The Company will make up the difference between the military pay the employee receives from the reserve or National Guard unit and his/her straight time pay from the Company. Military pay for purposes of this policy will include military base pay, longevity

and incentive pay, if applicable. Other payments such as travel, uniform, quarters, and subsistence allowances will not be considered as pay under this section.

In order to receive pay under this section, an employee must submit to the Payroll Department a time ticket adjustment form approved by their department head, as well as, a copy of their orders with a certificate of attendance and documentation from their unit as to their basic rate of pay.

(a) For justifiable reasons, the Company may grant a personal leave of absence without pay to any employee upon being given reasonable notice and provided the conditions of work are such that the employee's services can be spared.

(b) Company service and job seniority shall continue to accumulate during a leave of absence for a period not to exceed six months; but no other benefits or accrual of benefits will occur during a leave of absence.

(c) If an employee overstays a leave or if the employee accepts employment elsewhere during the leave without the written consent of the Company, the employee will be deemed to have resigned.

An employee who may be elected or appointed to an office in the Union which requires the employee's absence from duty with the Company shall be granted a leave of absence and the employee shall continue to accumulate Company Service and job seniority throughout such term of office and shall, upon termination of the employee's Union duties, be reinstated to the employee's former position, including all the employee's seniority rights, providing the employee is then physically qualified to return to work.

Brief absences without pay for the transaction of personal business may be permitted at the sole discretion of the Company if the employee can be conveniently spared from duty, providing the employee has prior approval of the employee's supervisor. The employee may charge prearranged full-day absences for the transaction of personal business to the employee's vacation allowance for that year. Absences without pay approved by supervision under this Section will not be counted under an Absentee Control Program.

Employees who are elected by the Union to serve as delegates to Union conventions or similar Union meetings shall, after reasonable notice to the Company, be granted leaves of absence without pay for sufficient time for this purpose.

The Company and the Union will recognize their joint moral and legal responsibility to employees serving in the armed forces of the United States.

(a) The Company agrees to recognize Stewards, Chief Stewards, the President or Business Manager of the Union or their alternates, as representatives of the Union in settling grievances as outlined in this Article. A representative of the International Brotherhood of Electrical Workers may be present only to assist the local union.

(b) The Stewards and Chief Stewards shall be selected by the Union. The Union will furnish the Company with the names of Stewards and Chief Stewards and the work groups they represent.

Any dispute over the interpretation or application of the provisions of this Agreement or any other agreements between the Company and the Union shall be referred to as a grievance and settled through the grievance procedure as outlined below. Action on a grievance must be started within ten working days from the time it occurred or became known, otherwise it need not be considered. If the Union does not carry a grievance to the next higher Step in the manner herein set forth within ten working days after the Company has rendered its decision at any Step, the grievance shall be considered settled in favor of the Company. If the Company fails to give its answer within the specified time in any Step, the grievance shall be considered as appealed to the next step in the procedure outlined in Section 3 of this Article. All appeals must be in writing on a regular grievance form and shall be delivered to the Division Executive for Human Resources. All written answers given to the Union shall be delivered to the Business Manager of the Union. Answers and appeals may be delivered by hand or by mail; and if delivered by mail, shall be considered delivered on the date of the postmark if mailed to the proper party at the employee's regular office address.

(a) The steps in the grievance procedure are as follows:

(b) Whenever a particular Union representative is unable to serve because of absence or other reasons in any of the Steps of the grievance procedure, the President or Business Manager of the Union may appoint an alternate.

(c) If charges relating to disciplinary suspension or demotion, or discharge for cause, are not sustained in the grievance procedure or through arbitration, the employee's record shall be cleared of such charges and the employee shall be reimbursed for any loss of wages.

(d) Each of the time limitations set forth in Section 2 and Section 3 of this Article is subject to enlargement by mutual agreement of the parties.

(e) Reference to disciplinary action in an employee's personnel file in the department and in Human Resources will be removed provided no other subsequent warning or disciplinary action has been issued as follows:

(f) Employees will be permitted to review those items pertaining to disciplinary action in their personnel files retained in the department and in Human Resources by scheduling an appointment outside regular working hours through the department head or Employment Services.

