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Sample Business Contracts

Labor Agreement - Crown Paper Co. and Office & Professional Employees International Union

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                                    AGREEMENT


THIS AGREEMENT is made and entered into at Berlin, New Hampshire this fifteenth
day of July, 1997, by and between CROWN PAPER CO., d/b/a CROWN VANTAGE,
Berlin-Gorham, (hereinafter collectively called the Company), and OFFICE &
PROFESSIONAL EMPLOYEES INTERNATIONAL UNION, Local 6, (hereinafter referred to as
the Union).


                          GENERAL PURPOSE OF AGREEMENT
                                 AND RECOGNITION

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

1.2 Pursuant to certification by the National Labor Relations Board dated
January 16, 1957, in case No. l-RC-4725, the Company recognizes the Union as the
sole and exclusive representative for collective bargaining with respect to the
rates of pay, wages and salaries, hours and working conditions, of all office
and plant clerical employees of the Company's Gorham and Berlin, New Hampshire
operations in the following departments:


Traffic                                      Stores
Accounting                                   Office Services
Timekeeping                                  Maintenance
Cascade Production Planning

*Internal Audit & Office Methods             Budget & Financial
Order Billing                                General Accounting
Stenographic                                 Research & Development - Tech.
Data Processing                              Woods Accounting
Manufacturing - General                      Burgess General Office
Cascade General Office                       Engineering Office
Power & Steam Office                         Production Controls Office
Quality & Process Control Office             Towel & Tissue
Purchasing

(* old departments per the certification of the National Labor Relations Board)

but excluding the employees of all other departments, professional employees,
technical employees, registered nurses, guards, buyers in the Purchasing
Department, confidential employees which category includes the employees who
prepare the confidential executive payroll and the secretaries to the Group Vice
President, Operations Managers, Group Controller, Human Resources Director,
Materials Manager, Woodlands Manager, Technical Director, and Manager of all
Pulp and Paper Plants and Maintenance Departments, and all supervisory employees
as defined in the National Labor Relations Act, as amended.


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1.3 The Union and Management agree to provide equal opportunity for employment,
training and development, transfer, promotion and compensation without regard to
race, creed, color, national origin, sex, age, religion and status as a
qualified individual with a disability (as per ADA guidelines).

Whenever the male gender is used or indicated, the female gender is also
intended. Whenever the female gender is used or indicated, the male gender is
also intended.

1.4 Any additions to, deletions from or modifications of the terms of this
Agreement shall be mutually agreed upon by the parties.


                                 UNION SECURITY

2.1 All present employees within the bargaining unit who are now members or
hereafter become members of the Union shall remain members in good standing in
Local No. 6 as a condition of employment. All new employees shall be required,
not later than thirty (30) calendar days after being hired, to join and maintain
membership in good standing as a condition of continued employment.

2.2 Upon individual written authorization by the employees which shall not be
irrevocable for more than a year or the termination date of this Agreement,
whichever occurs sooner, the Company agrees to deduct from the compensation of
each employee who is a Union member the union initiation fees and dues for the
current month in such amount as was last certified to the company in writing by
the Secretary/Treasurer of the Local Union. The Company further agrees that
effective November, 1985, this deduction shall be made on a weekly basis. The
Company also agrees to remit all Union initiation fees and dues deducted to the
Secretary/Treasurer of the Local Union.


                                   MANAGEMENT

3.1 The Company shall manage the plant and offices, and direct the working
forces. The Management of the Plants and offices includes the right to plan,
direct and control all office and/or plant operations, or hire, promote, demote,
transfer, suspend or discharge employees for proper cause; to relieve employees
from duty because of lack of work or for other legitimate reasons; and to
introduce and use new or improved methods, office machinery or equipment or
processes. It is agreed that nothing contained herein shall be used for the
purpose of discrimination against employees because of membership in the Union,
and further agreed that all action pursuant to the provisions of this paragraph
shall be in conformity with the provisions of this contract. On behalf of any
aggrieved employee, the Union may challenge in the grievance procedure any
reasonable change of existing rules and practices not specified in this
Agreement.


                                 REPRESENTATION

4.1 Representatives of the employees in the bargaining unit shall be by a Union
Committee, one of whom shall be the Chief Steward.

4.2 In addition to the Union Committee, the Union may designate a steward for
the employees in the bargaining unit at each of the following locations:
      Steward No. 1                          Administration and Pulp Mill
      Steward No. 2                          Paper Mill

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4.3 The foregoing paragraphs are not intended to bar any authorized
representative of the International Union from any meeting of Company and Union
representatives where his presence has been requested by either the Company or
the Union Committee, or where it is required by the grievance procedure.

4.4 Promptly after the date of this Agreement, the Union shall certify to the
Company a list of its officers, committeemen and stewards who are authorized to
function as representatives of the Union and shall keep said information up to
date.

4.5 Stewards and members of the Union Committee shall suffer no loss of pay by
reason of time spent by them during their regular shift in the adjustment of
grievances with Management provided, however, that no steward committeeman shall
leave his department for that purpose without reporting to his supervisor before
he leaves the time and place of the meeting and the representatives of
Management with whom the meeting is to be held, and receiving his permission to
leave. If a negotiating committee member's vacation is scheduled during the
negotiating period, he may reschedule it to a time mutually agreeable to himself
and his supervisor.

4.6 It is understood that Union officials or stewards shall, with permission
from supervision (which shall not be unreasonably denied), be permitted to make
necessary investigation of employee grievances or attend scheduled meetings with
Management representatives provided it does not interfere with the efficient
operation of the department. All Union representatives shall report back to
their supervisor as per Paragraph 4.5.

4.7 The Union and Management Committee will meet once every month or at such
other times as is required to discuss matters of mutual concern or of a general
nature arising out of the Agreement. A representative of the International Union
may be present at such meetings at the request of the Union.

4.8 The Union's international representative must receive permission from the
Company's Human Resources Department in order to enter the Company offices or
mills for the purpose of investigating grievances or working conditions. The
Company reserves the right to have a representative accompany the Union's
international representative.


                               GRIEVANCE PROCEDURE

5.1 A grievance within the meaning of the Agreement shall be any difference of
opinion, controversy or dispute arising between the parties hereto relating to
the wages, hours and working conditions established by this Agreement, or any
dispute between the parties involving the interpretation or application of any
provisions of this Agreement. The aggrieved employee must (before any grievance
is filed), approach his immediate supervisor to discuss the complaint. Any
settlement at this point shall not create a precedent or past practice. If the
parties cannot agree to settle the complaint, then the aggrieved employee may
file a grievance within five working days of the supervisor's answer and must
specify which article of the Labor Agreement has been violated. If the company
believes it has not violated the Labor Agreement, it must specify the reasons
why.

