EXHIBIT 10.8


                                 AGREEMENT



                                  between



                        EL DORADO CHEMICAL COMPANY

                                    and

           OIL, CHEMICAL AND ATOMIC WORKERS INTERNATIONAL UNION
                            AND ITS LOCAL 5-434



                         Effective: August 5, 1995





                        EL DORADO CHEMICAL COMPANY
                            El Dorado, Arkansas                             
                             TABLE OF CONTENTS


PREAMBLE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1

ARTICLE I      TERM OF AGREEMENT . . . . . . . . . . . . . . . . . . . .  1

ARTICLE II          MANAGEMENT RIGHTS CLAUSE . . . . . . . . . . . . . .  1

ARTICLE III         RIGHT TO ARBITRATE . . . . . . . . . . . . . . . . .  2

ARTICLE IV          GRIEVANCE PROCEDURE AND ARBITRATION. . . . . . . . .  2

               Section 1 . . . . . . . . . . . . . . . . . . . . . . . .  2
               Section 2 . . . . . . . . . . . . . . . . . . . . . . . .  4
               Section 3 . . . . . . . . . . . . . . . . . . . . . . . .  4

ARTICLE V      CLASSIFICATION CHANGES. . . . . . . . . . . . . . . . . .  4

               Section 1 . . . . . . . . . . . . . . . . . . . . . . . .  4
               Section 2 . . . . . . . . . . . . . . . . . . . . . . . .  4
               Section 3 . . . . . . . . . . . . . . . . . . . . . . . .  5
               Section 4 . . . . . . . . . . . . . . . . . . . . . . . .  5
               Section 5 . . . . . . . . . . . . . . . . . . . . . . . .  6

ARTICLE VI          HOURS OF WORK. . . . . . . . . . . . . . . . . . . .  6

               Section 1 . . . . . . . . . . . . . . . . . . . . . . . .  6
               Section 2 . . . . . . . . . . . . . . . . . . . . . . . .  6
               Section 3 . . . . . . . . . . . . . . . . . . . . . . . .  6
               Section 4 . . . . . . . . . . . . . . . . . . . . . . . .  7
               Section 5 . . . . . . . . . . . . . . . . . . . . . . . .  7

ARTICLE VII    CALL-OUT OVERTIME AND LOCAL NOTIFICATION. . . . . . . . .  7

               Section 1 . . . . . . . . . . . . . . . . . . . . . . . .  7
               Section 2 . . . . . . . . . . . . . . . . . . . . . . . .  8
               Section 3 . . . . . . . . . . . . . . . . . . . . . . . .  8
               Section 4 . . . . . . . . . . . . . . . . . . . . . . . .  9

ARTICLE VIII   SHIFT MEN - DAY MEN . . . . . . . . . . . . . . . . . . .  9

ARTICLE IX          HOLIDAY DAY. . . . . . . . . . . . . . . . . . . . .  9

ARTICLE X      VACATIONS . . . . . . . . . . . . . . . . . . . . . . . . 10

               Section 1 . . . . . . . . . . . . . . . . . . . . . . . . 10
               Section 2 . . . . . . . . . . . . . . . . . . . . . . . . 10
               Section 3 . . . . . . . . . . . . . . . . . . . . . . . . 11
               Section 4 . . . . . . . . . . . . . . . . . . . . . . . . 11
               Section 5 . . . . . . . . . . . . . . . . . . . . . . . . 11
               Section 6 . . . . . . . . . . . . . . . . . . . . . . . . 12
               Section 7 . . . . . . . . . . . . . . . . . . . . . . . . 12

ARTICLE XI          SENIORITY. . . . . . . . . . . . . . . . . . . . . . 12

               Section 1 Eligibility for Seniority . . . . . . . . . . . 12
               Section 2 Seniority Credits . . . . . . . . . . . . . . . 13
               Section 3 Progression Chart . . . . . . . . . . . . . . . 13
               Section 4 Bargaining Unit and Area Seniority. . . . . . . 13
               Section 5 Vacancies of More than Ninety (90) Days . . . . 14
               Section 6 Vacancy Posting and Bidding Procedure . . . . . 14
               Section 7 Filling Vacancies of Ninety (90) Days or Less . 15
               Section 8 Classifications and Shifts. . . . . . . . . . . 18
               Section 9 Reduction in Forces . . . . . . . . . . . . . . 19
               Section 10     Status of Employees Laid Off . . . . . . . 20
               Section 11     Seniority Lists. . . . . . . . . . . . . . 21
               Section 12     Seniority - Outside Assignments. . . . . . 21
               Section 13     Layoffs and Reemployment . . . . . . . . . 21
               Section 14     New Operations and Existing Operations . . 22
               Section 15     Promotional Requirements . . . . . . . . . 22

ARTICLE XII    PHYSICAL EXAMINATIONS . . . . . . . . . . . . . . . . . . 22

               Section 1 Periodical Examinations . . . . . . . . . . . . 22
               Section 2 . . . . . . . . . . . . . . . . . . . . . . . . 22
               Section 3 . . . . . . . . . . . . . . . . . . . . . . . . 22

ARTICLE XIII   AUTHORIZED DEDUCTIONS . . . . . . . . . . . . . . . . . . 23

               Section 1 Union Dues. . . . . . . . . . . . . . . . . . . 23
               Section 2 Political Contributions . . . . . . . . . . . . 23

ARTICLE XIV    DISCHARGE . . . . . . . . . . . . . . . . . . . . . . . . 24

               Section 1 . . . . . . . . . . . . . . . . . . . . . . . . 24
               Section 2 . . . . . . . . . . . . . . . . . . . . . . . . 24
               Section 3 . . . . . . . . . . . . . . . . . . . . . . . . 24

ARTICLE XV     MILITARY LEAVE. . . . . . . . . . . . . . . . . . . . . . 24

               Section 1 Leave of Absence. . . . . . . . . . . . . . . . 24
               Section 2 . . . . . . . . . . . . . . . . . . . . . . . . 24

ARTICLE XVI    BULLETIN BOARDS . . . . . . . . . . . . . . . . . . . . . 24

ARTICLE XVII   SAFETY & HEALTH . . . . . . . . . . . . . . . . . . . . . 25

               Section 1 . . . . . . . . . . . . . . . . . . . . . . . . 25
               Section 2 . . . . . . . . . . . . . . . . . . . . . . . . 25
               Section 3 . . . . . . . . . . . . . . . . . . . . . . . . 25
               Section 4 . . . . . . . . . . . . . . . . . . . . . . . . 25
               Section 5 . . . . . . . . . . . . . . . . . . . . . . . . 26
               Section 6 . . . . . . . . . . . . . . . . . . . . . . . . 26
               Section 7 . . . . . . . . . . . . . . . . . . . . . . . . 26
               Section 8 . . . . . . . . . . . . . . . . . . . . . . . . 26
               Section 9 . . . . . . . . . . . . . . . . . . . . . . . . 26
               Section 10. . . . . . . . . . . . . . . . . . . . . . . . 27

ARTICLE XVIII  WORKMEN'S COMMITTEE CONFERENCES . . . . . . . . . . . . . 27

ARTICLE XIX    SEVERANCE PAY . . . . . . . . . . . . . . . . . . . . . . 27

ARTICLE XX     CONTRACT WORK . . . . . . . . . . . . . . . . . . . . . . 28

ARTICLE XXI    DISCRIMINATION. . . . . . . . . . . . . . . . . . . . . . 28

ARTICLE XXII   LEAVE OF ABSENCE. . . . . . . . . . . . . . . . . . . . . 28

               Section 1 Personal Business . . . . . . . . . . . . . . . 28
               Section 2 Union Business. . . . . . . . . . . . . . . . . 28
               Section 3 Sickness or Accident. . . . . . . . . . . . . . 29

ARTICLE XXIII  JURY DUTY . . . . . . . . . . . . . . . . . . . . . . . . 30

ARTICLE XXIV   WAGE RATES AND CLASSIFICATIONS. . . . . . . . . . . . . . 30

ARTICLE XXV    VALIDITY. . . . . . . . . . . . . . . . . . . . . . . . . 30

ARTICLE XXVI   NOTICES . . . . . . . . . . . . . . . . . . . . . . . . . 31

ARTICLE XXVII  FUNERAL LEAVE . . . . . . . . . . . . . . . . . . . . . . 31

ARTICLE XXVIII SICKNESS BENEFITS . . . . . . . . . . . . . . . . . . . . 32

               Group Insurance and Pension . . . . . . . . . . . . . . . 32

ARTICLE XXIX   NO LOCKOUT - NO STRIKE. . . . . . . . . . . . . . . . . . 32

ARTICLE XXX    RETIREMENT AGE. . . . . . . . . . . . . . . . . . . . . . 32

EXHIBIT "A"    OPERATING DEPARTMENT PROGRESSION CHART. . . . . . . . . . 34

EXHIBIT "B"    WAGE RATES AND CLASSIFICATIONS. . . . . . . . . . . . . . 34

               SHIFT DIFFERENTIAL. . . . . . . . . . . . . . . . . . . . 35

               CLOTHING ALLOWANCE. . . . . . . . . . . . . . . . . . . . 35

               EMERGENCY SQUAD PREMIUM . . . . . . . . . . . . . . . . . 35

EXHIBIT "C-2"  5-2 SHIFT SCHEDULE. . . . . . . . . . . . . . . . . . . . 36

EXHIBIT "C-3"  UNIFORM SHIFT SCHEDULE. . . . . . . . . . . . . . . . . . 36

EXHIBIT "D"    CONSOLIDATION POLICY. . . . . . . . . . . . . . . . . . . 37

LETTER OF UNDERSTANDING. . . . . . . . . . . . . . . . . . . . . . . . . 40

EXTRA CREW LETTER OF UNDERSTANDING . . . . . . . . . . . . . . . . . . . 42

AMERICANS WITH DISABILITIES ACT LETTER OF UNDERSTANDING. . . . . . . . . 44

TWELVE HOUR SHIFT LETTER OF UNDERSTANDING. . . . . . . . . . . . . . . . 45

                                 PREAMBLE

     Articles of Agreement between EL DORADO CHEMICAL COMPANY (hereinafter
referred to as "Company") and OIL, CHEMICAL, AND ATOMIC WORKERS INTERNATIONAL
UNION AND ITS LOCAL 5-434 (hereinafter referred to as "Union"), whom the
Company recognizes as the exclusive bargaining agency for all production,
chemical, and operating employees included in the bargaining unit at its
chemical plant located North of El Dorado, Arkansas, for the purposes of pay,
wages, and other conditions of employment.  There is excepted from the bar-
gaining unit described all Maintenance employees not otherwise described
within the Preamble, guards, shipping attendants, janitors and common labor-
ers, office and clerical employees, non-working Foremen, and all supervisory
employees.

                                 ARTICLE I
                             TERM OF AGREEMENT

     This Agreement shall remain in full force and effect for a period
beginning at 12:01 a.m. August 5, 1995, and ending at 12:00 Midnight, July 31,
1998.  At reasonable times after June 1, 1998, the parties will meet for the
purpose of negotiating a new contract to be effective for the period commenc-
ing after 12:00 Midnight, July 31, 1998.

                                ARTICLE II
                         MANAGEMENT RIGHTS CLAUSE

     The Union expressly recognizes that the Company has the exclusive
responsibility for and authority over (whether or not the same was exercised
heretofore) the management, operation and maintenance of its facilities and,
in furtherance thereof, has, subject to the terms of this Agreement, the right
to determine policy affecting the selection, hiring, and training of employ-
ees; to direct the work force and to schedule work; to institute and enforce
reasonable rules of conduct, to assure discipline, and efficient operation; to
determine what work is to be done, what is to be produced and by what means;
to determine the quality and quantity of workmanship; to determine the size
and composition of the work force; to determine the allocation and assignment
of work to employees; to determine the location of business, including the
establishment of new locations or departments, divisions, or subdivisions
thereof; to arrange for work to be done by other companies or other divisions
of the Company; to alter, combine, or eliminate any classification, operation,
service or department; to sell, merge, or discontinue the business or any
phase thereof; provided, however, in the exercise of these prerogatives, none
of the specific provisions of the Agreement shall be abridged.

     The Company will not use the vehicle of subcontracting for the sole
purpose of laying off employees or reducing the number of hours available to
them.

                                ARTICLE III
                            RIGHT TO ARBITRATE

     All grievances and disputes as to classifications, hours of work, and
other working conditions, arising between the Company and the employees shall
be governed in manner of settlement by the terms of this Agreement.  Whenever
any grievance or dispute arises which cannot be otherwise adjusted, the
parties hereto agree that the same shall be decided in the manner provided for
in Article IV.  Only a matter concerning the interpretation or application of
a provision of this Agreement shall be the subject of arbitration.

                                ARTICLE IV
                    GRIEVANCE PROCEDURE AND ARBITRATION

Section 1.

     Grievances shall be limited to matters concerning the provisions of the
Agreement.  A "grievance," as that term is used in this contract, means a
claim by an employee, or the Union, that a term of this contract has been
violated.  All time limits in the first, second, third, and fourth steps
listed below shall be to "working days" which shall be interpreted to include
only Monday through Friday, but shall not include holidays.  Time limits
specified herein may be extended by mutual written agreement of the parties in
unusual cases.

                                First Step

     The aggrieved employee, and/or his Steward, shall verbally discuss the
grievance with his foreman and/or supervisor.  If the foreman and/or
supervisor's verbal reply is not satisfactory, the employee and/or his Steward
shall submit the grievance in writing to his foreman or supervisor.  No
grievance shall be considered unless it is filed within fifteen (15) days
after the occurrence of the event complained of.  The supervisor to whom the
grievance is submitted in writing shall provide his written reply within
fifteen (15) days after receipt of the grievance.

     Within five (5) days after the receipt of the written decision of the
supervisor, the Steward shall notify the supervisor as to whether his decision
is satisfactory.

                                Second Step

     If the written decision of the supervisor is not satisfactory, the Chief
Steward shall submit the grievance in writing, within ten (10) days, to the
head of the department in which the grievance arose.  He shall give his reply
in writing within fifteen (15) days after receipt of the grievance.

     Within five (5) days after the receipt of the written decision of the
department head, the Chief Steward shall notify the department head as to
whether the decision is satisfactory.

                                Third Step

     If the decision of the appropriate department head is not satisfactory,
it shall be submitted in writing, within ten (10) days, to the Plant Manager,
who shall then have ten (10) days after receipt of the grievance in which to
render his decision.

     Within ten (10) days after receipt of the written decision of the Plant
Manager, the Workmen's Committee shall notify the Plant Manager, in writing,
as to whether his decision is satisfactory.

                                Fourth Step

     If the procedure is not adjusted satisfactorily through the procedure
hereinbefore mentioned, the matter may be referred to an arbitrator.  If the
Union desires to submit such grievance to an impartial arbitrator (providing
the grievance is one which does not involve matters on which arbitration is
specifically prohibited under the terms of this Agreement, and which the
Company and the Union have mutually agreed to submit to arbitration) it must
notify the other party of that fact, in writing, within thirty (30) days after
the date the Plant Manager, or other duly authorized representative, advised
the Workmen's Committee of his decision.

     The Union and the Company shall make written application to the Federal
Mediation and Conciliation Service requesting a seven-name arbitrator panel
from which the parties shall select an arbitrator.  The parties shall alter-
nately each strike three names, one at a time.  After striking, the remaining
name shall act as Arbitrator.  It is understood that, starting with the first
arbitration case following the date of the execution of this Agreement, the
Union shall strike the first name.  In the next case, the first name stricken
will be by the Company and, alternately, the Union and the Company thereafter. 
Both the Company and the Union shall have the right to reject two panels
submitted by the Federal Mediation and Conciliation Service.

     When the Arbitrator has been selected, he shall meet for the consider-
ation of the grievance as soon thereafter as is practical.  Any such meeting
of an Arbitrator shall be held in El Dorado, Arkansas, unless the parties
unanimously decide otherwise.

     Any such Arbitrator shall decide only the grievance submitted to him
upon testimony presented to him by the Union and the Company, and shall render
his decision in writing.

     Except as otherwise specifically provided in this Agreement, the Arbi-
trator shall have no power to change the wages, hours, or conditions of
employment set forth in this Agreement; he shall have no power to add to,
subtract from, or modify any of the terms of this Agreement; he shall deal
only with the grievance which occasioned his appointment.  He will require
that the Union has the burden of establishing its position on behalf of the
employee, except in a discipline and/or discharge case when the burden will be
on management.

     The parties hereto shall comply fully with the award or decision made by
any such Arbitrator, and the decision of the Arbitrator will be final and
binding on both parties.

     The expense of the Arbitrator shall be paid equally by the Company and
the Union.

Section 2.

     No provision of this Article IV, or of any other Article of this Agree-
ment, shall deprive any employee covered by the terms of this Agreement of any
rights to which he may be entitled under Section 9(a) of the Labor Management
Relations Act of 1947, or any other Statute of the United States.

Section 3.

     In the event a grievance arises over a discharge or layoff, the first
and second steps of the grievance procedure may be bypassed.

                                 ARTICLE V
                          CLASSIFICATION CHANGES

Section 1.

     An employee who is temporarily required to perform (for more than one
(1) hour) work of a classification which has a higher rate of pay than the
rate of pay for the classification to which the employee is regularly as-
signed, shall be paid at the rate of the higher classification in which he is
working so long as, and only as long as, he is required continuously to
perform work of the higher classification.  The payment of the higher rate for
one (1) hour or more will be retroactive to the start of the time when that
employee began to work in the higher classification.

Section 2.

     Subject to the provision of Article XI, Section 10, when an employee is
transferred to a classification paying a smaller wage rate than the classifi-
cation from which he was transferred, he shall receive the rate of pay of the
new classification at the end of ninety (90) calendar days.

     If an employee is shifted to any classification paying a smaller wage
rate than his regularly assigned classification due to the temporary shutdown
of equipment, no reduction in rate shall be made during the first ninety (90)
calendar days.

     If an employee is transferred to a lower classification due to the
exercise of seniority provisions of this Agreement, he shall receive the rate
of his new classification on the date of transfer.

Section 3.

     An employee who is to be laid off, due to reduction in the work force
shall be given two (2) weeks' notice of the date of the layoff.  In the
absence of such notice, the employee shall be given two (2) weeks' pay at his
rate at the time of his layoff.  It is provided, however, if an employee is
temporarily laid off and is reemployed within less than two (2) weeks of the
date on which he was temporarily laid off, he shall be paid only a sum equal
to the number of hours he would have worked during the period of the layoff on
his regular schedule, multiplied by the hourly wage rate which he was earning
at the time he was laid off.