(a) There shall be no strikes or lockouts for any cause whatsoever during the term of this Agreement or any extension thereof.

(b) The Union shall not be considered in violation of this Section for respecting picket lines of either of the other two Local Unions having jurisdiction on Company property which might be established due to failure to reach an agreement at the end of any yearly term of their respective agreements.

Any question or dispute regarding interpretation or application of any provision of this Agreement which cannot be adjusted by negotiation and conferences between the respective representatives of the Company and the Union, or by resort to the grievance procedure provided for herein where individual grievances are involved, shall be submitted to and settled by arbitration as hereinafter provided.

Whenever either party hereto elects to submit any question or dispute to arbitration, prompt written notice thereof shall be given by hand or certified mail to the other party, stating clearly the question or dispute to be arbitrated. Each grievance or issue will be arbitrated separately unless the parties mutually agree to combine grievances or issues for presentation to the same arbitrator. Thereafter, the following procedure shall be followed:

(a) Within ten working days after delivery of such notice, the Company and Union shall jointly request a panel of seven prospective arbitrators from the Federal Mediation & Conciliation Service and after receipt of the panel, the parties shall select one impartial arbitrator from the panel by alternately striking names from the panel of proposed arbitrators until one name remains. The party striking first will be determined by the toss of a coin.

(b) The parties will jointly request additional panels up to four from the Federal Mediation & Conciliation Service until a panel is received which is acceptable to both parties. If after requesting four panels, the parties still cannot agree on a panel, a panel will be drawn at random and the parties will strike according to the procedure in paragraph (a) above. The parties may mutually agree to the selection of an impartial arbitrator by any other appropriate means.

(c) If possible, the parties will stipulate as to the issue to be presented to the arbitrator, as well as to the facts to which both parties can agree prior to the selection of the impartial arbitrator. If the parties cannot agree as to the issue to be presented, the parties shall each present their proposed issue to the impartial arbitrator who will determine the issue to be arbitrated. At the election of either party the arbitration hearing will be recessed until the impartial arbitrator decides the issue to be arbitrated.

(d) The arbitrator shall proceed to hear and consider the evidence and arguments submitted by the parties and to render a decision thereon as promptly as possible and a decision thereof shall be final and binding upon the parties. The arbitrator shall confine decisions to the Submission Agreement and cannot expand, modify or amend the terms of this Agreement.

(e) All decisions of the arbitrator shall be in writing and copies thereof shall be delivered to the Company and the Union.

(f) Each party shall bear the expense of preparing and presenting its own case to arbitration. The expense of the impartial arbitrator and any incidental expense mutually agreed to in advance shall be shared equally by the parties.

(g) All meetings of the arbitration shall be held at a mutually agreeable place.

As provided in Section 2 of Article II of this Agreement, this Article XIV shall no longer be applicable if the parties are unable to agree on contract changes at the expiration of the initial term of this Agreement.

(a) The wage rates in effect on April 1, 1996, contained in Appendix B-1 and Appendix B-2 shall be increased 1.5 % effective April 2, 1996, and such increased rates shall continue in effect through March 31, 1997.

(b) The wage rates in effect on March 31, 1997, contained in Appendix B-1 and Appendix B-2 shall be increased 2% effective April 1, 1997, and such increased rates shall continue in effect through March 31, 1998.

(c) The wage rates in effect on March 31, 1998, contained in Appendix B-1 and Appendix B-2 shall be increased 2% effective April 1, 1998, and such increased rates shall continue effect thereafter as provided in Article II of this Agreement unless and until changed in accordance with provisions of said Article II.

(a) The word "temporary," when used in connection with transfers, promotions or demotions, shall mean assignment not in excess of six consecutive months.

(b) No employee will suffer a rate reduction by reason of a temporary transfer or demotion to a lower job classification.

(c) If an employee is temporarily transferred or promoted during any work week to a higher job classification carrying a rate range, the employee will be paid the lowest step in such range which will afford the employee an increase of at least ten cents per hour, and if a rate does not exist which makes this possible, the employee will be paid the highest rate in the rate range. If such transfer or promotion is to a job classification carrying a single rate, the employee will be paid such single rate. (When an employee is in training for a higher job classification in the line of progression, the employee will be temporarily upgraded in accordance with the above.)