5.2 In the event of such grievances in any department, the following procedure
shall apply:

     Step I - Between the immediate supervisor the aggrieved employee,
accompanied by a Union representative within five (5) days after receipt of the
written grievance.

     Step II - If no settlement is arrived at in Step I, the Human Resources
Department shall promptly arrange for a meeting between the same persons
designated in Step I, a Human Resources representative, the member of Management
next highest in authority, the Union president and the International
Representative. Every effort will be made between the parties to settle any
grievance within ten (10) days after the time limit in Step I.

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     Whenever a grievance is not processed within the time limits as specified
in each step of the grievance procedure, the grievance shall automatically
proceed to the next step in the grievance procedure, unless such time limits
have been extended, in writing, by mutual consent of both parties.

     Step III - In the event the dispute shall not have been satisfactorily
settled by the above method, either the Company or the Union must notify the
other party in writing of its intention to appeal the matter to arbitration
within thirty (30) days following the date of the written answer in Step II,
before an impartial arbitrator to be appointed by the American arbitration
Association upon written application sent by either party, with a copy of said
written application sent simultaneously to the other party. The impartial
arbitrator shall interpret and apply this Agreement, but he shall not have power
or authority to add to or subtract from this Agreement. His decision shall be
final and binding on both parties, and all parties agree to abide by his award.
Each party shall bear the expenses of its own representative at the arbitration
proceeding; and all other expenses of the arbitration, including those of the
impartial arbitrator, shall be shared and paid equally by the parties. If either
the Company or the Union fails to notify the other party, in writing, of its
intention to appeal the matter to arbitration within thirty (30) days mentioned
above, the grievance shall be considered settled at Step II of the grievance
procedure. The arbitration provisions contained in this contract are hereby
specifically made subject to the provisions of Section 1, Chapter 415, of the
Revised Laws of New Hampshire, 1942, as amended by Section I, Chapter 191, of
the Laws of New Hampshire, 1945. (Chapter 542, RSA)


                       DISCHARGES AND DISCIPLINARY LAYOFFS

6.1 No employee shall be discharged, suspended or disciplined except for
sufficient and reasonable cause.

6.2 If upon joint investigation by the Union and the Company, or by decision of
an arbitrator appointed pursuant to the terms of this Agreement, it shall be
found that the employee was unjustly laid off or discharged, such employee shall
be reinstated to his former position without any loss of rank, seniority or
reduction in salary, and shall be compensated by the Company for lost time in
such amount as shall be agreed upon by the parties or determined by the
arbitrator.


                             NO STRIKES OR LOCKOUTS

7.1 The Company agrees that it will not lock out the employees, and Union agrees
that there shall be no strike, slowdown or work stoppage during the life of this
Agreement.

7.2 It is recognized that the Company has contracts with other labor
organizations and must engage in negotiations with such labor organizations.
Nothing in this Agreement is intended to require performance by either the
Company or the Union when by reason of strike or lockout conditions then
existing outside of and in the vicinity of the plants performance is practically
impossible or physically dangerous to the employees or the members of
Management. There shall be no liability in damages on the part of the Company or
the Union for non-performance under such circumstances.


                     SENIORITY - DEFINITION AND APPLICATION

8.1 All employees in the bargaining unit as of the date of this Agreement shall
retain the credits of unit-wide seniority with which they are credited as of
that date, regardless of department or status or bargaining unit where it was
accumulated. Commencing with the date of this Agreement, said employees, new
employees, and employees transferred into this bargaining unit from jobs not
within this bargaining unit shall accumulate unit-

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wide seniority only for continuous service in this bargaining unit unbroken by
any of the causes for loss of seniority set forth in Paragraph 12.3.

8.2 In the event of the promotion, demotion, layoff and recall of employees
within this bargaining unit, whenever qualifications are equal, unit-wide
seniority will be the determining factor. (Qualifications include education,
essential job skills, and experience as required to perform the duties as
specified on job postings.)

8.3 The Company shall supply the Union each week with a list of all new hires,
transfers, terminations and such other changes which may occur.


                            NEW EMPLOYEES IN THE UNIT

8.4 An employee newly hired into this bargaining unit may be terminated at any
time during the first ninety (90) calendar days of employment without recourse
to the grievance procedure. However, if circumstances warrant, the Company may
request the Union for an extension of not more than thirty (30) additional days.
Upon completion of thirty (30) days, such employee shall be entitled to all
rights and privileges under this agreement unless specified otherwise. Seniority
of such employee shall be retroactive to the original date of hire.

8.5 The Company shall not hire temporary employees. However, employees subject
to recall may be needed to fill temporary vacancies/positions.


                                    STUDENTS

8.6 It shall be understood that summer students (May 15 to September 15) are
excluded from the provision of this collective agreement. Students working
outside the above dates (May 15 to September 15) will pay a working assessment
fee per week. Assessment fee to be $4.00 per week, increasing by $0.25/week on
the 15th of September in each of the contract years.

The Company will not utilize summer students while regular employees with recall
rights are willing and able to perform available work.


                        FILLING OF VACANCIES - PROMOTIONS

9.1 The Company will attempt to fill vacancies from within the Company before
hiring new employees.

9.2 Notice of job vacancies shall be posted on all office bulletin boards of the
Company as soon as the supervisor has determined the need to fill this vacancy.
This notice shall remain on the bulletin boards for ten (10) working days and
shall include job title, the salary range of the classification in which the job
falls, the length of the probationary period, and a brief description of the job
duties, including necessary qualifications or equivalent. In those cases in
which Management considers it appropriate, it may indicate on the notice of job
vacancy, a level (kind and duration) of work experience which will be accepted
in lieu of the education requirements.

Selected employees who have the experience, but do not meet the educational
requirements, will be expected to take and successfully complete the Company
suggested courses or they will be disqualified.


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9.3 The parties recognize that filling each job vacancy requires approximately
two (2) months to post the job and select the replacement. It is understood that
training may vary depending upon the position.

In case of multiple job vacancies resulting from an original job vacancy, the
two months' allowance will apply to each vacancy progressively and cumulatively.

The above allowances may be extended by agreement of the parties if extenuating
circumstances exist, such as disqualification during training, etc.

9.3a While the process of selection is being carried out the Company may fill
the job temporarily from any source. If the job is not filled in thirty (30)
days, the Company will inform the Union of the reason for the delay. It is the
intent of the Company to fill job openings at the earliest possible date. All
bidders will be notified by Human Resources Department of the results of the
bid, upon completion of the selection.