     Neither notice nor pay in lieu of notice referred to in this Section 3
shall be required with respect to a temporary layoff which is due to a reduc-
tion in forces caused by fire, storm, explosion, Act of God, production
emergency due to manpower shortage, or by a strike of any employees of the
Company at the Chemical Plant (which employees are in another bargaining
unit), or by a strike of any employees of any other employer.

Section 4.

     All work peculiar to any classification shall normally be done by
employees regularly assigned to that classification except in cases of emer-
gency.  An employee called out or assigned to fill that vacancy will be
considered regularly assigned to that classification.  However, operating
personnel in operating areas may perform any other duties and routine process
control analyses related to the operation of the Unit.  No arbitrary changes
in present classifications or duties thereof will be made with the purpose or
result of reducing the pay of any classification.  Any man who has available
time over and above his normal duties shall assist other employees in his
area.

     When an employee's area duties are down and there is to be no work for
him at all on his shift, he may be assigned to:

     1.   Fill other operating vacancies within his area.

     2.   Assist in maintenance efforts anywhere in the plant.

     3.   Perform yard maintenance work anywhere in the plant.

     4.   Perform minor maintenance in his unit.

     5.   Perform any other duties as directed by his supervisor so long as
          it does not require the performance of an immoral or unsafe act.

     (Under this condition, an employee may be notified to change shifts and,
if so notified sixteen (16) hours or more in advance of the beginning of his
new shift, will not be entitled to pay in lieu of short notice under Article
VII of the current agreement.)

     When an employee's assignment is down only part of the shift, he may be
assigned to:

     1.   Assist in maintenance efforts in his unit.

     2.   Perform yard maintenance work in his unit.

     3.   Perform minor maintenance in his unit.

     4.   Perform any other duties as directed by his supervisor so long as
          it does not require the performance of an immoral or unsafe act.

     An Operating Department employee shall perform minor maintenance func-
tions while his unit is operating if he has time available over and above his
primary operating duties.

Section 5.

     Except in cases of emergency and for training purposes, no foreman,
supervisor, or employee not covered by this Agreement shall do any work
peculiar to any classification covered by the bargaining unit.  However,
Maintenance employees may from time to time perform minor operating functions
when accompanied by operating personnel.  The Company shall use technical
employees from time to time to make tests and inspections requiring engineer-
ing skill.

                                ARTICLE VI
                               HOURS OF WORK

Section 1.

     The regular hours for work shall be eight (8) hours per day and forty
(40) hours per work week.  One and one-half (1-1/2) times the applicable
hourly rate will be paid for all work in excess of eight (8) hours in any one
day, in excess of eight (8) hours in succession, or forty (40) hours in any
one week.

Section 2.

     The work week shall begin at 11:00 p.m. on Sunday and end at 11:00 p.m.
the following Sunday.  The work day shall begin at 11:00 p.m. and end at 11:00
p.m.

Section 3.

     The work schedule and shift schedules which are presently in effect and
which are made a part of this contract as Exhibit "C" shall remain in full
force and effect for the terms of this Agreement.  Regular hours of work for
laboratory personnel shall be 8:00 a.m. to 4:30 p.m.

     Hours of work may be changed to 7:00 a.m. to 3:00 p.m. as dictated by
the needs of the production or production accounting departments and will not
be considered a change in shift.  Laboratory personnel may be assigned to work
other shifts periodically as necessary to meet the needs of the production
department.

Section 4.

     The payment of additional compensation for any hours worked in excess of
eight (8) hours in any one day, or forty (40) hours in any one work week,
shall be in satisfaction of the obligation of the Company under this Agree-
ment.  There shall be no duplicate payment for daily overtime and weekly
overtime.  If daily overtime is greater in any one work week, only daily
overtime shall be paid, or if weekly overtime is greater in any one work week,
only weekly overtime shall be paid.

Section 5.

     Notwithstanding any other provision of this Agreement to the contrary,
no employee, except in case of emergency, shall be allowed or required to work
more than sixteen (16) consecutive hours.

                                ARTICLE VII
                 CALL-OUT OVERTIME AND LOCAL NOTIFICATION

     Overtime shall initially be distributed, as equitably as practicable, to
employees regularly assigned within the area where the overtime is required. 
The Company may then offer such work to employees in other areas who are
qualified.

Section 1.

     Work that is required beyond the end of the shift (or end of the day)
that is expected to be four (4) hours or less in duration will be performed by
a holdover, whereby the overtime will be offered to the employees on duty who
are qualified for the work in the order that their names appear on the respec-
tive area call-out list.  If the work will exceed four (4) hours, Company
shall have the option of holding an employee over four (4) hours and calling a
qualified oncoming employee in four (4) hours early to complete the overtime,
or calling an employee out from the appropriate call-out list.

     An employee held over for as much as one (1) hour in a case in which his
relief is not late, shall be paid a minimum of four (4) hours at straight time
at his regular rate even though the full four (4) hours may not be worked. 
However, in the case of a holdover due to a Company meeting, individuals will
be paid time and one-half (1-1/2) for hours worked.

     An employee called for work outside his regular schedule shall be paid a
minimum of four (4) hours at time and one-half (1-1/2) his regular rate even
though the full four (4) hours may not be worked or he does not work at all.

     An employee called out for work outside his regular hours will not be
deprived of completing his daily schedule of hours on account of the extra
hours worked on such call-out.  An employee called out for work who works
continuously until the beginning of his regular hours of work and continues to
work the regular hours of his scheduled work shall not be considered to have
had a change in shift within the meaning of Section 3 of this Article VII. 
Notwithstanding the fact that an employee has been called out for work, such
employee shall be required to perform his regular work schedule during the
remainder of the work week in which such call-out occurs unless excused by the
Company.

     In the event overtime distribution and/or call-out procedures do not
provide the Company with sufficient qualified personnel to perform the over-
time work, the Company shall have the right to assign qualified personnel, or
at its option, assign the work to a salaried employee.

Section 2.

     If an employee reports to work on time as scheduled, he shall be given
the opportunity of working a full 8-hour shift.  If an employee reports to
work late for a scheduled work day and arrangements have been made to have an
employee work overtime in his place, the Company shall allow the employee who
reported to work late to work the remainder of his regular schedule, and the
employee who is working overtime due to such employee being late will be
relieved of duty.

Section 3.

     No employee shall lose any time from his normally scheduled 40-hour week
occasioned by any shift change.  However, any employee who is working extra to
complete his forty (40) hours per week may be used for filling vacancies in
his area in accordance with his seniority.  The Company further agrees that
each employee shall receive twenty-four (24) hours' notice prior to any change
in his shift, or in lieu thereof, the employee shall receive time and one-half
(1-1/2) for the first shift worked; however, no such extra pay shall be paid
when an employee's shift is changed incident to his promotion to a higher
vacancy or when he is returned to his regular assignment from an advancement. 
However, if an employee's assignment is temporarily shut down and, as a
result, there is no work for him on his regular assignment, he may be so
notified and reassigned to fill other operating vacancies on another shift or
to work with Maintenance on another shift.  If the employee is so notified
sixteen (16) hours or more in advance of the beginning of his new shift, he
will not be entitled to pay in lieu of short notice for shift change.

     If an Operator Trainee (in order to complete his forty (40) hours per
week) must work outside the regularly scheduled hours of a day employee, he
will be assigned to work extra and may be used as a relief man for filling
vacancies in the operating area in which he last worked in accordance with his
seniority.

Section 4.

     If an employee is instructed to work and does work continuously for as
much as two (2) hours before or beyond his regular shift or schedule, he shall
be paid a sum equivalent to thirty (30) minutes at straight-time pay in lieu
of meal time.

                               ARTICLE VIII
                            SHIFT MEN - DAY MEN

     The term "shift employee" as used herein shall be deemed to mean one who
is employed for specific periods in the course of continuous operations
regularly carried on during two (2) or more shifts per day, five (5) or more
days a week; each other employee is a "day employee."

                                ARTICLE IX
                                HOLIDAY DAY

     Each of the following days is a holiday:

                              New Year's Day
                                Good Friday
                               Memorial Day
                                July Fourth
                                 Labor Day
                               Columbus Day
                             Thanksgiving Day
                          Day after Thanksgiving
                               Christmas Eve
                               Christmas Day

     Each of the above-mentioned holidays shall be deemed to begin at 11:00
p.m. on the day immediately preceding the holiday and end at 11:00 p.m. on the
holiday, except when the holiday falls on Sunday, in which case those employ-
ees who are working a 6-day week will observe the holiday on the following
Monday.

     Each employee who works on a holiday will be paid eight (8) hours'
holiday pay at his straight time rate and, in addition, will be paid one and
one-half (1-1/2) times his straight time rate for each hour worked on the
holiday.

     Each employee covered by this Agreement who does not work on a particu-
lar holiday shall be paid, with respect to that holiday, a sum equal to his
regular straight time for eight (8) hours worked, provided that no such
payment shall be made to an employee, with respect to a holiday, if such
employee (a) is scheduled to work on that holiday and, without permission of
the Company, fails to report for work; or (b) is on leave of absence; or (c)
is on layoff; or (d) is on sick leave and has not worked or does not work at
any time during the 2-week pay period in which the holiday occurs.

     Holiday Pay -- Employee will be off on a holiday if so notified that his
services are not needed.  Employees who fail to receive proper notification
will receive time and one-half (1-1/2) for the first shift worked after the
said holiday.  Proper notification will be twenty-four (24) hours.  Such
notification shall not be required in the event of unit or equipment mechani-
cal failure, fire, storm, explosion, or Act of God.

     Employees will have the option, by seniority, to elect to work or leave
if less than all can be excused.

     Day Employees -- assigned to the Operating areas -- who normally work
Monday through Friday, shall observe a holiday falling on Saturday the preced-
ing Friday, and a holiday falling on Sunday the following Monday, and not
report for work unless notified.  However, the Christmas Eve holiday shall be
observed on the last scheduled work day prior to Christmas Day holiday.

                                 ARTICLE X
                                 VACATIONS

Section 1.

     Normal vacation accruals will be computed in accordance with the follow-
ing provisions:

     (a)  Two weeks (80 hours) after having accrued one (1) year's Company
          seniority.

     (b)  Three weeks (120 hours) during the calendar year after having
          accrued six (6) or more years' Company seniority.

     In computing length of service for vacations, time spent working at the
El Dorado Plant will be used.

Section 2.

     Those employees who had previously accrued or who will accrue, during
the term of this Agreement, twelve (12) years or more Company seniority shall
be entitled to a vacation accrual of four weeks (160 hours).  Thereafter, and
for all other employees, the maximum vacation accrual shall be as provided in
Section 1.

Section 3.

     Each employee must take his vacation during the calendar year in which
it falls due.  However, when an employee is absent from work due to authorized
occupational injury or illness or personal sick leave and has not returned to
work by December 31, he may, at the Company's option, be permitted to take his
vacation or receive vacation pay between January 1 and April 1 of the follow-
ing year.  An employee may elect to split his vacation in 40-hour periods, or
he may take all his vacation in one period.  However, an employee that works
the Uniform shift schedule (Exhibit "C-3") may elect to schedule his vacation
in either 40-hour periods or 56-hour periods, or a combination of the two. 
Any remaining vacation of less than forty (40) hours must be scheduled in a
single period.

Section 4.

     Vacation schedules must be prepared and submitted to the department head
by March 1, if possible.   Scheduling of vacations will begin immediately
after November 1 each year and no employee shall be allowed more than forty-
eight (48) hours after being contacted by his Foreman or supervisor in which
to select his vacation date.  Vacation preferences will be determined within
an area by bargaining unit seniority.  Employees who have not indicated their
preference of vacation dates at the end of this 48-hour period will be as-
signed vacation dates by their supervisors.  No employee may change his
vacation dates after the schedule has been prepared except with his
supervisor's permission.  Vacations taken before March 1 will be on a first
come basis.

     An employee will not be eligible for overtime or call-out after 11:00
p.m. of his last scheduled work day prior to the start of his vacation and
until his first scheduled shift to return to work following completion of his
vacation.

     If any employee is not permitted to take his vacation in the calendar
year in which it is due because the Company finds it not convenient to excuse
him from work, such employee shall be paid a sum equal to the sum to which he
would have been entitled if he had taken his vacation within the period of
time immediately preceding the end of the year which period is equal to his
vacation period.  No more than five (5) employees from the Operating Depart-
ment and one (1) Laboratory may be on vacation at one time.

Section 5.

     If an employee so requests at least five (5) days prior to the beginning
vacation, the Company shall, prior to his beginning vacation, pay him in
advance for all vacation being taken, in 5-day increments only.

Section 6.

     An employee who (a) resigns, (b) retires, (c) is laid off as part of a
reduction in forces, (d) is discharged for cause, or (e) is granted a military
leave under the provisions of Article XV, at a time when he has earned vaca-
tion to that date but has not taken or previously received pay in lieu of,
shall be paid in lieu of any vacation he has earned to that date but has not
taken nor previously received pay in lieu of.

     Computation of vacation under this section will be earned at the rate of
one-twelfth (1/12th) for each month from employee's anniversary date.  Sixteen
(16) or more calendar days of employment in any calendar month will be consid-
ered a full month in computing vacation accruals.

Section 7.

     Vacation pay shall be based upon the straight time rate of an employee's
regular classification at the beginning of the vacation and will be taken in
accordance with his established work schedule.  If a holiday, as defined in
Article IX, occurs during an employee's vacation period, the employee will
receive pay for said holiday as defined in Article IX.

     In the event of the death of an employee who (as of the last day on
which that employee worked) had earned but not taken a vacation, a sum of
money, in lieu of such vacation, computed on the basis herein stated, shall be
paid to the executor or administrator, to the surviving spouse of that employ-
ee or, if there is no such representative or surviving spouse, to the next of
kin of such employee.

                                ARTICLE XI
                                 SENIORITY

     Subject to Article XI, Section 15, seniority shall be adhered to in
vacancies within an area, shifts, and layoffs as outlined below in this
Article XI, other than discharge for cause.  It is understood the Company
shall have the right to retain sufficient numbers of qualified personnel in
such event and may assign personnel to particular shifts when required tempo-
rarily for training.

Section 1.  Eligibility for Seniority.

     An employee shall be first entitled to seniority when he has been
continuously employed for 180 days within the bargaining unit, his seniority
dating from the date of the beginning of such employment.

     The Company shall have the right to layoff or discharge, without cause,
any employee who has not worked in the bargaining unit a sufficient length of
time to be entitled to seniority, and such action on the part of the Company
shall not be the subject of a grievance on the part of the Union or the
employee involved under any provision of this Agreement.

Section 2.  Seniority Credits.

     In applying the seniority provisions of this Agreement, each employee
shall be credited with the seniority, if any, to which he is entitled as shown
on the records of the Company at the time of execution of this Agreement.

Section 3.  Progression Chart.

     Attached hereto as Exhibit "A" and made a part hereof is a Progression
Chart showing all classifications in the various areas of the Operating
Department.  Only those employees covered by the terms of this Agreement and
included in the bargaining unit shall be entitled to exercise their seniority
in their respective areas.

Section 4.  Bargaining Unit and Area Seniority.

     (a)  Subject to the provisions of Section 1 of this Article XI,
bargaining unit seniority shall be cumulative and shall be continuous from the
date on which the employee enters the bargaining unit as shown on Exhibit "A"
attached hereto.

     (b)  Subject to the provisions of Section 1 of this Article, area
seniority shall be cumulative and shall be continuous from the date on which
the employee enters any particular area by bidding or by assignment to a
vacancy of more than ninety (90) days.  In the event that two (2) or more
employees have the same area seniority date, area seniority will be determined
by bargaining unit seniority.

     (c)  In the event an employee is permanently assigned to an area by
reasons of (i) shutdown, (ii) reduction in force in an area, (iii) the return
of an employee to that area after an absence in excess of ninety (90) days, or
(iv) the application of Section 9 of this Article, he shall continue to be
considered a part of the area from which he was so transferred until he has
failed to accept a vacancy in the area from which he was so transferred.

     The last employee to enter an area shall be the first employee reduced
from an area upon the termination of an authorized leave in the area.  All
other reductions from the area will be made by area seniority.

     (d)  If an employee in any area elects to bid to another area of the
Operating Department and is the successful bidder, upon his transfer, he shall
then lose his accrued seniority in the area from which he bid.  Should he fail
to qualify in the area to which he transferred, he will be transferred to
Operator Trainee position and will lose any seniority he has accrued in the
area where he failed to qualify.

Section 5.  Vacancies of More Than Ninety (90) Days.

     (1)  Pursuant to Section 15 of this Article, when a vacancy of more
than ninety (90) days occurs in any area, the vacancy will be filled by the
bidding procedure.

     (2)  Pursuant to Section 7(1)(a) of this Article, if there are employ-
ees not in the area who have retained seniority in the area in which the
vacancy occurs, the employee with the most retained seniority shall be as-
signed without bidding, to the vacancy or forfeit his seniority in the area.

     (3)  Area seniority shall be adhered to in all shift vacancies of more
than ninety (90) days within an area.

Section 6.  Vacancy Posting and Bidding Procedure.

     (a)  The Company shall post promptly and keep posted on the appropriate
bulletin board for ten (10) days the notice of any vacancy.  It shall be the
duty of any employee who feels himself entitled to such vacancy, based on his
seniority, to file his signed bid in the manner hereinafter stated.

     (b)  In order to be considered valid, a bid must be signed, dated, and
the original must be deposited in a locked box marked "OCAW Bids for Company,"
and the duplicate must be deposited in a locked box marked "OCAW Workmen's
Committee."  Each of said boxes will be provided at or near the main entrance
gate.

     (c)  Immediately upon expiration of the posting period of ten (10)
days, the names of all bidders will be posted on the bulletin board for a
period of five (5) days.  Within this 5-day period, each bidder who still
wants the vacancy must sign an acceptance notice to this effect and deposit in
the box marked "OCAW Bids for Company" and place a copy of the notice in the
"OCAW Workmen's Committee" box at the clock house.  However, if an employee is
going to be off from work for the duration of this 5-day period, he may leave
his acceptance notice with the personnel department.