(a) The word "permanent" when used in connection with transfers, promotions and demotions, shall mean that the assignment is without limitation as to time.

(b) Any employee who may be permanently transferred, promoted, or demoted to a job classification carrying a single rate will be paid such rate from and after the effective date of such transfer, promotion or demotion.

(c) Any employee who may be permanently promoted within a line of progression after the date of this Agreement to a job classification carrying a rate range will be paid the lowest step in such range which will afford the employee a rate increase.

(d) If an employee is permanently demoted to a job classification carrying a rate range, the employee's rate will be determined as follows:

1. If the employee's current rate is in excess of the maximum of such range, the employee's new rate will be such maximum.

1. If the employee's current rate is within such range, the employee's rate will not be changed until such time as the employee may be eligible for consideration through length of service in the new job classification.

1. If the employee's rate is below the minimum of such range the employee's new rate will be such minimum.

(e) Any employee who transfers outside the employee's line of progression after the date of this Agreement, through the bidding procedure or otherwise, to a job classification carrying a rate range will be started at the minimum of such range unless the employee has special ability or prior experience, in which case the employee may be started in any step of the range; provided that no such employee will be started at a rate in excess of the lowest rate currently being paid to any other employee in such job classification within the department involved without the consent of the Union. (When an employee successfully bids on a job with a beginning wage rate at least 20 cents per hour less than the employee's current wage rate, and where the top rate of the new job is higher than the employee's current wage rate, the Company will review each case on its merits and at the sole discretion of the Company will determine the beginning wage rate for the employee.)

(f) If an employee accepts a lateral transfer from a job classification to the same job classification in another department which is not through the bidding procedure, the employee's rate and progression schedule will not be changed. When an employee receiving Appendix B-2 wage rates transfers from a job classification to the same job classification in another department for any reason, the employee's rate and progression schedule will not be changed.

A new employee will normally begin the employee's employment at the lowest rate applicable to the job classification in which the employee is to be employed, but a new employee with special ability or prior experience may be employed in any job classification carrying a rate range at any step of such range.

(a) The rates specified in the rate ranges herein referred to represent the normal amounts expected to be paid to employees showing ability, initiative and satisfactory application to the job, increases granted under such circumstances to become effective on the employee's anniversary date. Increases are not automatic. Unless the employee demonstrates the foregoing the employee need not be awarded the normal increase, but in any such case the employee and the Union will be fully advised (in writing, if requested) of the circumstances upon which the action was predicated and the status of such employee will be reviewed and reconsidered within six months thereafter.

(b) All employees in job classifications carrying a rate range will normally be expected to complete the period of time prescribed for each step before becoming eligible for consideration for a rate increase.

If a disagreement should arise over the compensation paid or to be paid any employee covered hereby, an authorized representative of the Union may inspect Accounting Department records pertaining thereto.

Whenever a time ticket is changed the matter will be discussed with the employee by the employee's supervisor, preferably at the time the change is made. Each employee shall be provided with a copy of the employee's time ticket.

The purpose of this Article is to provide, under certain terms and conditions as set forth below, a measure of security for employees with considerable Company Service against the hazards of demotions and layoffs.

This Article shall apply only in cases of demotions and layoffs resulting from curtailment, consolidation, completion, or elimination of work, except where the curtailment, consolidation, completion, or elimination of work is caused by competition, regulation, legislative act or directive order by Federal, State, or Municipal government, loss, abandonment, or surrender of a franchise, the sale of all or a portion of the Company's property, or the merger of the Company with another corporation (unless the layoff occurs within three months of the consummation of the merger with UtiliCorp United in which case this Article shall apply), and shall apply, with respect to Severance Allowance, only to employees who are 30 or more years of age and who have five or more years of Company Service or, with respect to the Job Protection Rate and Transfer to Another Job, to employees who have five or more years of Company Service.