9.4 An employee promoted to a higher position shall receive the learner's rate
of the new classification. All employees so promoted shall receive a maximum
probationary period of six (6) months, at the discretion of the Company. In the
event an employee fails to satisfactorily complete his probationary period, he
shall be relieved by Management and returned to his former job, which shall be
considered to have been filled temporarily during his probationary period. This
procedure will be followed, unless the employee's former job has either been
eliminated or substantially changed so that it no longer exists as his former
job. In the event an employee requests to be returned to his former job during
the probationary period, he shall be returned to his former job which shall be
considered to have been filled temporarily during his probationary period,
provided that his former job has not been eliminated or substantially changed so
that it no longer exists as his former job.

In either case mentioned above, if an employee cannot return to his former job,
the employee shall proceed to the pool. (See Article 11.)

When management decides that the employee has satisfactorily completed the
probationary period, the employee shall have no more than the next two (2)
working days to either accept or reject the position. Present language and past
practice concerning disqualification will not be modified by this paragraph.

9.5 It is understood that any employee bidding into a job and starting work on
that job must remain on that job for a period of time not less than the posted
probationary period, unless the provision is waived by the Company. An employee
who accepts and then refuses a bid will not be eligible to bid again for the
next twelve months.

9.6 If an employee is retained on a job past the posted probationary period,
he/she shall be considered as qualified unless an extension of this period has
been agreed upon by the Company and the Union.

It is understood that, if Union representation is requested by the employee,
such representation will be made available during any meetings held to discuss
such extensions.

9.7 Whenever an employee is temporarily assigned for any reason to a higher
classification within the bargaining unit for periods of five (5) consecutive
work days, or longer, that employee will be paid an additional amount equal to
ten percent (10%) of his rate (weekly salary divided by 40 hours) or the
relieved employee's rate, whichever is the lesser, for all hours worked during
the temporary assignment. Whenever an employee is temporarily assigned as a
replacement for a supervisory or any other non-bargaining unit employee for
periods of five (5) consecutive work days or longer, that employee will be paid
an additional amount equal to ten percent (10%) of his regular rate (weekly
salary divided by 40 hours) for all hours worked during the temporary
assignment. Once an employee has met the conditions stated above and has been
compensated accordingly for

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replacing on a specific job, that employee is eligible to receive such
compensation for each full day worked thereafter, when replacing on that same
specific job.

It is intended that the higher rates of pay will be paid only when the employee
has performed fifty percent (50%) or more of the job of the person being
replaced.

Whenever an employee is temporarily assigned as a replacement for a supervisory
or any other non-bargaining unit employee for six (6) continuous months,
thereafter that employee will be paid either

     (A)  An additional amount equal to ten percent (10%) of his regular rate,
          or

     (B)  The experienced rate one classification above the highest
          classification supervised, whichever is higher, providing that the
          employee is performing substantially all of the duties of the
          supervisor or other non-bargaining unit employee.


               PROMOTIONS TO POSITIONS OUTSIDE THE BARGAINING UNIT

10.1 An employee promoted to a job outside the bargaining unit shall, at his
option, have the right to return to his former job within a period of ninety
(90) work days after such promotion. In addition, the Company has the option to
return employee to his former job within a period of ninety (90) work days after
such promotion. Such employee shall retain and accumulate Company and bargaining
unit seniority during the ninety (90) work day period in a job outside the
bargaining unit.

If a person promoted to a non-Union position returns to his former position
within a period of ninety (90) work days after the promotion, the employees who
have been affected by the move shall return to their former positions.

This procedure will be followed unless the employee's former job has been
eliminated or substantially changed so that it no longer exists as his or her
former job, in which case, the employee shall proceed to the pool procedure.

If such employee is relieved of his non-Union position by Management after the
ninety (90) work day period, such employee shall be given preference before a
new employee is hired.

It is understood if such employee is rehired, he shall be given credit for past
Company service for purposes of pension, vacations and all other benefits based
on Company service.

10.2 Non-bargaining unit employees shall not perform any of the work customarily
performed by employees within the bargaining unit, except in minor cases, cases
of instruction, or emergency. Such occasions must be temporary in nature.


                         PROCEDURE FOR JOB PLACEMENT OF
                   PERMANENT EMPLOYEES DUE TO JOB ELIMINATION

11.1 The intent and spirit of this concept is directed toward satisfying the
following objectives:

o    Improve safety/quality/efficiency/productivity

o    Provide employment security

o    Provide  flexibility  while  maintaining  fairness in work  assignments and
     seniority rights

o    Improve job satisfaction through increased challenge and rewards

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o    Improve and utilize skills of all employees

o    Reduce friction among all employees

o    Eliminate the need for temporary positions.

Eligibility: Any permanent employee whose position is eliminated.

Pay Rate:  Employees  will maintain their current rate of pay until they promote
to an equal or higher pay rate position.  (See Red Girded.) Article 9.7 does not
apply.

Assignment: Pool employees scheduled will be coordinated by management for
vacation relief, temporary openings, training, special projects and other work
as required, within the employee's capabilities.

Pool employees must bid on open positions within the bargaining unit, if
qualified. In the event no one within the bargaining unit accepts an open
position, management has the right to assign a pool employee to the open
position.

Pool Limit: The intent of the Company is to manage any reduction in the work
force by attrition. However, in the event the pool exceeds an efficient
operating level those employees will be released and given the option of either
being laid off or exercising their rights to bump the least senior bargaining
unit employee.

Red Circled: When a permanent employee's position is eliminated, that employee
will enter the pool and be red circled. Red circled employees shall retain all
rights and privileges of this agreement. However, red circled employees will
receive 50% of wage increases. The employee will continue to maintain his/her
salary (plus wage increase) until the general wage scale has been reached. When
this level is reached the individual will then receive the normal negotiated
increases.

The Human Resources Department will provide counseling for employees with
respect to training, education and testing parameters for jobs in which they may
have an interest.


                             NOTICE OF LAYOFF/RECALL

12.1 An employee to be laid off shall receive two (2) weeks notice and shall be
placed on the recall list for a period of three years. Employees shall be
recalled in order of their seniority providing they are qualified for the
vacancy. Notice of recall to work after a layoff shall be by registered mail to
the last address of the employee appearing upon the Company's records.

12.2 An employee recalled after layoff within the same classification in which
he was employed at the time of being laid off, shall upon returning receive the
salary which he had at the time of layoff, plus any increases applied to the
classification during his layoff period.

                          CAUSES FOR LOSS OF SENIORITY

12.3 After the date of the Agreement, an employee shall lose all seniority
rights for the following reasons:

1.   Quit,

2. Layoff for continuous period of more than three years,

3.   Discharged for just cause,

4.   Absence for five (5) days without reasonable cause, and without notifying
     the Company within that time,

5.   Failure to contact the Company inside of ten (10) days after being laid off
     and after being notified to return to work, and to make arrangements for
     his return to work.

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6.   Absence due to illness or injury beyond 36 months for those employees with
     three (3) or more years of service.

7.   Absence due to illness or injury beyond the employee's length of service
     for those employees with less than three (3) years of service.