     (d)  At the end of this 5-day period, the employee with the most
bargaining unit seniority who has turned in an acceptance notice will be
assigned the vacancy, and he will be transferred to the new vacancy as soon as
possible.  The successful bidder's seniority in the area to which he is
transferred will start on the sixteenth (16th) day after the vacancy was
originally posted.  An employee accepting a promotion by either the area
realignment or the bidding procedure to a vacancy with a higher rate of pay
will not receive the higher rate of pay until qualified for the vacancy.

     In cases where more than one (1) vacancy is posted, a bidder must
indicate his order of preference on all vacancies he is willing to accept when
he turns in his acceptance notice.

     (e)  In the event no one wishes to accept the posted vacancy, Company
may elect to employ a qualified operator or to assign an Operator Trainee to
the vacancy.

     (f)  Notwithstanding any other provisions of this Section 6, it is
agreed that the Company shall have the right at any time during said 10-day
posting mentioned above, to withdraw that posting in the event the Company
decides that such vacancy need not be filled.  The provisions of this para-
graph will not apply to filling normal vacancies.

Section 7.  Filling Vacancies of Ninety (90) Days or Less.

     (1)  Pursuant to Section 15 of Article XI, when a vacancy exists for a
period up to and including ninety (90) days, it shall be filled by promoting
the senior employee of the next lower classification who is working the same
shift in the area in which the vacancy occurs.  If no Operator Trainee, with
retained area seniority, is available, this lowest vacancy will be filled on
an assignment basis by an Operator Trainee assigned to that area with the most
bargaining unit seniority who is available and qualified to perform the work.

     In the event the vacancy(ies) cannot be filled by this procedure, the
vacancy(ies) will be filled by overtime procedures and will normally be the
vacancy which existed in the area before any reassignment.

     (a)  However, if an employee is removed from the active payroll, the
vacancy caused by this action will be filled according to Section 5 of this
Article on the first (1st) day after this action.

     (2)  In the event an Operator Trainee is not available and overtime is
required, the following procedure will be used:

     (a)(i)  When overtime is required other than holdover or early call-in
overtime, set forth in Section 1 of Article VII, call-outs will be made from
the appropriate call-out list.  Overtime call-outs may start up to forty-eight
(48) hours in advance of the actual time required.  Call-out lists will be
maintained for Operator Trainees, Area II, Area III, Area IV, Emergency Squad,
and a Master List.  Call-outs will be made starting at the top of the list for
the area where the overtime is required and proceeding to the bottom, calling
those individuals possessing the necessary qualifications for the work.

     In the event there will be a vacancy as the result of vacation or other
scheduled absence, Company may assign qualified employees to cover such
absences up to seven (7) days in advance of such need.  Company may also
utilize hold-over and call-in, or fill such vacancy by regular call-out
procedures.

     Upon acceptance or rejection of a call-out, the individual's name will
be placed at the bottom of the list.  If the call-out is canceled, the employ-
ee shall be offered makeup overtime without his name moving on the call-out
list.  Makeup overtime is defined as: Work of the nature encountered in normal
operations but not normally done on overtime.  At the time the makeup overtime
is offered, the employee must accept or reject the makeup overtime.  Makeup
overtime will be offered for a full 8-hour shift.

     Employees are ineligible for call-outs that interfere with previously
arranged call-outs or their normal schedule.

     The master call-out list will consist of a list of names of regularly
assigned employees on Area II, Area III, and Area IV call-out lists who desire
to work overtime.  Employees called on this list will rotate on this list, but
will not rotate on the area list their name appears on for any overtime worked
on a master call-out.  Master list call-outs will terminate when the work is
completed.

     (a)(ii)  Each call-out will terminate at the end of the shift during
which the work on that call-out began.  An employee working a call-out, except
for filling shift vacancies, will be expected to do the work for which that
person was called and other operational work, excluding housekeeping work, in
the area that may arise after the individual reports to work, for which that
person is qualified.  A call-out will end when the work for which the person
was called, plus the additional operational work, is completed.

     (a)(iii)  Individuals' names will not be moved on the call-out lists for
any overtime associated with Safety and Housekeeping Inspection Teams, or
Accident Investigation Teams, or Safety Meetings, or Emergency Squad Training,
or for overtime set forth in Section 1 of Article VII.

     (a)(iv)  Employees who work the Uniform Shift Schedule will have their
names moved to the bottom of their respective call-out lists at the beginning
of the 7-3 shift of the day which is their sixth (6th) work day in the same
work week.

     (a)(v)  Operator Trainees may have their names appear on the list in the
area where they possess qualifications.  For employees with retained area
seniority, the call-out list to which their names will be assigned will be the
area where they have retained seniority.  Upon acceptance or rejection of a
call-out, an individual's name will be moved to the bottom of each list where
his name appears.  An Operator Trainee's name will be moved from one area
call-out list to another, at the beginning of the day of transfer of that
individual to another area in which the Operator Trainee holds qualifications.

     (a)(vi)  Any time an employee's name is entered on an area call-out
list, his name will be entered at the bottom of that list.

     (a)(vii)  An employee may, for personal reasons, have his name removed
from the call-out list(s).  At such time as he desires, he may return his name
to the bottom of the appropriate call-out list(s).  An employee who is off for
vacation, sick leave, or leave of absence will not be available for overtime. 
His name shall be turned over on the call-out list(s).  Upon return, he will
be available as though he had no opportunity during his absence.

     (a)(viii)  The call-out lists will be maintained under the direction of
the area supervisors or Foremen, and it will be their responsibility to keep
such records as are necessary to administer the call-out procedure and to
present the proper information to the shipping attendants for execution. 
Copies of the daily call-out sheets will be furnished to the Union representa-
tives.

     (a)(ix)  Any employee who accepts an assignment outside the bargaining
unit will have his name placed at the bottom of the appropriate list(s) for
the duration of the assignment.

     (a)(x)  An employee must have a telephone in his residence or be avail-
able at the plant in order to be eligible for a call-out.  Only one (1)
telephone may be listed for each employee.

     (a)(xi)  Employees will not be eligible for overtime in an operating
area until they have qualified on a vacancy in that respective area.  Upon
qualifying on a vacancy in an area, a new employee's name will be placed on
the bottom of that area call-out list and the master call-out list.

     If, at the time of each monthly meeting, it is brought to the attention
of the Company that an inequity exists between areas in the distribution of
overtime, an attempt will be made to equalize overtime.

     When an employee is held over due to negligence in providing relief and
proper notice has been given, the employee held over will be paid a minimum of
two (2) hours at his straight-time rate.

     The above procedure may be modified by mutual agreement between the
Union and the Plant Manager or his designated representative.

     (b)(i)  Any employee who has been off duty due to illness, injury, or an
unauthorized leave will be required to give his supervisor eight (8) hours'
notice of his intention to return to work or secure permission of the Company
to return to work earlier.

     (b)(ii)  When an employee's shift is changed for any reason so that he
will have only eight (8) hours off between shifts, he will not be eligible to
double over from the first shift, and he will not be eligible for call-out
during the 8-hour interval between shifts.

     (b)(iii)  When an employee who is temporarily working in a higher
classification, other than his regular classification, accepts the opportunity
to work over, his classification will revert to his regular classification. 
At the end of his regular shift, said employee who has stayed over onto a
shift may exercise his seniority to receive any temporary upgrading that
occurs on that shift.

     (b)(iv)  When a unit or piece of equipment is temporarily shut down and
as a result there is no work for an employee on his regular assignment, such
employee may be required to:  (a) perform the duties of other assignments
within his area, (b) assist in maintenance efforts anywhere in the plant, or
(c) perform minor maintenance in his area.  If such employee is absent from
work during such temporary shutdown, the Company shall not be required to fill
his position.

     (b)(v)  Notwithstanding any other provisions of this Section, if notice
of an employee's absence is not reported, the employee not receiving relief
will be required to work over if relief is not available; however, if said
employee does not desire to work over, he may waive this work provided there
are other employees on the same shift who desire to work over.  The employees
in the same classification will be given the opportunity to work over in order
of their seniority.  If no employee in that classification accepts the oppor-
tunity to stay over, the overtime will be offered to the other employees on
that shift in accordance with their seniority.  In case a relief man is not
found within thirty (30) minutes, he may not be used to fill such vacancy.  If
an Operator Trainee does not report on schedule, this paragraph is not appli-
cable.

     An employee not eligible to work over in accordance with (b)(iii) of
this Section will be required to work over only until relief can be obtained.

     The same procedure will be applicable to all employees if proper notice
is given that an employee will be less than three (3) hours late.  Such
employee will be relieved when his relief reports.

Section 8.  Classifications and Shifts

     (a)  Each employee returning to the service of the Company or an area
from an authorized leave without pay or from sick leave, or temporary shutdown
of equipment of sixty (60) days or less, shall resume his duties uninterrupted
service in the area from which he left on the same lettered shift, or any
shift that has become vacant during his absence, and has been filled by a man
younger in area seniority.  Notwithstanding any other provisions of this
contract upon (1) the termination of an authorized leave, or (2) the temporary
shutdown of equipment of sixty (60) days or less, each employee who was
promoted or changed shifts shall revert to the same classification (area), and
the same lettered shift from which he moved, or any shift within his area that
has become vacant during the leave or shutdown of equipment and is filled by a
younger man in area seniority.

     (b)  Any time a new vacancy is established within an area, the employee
with the most area seniority shall have the right to this vacancy if he so
desires.

     (c)  Any new operating facility for products not now being manufactured
will be filled by the bidding procedure before being transferred to any area.

     (d)  When employees return to an area because equipment is started up
after a shutdown of more than sixty (60) days, all shifts within a classifica-
tion will be chosen by area seniority.

     (e)  Any time that it becomes necessary for an employee to be demoted
to a lower classification, other than a demotion caused by the termination of
an authorized leave, he shall be given an opportunity to pick his shift within
the classification in accordance with his seniority.

     (f)  Subject to the provisions of Subsection (e) of this Section 8 of
this Article XI, an employee displaced from his shift has been discontinued,
shall have the right to displace any other employee in that area in accordance
with his area seniority.

     (g)  Any shift changes made in accordance with this Section shall be
made on Monday following the determination of employees' choices provided that
the determinations are made by noon on the preceding Friday and will be made
without involving any overtime pay.  Determination of employees' choices of
shifts must be made within one (1) week after the shift is declared vacant,
except as specified above.

Section 9.  Reduction in Forces.

     1.   Effective August 1, 1986, employees who are permanently assigned
in areas of the Operating Department who may be transferred from their regu-
larly assigned classifications and thereby assigned, in accordance with the
seniority provisions of the Agreement, to a vacancy with a lower rate of pay,
shall continue to receive the higher rate of pay until they have had an
opportunity to bid on and are the successful bidder to another vacancy calling
for the same or higher rate of pay.

     When there is more than one (1) bidder receiving the frozen rate of pay,
all except the youngest employee in seniority shall have the right to refuse
the vacancy.  An employee who accepts a vacancy in order to protect a frozen
rate or his retained seniority shall have the right to return to the vacancy
from which he vacated if the vacancy he takes does not last for more than
ninety (90) days.

     Any question arising pertaining to safety due to reduced personnel in
any area will be subject to Article XVII, Section 2.

     2.   Reduction in personnel and reduction in rate can, however, result
from the fact that the operation of all or part of the equipment being operat-
ed in area is shut down either permanently or temporarily.

     Any layoff will be in accordance with Article XI, Section 13.  No
employee will be reduced in pay for ninety (90) calendar days because of
temporary shutdown.

     3.   Bumping Procedure - Employees permanently assigned to an area who
are transferred to the Operator Trainee classification due to the shutdown of
equipment will be allowed to replace other employees as follows:

     (a)  An equivalent number of vacancies permanently filled by employees
with least bargaining unit seniority in any classification with less bargain-
ing unit seniority, than employees reduced back to the Operator Trainee
classification, will be declared vacant.  The declaring of vacancies will be
made within ninety (90) days after area shutdown and the assignments will be
made on the ninety-first (91st) day.

     (b)  The vacancies declared vacant by the application of Item (1) above
will be filled in accordance with bargaining unit seniority by those employees
reduced to the Operator Trainee classification, or by the employees whose
assignments were declared vacant.

     (c)  Employees reduced to the Operator Trainee classification who bid
on and are the successful bidders before vacancies are declared as provided in
Item (a) above will not be included in the number of assignments to be de-
clared vacant.

     4.   Any employee who has replaced another employee under the provi-
sions of subsection 9(2) above must return to the area from which he was
originally reduced when he has an opportunity to do so on a vacancy of more
than ninety (90) days or forfeit his seniority in the area to which he was
transferred under subsection 9(2) above and go to the Operator Trainee classi-
fication.

     5.   The Bumping Procedure, as set forth in this Section, will not
apply as a result of consolidation of assignments, automation, or change in
shift schedules.

Section 10.  Status of Employees Laid Off.

     The accrued seniority, both bargaining unit and area, of an employee who
has been laid off through no fault of his own shall continue to exist as of
the date of the layoff for the following periods:

          Length of Service             Period Seniority to Exist

          Less than 180 days            0

          180 Days to 2 Years           Length of Previous Service

          2 Years or More               2 Years

Section 11.  Seniority Lists.

     Seniority lists shall be complied and be kept at all times available to
the Workmen's Committee, and the Workmen's Committee shall also have access to
daily time reports to verify disputed seniority lists and service records.

Section 12.  Seniority - Outside Assignments.

     Any employee, after having established seniority under the provisions of
this Agreement, who is temporarily assigned to another classification by the
Company, outside of the bargaining unit, shall continue for not more than
ninety (90) working days per calendar year on a cumulative basis to accrue
seniority on his regular classification during such period of temporary
assignment.  If such employee works more than ninety (90) days per calendar
year on a cumulative basis, he shall forfeit one (1) day of bargaining unit
seniority for each day in excess of ninety (90) days worked outside of the
bargaining unit during that calendar year.  This paragraph is not applicable
to employees who transfer to the Maintenance Department.  Such employees
forfeit both area seniority and bargaining unit seniority on the date which
they transfer to Maintenance.

Section 13.  Layoffs and Reemployment.

     The last employee hired shall be the first employee to be laid off on
the basis of bargaining unit seniority.  The last employee laid off shall, if
he still has seniority, be the first employee rehired (notwithstanding any
provisions of Section 9 of this Article).

     An employee who has worked in the bargaining unit sufficiently long to
be entitled to seniority in that department, and who was laid off through no
fault of his own, has kept his current address on file with the Company and
continues to be entitled to seniority under the terms of this contract, shall,
subject to the provisions of this Section, be given first opportunity for
reemployment.

     If reemployment is available for any such person, the Company shall so
notify him by letter (with copy of such letter to the Chairman of Workmen's
Committee), addressed to him at his address then on file with the Company.  He
shall be allowed ten (10) days from the date upon which said letter was
mailed, or until he no longer retains his accrued seniority as provided in
Section 10 of this Article XI (whichever is the shorter period), in which to
notify the Company in writing of his desire to return to work.  In the event
he delivers such notice, he shall be allowed ten (10) days from the date of
delivery thereof to report for work; provided, however, if the employee
involved is, on the date which he would otherwise be required to report for
work, totally disabled to work, he shall, on or before that date, deliver to
said Company a statement in writing from a licensed physician stating that he
is so disabled, in which event the period within which he shall be permitted
to return to work shall be extended ninety (90) days.

Section 14.  New Operations and Existing Operations.

     The classification to be established in any new operations and the area
in which new operations will be incorporated shall be discussed with the
Workmen's Committee not less than thirty (30) days prior to the posting of new
vacancies in that area.

Section 15.  Promotional Requirements.

     The minimum qualifications required in order for an employee to be
eligible to bid on a classification posted as a vacancy will be the ability to
write and to read and comprehend written and verbal operating instructions.

                                ARTICLE XII
                           PHYSICAL EXAMINATIONS

Section 1.  Periodical Examinations.

     The Company may, from time to time, require all employees to have
periodical physical examinations by a doctor selected by the Company.  Howev-
er, as long as an employee is physically fit, such examination shall not be
used as a cause for termination.  Each employee shall receive his regular rate
of pay for all time required for him to be examined at the request of the
Company.

Section 2.

     In the case of an employee being absent from work due to illness or
physical impairment, he may be required to present a certificate of physical
fitness, signed by a licensed physician, before being readmitted to work. 
This rule, however, shall not limit the right of the Company to require
physical examination by a physician in the Company's service in exceptional
cases of constantly recurring absence from duty.

Section 3.

     Notwithstanding any of the provisions of Article II or Article IV of
this Agreement, in case a dispute arises over the physical fitness of an
employee to return to work or continue to work, a board of three (3) physi-
cians shall be selected, one by the Company, one by the employee, and one
selected by the two so named.  The decision of the majority of this board
shall be final and binding.

                               ARTICLE XIII
                           AUTHORIZED DEDUCTIONS

1.  Union Dues.

     Upon receipt of a signed authorization by an employee in the form
provided herein, requesting deductions from his or her wages of his or her
monthly Union dues, the Company agrees to honor such authorization according
to its terms during the life of this Agreement.  The form of such individual
authorization shall be as follows:

     "Until further notice you are hereby requested and authorized to
     deduct from wages due me and payable on the first regular pay day
     of each month, the sum equal to my monthly dues as set by Oil,
     Chemical and Atomic Workers International Union, Local 5-434, for
     my account on or before the 15th day of the month following the
     calendar month for which said deductions are made."

     The Financial Secretary of Local Union 5-434 and an International
Representative of the Union shall, from time to time, notify the Company in
writing the amount of the monthly deduction to be made, from time to time,
under this authorization.  The Company shall remit to the Union the amount so
deducted on or before the 15th day of the calendar month following that for
which deductions are made.

2.   Political Contributions

     The Company hereby agrees to honor contribution deduction authorizations
from its employees who are Union members in the following form:

     "I hereby authorize the Company to deduct from my pay a yearly
     specified sum and forward that amount to the Oil, Chemical and
     Atomic Workers International Union, Local 5-434 Political Commit-
     tee.  This deduction should be made and remitted to the Union on
     the first regular pay day of February each year.  This authoriza-
     tion is voluntarily made on the specific understanding that the
     signing of this authorization and the making of payments to the
     Oil, Chemical and Atomic Workers Political Committee are not
     conditions of membership in the Union or the employment with the
     Company and that the OCAW Political Committee will use the money
     it receives to make political contributions and expenditures in
     connection with federal, state, and local elections."