(a) When an employee referred to in Section 2 of this Article is demoted after July 1, 1966, the employee's pay will not be reduced. Such an employee while on a protected wage rate must accept work in any job in the bargaining unit for which the employee is qualified or can qualify (and to which the employee is assigned under the provision of Section 4 of this Article) which pays a higher rate than the job which the employee may be filling as the result of the demotion, and if the employee declines to work on such job the employee's protected status is thereby cancelled. Employees will be required to accept recall to any job (permanent or temporary) from which they were demoted or transferred unless they have advanced to a higher paying job and if such employee declines such recall the protected status is thereby

cancelled. Employees receiving a job protection rate on July 15, 1982, shall continue to be governed by the provisions of the Agreement in effect when they received the job protection rate including remaining eligible for general wage increases or decreases negotiated by the parties.

(b) All employees placed on a protected wage rate after July 15, 1982, will not participate in any general wage increase negotiated by the parties until the rate of the job occupied equals or exceeds the protected wage rate at which time the employee will receive the rate of the job occupied.

(c) No employee shall be eligible for a job protection rate if the employee is demoted as the result of an employee returning from military service.

After an employee referred to in Section 2 of this Article has exhausted the employee's seniority rights and is still scheduled for layoff, the Division Executive for Human Resources and the Business Manager of the Union shall review the employee's case and shall make every effort to place the employee on a job which the employee can satisfactorily perform. The Division Executive for Human Resources and the Business Manager shall not be bound by the Seniority and Bidding Procedure provisions of this Agreement in order to accomplish that result and they shall, if possible, place the employee in a classification within the employee's capabilities which carries a rate closely approaching the employee's regular rate. They shall also determine, without being bound by any other provision of this Agreement, the seniority rights of the employee, and whether and to what extent the provisions of Section 3 of this Article shall apply.

If after applying the provisions of Section 4 of this Article an employee referred to in Section 2 of this Article is still scheduled for layoff, the employee shall be entitled to a severance allowance in accordance with the following:

(a) The request for the severance allowance must be made in writing by the Union within six months from the effective date of the layoff.

(b) An employee who elects to receive the severance allowance shall forfeit all seniority rights and any other privileges, rights or benefits to which the employee may then or thereafter be entitled. If any employee is offered re-employment in accordance with other provisions of this Agreement before the Company has received the request for severance allowance referred to in subsection (a) above, the employee shall have forfeited the employee's right to the severance allowance.

(c) An employee on being laid off shall have the right to elect within said six month period, by written notice to the Division Executive for Human Resources not to receive the severance allowance and thereby retain all seniority rights and any other privileges to which the employee may be entitled under other provisions of this Agreement.

(d) No employee shall be eligible for the severance allowance if the employee is laid off as the result of an employee returning from military service.

(e) No Severance Allowance will be paid to employees who resign, who are discharged for cause, or who leave the service of the Company because of physical disability.

(f) The employee may elect to be compensated for the Severance Allowance either in a single lump sum or in equal monthly payments to be spread over as many months as are included in the Severance Allowance. If an employee dies before the employee's Severance Allowance is fully paid, the remaining balance shall be payable to the employee's surviving spouse, if any, and if none, to the employee's surviving children, if any.

(g) The Severance Allowance shall not extend beyond the employee's normal retirement date.

(h) The rate of pay to be used in computing the amount of the Severance Allowance shall be the established rate of pay of the employee as set forth in the collective bargaining agreement in effect at the time of the employee's layoff.

(i) The schedule of amounts of the Severance Allowance is as follows:

When an employee having ten or more full years of Company Service at the time of disability can no longer perform the employee's regular work because of partial disability resulting from age or personal illness, or when a regular employee can no longer perform the employee's regular work because of partial disability resulting from compensable injury, and such employee, in either case, can perform other useful work, the following plan shall be applicable:

(a) The Union agrees that as of the effective date of this Agreement there were no inequities among the rates paid for the various job classifications represented by the Union.

(b) The following principles are accepted by the parties as applying to any future claims for inequity adjustment:

In the event any of the terms or provisions of this Agreement shall be or become invalid or unenforceable by reason of any Federal, State or Municipal law or executive or administrative order now in effect or hereafter enacted or promulgated, or any decision of a court of last resort, such invalidity or unenforceability shall not affect or impair any other term or provision of this Agreement.