12.4 It is understood that, in reference to the loss of seniority due to #6 and
#7 above, the Company and Union will meet before the date of termination to
review the case for any special circumstances which should be considered.


                                  WORK SCHEDULE

13.1 Notwithstanding the fact that Saturday or Sunday work may be required by
the nature of the job, the normal day's work shall be eight (8) hours, Monday
through Friday.

If an employee is absent on funeral leave, jury duty or ward representative duty
during a normal work week, any hours worked on a sixth day will be paid at
straight time.

13.2 The normal hours of employment of the employees of this bargaining unit
shall be between the hours of:
     7:30 a.m. and 4:30p.m. - Monday through Friday
     As scheduled--Saturdays and Sundays
The company reserves the right, based on operating needs, to schedule straight
time and overtime hours and start and stop times.

13.3  There  shall be a rest  period of 15  minutes  within  each four (4) hours
worked.


                                    OVERTIME

14.1 All employees will receive time and one-half for all hours worked after
accumulating forty (40) work hours. Overtime hours will not be deducted from
normal hours. No employee shall refuse a request for overtime without a
justifiable reason.

14.2 Double time shall be paid for all time worked on Sundays.

14.3 There shall be no duplication of overtime payments.

14.4 Overtime work shall be distributed as equally as practicable within the
various departmental groups and among employees regularly performing the type of
work requiring the overtime.

                                    HOLIDAYS

15.1 The days upon which New Years Day, Presidents Day, Good Friday, Memorial
Day, Independence Day, Labor Day, Thanksgiving Day, the day after Thanksgiving,
Christmas Eve, and Christmas Day are observed shall be considered as paid
holidays.

15.2 Employees who are not scheduled to work on the holiday shall be credited
with eight (8) hours' straight-time pay, provided: (a) He has completed sixty
(60) calendar days of employment with the Company;
     and


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(b)  He had worked for the Company at some time within the sixty (60) calendar
     days immediately prior to the holiday; and
(c)  Must have worked his last schedule work day before the holiday is observed
     and his first scheduled work day after the holiday is observed, if any such
     days are scheduled for him, unless excused in writing by his immediate
     supervisor and approved by the Director of Human Resources.

15.3 For the purpose of computing holiday pay, the holiday shall be measured by
the twenty-four (24) hour period beginning at 7:30 a.m. on the day observed as
the holiday, and continuing until 7:30 a.m. on the following day.

15.4 When an employee is scheduled to work on the day observed as the holiday
and does not work as scheduled, he shall not receive the credit for the holiday
provided for in Paragraph 15.2 unless excused in writing by her immediate
supervisor and approved by the Director of Human Resources. When an employee
works the holiday he shall be paid for the hours worked and will receive holiday
pay, except Christmas Day which shall be paid at double-time.


                                   CALL-IN PAY

16.1 In the event a member of this bargaining unit without prior notice on the
previous day is called in to work outside his regular working schedule, he shall
be paid a minimum of four (4) hours at his straight time rate, or at time and
one-half for the actual hours worked, whichever is greater.

16.2 In the event a member of this bargaining unit is called at home during
hours when he is not scheduled to work, for the purpose of obtaining
information, he shall be paid one hour at his straight-time rate as bonus time.
This penalty will not be paid for information which the employee should have
made available during his scheduled work hours.


                                LEAVES OF ABSENCE

17.1 Leaves of absence, without loss of seniority and without pay, for
justifiable reasons, but not in excess of two (2) weeks, will be granted upon
written request stating the length of the leave and reason for it. Additional
two (2) week periods may be granted for extraordinary reasons. The request must
be addressed to the employee's immediate supervisor and a copy thereof given to
the Union's steward having jurisdiction. The request will not be effective
unless and until approved by the supervisor and the Director of Human Resources.

17.2 The policy of the Company with respect to maternity leave permits a leave
without loss of seniority during that period of disability as determined by
medical evidence. Failure to return to work after expiration of a maternity
leave of absence will result in the employee being considered a voluntary quit
and such job will be posted in accordance with Paragraph 9.2.

17.3 Union stewards and committeemen involved in the Adjustment of grievances
with Management will be excused from their jobs while they are so engaged, as
provided in Paragraph 4.5.

17.4 The Policy of the Company with respect to leave of absence for sickness or
injury in effect as of the date of this Agreement will be continued.


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                                 BULLETIN BOARDS

18.1 Bulletin boards will be made available by the Company to the Union for the
posting of Union notices relating to meetings, dues, entertainment, health and
safety, and general Union activities. All notices shall be submitted to the
Director of Human Resources before being posted. Approval shall not be withheld
unreasonably by the Company.


                                  RATES OF PAY

19.1 Wage rate changes shall be as follows:


Effective July 15, 1997, a 3% wage increase will be granted. Effective July 15,
1998, a $0.30 per hour increase, and based on the Free Cash Flow formula, an
additional 2% will be granted. Effective July 15, 1999, a 2% wage increase, and
based on the Free Cash How formula, an additional 2% will be granted. Effective
July 15, 2000, a $0.30 per hour increase, and based on the Free Cash Flow
formula, an additional 2% will be granted. Effective July 15, 2001, a 2.5% wage
increase, and based on the Free Cash Flow formula, an additional 2% will be
granted.

The formula is based on Free Cash Flow calculation as described in the Cash
Sharing Plan, Article 26. If the Free Cash Flow is between $8MM and $10MM, 50%
of the 2% raise will be awarded. If the Free Cash Flow is between $1OMM and
$12MM, 75% of the 2% raise will be awarded. If the Free Cash Flow is greater
than $12MM 100% of the 2% raise will be awarded.

19.2 For overtime computation, the hourly rate of each employee shall be his
weekly salary divided by forty (40).

19.3 The weekly rate range that shall be applicable for the term of this labor
agreement is listed in Exhibit C. Any new positions created by the Company a
rate will be assigned. Any dispute concerning any such newly established rate
range shall be subject to adjustment through the grievance procedure.

19.4 In the event of a classification resulting in a claimed inequity, the Union
and Company will meet to discuss the matter and, if an inequity exists, correct
it.

19.5 Nothing herein shall prohibit the Company from paying the experienced rate
in any position sooner than the established time on the wage schedule.


                                    VACATIONS

20.1 The following vacation plan shall be in effect during the term of this
Agreement. Employees completing their second, seventh, twelfth, eighteenth, and
twenty-eighth year of service during the calendar year shall become eligible for
the additional week of vacation accruing in those years upon January 1st of the
year in which they attain such years of service. The additional week of vacation
may only be taken upon reaching the anniversary date

        0 years but less than 2 years -no vacation 2 years but less than 7 years
        -2 weeks of vacation with pay 7 years but less than l2 years -3 weeks of
        vacation with pay


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        12 years but less than        18 years    -4 weeks of vacation with pay
        18 years but less than        28 years    -5 weeks of vacation with pay
        28 years                      and over    -6 weeks of vacation with pay

20.2 A week's vacation pay shall be the employee's regular weekly rate of pay as
of the time the vacation is taken.

20.3 The Company shall not be obligated to pay vacation pay to any person who
has rendered no service whatever to the Company during the twelve (12) months
preceding January 1st of the vacation year. However, employees who are disabled
as a result of an industrial accident or sickness shall be entitled to their
eligible vacation pay in the one (1) calendar year following their last day of
work.