     The Union agrees to indemnify the Company for any loss the Company may
suffer as the result of this deduction taken by the Company from an employee's
pay to be remitted to the Union.

                                ARTICLE XIV
                                 DISCHARGE

Section 1.

     An employee shall not be discharged if physically and mentally capable
of continuing his duties on account of any accident unless the accident was
caused by negligence, carelessness, or malicious intent of the employee.

Section 2.

     The company shall expect all of its employees to adhere to its rules and
regulations.

Section 3.

     The question as to whether a person who is discharged was rightfully
discharged shall be a proper subject of arbitration.

     The Company and the Union will share in the expenses of arbitration
equally.

                                ARTICLE XV
                              MILITARY LEAVE

Section 1.  Leave of Absence.

     The rights of employees of the Company who enter military service during
the term of this Agreement will be governed in all respects by the Military
Selective Service Act including amendments.

Section 2.

     An employee, upon return to work from Military Leave, will be allowed to
claim any assignment that became vacant during his term of Military Leave to
which his area seniority would have entitled him had he not been on Military
Leave.

                                ARTICLE XVI
                              BULLETIN BOARDS

     The Company shall maintain a bulletin board to be placed on the property
where it may be seen by employees entering and leaving their place of employ-
ment.

     Such bulletin board may be used by the Workmen's Committee of the Union
for any matters pertaining to its membership provided the material posted
shall contain nothing of a political or controversial nature nor reflect upon
the Company or any of its employees or products.

     Any notices other than notices of Union meetings, results of elections,
sample ballots of Union elections, social events shall be approved in writing
by Plant Manager or his representative before posting.

     This bulletin board will be locked with keys, released to the Chairman
of the Workmen's Committee, the Chief Steward, the Chairman of El Dorado
Chemical Company Group of Local 5-434 of the Union and to the Company.

                               ARTICLE XVII
                              SAFETY & HEALTH

Section 1.

     The Company shall institute and maintain all reasonable precautions for
safeguarding the health and safety of its employees, and all employees are
expected to cooperate in the implementation thereof.  Both the Company and the
Workmen's Committee recognize their mutual interest to assist in the preven-
tion, correction, and elimination of all unhealthy and unsafe working condi-
tions and practices.

Section 2.

     No employee shall be required to perform services that seriously endan-
ger his physical safety, and his refusal to do such work shall not warrant or
justify discharge.  In all such cases, an immediate conference between the
Company and Union shall be held to settle the issue in question.

Section 3.

     The Company recognizes the Workmen's Committee to be a Union Health and
Safety Committee that will discharge this responsibility at a scheduled
session as held under Article XVIII.  Discussion of Safety and Health topics
will be included in minutes issued from that session.  The Health and Safety
Committee will have the responsibility of making constructive recommendations
for changes to eliminate unhealthy and unsafe conditions and practices. 
Recommendations of the Health and Safety Committee will not be subject to the
Grievance Procedure under Article IV.

Section 4.

     The Company will provide and maintain adequate health and safety equip-
ment, monitoring devices, and personnel protective equipment.  Additionally,
the Company will provide employee training to ensure that employees are
knowledgeable in use and maintenance of health and safety equipment and
personnel protective equipment.

Section 5.

     The Company will provide appropriate routine medical examinations at its
discretion.  A report of the medical findings will be made to the affected
employee.

Section 6.

     Inspection of all equipment throughout the plant or place of employment
shall be continued by the Plant Manager or other persons designated by the
Company from time to time.  An inspection of any equipment may be secured upon
the recommendation of the Workmen's Committee or the workmen employed on such
equipment.  The Union Workmen's Committee may make written suggestions to the
Plant Manager or his representatives as to the elimination of hazards in order
to prevent accidents.

Section 7.

     A Safety and Housekeeping Inspection Team will be maintained for purpos-
es of making periodic inspections of the plant premises and recommendations to
improve Safety and Housekeeping.  This team will consist of not more than two
(2) members of this Workmen's Committee, or two (2) other members of the
bargaining unit, and other persons outside the bargaining unit as designated
by the Company.  Those members of the bargaining unit who serve on the team
will be excused from work, with pay, on the day of the inspection, and the
vacancy created will be filled in accordance with Article XI, Section 8.

Section 8.

     Two (2) "at-large" employees will be selected by the Company to partici-
pate in the Manufacturing Department Safety Planning Committee.  The term of
service will normally be one (1) year for these employees.  The Company will
maintain a list of those employees agreeing to serve.

Section 9.

     One (1) "at-large" employee from the area in which the accident oc-
curred, selected by the Company, will be asked to serve on formal Accident
Investigation Teams as formed.  The Company will maintain a list of those
employees agreeing to serve.

Section 10.

     The Company may, at its discretion, maintain a plant Emergency Squad for
preserving the well-being of both employees and the physical facilities within
the plant.  The Company may assign employees to the Emergency Squad by classi-
fication and classification qualification.

     The Emergency Squad shall be trained in first aid, personal rescue, fire
fighting and other emergency training under the overall direction of the plant
Safety Supervisor.  Other selected personnel will be expected to attend
training sessions to complement the makeup of the Emergency Squad, emergency
equipment, and substitute as Emergency Squad Leader.

     The Emergency Squad will be called in the event of an emergency, consis-
tent with the Plant Emergency Plan, and shall be considered the primary crew
to perform the duties and direct the operation during the emergency.  However,
should the need arise, other available employees, including salaried employ-
ees, may assist the Emergency Squad.  If a need arises during an emergency,
the Emergency Squad Leader may, at his discretion, call out additional Emer-
gency Squad members.

     The Company will maintain relationships with local emergency service
groups so that, if available and if required, these groups may assist the
Plant Emergency Squad.

                               ARTICLE XVIII
                      WORKMEN'S COMMITTEE CONFERENCES

     Workmen's Committee, composed of five (5) members from the employee work
force, and management representatives, shall hold regular meetings on a
bimonthly basis.  It shall be the responsibility of both parties to submit a
written agenda of each subject it wishes to discuss no less than forty-eight
(48) hours before the day of any such meeting.  In the event the aforemen-
tioned day occurs on a holiday, the day preceding the holiday shall be the day
of the meeting.  This date may be changed by mutual agreement.

     The members of the Workmen's Committee, when scheduled to work the
graveyard shift on the day after any such regular meeting, will be excused
from work on that graveyard shift with pay.

                                ARTICLE XIX
                               SEVERANCE PAY

     Any employee covered by the terms of this Agreement whose services are
terminated through no fault of his own shall be granted severance pay after
one (1) year of continuous service of one (1) week's pay, equivalent to forty
(40) hours' straight-time pay at his regular rate; after two (2) years'
service, two (2) weeks' pay equivalent to eighty (80) hours straight-time pay
at his regular hourly rate.

     If the services of an employee who has been continuously employed by the
Company for one (1) year or longer is terminated through no fault of his own,
and he has not been notified by the Company (by notice given at least two (2)
weeks prior to the date upon which his services are terminated) that his
services will be terminated on that date, he shall be paid, in addition to the
amount to which he is entitled under the provisions of the first paragraph of
this Article, two (2) weeks' pay equivalent to eighty (80) hours straight-time
pay at his regular hourly rate.

                                ARTICLE XX
                               CONTRACT WORK

     It is agreed that any work or operation as covered by this Agreement
will not be contracted out if the Company has men and equipment available for
such work.

                                ARTICLE XXI
                              DISCRIMINATION

     There shall be no discrimination by the Company against any employee on
account of his membership in this labor union or on account of any activity
undertaken in good faith in his capacity as a representative of other employ-
ees.  The Union shall not discriminate against any employee who is not a
member of the Union.

     Where the male gender is used in this contract, it is intended to refer
to both male and female.  It is a continuing policy of the Company and the
Union that the provisions of this Agreement shall be applied to all employees
without regard to race, color, religion, sex, physical disability, national
origin, or age.

                               ARTICLE XXII
                             LEAVE OF ABSENCE

Section 1.  Personal Business.

     If an employee desires to be off on personal business (not emergencies),
he may do so with written consent of the Company, signed by the Plant Manager
or his representative, so long as he does not desire to be off work over two
(2) work weeks and provided that he gives the Company forty-eight (48) hours'
notice of his desire to be absent and the length of time he desires to be off. 
Upon completion of such leave, he will resume employment on the basis of
uninterrupted service.  The provisions of this Section 1 shall not be extended
to more than two (2) employees in each area at any one time.

Section 2.  Union Business.

     (a)  The Company shall grant a leave of absence, without pay, extending
not longer than thirty (30) days to employees in order to engage in any work
pertaining to the business of the Union, local or otherwise, upon sufficient
notice so that the employee's absence will not cause overtime employment. 
Upon completion of such leave that employee will resume employment with
previous seniority retained.  This privilege will not be extended to more than
four (4) employees at any one time.  This privilege will not be extended to
any one (1) employee for more than an aggregate of sixty (60) days in any one
(1) calendar year.  This does not apply to negotiations.

     (b)  Notwithstanding the provisions of the foregoing subdivision (a),
the Company agrees that upon written request of the President of the Union
(addressed to El Dorado Chemical Company, P. O. Box 231, El Dorado, Arkansas,
Attention:  Plant Manager) one (1) employee will be given a leave of absence
not to exceed one (1) year, without pay, to work as an employee of the Union,
or any of its affiliates, with the provision, however, that such leave of
absence shall, upon the written request of the President of the Union (ad-
dressed in like manner) be extended for a period of time not to exceed one (1)
additional year.

     It is provided, however, that not more than one (1) employee at a time
may be on leave of the character mentioned in the paragraph immediately
preceding.

     No employee shall be granted a leave of absence pursuant to this subsec-
tion who has not, immediately preceding the date upon which such leave of
absence is to begin, worked for a period of one (1) year continuously.

     Upon completion of the leave of absence mentioned within this subsec-
tion, or upon completion of the extended term of such leave of absence, if the
term thereof is extended pursuant to this subsection, the employee involved
will resume employment with previous seniority retained, provided such employ-
ee reports to the Company for work within one (1) day following the expiration
of said leave of absence or within one (1) day following the extended term of
such leave of absence if the term thereof is extended pursuant to this subsec-
tion.

     An employee who fails to report for work within one (1) day following
the end of such leave of absence shall thereby forfeit all of his seniority
and his services with the Company shall be terminated; provided, however, if
the employee involved is (on the date which he would otherwise be required to
report to work) totally disabled to work, he shall, on or before that date,
deliver to the Company a statement in writing from a licensed physician
stating that he is so disabled, in which event the period within which he
shall be permitted to return to work shall be extended thirty (30) days.  

     Company shall have the right to require such employee to be examined by
a physician of its choice before extending such leave.

Section 3.  Sickness or Accident.

     If an employee who has established seniority is out of service due to
occupational injury or occupational disease suffered or contracted while he is
in the employ of the Company, he shall retain his seniority accrued at the
date of his disability and continue to accrue seniority for a period of
twenty-four (24) months or length of previously accrued seniority, whichever
is less, during the period of his disability as a result thereof, notwith-
standing any provisions of Article XI.  If an employee who has established
seniority is out of service due to nonoccupational injury or disease suffered
while he was in the employ of the Company, he shall retain his accrued senior-
ity for a period of twenty-four (24) months and will accrue seniority in the
department in which he was last regularly employed for a period of one (1)
year.

     Under either of the above conditions, if an employee should accept an
equal or better assignment elsewhere, his seniority shall be canceled.

                               ARTICLE XXIII
                                 JURY DUTY

     Each employee of the Company who is called to serve upon any grand jury,
petit jury, coroner jury, or jury commission shall, after furnishing to his
Foreman, a certificate in evidence of his jury service, be paid by the Company
for each day which he serves upon said jury a sum equal to the difference
between the amount which he would have earned if he had been required to work
for the Company on that day for the number of hours of his regular work
schedule and the jury pay received, with the provision that no such payment
shall be made to an employee for jury service on any day during which, in
accordance with his regular work schedule, he would not have worked for the
Company.

                               ARTICLE XXIV
                      WAGE RATES AND CLASSIFICATIONS

     Each employee who works during the period beginning 12:01 a.m., August
5, 1995, and ending 12:00 midnight, July 31, 1998, in one of the classifica-
tions shown on Exhibit "B" attached hereto, shall be paid for his work in that
classification in accordance with the applicable wage rate, shift differen-
tial, and clothing allowance in accordance with Exhibit "B".

     Notwithstanding any other provision of this Agreement to the contrary,
the question of wages to be paid shall not be construed to include any allow-
ance which results in an increase in the compensation of an employee or of
employees.

                                ARTICLE XXV
                                 VALIDITY

     If any court shall hold any part of this Agreement invalid, such deci-
sion shall not invalidate the entire Agreement.

                               ARTICLE XXVI
                                  NOTICES

     Any notice required to be given an employee under Article V, Section 3,
or under Article XIX, may be given by posting a notice on the bulletin board
of the Union, with a copy of said notice to the Chairman of the Workmen's
Committee.  If any employee named in such notice is on vacation or on leave of
absence, a copy of said notice will be mailed in a sealed envelope, regis-
tered, and addressed to him at his address as shown on the records of the
Company.  Each employee named in any such notice shall be deemed to have
received the notice at the time said notice is posted on the bulletin board or
mailed to him at his home address.

     Any notice to the Company provided herein may be given by depositing
same in the U.S. Mail in a sealed envelope, registered, postage prepaid, and
addressed to El Dorado Chemical Company, P. O. Box 231, El Dorado, Arkansas
71731, Attention: Plant Manager.

     Any notice to be given to the Union may be given by depositing the same
in the U.S. Mail in a sealed envelope, registered, postage prepaid, and
addressed to the Oil, Chemical and Atomic Workers International Union, El
Dorado, Arkansas 71731, with a copy of the notice to the Secretary, Local 5-
434, of the Union, El Dorado, Arkansas 71731.

                               ARTICLE XXVII
                               FUNERAL LEAVE

     Any employee in the bargaining unit shall be allowed to be absent from
work to arrange for or to attend the funeral or any of the relatives of the
employee hereinafter mentioned for the time hereinafter stated:

     (a)  If the deceased relative was the husband, wife, child, father,
mother, brother, sister, grandfather, grandmother, or grandchild of the
employee, the employee shall be permitted to be absent from work for a period
not to exceed two (2) days.  One of these days shall be the day of the funer-
al.  If either or both of these days are scheduled working days, he shall be
allowed pay for day(s) off during his regular working schedule.

     (b)  If the deceased relative was the father-in-law, mother-in-law,
brother-in-law, sister-in-law, son-in-law, or daughter-in-law of the employee,
the employee shall be permitted to be absent from work with pay for the
purpose stated for one (1) scheduled working day if the funeral is held on a
scheduled working day.  Brother-in-law and sister-in-law will be interpreted
as (i) the spouse of an employee's brother or sister; (ii) the brother or
sister of an employee's spouse; or (iii) the spouse of an employee's spouse's
brother or sister.

     (c)  If, to attend the funeral for a deceased relative, the employee
travels to a point more than 100 miles from El Dorado, Arkansas, he shall be
allowed such leave for an additional day with pay.

     The pay for each day's leave which the employee receives under the
provisions of this Article shall be a sum equal to straight-time for his
regular schedule of work on the day involved.  There shall be no duplication
of payment under provisions of this Article for any other employee benefits
such as:  vacation pay, holiday pay, or sickness benefits payments.

                              ARTICLE XXVIII
                             SICKNESS BENEFITS

Group Insurance and Pension.

     Effective with the date of this Agreement, the Company and employees
will share the entire cost of group insurance benefits for employees and
employee dependents on the following basis:
                    Company        75%
                    Employee       25%

     Effective with the date of this Agreement, the Company agrees to pay the
cost of employee long-term disability insurance and basic life insurance
(twice an employee's annual income).

     Dental insurance coverage will be made available as an option.  The
employee may elect to purchase the insurance by paying the premium each month,
or by increasing the deductible amounts of the current group medical plan.

     The Savings Incentive Plan for Employees, adopted effective December 1,
1985, shall be continued during the term of this Agreement.

                               ARTICLE XXIX
                          NO LOCKOUT -- NO STRIKE

     The Company agrees that there shall be no lockout and the Union agrees
there shall be no strike, sympathy strike, or interruption of production
during the term of this Agreement.

                                ARTICLE XXX
                              RETIREMENT AGE

     Any employee who becomes seventy (70) years of age shall be retired and
his services with the Company terminated on the first (1st) day of the month
following the day upon which he is age seventy (70).

     The seniority of each employee whose services are terminated under the
provisions of this Article shall cease as of the date of such retirement.

     IN WITNESS WHEREOF, this instrument is executed on the 5th day of
August, 1995, to be effective as of 12:01 a.m. on the 5th day of August, 1995.

EL DORADO CHEMICAL COMPANY


BY:                                         
     Richard Milliken, Plant Manager


OIL, CHEMICAL AND ATOMIC WORKERS INTERNATIONAL UNION


BY:                                         
     Ray T. West - International Representative


APPROVED:


BY:                                         
     Stacey Burson


BY:                                          
     Rick Bailey


BY:                                         
     James Turbeville


BY:                                         
     Paul Voss


BY:                                         
     James Haltom
                                EXHIBIT "A"
                           OPERATING DEPARTMENT
                             PROGRESSION CHART

          AREA II        AREA III       AREA IV

          "A" Operator        "A" Operator        "A" Analyst

          "B" Operator        "B" Operator        "B" Analyst

          "C" Operator        "C" Operator        "C" Analyst

          "D" Operator        "D" Operator        "D" Analyst

          *"E" Operator  "E" Operator        "E" Analyst

          * (First 180 Days)



                                EXHIBIT "B"

                      WAGE RATES AND CLASSIFICATIONS

                              8/5/95         8/5/96         8/5/97

"A" Operator/"A" Analyst      15.79          16.22          16.71

"B" Operator/"B" Analyst      15.09          15.50          15.97

"C" Operator/"C" Analyst      14.53          14.93          15.38

"D" Operator/"D" Analyst      12.77          12.90          13.03

*"E" Operator/"E" Analyst      8.90           8.90           8.90
* (First 180 Days)

     An "A" Operator who assigned as Control Board Operator shall receive a
premium of $.50 per hour for such hours worked.

     Management shall have the right to use casual labor for periods of
employment not to exceed ninety (90) days per year for a given individual.