Section 2. Copies of Agreement

The Company will send a copy of this Agreement to every person presently employed in the bargaining unit covered hereby.

(a) The Company has furnished the Union job descriptions setting out the job content of all job classifications in the bargaining unit which are in existence on the date of this Agreement. The Union has never agreed that such job descriptions are correct, and the Company has never requested the Union's agreement on that subject.

(b) Should the necessity for new job classifications arise, the Company will furnish to the Union job descriptions setting out the job content thereof, and the representatives of the parties hereto shall meet and prepare wage schedules and lines of progression with respect to such new job classifications.

(c) As long as the Company acts in good faith it has the right to determine job specifications (such as requirements for physical condition, education, aptitude and experience) on new jobs.

(d) Whenever changes in work require the revision of an existing job, or whenever the Company desires to change job specifications of an existing job, a revised job description, or revised job specifications, will be prepared by the Company and discussed with the Union.

(e) If the parties are unable to agree on any of the items set forth in subsections (b) and (d) above within ten working days from the time the Company first notifies the Union thereof in writing, the dispute may be taken to arbitration under the provisions of Article XIV, and both parties agree to adhere to the time limits set forth in that Article in order to expedite a decision from the Arbitrator. The Company shall have the right to institute changes at any time after the expiration of the ten working days referred to above.

(a) KCPL will pay the full cost of funding the Pension Plan on behalf of employees represented by Local 1613 at current benefit levels for the term of this Agreement. The amount to be paid to the Pension Plan on behalf of employees represented by Local 1613 by KCPL shall be the minimum funding requirement under the provisions of the Employee Retirement Income Security Act of 1974 (ERISA) now in effect or as hereinafter amended, except those changes which are required by applicable law. The current benefit levels, descriptions and all other matter relating to benefits under the existing Pension Plan shall remain unchanged for the term of this Agreement.

(b) Recognizing that the following matters fall within the jurisdiction and discretion of the Joint Trustees, nevertheless Local 1613 and KCPL agree that the Trustees in the exercise of their discretion and consistent with their fiduciary obligations should take the following actions, and will recommend and request that the Trustee or Trustees representing them on the Board of Trustees take the following actions or support those already taken.

(c) Local 1613 and KCPL approve amending the Trust Agreement establishing the Pension Plan (recognizing that any such amendment to be effective also requires approval of the other Local Unions) as follows:

(d) Local 1613 agrees on behalf of the employees it represents that this Settlement resolves all issues, with respect to the Pension Plan. Local 1613 will not participate in, and waives any further interest in, pending arbitration and litigation involving pension issues. Local 1613 will not instigate, participate in, support or be a party to any proceeding inconsistent with this Settlement. However, the provision of this item (d) shall not be construed as binding on the Trustee representing Local 1613 on the Pension Board of Trustees, such Trustee to act independently consistent with his fiduciary obligations as Trustee, it being understood that Local 1613 may reimburse its Trustee on the Pension Board of Trustees for reasonable and necessary expenses incurred by him in performance of his fiduciary obligations as a Trustee.

(e) Recognizing that the following matters fall within the jurisdiction and discretion of the Joint Trustees, nevertheless Local 1613 and KCPL agree that the Trustees in the exercise of their discretion and consistent with their fiduciary obligations should take the following actions. Local 1613 and KCPL will recommend and request that the Trustee or Trustees representing them on the Board of Trustees amend the pension plan effective April 1, 1997 as follows:

A Local 1613 employee who is at least age 57 and has 30 or more years of credited service will be able to retire with no benefit reduction. The benefit will be based on the employee's highest average annual salary (base hourly rate as of October x 2088) for three consecutive years.

A Local 1613 employee who is at least age 55 and has at least 30 years of credited service will have their benefit reduced .25% for each month between age 55 and 57. The benefit will be based on the employees highest average annual salary (base hourly rate as of October x 2088) for five consecutive years.

(f) The parties have established a jointly administered health and welfare trust to administer a hospitalization and medical expense plan which will be common to all three bargaining units. The new Plan is not to be administered by the Company and is outlined in detail in the plan document.