To be eligible for vacation in any year, employees, except in the event of
sickness or disability, shall have worked not less than eleven-hundred (1,100)
hours in the previous calendar year.

20.4 In the event a holiday named in this Agreement falls during the employee's
vacation period, such employee shall receive the holiday pay.

20.5 Employees shall be entitled to select their weeks of vacation according to
their bargaining unit seniority and established Company policies.

The canvassing process will start no later than the second Sunday in January.
The first two (2) weeks are to be selected before 7:00 a.m., February 1 of each
year with the senior person selecting first. The process will then repeat with
the next senior person until all employees have selected their first-choice
week(s). The remaining week(s) of vacation will be selected before 7:00 a.m.,
February 16. The process will be as above with the senior person selecting
his/her remaining week(s) in accordance with Company policy and department
quotas. After February 16th, any unscheduled weeks of vacation that any employee
has remaining will be scheduled on a first come, first served basis, as allowed
by unfilled department quotas.

No person shall take more than twenty-four (24) hours time in selecting vacation
weeks when it is his/her turn. If a person wishes to change vacation week(s),
the employee cannot exercise seniority rights over those who have already
selected vacations. The Company will make reasonable efforts in the first round
of vacation scheduling to grant eligible employees two weeks vacation during
school out - school in period.

When an employee changes jobs, he/she will not automatically carry his/her
scheduled vacations with him/her. The vacation(s) may be transferred if they do
not violate established department quotas.

Employees who change jobs for permanent openings will be entitled to pick weeks
left open by vacated employees. Selecting open weeks will be in accordance with
the above.

20.6 By agreement between the employee and his supervisor, an employee may take
two weeks vacation in half days (minimum of 4 hours).


                                 RETIREMENT PLAN

21.1 Eligible members of Local 6 shall be covered by Crown Vantage Pension Plan
No. 7 as set forth in the provisions therein, and as outlined in Exhibit B.


                                       12


<PAGE>


All permanent employees shall, as a condition of employment, join the Pension
Plan on the first day of their employment.

21.1a Under terms of the Retirement Equity Act of 1984, a pre-retirement joint
and survivor option is provided  to all vested employees, which allows you to
provide your spouse with financial security in the event your death occurs
before you retire and before you reach age 55.

This option will cause a reduction in your pension benefit if you so elect it
and survive to retirement age. This benefit may be waived only if the spouse
approves in writing the employee's refusal of this option and you are at least
35 years old. Such spousal approval of this waiver must either be witnessed by a
Company representative or be notarized.

For each year that this pre-retirement joint survivor option remains in effect,
the reduction to your accrued Pension benefit is as follows:
     .13% for each year your option is in force, between the date you complete
     10 years of service and the date you become eligible for early retirement.
     After you become eligible for early retirement, the Company pays the cost
     of the option for you.


                                  FUNERAL LEAVE

22.1 In the event of the death of the spouse of an employee who has been in the
employ of the Company for one (1) year or more, the employee is to receive up to
five (5) days pay while off attending funeral services. It is understood that
the two (2) days after the funeral shall be included in this five-day period.

In the event of the death of a son or daughter of an employee who has been in
the employ of the Company for one (1) year or more, the employee is to receive
up to five (5) days pay while off attending funeral services.

In the event of the death of father, mother, sister, brother, mother-in-law,
father-in-law, paternal and maternal grandparents of an employee who has been in
the employ of the Company for one (1) year or more, the employee is to receive
up to three (3) days pay while off attending funeral services.

In the event of the death of a brother-in-law, sister-in-law, son-in-law,
daughter-in-law, or grandchild of an employee who has been in the employ of the
Company for one (1) year or more, the employee will be excused from work with
pay on the day of the funeral.

It is understood that these days must be regular straight time scheduled work
days for the employee. (In order to be eligible for this pay, the employee must
be on the active payroll at the time of the death).


                      JURY DUTY AND WARD REPRESENTATIVE PAY

23.1 In the event an employee is selected for jury duty or is required to serve
as an elected ward representative, the Company will pay the employee the
difference between his regular pay and the amount received by him while serving
on jury duty or as a ward representative.

23.2 Employees who have completed six calendar months of Company service and who
are required to attend National Guard Training Camp or Reserve Training shall be
reimbursed the difference between their military pay and forty (40) hours
straight-time pay at their regular rate by the Company for a maximum of two (2)
weeks duty per year.


                                       13


<PAGE>


                          COMPANY/UNION COMMUNICATIONS

24.1 It is the intention of the Company to communicate with the Union in all
instances of technological and other changes involving job eliminations and
reclassifications. The Union will be given prior notice in order that the Union
Committee can discuss with the Company the reasons for such changes.


                             GOVERNMENT REGULATIONS

25.1 It is mutually agreed and understood that none of the provisions of this
Agreement shall be interpreted to conflict with any State or Federal law,
regulation, decree or directive now in operation or passed during the term of
this Agreement. It is the duty of both the Company and the Union to cooperate in
any changes required by such regulations. It is the express intention of the
parties hereto that all other provisions not declared in conflict shall remain
in full force and effect.

25.2 The Company and the Union shall cooperate fully on the safety, health and
sanitation of the employees in accordance with the Williams-Steiger Occupational
Safety and Health Act (O.S.H.A.) of 1970 and any amendments hereto. Conditions
that affect the safety and health of the employees shall be considered a
legitimate subject for mutual consideration.


                                  CASH SHARING
                              Statement of Purpose

26. The purpose of the Cash Sharing Plan is to promote a sense of ownership and
enthusiasm that will focus the thinking and energy of employees at Berlin-Gorham
on the key result areas that have the greatest impact on mill performance. This
plan will provide an opportunity to recompensate employees for negotiated
reductions due to economic conditions and will also provide an additional means
for employees to increase their earnings by sharing in the mill's positive cash
flow.

                                     Beliefs

This application of the Cash Sharing Plan enters into a new philosophy that
enables employees to increase their earnings, share in the positive cash flow of
the mill and be a partner in productivity and quality. The amount of cash
sharing pool will depend upon our combined efforts to continually improve
performance in key areas.

The amount of cash sharing dollars will depend on the generation of positive
cash flow for the mill. The plan can significantly enhance the ability of each
employee to increase annual earnings.