                            SHIFT DIFFERENTIAL

     In addition to the foregoing hourly rates, there shall be paid a shift
differential of forty cents ($.40) for each hour worked on the 3:00 p.m. to
11:00 p.m. shift and eighty cents ($.80) for each hour worked on the 11:00
p.m. to 7:00 a.m. shift.

     For payroll purposes, shift differential pay will be averaged over all
three (3) shifts (7:00 a.m. to 3:00 p.m., 3:00 p.m. to 11:00 p.m., and 11:00
p.m. to 7:00 a.m.) - forty cents ($.40) per hour will be paid for each hour
worked.  Shift differential will be paid to operating personnel assigned to
rotating shifts.

                            CLOTHING ALLOWANCE

     In addition to the foregoing hourly wage rates, there shall be paid a
clothing allowance of nine cents ($.09) per hour for each hour worked by an
employee.  Effective August 5, 1995, through the term of this Agreement the
clothing allowance will be sixteen cents ($.16) per hour worked by an employ-
ee.
 
                          EMERGENCY SQUAD PREMIUM

     In addition to the foregoing rates, there shall be paid a rate of five
cents ($.05) per hour for each hour worked to employees working classifica-
tions designated for inclusion on the Plant Emergency Squad.

                               EXHIBIT "C-2"
                            5-2 SHIFT SCHEDULE

               M T W T F S S        M T W T F S S        M T W T F S S 
=============================================================================
SHIFT
7-3                  X X X X X          Y Y Y Y Y        Z Z Z Z Z
- -----------------------------------------------------------------------------
SHIFT
3-11                 Y Y Y Y Y          Z Z Z Z Z        X X X X X 

- -----------------------------------------------------------------------------
SHIFT
11-7                  Z Z Z Z Z         X X X X X        Y Y Y Y Y 
- -----------------------------------------------------------------------------
DAYS OFF              X X               X X              X X 
                      Y Y               Y Y              Y Y 
                      Z Z               Z Z              Z Z


                               EXHIBIT "C-3"
                          UNIFORM SHIFT SCHEDULE

        M T W T F S S    M T W T F S S   M T W T F S S   M T W T F S S
===========================================================================
SHIFT
11-7    A A A A A D D    D D D D D C C   C C C C C B B   B B B B B A A 
- ---------------------------------------------------------------------------
SHIFT
7-3     D D D C C C C    C C C B B B B   B B B A A A A   A A A D D D D 
- ---------------------------------------------------------------------------
SHIFT
3-11    C C B B B B B    B B A A A A A   A A D D D D D   D D C C C C C 
- ---------------------------------------------------------------------------
OFF     B B C D D A A    A A B C C D D   D D A B B C C   C C D A A B B 


                                EXHIBIT "D"
                           CONSOLIDATION POLICY

     During their negotiations, the Company and the Union discussed the
procedures to be followed by the Company in its job consolidation program and
agreed as follows:

     The Company will accomplish consolidation of jobs in each operating
department whereby each employee will be trained through the training program
announced by the Company.

     As soon as an employee has demonstrated the technical knowledge and
qualifications to properly perform all duties of each job within an assigned
area (II), (III), then such employee will be promoted to the classification of
"A" Operator at the appropriate increase in pay.

     (a)  The length of training will be determined by the individual's
ability to learn and perform the skills required by consolidation.  To become
qualified and entitled to "A" Operator pay and classification, an employee
must have the skills and knowledge to perform any job duty within his/her work
area.

     (b)  Areas and shifts will not be changed as a result of consolidation.

     (c)  Company shall have the right to determine the frequency of
rotation, (not more often than weekly) in order to accomplish job consolida-
tion.  Such rotation shall normally be on a regular basis with exceptions made
only because of justifiable business needs such as unplanned personnel ab-
sence, Acts of God, and production equipment failure.

     (d)  The parties have discussed the possible impact of consolidation on
a limited number of employees who are not yet "A" Operators because:

     1.   They do not possess the necessary ability to learn, retain, and
satisfactorily complete the requirements of job knowledge and demonstrated
skills required for promotion to "A" Operator.  (This does not mean physical
fitness which is provided for in Article XII.)

     2.   A very limited number of employees who allege they currently have
medical conditions which limit their assignment to perform all the duties of
the "A" Operator classification.

     3.   Those who allege they do not possess the necessary ability to
learn, retain, and satisfactorily complete the requirements of job knowledge
and demonstrated skills required for promotion to "A" Operator and with whom
the Company disagrees.

     4.   Those who have neither alleged nor requested disqualification, but
who are nominated by the Company.  Following negotiations, a joint committee
shall meet for the purpose of discussing the above individuals subject to the
following:

     (a)  Each employee in categories 1-3 must, no later than September 30,
1989, submit a signed, dated request to the Manager of Manufacturing, request-
ing consideration for one of the above reasons.  This procedure is offered on
a one-time basis during such period.

     (b)  In the event the joint committee agrees that such an employee is
disqualified for the reason alleged, such person shall then be "red-circled"
at the rate of the employee's present classification as provided by Exhibit
"B".  The Company may utilize such individual in any job he/she is qualified
to perform in his/her area.

     (c)  An employee who has submitted a request to be disqualified, due to
physical reasons, for assignment to perform all duties of the "A" Operator
classification may be required to submit to a physical examination by the
Company's physician pursuant to the provisions of Article XII.  In case of a
disagreement over such employee's physical fitness for such work assignment,
the procedures of Section 3 of Article XII may be resorted to by the employee
within three (3) working days or the decision of the Company's physician shall
be final and binding.

     (d)  In the case of an employee who has alleged that he/she does not
possess the ability to learn, retain and satisfactorily complete the require-
ments of job knowledge and demonstrated skills required for promotion to "A"
Operator and the joint committee cannot reach a mutual agreement, the Company
shall have the right to require such employee to proceed with its job consoli-
dation and training program until the employee either qualifies or the Company
agrees that such individual does, in fact, lack such ability.  Such individual
shall then be "red-circled" at the rate of the employee's present classifica-
tion as provided by Exhibit "B" and assigned any duties qualified to perform
within his/her area.

     (e)  In the event the joint committee does not agree that a person
nominated by the Company under paragraph 4 is not qualified for training for
promotion to "A" Operator, the individual may grieve the Company's decision.

     (f)  The above procedure is available only on a one-time basis, limited
to those individuals who have submitted written request for consideration
under the provisions of paragraphs 1, 2, or 3, or who were nominated by the
Company during the 60-day period commencing August 1, 1989.
  
     It is understood that there may be a situation where, because of train-
ing needs, it is necessary to train someone other than the senior operator and
shift.  In this case, as soon as such individual has been promoted to "A"
Operator, the most senior operator will be placed in training for advancement
to "A" Operator or paid at the rate of "A" Operator.

     DATED this 5th day of August, 1995.

OIL, CHEMICAL AND ATOMIC WORKERS INTERNATIONAL UNION


BY:                                         
     Ray T. West - International Representative


EL DORADO CHEMICAL COMPANY


BY:                                         
     Richard Milliken, Plant Manager


APPROVED:


BY:                                         
     Stacey Burson


BY:                                          
     Rick Bailey


BY:                                         
     James Turbeville


BY:                                         
     Paul Voss


BY:                                         
     James Haltom
                          LETTER OF UNDERSTANDING



     The parties have agreed that not withstanding any other clause or
provision of the agreement the following procedures shall apply during the
life of the Agreement, effective August 5, 1995:

          (a)  Commencing August 1, 1990, each employee shall be limited to
     one bid during each 12-month period commencing with the date the suc-
     cessful bidder is informed of the bid award.  A successful bidder will
     be transferred as soon as a qualified replacement is available to fill
     his vacancy.

          (b)  Skills balancing, by shift within each area.  Company shall
     have the right to balance assignment skills in each area on each shift
     in order to maintain production efficiency and to accomplish training
     needs.

          A shift is considered not balanced until each operating assignment
     has available a minimum of two qualified operators.

          The Company has the right to balance skills on each shift in each
     area.  Whenever three (3) or more employees are qualified on any one
     assignment within a shift and another shift has only one person quali-
     fied for that assignment, the Company may transfer one person to the
     shift having only one trained person in that assignment in the following
     manner:

          Company will offer the transfers first by area seniority to
          such qualified personnel and in the event the senior quali-
          fied employees decline, there by assignment of the qualified
          employee(s) with the least area seniority necessary to
          achieve shift skill balancing.

          When more than one shift exceeds minimum skill balancing personnel
     numbers, the initial offer of transfer opportunity or assignment, will
     be by area seniority and qualifications from all shifts in the area.  

     It is understood that the same individual may not be involuntarily
transferred for the purpose of skills balancing more frequently than once each
twelve (12) months.

     Skills balancing between shifts takes precedence over bidding proce-
dures.

     In the event the transfer of an employee from one shift to another
creates a surplus on the receiving shift, the surplus employee shall then be
assigned to the shift from which the transferred employee came.  If an employ-
ee is not surplus the bidding procedure will be followed.

     When there is a conflict between terms of the Agreement and this Letter
of Understanding, this document shall control.

     DATED this 5th day of August, 1995.


EL DORADO CHEMICAL COMPANY


BY:                                         
     Richard Milliken, Plant Manager


OIL, CHEMICAL AND ATOMIC WORKERS INTERNATIONAL UNION
AND ITS LOCAL 5-434


BY:                                         
     Ray T. West - International Representative



APPROVED:


BY:                                         
     Stacey Burson


BY:                                          
     Rick Bailey


BY:                                         
     James Turbeville


BY:                                         
     Paul Voss


BY:                                         
     James Haltom


                                EXTRA CREW
                          LETTER OF UNDERSTANDING


     During their negotiations, the parties discussed the Company's objective
of facilitating its commitment to job consolidation training, recognizing the
need for extra personnel who could be used for purposes of relief, training,
or replacement of employees who are absent or for overtime assignment.

     The parties have agreed that the Company shall have the right to utilize
certain lowest seniority individuals who will be designated as "Extra Crew"
and assigned as the Company may elect.  Such "Extra Crew" personnel will not
be assigned to a shift or area until there is a vacancy after the completion
of the realignment and bidding procedures, even though the employee has
completed 180 days of service.

     Such "Extra Crew" members will be drawn from the lowest senior employees
in the plant or from "new hires."  No regular assignment will be deleted to
provide employees for this "Extra Crew."

     The Company will utilize four (4) current employees to establish the
"Extra Crew," or new hires as attrition takes place.


EL DORADO CHEMICAL COMPANY


BY:                                         
     Richard Milliken, Plant Manager


OIL, CHEMICAL AND ATOMIC WORKERS INTERNATIONAL UNION
AND ITS LOCAL 5-434


BY:                                         
     Ray T. West - International Representative




APPROVED:


BY:                                         
     Stacey Burson


BY:                                          
     Rick Bailey


BY:                                         
     James Turbeville


BY:                                         
     Paul Voss


BY:                                         
     James Haltom



                      AMERICANS WITH DISABILITIES ACT
                          LETTER OF UNDERSTANDING


     The Company and Union recognize the provisions of the American's with
Disabilities Act may impact the terms of this Agreement, and thus agree to
discuss each instance individually in order to reach a mutual understanding.


EL DORADO CHEMICAL COMPANY


BY:                                         
     Richard Milliken, Plant Manager


OIL, CHEMICAL AND ATOMIC WORKERS INTERNATIONAL UNION
AND ITS LOCAL 5-434


BY:                                         
     Ray T. West - International Representative

APPROVED:


BY:                                         
     Stacey Burson


BY:                                          
     Rick Bailey


BY:                                         
     James Turbeville


BY:                                         
     Paul Voss


BY:                                         
     James Haltom

                             TWELVE HOUR SHIFT
                          LETTER OF UNDERSTANDING


     There is presently an operating practice of a twelve hour shift sched-
ule.  All matters regarding the twelve hour shift policy are governed by the
policy which is contained in Standard Operating Procedures Manual No. A002.


EL DORADO CHEMICAL COMPANY


BY:                                         
     Richard Milliken, Plant Manager


OIL, CHEMICAL AND ATOMIC WORKERS INTERNATIONAL UNION
AND ITS LOCAL 5-434


BY:                                         
     Ray T. West - International Representative

APPROVED:


BY:                                         
     Stacey Burson


BY:                                          
     Rick Bailey


BY:                                         
     James Turbeville


BY:                                         
     Paul Voss


BY:                                         
     James Haltom





                                 AGREEMENT


                                  between


                        EL DORADO CHEMICAL COMPANY


                                    and


                       INTERNATIONAL ASSOCIATION OF
                     MACHINISTS AND AEROSPACE WORKERS,
                                  AFL-CIO
                               LOCAL NO. 224


                         Effective: August 5, 1995



                        EL DORADO CHEMICAL COMPANY
                            El Dorado, Arkansas
                             TABLE OF CONTENTS

PREAMBLE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1

ARTICLE I      APPLICATION OF AGREEMENT. . . . . . . . . . . . . . . . .  1

ARTICLE II          PERIOD OF AGREEMENT. . . . . . . . . . . . . . . . .  1

ARTICLE III         MANAGEMENT RIGHTS CLAUSE . . . . . . . . . . . . . .  1

ARTICLE IV          CHECK-OFF OF UNION DUES. . . . . . . . . . . . . . .  2

ARTICLE V      SENIORITY . . . . . . . . . . . . . . . . . . . . . . . .  2

               Section 1.     Length of Service. . . . . . . . . . . . .  2
               Section 2.     Order of Seniority . . . . . . . . . . . .  2
               Section 3.     Eligibility for Seniority. . . . . . . . .  2
               Section 4.     Filling Vacancies. . . . . . . . . . . . .  3
               Section 5.     Qualifications for Job . . . . . . . . . .  4
               Section 6.     Seniority List . . . . . . . . . . . . . .  4
               Section 7.     Seniority Accrued. . . . . . . . . . . . .  4
               Section 8.     Seniority - Outside Assignments. . . . . .  4
               Section 9.     Discharges and Reemployment. . . . . . . .  4
               Section 10.    Status of Employees Laid Off . . . . . . .  5
               Section 11.    Loss of Seniority. . . . . . . . . . . . .  5

ARTICLE VI          HOURS OF WORK AND OVERTIME . . . . . . . . . . . . .  6

               Section 1.     Hours of Work. . . . . . . . . . . . . . .  6
               Section 2.     Overtime and Call-Out Pay Rates. . . . . .  7
               Section 3.     Shift Change Notice. . . . . . . . . . . .  7
               Section 4.     Meal Time. . . . . . . . . . . . . . . . .  8
               Section 5.     No Reduction of Work Week as Result of Overtime  8
               Section 6.     Computation of Overtime. . . . . . . . . .  8
               Section 7.     Distribution of Overtime and Call-Out Time  8
               Section 8.     Call-Out . . . . . . . . . . . . . . . . .  9
               Section 8A.    Advance Scheduling of Overtime . . . . . .  9
               Section 8B.    Right to Assign Qualified Personnel. . . .  9
               Section 9.     Holiday Pay. . . . . . . . . . . . . . . . 10
               Section 10.    Reporting for Work and Not Used. . . . . . 10

ARTICLE VII    WAGE RATES AND CLASSIFICATIONS. . . . . . . . . . . . . . 11

               Section 1.     Wages and Pay Period . . . . . . . . . . . 11
               Section 2.     Changes in Classification of Work. . . . . 11

ARTICLE VIII   HANDLING OF GRIEVANCES. . . . . . . . . . . . . . . . . . 11

               Section 1.     Routine Submission . . . . . . . . . . . . 11
               Section 2.     Arbitration. . . . . . . . . . . . . . . . 12

ARTICLE IX          SHOP COMMITTEE AND STEWARDS. . . . . . . . . . . . . 14

               Section 1.     Shop Committee . . . . . . . . . . . . . . 14
               Section 2.     Stewards . . . . . . . . . . . . . . . . . 14

ARTICLE X      LEAVE OF ABSENCE. . . . . . . . . . . . . . . . . . . . . 14

               Article 1.     Personal Business. . . . . . . . . . . . . 14
               Article 2.     Union Business . . . . . . . . . . . . . . 14
               Article 3.     Sickness or Accident . . . . . . . . . . . 15
               Article 4.     Notice to the Company. . . . . . . . . . . 15
               Article 5.     Military Reserve Training. . . . . . . . . 15

ARTICLE XI          VACATIONS. . . . . . . . . . . . . . . . . . . . . . 16

               Section 1.      . . . . . . . . . . . . . . . . . . . . . 16
               Section 2.      . . . . . . . . . . . . . . . . . . . . . 16
               Section 3.      . . . . . . . . . . . . . . . . . . . . . 16
               Section 4.      . . . . . . . . . . . . . . . . . . . . . 17

ARTICLE XII    MILITARY LEAVE. . . . . . . . . . . . . . . . . . . . . . 18

               Section 1.     Military Selective Service Act . . . . . . 18
               Section 2.     Pay in Lieu of Vacation. . . . . . . . . . 18

ARTICLE XIII   PHYSICAL EXAMINATIONS . . . . . . . . . . . . . . . . . . 18

               Section 1.     Periodical Examinations. . . . . . . . . . 18
               Section 2.     Certificate of Physical Fitness. . . . . . 18
               Section 3.     Dispute Resolution . . . . . . . . . . . . 18

ARTICLE XIV    MISCELLANEOUS AND GENERAL . . . . . . . . . . . . . . . . 19

               Section 1.     Tool Check-In Time . . . . . . . . . . . . 19
               Section 2.     Bulletin Board . . . . . . . . . . . . . . 19
               Section 3.     Discrimination . . . . . . . . . . . . . . 19
               Section 4.     Wage Rate Changes. . . . . . . . . . . . . 19
               Section 5.     Safety Provisions. . . . . . . . . . . . . 19
               Section 6.     Discharges . . . . . . . . . . . . . . . . 20
               Section 7.     Recess Period (Smoking). . . . . . . . . . 20

               Section 8.     Jury Duty. . . . . . . . . . . . . . . . . 20
               Section 9.     Termination Pay. . . . . . . . . . . . . . 20
               Section 10.    Contract Work. . . . . . . . . . . . . . . 21
               Section 11.    Technical and Supervisory Employees. . . . 21
               Section 12.    Minor Maintenance. . . . . . . . . . . . . 21
               Section 13.    Minor Operating Functions. . . . . . . . . 21

ARTICLE XV     VALIDITY OF CONTRACT. . . . . . . . . . . . . . . . . . . 21

ARTICLE XVI    NOTICE. . . . . . . . . . . . . . . . . . . . . . . . . . 22

ARTICLE XVII   FUNERAL LEAVE . . . . . . . . . . . . . . . . . . . . . . 22

ARTICLE XVIII  GROUP INSURANCE . . . . . . . . . . . . . . . . . . . . . 23

               Section 1.     Group Insurance and Retirement . . . . . . 23

ARTICLE XIX    NO STRIKE OR LOCKOUT. . . . . . . . . . . . . . . . . . . 24

ARTICLE XX     SERVICE WITH COMPANY. . . . . . . . . . . . . . . . . . . 24

ARTICLE XXI    RETIREMENT AGE. . . . . . . . . . . . . . . . . . . . . . 24

SIGNATURE PAGE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

EXHIBIT "A"    BASIC HOURLY WAGE RATE. . . . . . . . . . . . . . . . . . 26

EXHIBIT "B"    CLOTHING ALLOWANCE. . . . . . . . . . . . . . . . . . . . 26

EXHIBIT "C"    PART 1
               RECOGNIZED MAINTENANCE WORK GROUPS. . . . . . . . . . . . 27

EXHIBIT "D"    EMPLOYEE DUES AUTHORIZATION LETTER. . . . . . . . . . . . 28

AMERICANS WITH DISABILITIES ACT LETTER OF UNDERSTANDING. . . . . . . . . 29

SHIFT DIFFERENTIAL LETTER OF UNDERSTANDING . . . . . . . . . . . . . . . 30

                                 PREAMBLE

     This Agreement is made and entered into by and between EL DORADO CHEMI-
CAL COMPANY (hereinafter referred to as the "Company"), and the INTERNATIONAL
ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS, AFL-CIO, LOCAL NO. 224
(hereinafter referred to as the "Union"), which the Company recognizes as the
sole bargaining agency for the Maintenance employees of the Company at its
chemical plant located north of El Dorado, Arkansas, who are eligible for
membership in the Union in accordance with the Labor Management Relations Act
of 1947.