A Cash Sharing Plan has the potential to produce more income for all employees
than industry pattern settlements. Cash Sharing distribution begins when the
operation reaches positive free cash flow. Free cash flow is a financial
measurement used by Crown Vantage to determine viability of a facility.

Free Cash Flow is the cash that is generated or needed by the business. The
calculation is:

      Operating profit
      Less: Interest expense
            and Corporate Indirects
      -----------------------------
      = Pre-tax Profit

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<PAGE>


      Less: Income Tax
      ----------------
      = Net Income

      Add: Depreciation
      Add/Subtract Working Capital Changes

      Add/Subtract Other Corporate Charges
      Less: Dividends
            and Capital Spending
      --------------------------
            = Free Cash Flow


Definitions

Assets = Property, plant equipment, accounts receivable, inventories

Working Capital = Receivables and inventories (finished goods, work-in-progress,
stores, raw materials-wood, chemicals, fuel oil)

Distribution of the cash sharing pool will be calculated on a quarterly basis
with 75% of quarterly pool distributed quarterly and 25% distributed at the end
of the Crown Vantage fiscal year based on annual free cash flow. Quarterly
payments will be made by the end of the calendar month following the last month
of the fiscal quarter.

All L-6 employees who are on the payroll as of the close of the quarter will be
eligible to participate in the quarterly distributions. All L-6 employees who
are on the payroll at the end of each fiscal year will participate in the annual
distribution.

The distribution is proportioned on W-2 earnings for the respective time
periods.

In the event of any question concerning the calculation of Free Cash Flow under
this Cash Sharing Plan, a mutually agreeable CPA firm may be retained to verify
that all calculations are in accordance with generally accepted accounting
principles, with expenses to be shared equally by the parties.

All payments will be paid by separate check and will not be factored into any
other contractual benefit plan for any purpose.

If management decides to shutdown any of the following production assets -
hardwood/softwood pulp lines, paper machines 1, 2, 3, 4, or 9, the Cash Flow
Plan will be reformulated with L-6.

Calculation

The Cash Sharing pool is determined by multiplying the Free Cash Flow of a
fiscal quarter by 20%. There will be no pool if cash flow is zero or negative.
This Cash Sharing Plan begins when cash sharing is available millwide.


                                       15


<PAGE>


                                    DURATION

27.1 This Agreement shall be in effect July 15, 1997, and from year to year
thereafter, unless terminated in accordance with the provisions of (D) and (E)
below.

(A)  If either party shall desire to change any provisions of this Agreement, it
     shall give written notice of such desire to the other party at least sixty
     (60) days in advance of any anniversary date; provided however, that such
     notice shall not be effective before May 15,2002.
(B)  The giving of notice in subsection (A) above shall constitute an obligation
     upon both parties to negotiate in good faith all questions at issue, with
     the intent of reaching written agreement prior to the anniversary date.
(C)  If the parties have not reached agreement on or before the anniversary
     date, all the provisions of the agreement shall remain in effect unless
     specifically terminated in accordance with the provisions below.
(D)  At any time after the anniversary date, if no agreement on the question at
     issue has been reached, either party may give written notice to the other
     party of intent to terminate the agreement in (not less than) ten days. All
     the provisions of the agreement shall remain in full force and effect until
     the specified time has elapsed. During this period, attempts to reach an
     agreement shall be continued.
(E)  If the parties have failed to resolve their differences before the
     specified time has elapsed, all obligations under this Agreement are
     automatically canceled.

28.1 The Company agrees that it will not sell or otherwise transfer the business
to another employer unless the new employer agrees to review with OPEIU, Local 6
the existing collective bargaining agreement as part of the transfer agreement.


                                       16


<PAGE>


                                    EXHIBIT A

                       Alcohol/Drug Abuse Policy Statement

Crown Vantage believes that a working environment unaffected by alcohol and
drugs fosters safety, quality, service and productivity, and is in the best
interest of all employees. Every employee shares in the responsibility to
support a drug and alcohol-free environment.

The following policy and rules on alcohol and drug abuse are aimed toward
reaching this goal:

>    Possession, use or offering of alcohol or drugs while on the job, in Crown
     Vantage Mills, Plants, technical Centers, Laboratories and Offices
     (including associated parking lots and entry roads) is prohibited.
     Violation of this policy will constitute grounds for immediate termination
     of employment.

     "Drugs" are defined to include both "illegally-used controlled substances"
     (illegal drugs or other controlled substances as defined under state or
     federal law, including narcotic and non-narcotic drugs, and prescription
     drugs used abusively) and "non-controlled" (over-the-counter) medicines if
     they render one unfit for duty. Additionally, the abuse of any substance
     for the purpose of achieving a drug-like effect will fall under the
     prohibition against "drugs". "possession" includes the presence of drugs or
     alcohol in the possession or control of the employee or in the employee's
     desk, locker, toolbox, lunch box, automobile on Company property or other
     personal area.

>    An employee who reports to work or who is observed at work under the
     influence of alcohol or drugs, or who is incapable of safely performing
     his/her job, will be subject to severe disciplinary action which may
     include immediate termination of employment. "Under the influence" includes
     the presence of any alcohol or drug in the body, which may be verified by
     laboratory tests, or impairment to any degree, which may be verified by
     appropriate field test.

>    An employee who, under a proper medical authority, is taking prescription
     drugs or other medication which may affect his/her ability to work safely
     is responsible for bringing this matter to his/her supervisor's attention
     before beginning work. Whether or not an employee is taking a prescription
     drug, non-prescription drug, or other medication an employee who reports to
     work or who is observed at work and is incapable of safely performing
     his/her job may, depending on the circumstances, be subject to severe
     disciplinary action which may include immediate termination of employment.

>    Crown Vantage will take reasonable steps to search for and detect use of,
     possession of and impairment by alcohol and drugs. Because Crown Vantage is
     committed to maintaining a drug and alcohol-free working environment, prior
     to making a job offer, applicants for employment will be screened to avoid
     hiring persons who use drugs or who abuse alcohol. In addition, Crown
     Vantage may require any employee suspected of being under the influence of
     alcohol or drugs to submit to a breath test, or urinalysis by
     Company-designated physician or qualified test process. The type of testing
     will be at the Company's discretion and expense. Refusal to submit to the
     examination will be considered an admission of being under the influence of
     alcohol or drugs.

>    Crown Vantage will work actively to educate employees about the drug and
     alcohol problem by working closely with employee groups and unions
     representing its employees. Crown Vantage will strive to develop a
     cooperative approach with all employees in dealing with the problem of
     drugs and alcohol.