                                 ARTICLE I
                         APPLICATION OF AGREEMENT

     The Company hereby recognizes the Union as the exclusive bargaining
agency for the employees of the Company at said plant who work in the capaci-
ties hereinafter stated in this Article I.

     (a)  All Maintenance employees, as described in Exhibit "A", engaged in
the installation, maintenance and repair of machinery and equipment, but
excluding all production, chemical and operating employees, shipping atten-
dants, office and clerical employees, managers, supervisors and guards.

                                ARTICLE II
                            PERIOD OF AGREEMENT

     This Agreement shall remain in full force and effect for a 3-year
contract term commencing August 5, 1995, at 12:01 a.m., and ending 12:00
Midnight, July 31, 1998.  At reasonable times after June 1, 1998, the parties
will meet to attempt to negotiate a new contract to be effective for a period
beginning after 12:01 a.m., August 1, 1998.

                                ARTICLE III
                         MANAGEMENT RIGHTS CLAUSE

     The Union expressly recognizes that the Company has the exclusive
responsibility for and authority over (whether or not the same was exercised
heretofore) the management, operation and maintenance of its facilities and,
in furtherance thereof, has, subject to the terms of this Agreement, the right
to determine policy affecting the selection, hiring, and training of employ-
ees; to direct the work force and to schedule work; to institute and enforce
reasonable rules of conduct; to assure discipline and efficient operations; to
determine what work is to be done, what is to be produced and by what means;
to determine the quality and quantity of workmanship; to determine the size
and composition of the work force; to determine the allocation and assignment
of work to employees; to determine the location of the business, including the
establishment of new locations or departments, divisions, or subdivisions
thereof; to arrange for work to be done by other companies or other divisions
of the Company; to alter, combine, or eliminate any job, operation, service,
or department; to sell, merge or discontinue the business or any phase there-
of; provided, however, in the exercise of these prerogatives, none of the
specific provisions of the Agreement shall be abridged.  The Company will not
use the vehicle of subcontracting for the sole purpose of laying off employees
or reducing the number of hours available to them.

                                ARTICLE IV
                          CHECK-OFF OF UNION DUES

     Upon receipt of a signed authorization by an employee requesting deduc-
tions from his wages for his monthly union dues, the Company agrees to honor
such authorization according to its terms during the life of this Agreement. 
The form of such individual authorization shall be as set forth in Exhibit "D"
hereto.

     The Financial Secretary of Local 224, IAM-AW, shall, from time to time,
notify the Company in writing of the amount of the monthly deduction to be
made, from time to time, under this authorization.  All money so deducted by
the Company shall be paid to the Union on or before the end of the month
during which deductions are made.  Upon receipt of written request by an
employee, the Company shall, after thirty (30) days' notice, discontinue dues
deduction.

                                 ARTICLE V
                                 SENIORITY

Section 1.  Length of Service.

     Length of service in the bargaining unit and with the El Dorado Plant
shall, in that order, govern the promotion, demotion, and transfer of employ-
ees.

Section 2.  Order of Seniority.

     An employee's seniority shall be determined as follows:

          Order of Importance           Seniority

          1st                           Bargaining Unit
          2nd                           Plant

Section 3.  Eligibility for Seniority.

     An employee shall be first entitled to seniority in the bargaining unit
when he has been continuously employed in that unit for 180 days; his seniori-
ty dating from the date of the beginning of such employment.

     However, an employee who has been employed in the bargaining unit, who
has been laid off prior to his having been employed therein for 180 days
continuously, and who is reemployed in the bargaining unit within 180 days
from the date upon which he is laid off, shall, upon such reemployment, be
entitled to have the number of days which he has worked in the bargaining
unit, during the period of his most recent previous employment herein, includ-
ed in any subsequent computation of his seniority in the bargaining unit and
shall be entitled to seniority when he has accrued 180 days on that basis.

     The Company shall have the right to layoff or discharge, without cause,
any employee who has not worked in the bargaining unit a sufficient length of
time to gain seniority, and such action on the part of the Company shall not
be the subject of a grievance on the part of the Union under any provision of
this Agreement.

Section 4.  Filling Vacancies.

     (a)  Temporary and permanent vacancies will be filled only when the
Company sees a need to fill the vacancy.  In the event the Company sees a need
to fill a vacancy, it will be filled by the employee having the most bargain-
ing unit seniority, who desires the job, and who possesses a skill of the
group in which the vacancy occurs.  Any person so promoted must accept the
duties and responsibilities of the job.

     (b)  When there is a permanent vacancy in a group and the Company sees
a need to fill that vacancy, the Company shall post promptly, and keep posted
for fifteen (15) days, notice on its bulletin board of the job vacancy.  It
shall be the duty of an employee who feels himself entitled to such job on
account of his seniority to file his sealed bid for such job with the Plant
Manager or his representative, and send a copy thereof to the Chairman of the
Shop Committee within said 15-day period.  In order to be considered valid, a
bid must be signed, dated, and deposited in a locked box marked "I.A. of M.
and A.W. Bids" located at the plant entrance gate.

     Immediately upon expiration of the posting period of fifteen (15) days,
the names of all bidders will be posted on the bulletin board, and the bidder
having the most seniority and who desires the job shall be assigned to the
group and receive the "C" Mechanic rate of pay if he possesses the necessary
skill.  In the event no qualified bidder possessing the necessary skill bids
on the vacancy, the Company may hire a qualified employee from the outside.

     If he does not possess the skill, he will be reduced to the rate that
compares to his previous experience beginning not later than the beginning of
the work week following the week in which the successful bidder is determined,
provided the successful bidder is available to report for work on that day.

     If the group vacancy is not filled by the procedure set forth above and
the Company sees the need to fill the vacancy, a first-year "E" Mechanic job
will be posted for filling outside the bargaining unit.

     Notwithstanding any other provisions of this subsection (b), it is
agreed that the Company shall have the right at any time during said 15-day
posting period to withdraw the posting of a new job in the event the Company
decides that such job need not be filled.

     (c)  Should an employee within a group who is entitled to a promotion
desire to waive his opportunity for that promotion, he shall do so by signing
a waiver.

     (d)  In the event that it becomes necessary to establish a permanent
rotating shift the Company will notify the Shop Committee to discuss the
procedure and shift to be implemented at least thirty (30) calendar days
before establishing such shift.

Section 5.  Qualifications for Job.

     (a)  It is not the intention of the parties to this Agreement that any
employee shall be permitted to work on a job when he is not qualified to
perform the work which that job requires.  However, if, in the opinion of the
Company, an employee is not qualified for a particular job to which he would
otherwise be entitled by virtue of his seniority, and the Company determines
that an employee's application for the job shall be denied on the basis of his
lack of qualifications, the Company shall notify the Chairman of the Shop
Committee and the employee involved of their decision, at least five (5) days
prior to the date upon which any other employee is permanently assigned to the
job.

Section 6.  Seniority List.

     Seniority lists will be compiled on April 1 and October 1 and will be
available to all employees.  One copy of each seniority list will be furnished
to the Shop Committee.

Section 7.  Seniority Accrued.

     Each employee shall retain the seniority accrued to him based upon
actual service at the El Dorado Plant.

Section 8.  Seniority - Outside Assignments.

     Any employee, after having established seniority under the provisions of
this Agreement, who is temporarily assigned to another job by the Company
(outside the bargaining unit) shall continue, for not more than ninety (90)
days per calendar year, on a cumulative basis, to accrue seniority on his
regular classification during such period of temporary assignment.  If such
employee works more than ninety (90) days per calendar year on a cumulative
basis, he shall forfeit one (1) day of bargaining unit seniority for each day
in excess of ninety (90) days worked outside of the bargaining unit during
that calendar year.

Section 9.  Discharges and Reemployment.

     When there is a reduction in the number of employees in the bargaining
unit, the employee last employed in the bargaining unit shall be the first
employee laid off.  The employee laid off through no fault of his own, who has
the greatest bargaining unit seniority, shall (subject to the following
provisions of this Article) be the person first reemployed in the event
additional employees are employed, provided that the person is qualified to
perform the duties of the job to which he would be assigned on reemployment.

     A person who has worked in the bargaining unit sufficiently long to be
entitled to seniority in that unit, and who is laid off through no fault of
his own, who has kept his current address on file with the Company, and who
continues to be entitled to seniority under the terms of this Agreement shall
(subject to the following provisions of this Article) be given first consider-
ation for reemployment.

     If reemployment is available for any such person, the Company shall so
notify him by letter (with a copy of such letter to the Chairman of the Shop
Committee), addressed to him at his address then on file with the Company, and
he shall be allowed fifteen (15) days from the date upon which said letter was
mailed, or until he no longer retains his accrued seniority as provided in
Section 10 of this Article V (whichever is the shorter period), in which to
notify the Company in writing of his desire to return to work.  In the event
he delivers such notice, he shall be allowed seven (7) days from the date of
the delivery thereof to report for work; provided, however, if the employee
involved is, on the date which he would otherwise be required to report for
work totally disabled to work, he shall, on or before that date, deliver to
the Company a statement in writing from a licensed physician stating that he
is so disabled, in which event the period within which he shall be permitted
to return to work shall be extended ninety (90) days.

Section 10.  Status of Employees Laid Off.

     The accrued seniority of an employee who has been laid off through no
fault of his own shall continue to exist from the date of his layoff for the
following periods:

          Years of Service         Period Seniority to Exist

          0-180 days               -0-

          181 days to 2 years      Length of previously accrued senior-
                                   ity

          2 years or more          2 years

Section 11.  Loss of Seniority.

     Seniority shall be lost and employment terminated for any of the follow-
ing reasons:

     (a)  Quitting.

     (b)  Absence from work for three (3) consecutive days without having
          notified the Company, unless physically impossible to do so.

     (c)  Discharge for just cause.

     (d)  Failure to return at the expiration of a leave of absence or
          vacation.

     (e)  If an employee misrepresents the reason for requesting a leave of
          absence.

     (f)  If an employee fails to file for reinstatement within ninety (90)
          days following discharge from the U.S. Military Service.

     (g)  Failure to return to work from layoff within the time specified in
          Section 9 of this Article.

     (h)  At the end of the period specified in Section 10 of this Article,
          or upon earlier rejection after layoff of an offer of reemployment
          in a classification equal to the classification from which laid
          off.

                                ARTICLE VI
                        HOURS OF WORK AND OVERTIME

Section 1.  Hours of Work.

     (a)  Regular base hours of work shall be eight (8) hours per day and
forty (40) hours per week.

     (b)  The work week shall begin at 12:01 a.m. each Monday and end at
12:00 midnight the following Sunday.  The work day shall begin at 12:01 a.m.
and end at 12:00 midnight.

     (c)  The work week shall normally be five (5) consecutive 8-hour days,
Monday through Friday, and will normally begin work at 7:00 a.m. and end at
3:30 p.m. with a 30-minute lunch period from 12:00 noon to 12:30 p.m.

     (d)  No employee shall be required to work more than twelve (12) hours
during any normal work day except in case of an emergency.

     (e)  All employees shall be expected to report to work promptly at the
scheduled time.  No employee shall be permitted to work if such employee
reports for work more than one and one-half (1-1/2) hours after his regular
scheduled reporting time, unless such delay has been previously excused by the
Company.

     (f)  No employee shall be allowed to work more than sixteen (16)
continuous hours nor more than sixteen (16) hours in any one day except in the
case of an emergency.  However, an employee will be allowed to complete his
regularly scheduled hours of work as provided in Sections 5, 8 and 10 of this
Article VI.

     (g)  Maintenance overhauls may be staffed on 8-hour, 10-hour, or 12-
hour shifts as may be necessitated by the needs of the operation.

     The Company will specify and select the number and classifications of
personnel on each shift by work group classification for each particular
overhaul on a shift basis.  Preference to shifts will be governed by the
employee's bargaining unit seniority.  Shift change notice will be handled as
outlined in Article VI, Section 3.  In the event there are insufficient
qualified personnel on each shift, the Company shall have the right to assign
qualified personnel as needed.

Section 2.  Overtime and Call-Out Pay Rates.

     (a)  Overtime and call-out rates shall be one and one-half (1-1/2)
times the regular rate and shall be paid for all work performed in excess of
forty (40) hours per week, continuous actual work in excess of eight (8)
hours, and for all work performed as a result of call-out and for hours worked
outside an employee's regularly scheduled hours.

     (b)  Any employee who works over, beyond his regular scheduled work
day, shall be paid a minimum of three (3) hours at straight time.  If the
employee is required to stay over beyond his regular scheduled work day to
attend meetings or to receive training, and no production work is involved, he
will receive pay for actual time spent at one and one-half (1-1/2) times his
regular rate of pay, providing he has received a minimum of twenty-four (24)
hours' notice in advance.

     (c)  No employee shall work overtime without the approval of his
Foreman.

Section 3.  Shift Change Notice.

     (a)  The Company shall pay each employee one and one-half (1-1/2) times
his regular rate of pay for the first shift of a rearranged work schedule if
the employee whose shift is changed shall not have been notified of the change
at least twenty-four (24) hours prior to the beginning of said first shift. 
If notice of employee's shift change shall be posted on his regular day off,
notice of the change shall be posted at least seventy-two (72) hours prior to
the beginning of said first shift.  Any notice required to be given to an
employee under the provisions of this Section 3 may be given by written notice
posted on the general bulletin board of the Company and the bulletin board of
the Union, and each employee named in any notice shall be deemed to have
received the notice at the time copies of said notices are posted on said
boards.

     (b)  The changing of an employee's shift, incident to the return of an
employee from sickness or accident, shall not be considered a change in shift
within the meaning of this Section 3, unless the absent employee has given the
Company at least seventy-two (72) hours' notice of his intention to return to
work and the time at which he will return to work by notifying his supervisor.

     (c)  The changing of an employee's shift from 7:00-3:30 to 7:00-3:00,
or from 7:00-3:00 to 7:00-3:30 will not constitute a shift change.

     (d)  A change in shift at the request of an employee shall not be
considered a change in shift for the purpose of this Section 3.

     (e)  No employee shall lose any time from his normally scheduled 40-
hour week occasioned by any shift change.

Section 4.  Meal Time.

     (a)  If a "Day Man" is instructed to and continues to work overtime
past 6:00 p.m., he shall be allowed a 30-minute period beginning at 6:00 p.m.
for supper on Company time; and if said "Day Man" then continues to work
additional overtime, he shall be allowed a 30-minute lunch period on Company
time; each such period to begin at the end of four (4) hours of additional
continuous overtime worked after 6:30 p.m.

     (b)  Any employee called for work outside of his regular working hours,
who is required to work more than four (4) consecutive hours outside his
regular hours, shall be allowed a 30-minute period for a meal on Company time
at the end of the fourth consecutive hour and at the end of each consecutive
4-hour period thereafter that said employee continues to work outside his
regular hours.

Section 5.  No Reduction of Work Week as Result of Overtime.

     No employee will be required to take any time off from his regular work
week because of overtime worked in that or any other week.  If an employee is
required to work on his day off, he shall not be forced to take another day
off in lieu thereof.

Section 6.  Computation of Overtime.

     For the purpose of computing overtime under this Article, the exact time
worked, rounded to the nearest quarter hour, shall be accounted for, which
shall be paid for at the overtime rate.

     There shall be no duplicate payment for daily overtime and weekly
overtime.  If daily overtime is greater in any one work week, only daily
overtime shall be paid, or if weekly overtime is greater in any one work week,
only weekly overtime shall be paid.  There shall be no pyramiding of overtime.

Section 7.  Distribution of Overtime and Call-Out Time.

     Overtime work opportunities shall initially be distributed, as equitably
as practicable, within each work group where the overtime is required in
accord with the Company's distribution policy.  The Company may then offer
such work to employees in other work groups who are qualified.

     For the purpose of distributing overtime, the Company will submit a
list, biweekly, to the work group steward showing the overtime worked, refused
and overtime standing of each employee covered within the group.

     Each employee who is requested to report for overtime duty shall report
at the required time unless he shall first obtain permission from his supervi-
sor to be relieved of such duty.

Section 8.  Call-Out.

     An employee who is called out and reports for work outside his regular
working hours shall work until excused by the person then supervising his
work; provided that no one shall be required to work longer than is provided
in Section 1(d) of this Article.  An employee who is called out and reports
for work shall be paid a minimum for four (4) hours at time and one-half (1-
1/2), even though the full four (4) hours may not be worked because no work is
available, or he does not work at all because no work is available.  An
employee called for such work, who works continuously until the beginning of
his regular hours of work and continues to work during the regular hours of
his scheduled work, shall not be considered to have had a change in shift
within the meaning of Section 3 of this Article VI.

     A description of the work or jobs to be done, or the problem necessitat-
ing the call-out, is provided as accurately as possible by the supervisor in
order that the person being called may judge: (a) whether or not he has the
ability to do the work, and (b) about how long he may have to work.  It is not
intended to have a person come out on one job, then surprise him with a list
of additional jobs to be done.  However, due to emergencies, it cannot be
guaranteed that he will only be required to do what he was called for.

     Notwithstanding the fact that an employee has been called out for work,
such employee shall perform his regular work schedule during the remainder of
the work week in which such call-out occurs unless excused from such work.

     If an employee is called out for work and works until the beginning of
his regular work schedule, the call-out will be considered as ending at the
beginning of his regular schedule.

Section 8A.  Advance Scheduling of Overtime.

     Overtime may be scheduled up to three (3) weeks in advance of the actual
time required.  In the event the scheduled overtime is cancelled, eight (8)
hours' notice will be given or a call-out will be paid.

Section 8B.  Right to Assign Qualified Personnel.

     In the event overtime distribution and call-out  procedures do not
provide the Company with sufficient, qualified personnel to perform the
overtime work, the Company shall have the right to assign such work to quali-
fied personnel.  The performance of such work is mandatory.

Section 9.  Holiday Pay.

     The following days shall be considered holidays and normally no work
will be performed on the designated holidays except in cases of emergency,
around-the-clock shift work, and in those crafts where work is necessary for
continued operations:

          1.   New Year's Day
          2.   Good Friday
          3.   Memorial Day
          4.   July Fourth
          5.   Labor Day
          6.   Columbus Day
          7.   Thanksgiving Day
          8.   Day after Thanksgiving
          9.   Last work day before Christmas holiday
          10.  Christmas Day

     When any of these holidays fall on Sunday, the following Monday will be
observed as the holiday.

     When any of these holidays fall on Saturday, the preceding Friday will
be observed as the holiday.

     Each employee who is not required to work and who does not work on a
holiday shall be paid a bonus equivalent to eight (8) hours at his regular
rate at straight time pay, providing he has worked his last scheduled work day
immediately preceding the holiday and his first scheduled work day following
the holiday unless the failure to work these days is because of confirmed
illness or accident no more than five (5) work days before or after the
holiday, unless the employee was excused in advance by the Company.

     Each employee who works on a holiday will be paid, in addition to the 8-
hour bonus mentioned above, one and one-half (1-1/2) times his regular rate of
pay.

Section 10.  Reporting for Work and Not Used.

     Except when no work is available due to Act of God, such as fire, flood,
explosion, or tornado, an employee who reports for duty on his regular sched-
ule shall be given the opportunity of working a full 8-hour shift.

                                ARTICLE VII
                      WAGE RATES AND CLASSIFICATIONS

Section 1.  Wages and Pay Period.

     The regular pay periods for employees subject to this Agreement will
cover every two (2) scheduled work weeks, and checks will be available to the
men on their regular shifts on the Friday following completion of the 2-week
period.

     Each employee who works during the period beginning 12:01 a.m., August
5, 1995, and ending 12:00 Midnight, July 31, 1998, shall be paid for his work
in that classification on the basis of the basic hourly wage rate for that
classification shown on Exhibit "A" to this Agreement.  Each employee will be
paid the applicable clothing allowances provided on Exhibit "B" to this
Agreement.

Section 2.  Changes in Classification of Work.

     (a)  Each employee covered by any classification is expected to perform
any duties to which he may be assigned within his classification or lower
classification.

     (b)  It is understood and agreed by the parties hereto that two (2)
work groups shall be recognized under this Agreement.  A tabulation of the
groups with explanatory notes is made in Exhibit "C", Part 1, which is a part
of this Agreement.

     (c)  All Maintenance personnel may be assigned to do any jobs that they
have the ability to perform subject to the provisions of Article V, Section 5,
and Article XIV, Section 5, of the current contract.

     (d)  The Company reserves the right to increase or reduce, at any time
and from time to time, the number of men employed in any group mentioned in
Exhibit "C", Part 1, to that number of men which, in the opinion of the
Company, are required to perform work in that group for maintaining the plant. 
Any such increase or reduction of force in any group shall be made on the
basis of bargaining unit seniority in that group.  The Company shall advise
the employee(s) affected seventy-two (72) hours in advance of any permanent
change in the number of persons who shall work in any classification.

                               ARTICLE VIII
                          HANDLING OF GRIEVANCES

Section 1.  Routine Submission.

     (a)  For the purpose of adjusting a grievance arising out of the
application or interpretation of a written provision of the Agreement, it is
agreed that an employee, and/or with his Steward, shall first seek adjustment
of the matter with his Foreman; and, if not resolved, the employee, and/or
with his Steward, may submit the grievance in writing to his Foreman.  No
grievance will be considered unless it has been submitted to his Foreman
within five (5) working days after the employee knew or should have known that
the grievance occurred.

     The Foreman shall advise the employee and/or the Steward, in writing,
within five (5) days (Saturdays, Sundays and holidays excluded) of his deci-
sion on the grievance, if submitted.  The grievance must be filed, in writing,
on grievance forms provided by the Company and signed by the individual
grievant.

     If the grievance is not satisfactorily adjusted with the Foreman, the
employee and the Steward may submit the grievance to the Shop Committee for
handling with the Department Head.

     (b)  If the Shop Committee elects to process the grievance, it shall
submit the grievance to the Department Head, along with a factual statement of
the reasons that the Foreman's answer was not satisfactory.  The grievance
must be submitted to the Department Head within five (5) days (excluding
Saturdays, Sundays and holidays) after the date the Foreman advised the
Steward and/or employee of his decision.  The Department Head shall, within
seven (7) calendar days following receipt of the grievance, meet with the
designated members of the Shop Committee at a time to be mutually agreed upon. 
The Department Head shall advise the Shop Committee, in writing, within five
(5) days following this meeting (excluding Saturdays, Sundays and holidays) of
his decision regarding the grievance.

     (c)  If the response of the Department Head is not satisfactory, the
Shop Committee may submit the matter, in writing, to the Plant Manager within
ten (10) days (excluding Saturdays, Sundays and holidays) after the date the
Department Head furnishes his grievance response to the Committee.  The Plant
Manager shall, within ten (10) calendar days following receipt of such griev-
ance (and documentation) meet with the designated members of the Shop Commit-
tee, at a time to be mutually agreed upon.  The Plant Manager, or his autho-
rized representative, shall render a decision on the grievance, in writing,
within ten (10) days (Saturdays, Sundays and holidays excluded) following this
meeting.

Section 2.  Arbitration.

     If the grievance is not adjusted satisfactorily through the procedure
hereinbefore mentioned, the issue may be referred to an arbitrator.  If the
Union desires to submit such grievance to an impartial arbitrator (providing
the grievance is one which does not involve matters in which arbitration is
specifically prohibited under the terms of this Agreement, and which the
Company and Union have mutually agreed to submit to arbitration) it must
notify the Company of that fact, in writing, within thirty (30) days after the
date the Plant Manager, or other duly authorized representative, advised the
Workmen's Committee of his decision.

     The Union and the Company shall make written application to the Federal
Mediation & Conciliation Service requesting a seven-name arbitrator panel from
which the parties shall select one (1) arbitrator.  The parties shall alter-
nately each strike one name until only one (1) name remains who shall act as
Arbitrator.  It is understood that, starting with the first arbitration case
following the date of the execution of this Agreement, the Union shall strike
the first name.  In the next case, the first name shall be stricken by the
Company, and alternately the Union and the Company thereafter.  Both the
Company and the Union shall have the right to reject two (2) panels submitted
by the Federal Mediation & Conciliation Service.

     When the Arbitrator has been selected, he shall meet for the consider-
ation of the grievance as soon thereafter as is practical.  Any such procedure
shall be held in El Dorado, Arkansas, unless the parties unanimously decide
otherwise.

     The expense of the Arbitrator shall be shared equally by the Company and
the Union.

     The Arbitrator shall decide only the grievance submitted to him upon
testimony presented to him by the Union and the Company, and shall render his
decision in writing.

     Except as otherwise specifically provided in this Agreement, the Arbi-
trator shall have no power to change the wages, hours, or conditions of
employment set forth in this Agreement; he shall have no power to add to,
subtract from or modify any of the terms of this Agreement; he shall deal only
with the grievance which occasioned his appointment.  He will require that the
Union has the burden of establishing its position on behalf of the employee,
except in a discipline and/or discharge case when the burden will be on
management.

     The parties hereto shall comply fully with the award or decision made by
any such Arbitrator, and the decision of the Arbitrator will be final and
binding on both parties.

     No provisions of this Article, or of any other Article of this Agree-
ment, shall deprive any employee covered by the terms of this Agreement of any
rights to which he may be entitled under Section 9(a) of the Labor Management
Relations Act of 1947, or any other Statute of the United States.

     The Union has the authority to process, abandon, or settle grievances on
behalf of employees.  It is provided, however, that no grievance as to wage
scales that shall be paid to all or any group of the employees in the bargain-
ing unit shall be submitted to an arbiter, in any event.

     The question as to whether a person has been paid the rate to which he
is entitled, in accordance with the wage rates set forth in Exhibit "A" to
this Agreement, for work which he has performed shall be a subject for arbi-
tration.

     The grievance and arbitration provisions provided for herein, in addi-
tion to any other right or obligation under the Agreement, are limited to
grievances or clams arising and actually filed in writing during the term of
this Agreement.

     In the event a grievance arises over a discharge or layoff, the first
and second steps of the grievance procedure may be bypassed.

                                ARTICLE IX
                        SHOP COMMITTEE AND STEWARDS

Section 1.  Shop Committee.

     The Shop Committee, composed of four (4) members from the employee work
force, and management representatives, shall hold regular meetings on a
bimonthly basis.  It shall be the responsibility of the Shop Committee to
submit a written agenda of each subject it wishes to discuss with the Company
no less than forty-eight (48) hours before the day of any such meeting.  Only
three (3) employees in any one group at any one time shall be a member of the
Committee.

Section 2.  Stewards.

     (a)  A Steward and an assistant Steward may be elected in each work
group by the employees of that group, and the Union shall submit to the
Company, in writing, the names of each person so designated.  The Company
shall consider the person so designated as Steward and assistant Steward of
each work group until notified, in writing, to the contrary.

     (b)  Duly-elected Stewards or Committeemen shall be deemed to possess
top ranking seniority for purposes of layoff and recall rights within his
respective work group or classification while acting as such.

                                 ARTICLE X
                             LEAVE OF ABSENCE

Section 1.  Personal Business.

     If an employee desires to be off on personal business (not emergencies),
he may do so with the consent of the Company so long as he does not desire to
be off over two (2) work weeks and provided that he gives the Company forty-
eight (48) hours' notice of his desire to be absent and the length of time he
desires to be off.  Upon completion of such leave, he will resume employment
on the basis of uninterrupted service.

Section 2.  Union Business.

     (a)  The Company shall, upon a minimum of thirty (30) days' prior
written request from an employee and the President of Local No. 224 of Inter-
national Association of Machinists and Aerospace Workers, grant a leave of
absence, extending not longer than fourteen (14) days, to the employee apply-
ing for such leave in order that he may, during that leave, engage in work
pertaining to the business of Local No. 224 of International Association of
Machinists and Aerospace Workers.

     Such a leave shall not be granted to more than one (1) employee at any
one time.  Such employee shall not be granted such a leave for more than an
aggregate of thirty(30) days in any one (1) calendar year.

     (b)  The Company shall grant (upon a minimum of sixty (60) days advance
prior written request of an employee and the President or Vice President of
International Association of Machinists and Aerospace Workers) a leave of
absence for a period not to exceed one (1) year in order that the employee
requesting such leave may, during the period of such leave, work as any
employee of International Association of Machinists and Aerospace Workers. 
Not more than one (1) employee shall be permitted to be absent from work at
any one time on any such leave.

Section 3.  Sickness or Accident.

     If an employee who has established seniority is out of service due to
occupational injury or occupational disease suffered or contracted while he is
in the employment of the Company, he shall retain his seniority accrued at the
date of his disability and continue to accrue seniority for a period of
twenty-four (24) months or length of previously-accrued seniority, whichever
is less, during the period of his disability as a result thereof.  If an
employee who has established seniority is out of service due to nonoccupation-
al injury or disease suffered while he was in the employment of the Company,
he shall retain his accrued seniority for a period of twenty-four (24) months
and will accrue seniority in the classification in which he was last regularly
employed for a period of one (1) year.

     Under either of the above conditions, if an employee should accept an
equal or better job elsewhere, his seniority shall be cancelled.

Section 4.  Notice to the Company.

     When an employee becomes aware of the fact that he is going to be absent
from work due to sickness, accident, or other emergency, he must notify his
supervisor as far in advance of his scheduled shift as he/she has knowledge of
such intended absence, but no less than one (1) hour before the time he is due
to report to work.  In the event the employee cannot contact his Supervisor,
it is permissible to contact any member of Management.

Section 5.  Military Reserve Training.

     (a)  Any regular employee (not probationary) may be granted a special
leave of absence for a period not to exceed fourteen (14) days, plus a reason-
able period to cover travel time, when required for the purpose of engaging in
a training program for Enlisted Reserve, Reserve Officers, or National Guard
Encampment, provided:

          1.   He furnishes the Company with a copy of orders from the
               military authorities calling him for duty; and

          2.   He gives advance notice to his immediate supervisor so that
               arrangements may be made for his replacement during the
               period of his leave.  

     (b)  Only one (1) leave of absence for Military Reserve Training shall
be granted to any employee during a calendar year.

                                ARTICLE XI
                                 VACATIONS

Section 1.

     Normal vacation accruals will be computed in accordance with the follow-
ing provisions:

     (a)  Two weeks (80 hours) - after having accrued one (1) year's Company
seniority;

     (b)  Three weeks (120 hours) - during the calendar year in which an
employee accrues six (6) year's plant seniority;

     In computing length of service for vacations, time spent working at the
El Dorado Plant will be used.

Section 2.

     Those employees who had previously accrued or who will accrue, during
the term of this Agreement, twelve (12) years or more Company seniority shall
be entitled to a vacation accrual of four weeks (160 hours).  Thereafter, and
for all other employees, the maximum vacation accrual shall be as provided in
Section 1.

Section 3.

     (a)  Normally, all vacations will begin with the first work day of the
work week schedule.

     (b)  Vacation pay shall be based upon the straight time rate of an
employee's regular classification at the beginning of the vacation and will be
taken in accordance with his established work schedule.  If a holiday, as
defined in Article VI, occurs during an employee's vacation period, the
employee will receive pay for said holiday as defined in Article VI.

     (c)  Each employee must take his vacation during the vacation year
(January 1-December 31) in which it falls due, subject to subsections (d) and
(i) below.

     (d)  If an employee is not permitted to take his vacation in any
calendar year in which it is due because the Company finds it not convenient
to excuse him from work, he shall be paid a sum equal to the sum to which he
would have been entitled for working at his regular job based on straight-time
pay at normal working schedule during the last part of that year equal to the
number of weeks' vacation to which he is entitled.

     (e)  Except with special permission of the Company, no employee shall
be permitted to begin a vacation in any year within three (3) months of the
date of the end of the vacation taken by him during the preceding calendar
year, and any employee who has received pay in lieu of vacation for one (1)
calendar year shall be entitled to his next annual vacation before March 1 of
the following year, if it is practical for the Company to give him a vacation.

     (f)  An employee who (a) resigns, (b) retires, (c) is laid off as part
of a reduction in forces, or (d) is granted a military leave under the provi-
sions of Article XII, at a time when he has earned vacation to that date but
has not taken, nor previously received pay in lieu of, shall be paid in lieu
of any vacation he has earned to that date but has not taken, nor previously
received pay in lieu of.

     Computation of vacation under this section will be earned at the rate of
one-twelfth (1/12th) for each month from employee's anniversary date.  Sixteen
(16) or more calendar days of employment in any calendar month will be consid-
ered a full month in computing vacation accruals.

     (g)  An employee will not be eligible for overtime or call-out during
the period beginning with the first day of his vacation and until his first
scheduled work day following completion of his vacation.

     (h)  In the event of the death of any employee who was then otherwise
eligible for a vacation but who had not taken it, a sum of money equal to pay
in lieu of such vacation shall be paid to the person(s) who shall be entitled
to the personal property of such decedent.

     (i)  No employee shall receive pay in lieu of vacation except as
provided in Article XI, Section 2(d).  However, when an employee is absent
from work due to authorized occupational injury or illness, or personal sick
leave, and has not returned to work by December 31, he may, at the Company's
option, be permitted to take his vacation or receive vacation pay between
January 1, and April 1 of the following year.

Section 4.

     The vacation schedule will be initiated January 2nd of each year for
those eligible for vacation in that year.  Employees shall choose their
vacation periods in order of their bargaining unit seniority.  The Company
will, insofar as operations permit, arrange by choice and by seniority the
employee's request in the vacation schedule.  An employee not submitting his
vacation preference within a reasonable time after being contacted will have
his vacation scheduled during the year at a time convenient to the plant
operations.

     Normally, a maximum of five (5) employees, (only one of the five (5) may
be assigned to the Electrical/Instrumentation Group) may be on vacation at the
same time.

                                ARTICLE XII
                              MILITARY LEAVE

Section 1.  Military Selective Service Act.

     The rights of employees of the Company who enter Military Service during
the term of this Agreement will be governed in all respects by the Military
Selection Service Act including amendments.

Section 2.  Pay in Lieu of Vacation.

     Each such employee who is entitled to a vacation under the vacation
policy of the Company at the time he leaves to enter the Armed Forces, who
elects not to take the vacation but to receive pay in lieu thereof, shall,
upon furnishing to the Company a certificate from his commanding officer
establishing the fact that he had been inducted into the military service, be
paid the amount of money he would have received had he taken his vacation just
prior to the beginning of his military leave.

                               ARTICLE XIII
                           PHYSICAL EXAMINATIONS

Section 1.  Periodical Examinations.

     The Company may, from time to time, require all employees to have
periodical physical examinations by a doctor selected by the Company.  Howev-
er, such examinations shall not be used for the purpose of discriminating
against an employee.  Each employee shall receive his regular rate of pay for
all time required to be examined as provided in this Section 1.