                                       17


<PAGE>


>    The Company offers various Employee Assistance Programs to help employees
     and their families with alcohol and drug-related problems, as well as other
     personal problems. All employees are encouraged to seek assistance for
     alcohol and drug abuse or other personal problems. Participation in these
     programs is voluntary, and assistance is provided on a confidential basis.
     However, participation does not relieve employees of their responsibility
     to comply with the Company's alcohol and drug rules and to meet work
     performance requirements.


                                       18


<PAGE>


                                    EXHIBIT B
                                HEALTH CARE PLAN

                          Active Employees, Spouse and
                               Dependent Children*

THE HEALTH CARE PLAN IS A POINT OF SERVICE PLAN.

The Point of Service Health Care Plan has two components:

     1)   Primary Care Physician Referred Benefits,
     2)   Self-Referred Benefits

Increases in years 2-5 will be shared equally by the company and the union.

ELIGIBILITY:  The first day of the month  following  the  completion  of 30 days
worked.  Those employees who are hired as vacation  replacements are not covered
by this provision.

* Unmarried children are covered from date of birth to the end of the month in
which they reach age 19 or are between ages of 19 and 25, unmarried and
full-time students.


                             PRESCRIPTION DRUG PLAN

THE PRESCRIPTION DRUG WILL BE COVERED UNDER THE POINT OF SERVICE HEALTH CARE
PLAN.

The employee cost of prescription drugs will be $10.00 for brand name, $5.00 for
generic and $1.00 for mail order.

ELIGIBILITY:  All  active  employees,  their  spouse  and  unmarried,  dependent
children up to the age of 19, or age 25 if a full-time student.

WAITING  PERIOD:  The first of the month  following  the  completion  of 30 days
worked.

TERMINATION OF COVERAGE: The last day of work upon termination of employment, or
the end of the month in which and employee retires.

COVERAGE: May be on employee only, employee and spouse, or full family.


                        BERLIN/GORHAM DENTAL CARE PROGRAM

BENEFIT PERCENTAGE: Co-insurance of 80/20.

COVERED DENTAL EXPENSE:

     Basic Service - dental examinations, diagnoses and X-rays

     Preventative Services -    prophylaxis, fluoride treatment, sealants

     Restorative Services -     dental fillings, crowns and gold restoration


                                       19


<PAGE>


     Oral Surgery - extraction and all other oral surgery procedures

     Periodontics - scaling, heavy cleanings

     Dentures and Partials - a separate benefit that allows a maximum payment of
$175.00 for each denture, $200.00 for each partial (no change in the 70/30
co-insurance of July 1, 1984). Any denture replacement is not covered until
after a period of five (5) years.

MAXIMUM BENEFITS: (Plan year from July 1st to July 1st)

Effective July 15, 1997,
      Employee and Spouse          $300.00
      All eligible children        $300.00
Effective July 15, 1998, benefit will be increased to $350.00. Effective July
15, 1999, benefit will be increased to $400.00

EMPLOYEE CONTRIBUTION: None

ELIGIBILITY: All active employees, their spouse and unmarried, dependent
children up to the age of 19, or age 25 if a full time student.

WAITING  PERIOD:  The first of the month  following  the  completion  of 30 days
worked.

TERMINATION OF COVERAGE: The last day of work upon termination of employment, or
the end of the month in which and employee retires.

COVERAGE: May be on employee only, employee and spouse, or full family.


                        MENTAL HEALTH AND SUBSTANCE ABUSE

Please refer to Point of Service health Care Plan Benefit Summary.


                             RETIREE GROUP HOSPITAL
                                AND MEDICAL PLAN

All retirees after July 15, 1997 will be covered under a Point of Service Care
Plan.

The company retains the right to change and modify the retiree health care
plans.

     Retiree and/or dependent spouse who is not eligible for Medicare. Dependent
children -- Same as active employees and dependents at time of retirement except
Major Medical is limited to $25,000.

COST: During the first year of retirement, the cost of medical insurance
premiums for the retired employee is paid by the Company and the retiree pays
25% of the balance for dependent coverage. After one year of retirement retiree
pays 25% of the full cost for himself and dependents. Note: This does not
include those retired employees or their spouses who are covered by Medicare and
Medi-Comp.


                                       20


<PAGE>


     Retiree and/or dependent spouse who is eligible for Medicare-Medi-Comp
Supplemental Plan.

COST: During first year of retirement, Company pays cost of retiree; and retiree
pays dependent cost. After one year of retirement, retiree pays full cost for
himself and spouse.

     Effective July 15, 1986, employees (age 65) who retire before July 1, 1986
shall have their Medicare and Medi-Comp premium reduced by $3.50 per month.

     Effective July 15, 1986, employees (age 65) who retire after July 1, 1986
shall have their Medicare and Medi-Comp premium reduced by $7.80 per month.


                         SICKNESS AND ACCIDENT BENEFITS

ELIGIBILITY:  The first day of the month  following  the  completion  of 30 days
worked.  Those employees who are hired as vacation  replacements are not covered
by this provision.

WAITING PERIOD:
      Accident - First Day
      Sickness - Eighth Day

DURATION: Maximum of 26 weeks per period of disability.

BENEFITS:                  Effective July 15, 1997            $270.00 PER WEEK
                           Effective July 15, 1998            $280.00 PER WEEK
                           Effective July 15, 1999            $290.00 PER WEEK
                           Effective July 15, 2000            $300.00 PER WEEK
                           Effective July 15, 2001            $310.00 PER WEEK


                                 LIFE INSURANCE

                              BASIC PLAN-A. D. & D.

ELIGIBILITY: The first day of the month following the completion of 30 days
worked. Those employees who are hired as vacation replacements are not covered
by this provision.

BENEFITS: $20,000 A. D. & D.
Effective July 15, 1998, the benefit plan will be increased to $21,000.
Effective July 15, 2000, the benefit plan will be increased to $22,000.

COST: Company pays full cost

                                  OPTIONAL PLAN

     Employees have the option of purchasing additional life insurance in the
amount of $11,000 at a cost of $5.50 per month.

     If an employee retires due to disability the optional life will be carried
at no cost to him/her until he/she reaches age 65.


                                       21


<PAGE>



                      TOTAL & PERMANENT DISABILITY BENEFIT

     This benefit is available to employees prior to age 60, who are not able to
continue their employment because of medical reasons. This benefit is available
by converting the Basic Life Insurance to payments of:

     $18.00 for each $1,000 of insurance for 60 months

                          SUPPLEMENTAL PLAN - A.D.& D.

ELIGIBILITY: Same as under the BASIC PLAN noted above.

BENEFITS: Employees may elect coverage from $10,000 to $50,000 in multiples of
$10,000. If an injury results in death or dismemberment within one year of the
accident, the plan will pay a benefit up to the maximum insured.

     Employees can elect to cover their family (spouse and children) or only
their children. A spouse must be under age 70 and cannot be an employee of Crown
Vantage. Children must be between the ages of 14 days and 23 years, fully
dependent on the employee for support and maintenance.

     A spouse is insured for 40% of the principal sum, and children are each
insured for 10% of same. If there are no children, the spouse is insured for
50%.

COST: The employee's weekly contribution per $10,000 coverage is approximately
 .70 on self .80 on children and self, and .100 on family and self.


                             PENSION PLAN 7 SUMMARY

BENEFIT RATE:                               Employee Weekly Premium
                                            -----------------------
      06/25/97-- $25.25                            $5.00
      06/25/98-- $26.00                            $6.13
      06/25/99-- $27.00                            $7.63
      06/25/00-- $27.75                            $8.76
      06/25/01-- $28.75                            $10.26

The company and union will split the cost of the negotiated increases.

NORMAL RETIREMENT: Age -65
     Credited years of service.
     No maximum.

      Age 62 to 64 with 30 years of credited service will receive full
retirement benefits.

EARLY RETIREMENT: Age -55 to 64 with 15 years or more of credited service.
      Actuarial reduction:
      Age 62-65                              .2% per month
      Age 55-62                              .5% per month

DISABILITY RETIREMENT: No age requirement but 15 years or more of credit service
is required. Credited service is accrued to a maximum of thirty-six (36) months
after date last work. Employee must make contribution in accordance with
subsection 3.3 of Pension Plan 7.


                                       22


<PAGE>



     NOTE:  Return to work for less than one week after being on disability will
not constitute a break in continued disability status.

  BENEFIT RATE: Same as above.
     "If an individual is not disabled to the extent that he/she is eligible for
Social Security Benefits, he/she will receive an additional $60 per month until
he/she is eligible for Social Security Benefits."

VESTING: No age requirement.

     A minimum of five (5) years of credited service required. Benefit payable
     beginning any time after age 55 with ten (10) or more years of credited
     service at time of term nation. Benefit payable beginning at age 65 with
     less than ten (10) years of credited service at time of termination.

OPTIONAL FORMS OF BENEFITS:

1. Life Annuity - Payments stop upon retiree's death.

2.   Five Year Certain - Payments are guaranteed for five years from the day of
     retirement. If retiree's death occurs before five years, the balance of the
     payments will be paid to retiree's beneficiary.

3.   Ten Year Certain - Same as five year certain except the guarantee period is
     for ten years.

4.   50% Joint & Survivor - This benefit is guaranteed for both retiree's
     lifetime and retiree's spouse's lifetime. Retiree receives a reduced
     monthly benefit and upon retiree's death, retiree's spouse receives
     one-half of that amount for his/her lifetime. If retiree's spouse should
     die before retiree does, the amount of the retiree's pension benefit
     remains the same.

5.   Widow's Benefit (Minimum of $275.00) With a $275 minimum in effect, an
     employee's early retirement or normal retirement benefit would not be
     reduced unless he/she desires his/her surviving spouse to get more than a
     $275 per month benefit after his/her death. If he/she wishes his/her
     survivor to be eligible for more than the $275, the standard joint &
     survivor option table would be used based on his/her early or normal
     retirement benefit and both of their ages.
          The $275 guarantee will only be covered for a period of 10 years from
     the employee's retirement, and only those employees who have 30 or more
     years of service are eligible for this benefit.
          Anyone taking a 5-or 10-year certain option would not be covered by
     the $275 minimum because the survivor's benefit in these cases is much
     greater.
          The employee's spouse at the time of his/her retirement is the single
     person eligible for a $275 10-year certain benefit

DEATH BENEFIT: Normal Retirees, Early Retirees and Disability Retirees who do
not receive the Total & Permanent Disability Benefit provided for under Group
Life Insurance Program will be eligible for a death benefit equal to $7,000.00
payable to their beneficiary.

SOCIAL SECURITY MAKE-UP PROVISION
     Age: Between 55 and 62
     Service: 30 years or more of credited service. Early retirement benefit
plus a supplemental benefit of up to $500.00 which combined will provide a total
benefit to a maximum of $900.00 per month up to age 62, at which time the
employee's Social Security benefit replaces the supplemental benefit.


                                       23


<PAGE>



                                                     EXHIBIT C
                                                   RATES OF PAY

                                                                   INCREASE
       JOB CLASSIFICATION                      1997 RATE           INTERVAL
       ------------------                      ---- ----           --------
           Classification II             $325.61 -    $349.08      2 Years
Custodian

           Classification III            $352.46 -    $380.02      2 Years
Switchboard/Receptionist
Mail Clerk
Lead Custodian

           Classification IV             $383.77 -    $414.11      2 Years
Accounts Payable Clerk B
Accounts Payable Clerk C

           Classification V              $417.42 -    $447.33      2 Years
Electrical Coordinator (Casc)

           Classification VI             $451.08      $481.00      3 Years
Maintenance Scheduler (Burg)
Financial Services Floater
Distribution Planner
Billing Clerk
Asst. Dist. Planner/Billing Clerk
Woods Cost Clerk
Electrical Coordinator (Burg)
Accounts Payable Clerk A

          Classification VII             $484.73      $520.28      3 Years
Inventory Clerk
Equipment & Parts Clerk
Raw Materials Clerk -
Statistical Accountant -
Time Data Leader

    Classification VIII                  $524.75      $559.55      3 Years
Maintenance Scheduler (Casc)
Inventory Control Clerk
Paper Machine Trimmer
Traffic Services Rep
Senior Accounting Clerk (M.O.)

          Classification IX              $563.30      $599.78      3 Years
Cap. Fixed Property Accountant
Senior Accounting Clerk (Casc)

* At the conclusion of the "Increase Interval" as set forth in the last column,
the employee's rate will be adjusted from "Learner's Rate" to "Experienced
Rate."


                                       24


<PAGE>


IN WITNESS WHEREOF, the Company and the Union have executed this Agreement the
day and year first written above

OFFICE AND PROFESSIONAL
EMPLOYEES INTERNATIONAL UNION     CROWN VANTAGE
LOCAL NUMBER 6 (AFL-CIO)          BERLIN/GORHAM GROUP


/s/ Richard Breton                /s/ David A. Nelson
---------------------------       -----------------------------
RICHARD BRETON                    DAVID A. NELSON
President                         Senior Vice President



/s/ Joseph Croteau                /s/ William Lockard
---------------------------       -----------------------------
JOSEPH CROTEAU                    WILLIAM LOCKARD
Vice President                    Director Human Resources


/s/ Charles McDermott             /s/ Gregory F. Nolan
---------------------------       -----------------------------
CHARLES McDERMOTT                 GREGORY F. NOLAN
International Representative      Manager, Labor Relations


                                  /s/ Normand Fortier
                                  -----------------------------
                                  NORMAND FORTIER
                                  Financial Services and Systems Manager




                                       26