Section 2.  Certificate of Physical Fitness.

     In the case of an employee being absent from work due to illness or
physical impairment, he may be required to present a certificate of physical
fitness, signed by a licensed physician, before being readmitted to work. 
This rule, however, shall not limit the right of the Company to require
physical examination by a physician in the Company's service in exceptional
cases of constantly recurring absence from duty.

Section 3.  Dispute Resolution.

     Notwithstanding any of the provisions of Article VIII of this Agreement,
in case a dispute arises over the physical fitness of an employee to return to
work or continue to work, a board of three (3) physicians shall be selected;
one by the Company, one by the employee, and one selected by the two so named. 
The decisions of the majority of this board shall be final and binding.

                                ARTICLE XIV
                         MISCELLANEOUS AND GENERAL

Section 1.  Tool Check-in Time.

     Employees will be allowed fifteen (15) minutes time to clean and check
in their tools before quitting time, if such action is required by them.

Section 2.  Bulletin Board.

     The Company shall maintain at the plant entrance gate at the Chemical
Plant a bulletin board which shall be designated as "Local No. 224 Bulletin
Board" and shall be for the use of the Union for posting -- subject to the
approval of the Company -- of any matters of interest to or affecting the
business of the Union.  It is understood and agreed that the posting of
notices by the Union within the plant area will be on this bulletin board only
and will be posted by the Chairman of the Shop Committee or his recognized
representative.  This bulletin board will be locked with a key, released to
the Chairman of the Shop Committee and to the Company.

Section 3.  Discrimination.

     There shall be no discrimination by the Company against any employee
with respect to any conditions of employment on account of his membership in
this labor union, or on account of any activity undertaken in good faith in
his capacity as a representative of other employees.  The Union shall not
discriminate against any employee who is not a member of the Union.

     Where the male gender is used in this contract, it is intended to refer
to both male and female.  It is a continuing policy of the Company and the
Union that the provisions of this Agreement shall be applied to all employees
without regard to race, color, religion, sex, physical disability, national
origin, or age.

Section 4.  Wage Rate Changes.

     There shall be no change in the basic hourly wage rates set forth in
Exhibit "A" to this Agreement, or in the clothing allowance set forth in
Exhibit "B" to this Agreement, during the term of this Agreement.

Section 5.  Safety Provisions.

     The Company shall continue to make reasonable provisions for the safety
and the health of its employees at the plant during hours of their employment. 
Protective devices from injury shall be provided by the Company.  Employees,
subject to this Agreement, will abide by safe practice rules and regulations
of the Company, and failure to do so may be considered grounds for dismissal.

     No employee shall be required to perform services which, in the consid-
ered judgment of the Company and the Union, seriously endanger his physical
safety; his refusal to do such work shall not warrant or justify discharge. 
If any employee refused to perform such work, representatives of the Company
and the Union shall immediately attempt to decide the safety factor.  Should
they be unable to agree, the decision of a representative of the Safety
Department of the Company shall be obtained.  If the employee still feels an
unsafe condition exists, he will not be required to perform that given job,
and the Company will have the work done by any means it elects.

Section 6.  Discharges.

     It is agreed by and between the Company and the Union that the Company
may, without limitation upon its right to discharge an employee for any other
valid reason, discharge any employee, subject to this Agreement, for the
violation of any of the Company's rules or regulations, which said rules and
regulations heretofore have been approved by both the Company and the Union.

Section 7.  Recess Period (Smoking).

     Where men are required to work continuously in restricted and confined
areas where smoking is not permitted, the Foreman is authorized to grant a
recess of not longer than ten (10) minutes to employees upon request, provid-
ing in his judgment, work conditions permit; however, no employee shall be
granted more than two (2) such recesses in any one (1) normal work day.

Section 8.  Jury Duty.

     Each employee of the Company who is called for service upon any grand
jury, petit jury or coroner jury shall, after furnishing to his Foreman, a
certificate in evidence of his jury service, be paid by the Company for each
day which he serves upon said jury a sum equal to the difference between the
amount he would have earned if he had been required to work for the Company on
that day for the number of hours of his regular work schedule and the jury pay
he received, with the provision that no such payment shall be made to an
employee for jury service on any day during which, in accordance with his
regular work schedule, he would not have worked for the Company.

Section 9.  Termination Pay.

     An hourly employee whose work comes within the scope of the Fair Labor
Standards Act, and who has been continuously employed by the Company for one
(1) year, shall, if discharged through no fault of his own, receive a sum
equivalent to forty (40) hours' straight time pay at his regular rate, based
upon his normal schedule of work, and twice that amount if he has been em-
ployed by the Company for a period of five (5) years.  No employee shall
receive such termination pay more than once in any one (1) calendar year.

Section 10.  Contract Work.

     It is agreed that any classified work covering maintenance and repair of
equipment and machinery now being done by employees of the Company shall not
be contracted out as long as the Company has the necessary equipment and as
long as there are qualified men available to do the work.

Section 11.  Technical and Supervisory Employees.

     The Company may use technical and supervisory employees to install
temporary test equipment to be used in evaluating conditions and/or perfor-
mance of plant facilities.

Section 12.  Minor Maintenance.

     It is agreed that Operating Department personnel will perform minor
maintenance functions.  Minor maintenance functions shall be similar in scope
but not limited to the following examples:

     1.   Tightening loose mechanical connections.

     2.   Tightening leaking packing.

     3.   Changing instrument charts.

     4.   Tightening piping fittings to stop minor leaks.

     5.   Changing light bulbs.

     6.   Hooking up loading and unloading lines.

Section 13.  Minor Operating Functions.

     Maintenance personnel may perform minor operating functions when re-
quested by production supervision, but only when accompanied by a qualified
member of the operations group.  Typical example: Assisting in closing or
opening large block valves that are difficult for one person to handle.

                                ARTICLE XV
                           VALIDITY OF CONTRACT

     If any court shall hold any provision of this contract invalid, such
decision shall not invalidate the other provisions.

                                ARTICLE XVI
                                  NOTICE

     Any notice to the Company provided herein may be given by depositing
same in the U.S. Mail in a sealed envelope, registered, postage prepaid, and
addressed to:

          El Dorado Chemical Company
          P.O. Box 231
          El Dorado, Arkansas  71731
          Attention: Plant Manager

     Any notice to be given to the Union may be given by depositing same in
the U.S. Mail in a seal envelope, registered, postage prepaid, and addressed
to:

          Recording Secretary
          International Association of Machinists
          and Aerospace Workers, AFL-CIO,
          Local No. 224
          Box 1332
          El Dorado, Arkansas

     A copy of notices should be likewise mailed to:

          President, International Association of
            Machinists and Aerospace Workers
          AFL-CIO Machinists Building
          9000 Machinist Place
          Upper Marlboro, Maryland  20772-2687

                               ARTICLE XVII
                               FUNERAL LEAVE

     Any employee in the bargaining unit shall be allowed to be absent from
work to arrange for or attend the funeral of any one of the relatives of the
employee hereinafter stated:

     (a)  If the deceased relative was the husband, wife, child, father,
mother, brother, sister, grandfather, grandmother, or grandchild of the
employee, the employee shall be permitted to be absent from work for a period
not to exceed two (2) continuous days.  One of these days shall be the day of
the funeral.  The other day may be the day before the funeral or the day after
the funeral.  If either or both of these days are scheduled working days, he
shall be allowed pay for the day(s) off during his regular working schedule.

     (b)  If the deceased relative was the father-in-law, mother-in-law,
brother-in-law, sister-in-law, son-in-law, or daughter-in-law of the employee,
the employee shall be permitted to be absent from work with pay for the
purposes stated for one (1) scheduled working day if the funeral is held on a
scheduled working day.  Brother-in-law and sister-in-law will be interpreted
as (i) the spouse of an employee's brother or sister; (ii) the brother or
sister of an employee's spouse; or (iii) the spouse of an employee's spouse's
brother or sister.

     (c)  If, to attend the funeral for the deceased relative, the employee
travels to a point more than 100 miles from El Dorado, Arkansas, he shall be
allowed such leave for an additional day with pay.

     The pay for each day's leave which the employee receives under the
provisions of this Article shall be a sum equal to straight time for his
regular schedule of work on the day involved.  There shall be no duplication
of payment under provisions of this Article for any other employee benefits
such as vacation pay, holiday pay, or sickness benefits payments.

     Any request for such time off with pay based on false statements will
subject the employee making the request to immediate disciplinary action or
discharge.

                               ARTICLE XVIII
                              GROUP INSURANCE

     The Company agrees to provide group insurance benefits.  Employees
participating in these plans will be furnished a booklet explaining the
provisions of the agreements.

Section 1.  Group Insurance and Retirement.

     Effective with the date of this Agreement the Company and employees will
share the cost of employee and employee dependent group insurance coverage on
the following basis:

                                Company 75%
                               Employee 25%

     Effective with the date of this Agreement the Company agrees to pay the
cost of employee long-term disability insurance and basic life insurance.

     Dental insurance coverage will be made available as an option.  The
employee may elect to purchase the insurance by paying the premium each month,
or by increasing the deductible amounts of the current group medical plan.

     The Savings Incentive Plan for Employees, adopted effective December 1,
1985, shall be continued during the term of this Agreement.

                                ARTICLE XIX
                           NO STRIKE OR LOCKOUT

     There shall be no strike, sympathy strike, or lockout during the term of
this Agreement for any reason.

                                ARTICLE XX
                           SERVICE WITH COMPANY

     The Company shall honor previous service at the El Dorado Chemical
Company for purposes of seniority and vacation eligibility only.  Previous
service at the plant, or any predecessor of the Company, shall not be credited
for purposes of pension benefits.

                                ARTICLE XXI
                              RETIREMENT AGE

     The mandatory retirement age for employees shall be in accord with
federal law.

     The seniority of each employee whose services are terminated under the
provisions of this Article shall cease as of the date of such retirement.

     IN WITNESS HEREOF, this instrument is executed on the 5th day of August,
1995, to be effective as of August 5, 1995, at 12:01 a.m.

                              EL DORADO CHEMICAL COMPANY


                              By:_____________________________________
                                  R.L. Milliken, Plant Manager


                              INTERNATIONAL ASSOCIATION OF MACHINISTS
                              AND AEROSPACE WORKERS AFL-CIO, LOCAL NO.
                              224


                              By:______________________________________
                                  F.D. Haydon, Grand Lodge
                                 Representative


                              Members of the Shop Committee:

                              ________________________________________
                              Jim McKnight

                              ________________________________________
                              Todd Lambert

                              ________________________________________
                              Don Fletcher

                              ________________________________________
                              Wayne Husbands

                              ________________________________________
                              Alan Barker
                                EXHIBIT "A"

                          BASIC HOURLY WAGE RATE


Classification                8/5/95    8/5/96    8/5/97

*"A" Mechanic                 $15.79    $16.22    $16.71
*"B" Mechanic                 $15.09    $15.50    $15.97
*"C" Mechanic                 $14.73    $15.14    $15.59
*"D" Mechanic                 $11.06    $11.36    $11.70
*"E" Mechanic-New Hire            **        **        **
*(First 180 Days)
** Rate of pay determined by Company on basis of employees qualifications.

     The Company shall have the right to select and appoint employee(s) as
Lead.  In addition to the regular work of their classification, a Lead may be
assigned to train, assist, assign employees, carry out the instructions of
supervision, and to perform any other duties pertaining to the maintenance
department, which may be assigned by management.  The selection of Lead
personnel and the duration of their appointment is within the sole discretion
of management.  While so assigned, Lead(s) shall receive a premium of one
dollar ($1.00) above their regular hourly rate.



                                EXHIBIT "B"

                            CLOTHING ALLOWANCE


     In addition to the hourly rates set forth in Exhibit "A", there shall be
paid a clothing allowance of each hour worked, as indicated below:

                            Clothing Allowance
                                 Per Hour
                                   $.09

All Maintenance Personnel

     Effective August 5, 1995, through the term of this Agreement the cloth-
ing allowance will be sixteen cents ($.16) per hour worked by an employee.

                                EXHIBIT "C"
                                  Part 1

                    RECOGNIZED MAINTENANCE WORK GROUPS

Group I - Mechanical

     Includes work ordinarily done by:

                            Pipefitter, Plumber
                            Welder, Lead Burner
                            Heavy Duty Operator
                                  Rigger
                                 Machinist
                             General Mechanic
                            Tank Car Repairman
                                 Carpenter
                                  Painter
                    Mason, Insulator, Concrete Finisher


Group II - Electrical/Instrumentation

     Includes work ordinarily done by:

                                Electrician
                           Instrument Repairman


                                EXHIBIT "D"

                    EMPLOYEE DUES AUTHORIZATION LETTER


DATE:__________________________

TO:  EL DORADO CHEMICAL COMPANY
     El Dorado, Arkansas

     Until further notice, you are hereby requested and authorized to deduct
from wages due me, and payable on the first regular pay day of each month, the
sum equal to my monthly dues as set by Local 224, IAM & AW, AFL-CIO, for my
account on or before the end of the month during which deductions are made.

     "Contributions or gifts to Local Lodge 224, International Association of
Machinists and Aerospace Workers are not deductible as charitable contribu-
tions for federal income tax purposes.  However, they may be tax deductible
under other provisions of the Internal Revenue Code."

___________________________________________________________________
Employee



                      AMERICANS WITH DISABILITIES ACT
                          LETTER OF UNDERSTANDING

The Company and Union recognize the provisions of the American's with Disabil-
ities Act may impact the terms of this Agreement, and thus agree to discuss
each instance individually in order to reach a mutual understanding.

Dated this 5th day of August, 1995.


EL DORADO CHEMICAL COMPANY


By:_________________________________
   R.L. Milliken, Plant Manager


INTERNATIONAL ASSOCIATION OF MACHINISTS AND
AEROSPACE WORKERS AFL-CIO, LOCAL NO. 224


By:_________________________________
   F.D. Haydon, Grand Lodge
   Representative


Members of the Shop Committee:

____________________________________
Jim McKnight

____________________________________
Todd Lambert

____________________________________
Don Fletcher

____________________________________
Wayne Husbands

____________________________________
Alan Barker



                            SHIFT DIFFERENTIAL
                          LETTER OF UNDERSTANDING

Effective August 5, 1995, in addition to the foregoing hourly rates, employees
who are regularly assigned to a specific shift shall be paid a shift differen-
tial of forty cents ($.40) for each hour worked on the evening shift and
eighty cents ($.80) for each hour worked on the graveyard shift.  For payroll
purposes, employees who are regularly assigned to a three shift rotating
schedule shall receive shift pay averaged over all three shifts (forty cents
($.40) per hour).

NOTE:  Maintenance personnel who are not regularly assigned on a rotating
shift basis or to the evening or graveyard shift will receive shift differen-
tial in accordance with the August 3, 1989, Letter of Understanding (regarding
turnarounds and major maintenance projects).


EL DORADO CHEMICAL COMPANY


By:_________________________________
   R.L. Milliken, Plant Manager


INTERNATIONAL ASSOCIATION OF MACHINISTS AND
AEROSPACE WORKERS AFL-CIO, LOCAL NO. 224


By:_________________________________
   F.D. Haydon, Grand Lodge
   Representative

Members of the Shop Committee:

____________________________________
Jim McKnight

____________________________________
Todd Lambert

____________________________________
Don Fletcher

____________________________________
Wayne Husbands

____________________________________
Alan Barker




                                 AGREEMENT


                                  between


                        EL DORADO CHEMICAL COMPANY
                  CENTRAL CITY, KENTUCKY AREA WORK GROUP


                                    and


                      UNITED STEELWORKERS OF AMERICA
                                AFL-CIO-CLC





                        Effective November 1, 1995

                                  through

                             October 31, 1998
                                   INDEX


AGREEMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

ARTICLE I
RECOGNITION OF UNION . . . . . . . . . . . . . . . . . . . . . . . . . . .1

ARTICLE II
PAYROLL DEDUCTION OF UNION DUES. . . . . . . . . . . . . . . . . . . . . .1

ARTICLE III
MANAGEMENT RIGHTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

ARTICLE IV
WAGES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

ARTICLE V
HOURS OF WORK AND OVERTIME . . . . . . . . . . . . . . . . . . . . . . . .3

ARTICLE VI
GRIEVANCE PROCEDURE. . . . . . . . . . . . . . . . . . . . . . . . . . . .4

ARTICLE VII
ARBITRATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

ARTICLE VIII
SAFETY AND SECURITY. . . . . . . . . . . . . . . . . . . . . . . . . . . .5

ARTICLE IX
STRIKES AND LOCKOUTS . . . . . . . . . . . . . . . . . . . . . . . . . . .5

ARTICLE X
HOLIDAYS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

ARTICLE XI
VACATIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

ARTICLE XII
SENIORITY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

ARTICLE XIII
MISCELLANEOUS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8


ARTICLE XIV
DURATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

APPENDIX "A" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

APPENDIX "B" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

                             A G R E E M E N T


     This Agreement entered into the 1st day of November, 1995, by and
between the CENTRAL CITY, KENTUCKY AREA WORK GROUP, EL DORADO CHEMICAL COMPANY
(hereinafter referred to as the "Company"), and the UNITED STEELWORKERS OF
AMERICA, AFL-CIO-CLC (hereinafter referred to as the "Union").

                           W I T N E S S E T H :

     That in consideration of the mutual and reciprocal promises of the
parties hereto, the parties covenant and agree as follows:


                                 ARTICLE I
                           RECOGNITION OF UNION

     The Company recognizes the Union as the sole collective bargaining
agency with respect to rates of pay, wages, hours, and other conditions of
employment for all employees on the hourly payroll at its Central City Area
Work Group, but excluding all office, clerical, technical, and professional
employees, guards, and supervisors.


                                ARTICLE II
                      PAYROLL DEDUCTION OF UNION DUES

     SECTION 1.     The Company will deduct membership dues, including initia-
tion fees during the first month of membership in the Union and each month
thereafter from the last pay received each month for the current month's dues
of such members of the Union as individually certify to the Company in writing
that they authorize such Union dues deduction.  The deduction will continue
for one (1) year or for the term of the contract, whichever is less, unless
revoked by the terms of the check-off authorization.

     The dues and initiation fee shall be forwarded after the first payroll
period in each month to the International Treasurer, at the address which he
authorizes for this purpose.  Notification of a change in address for forward-
ing of dues and initiation fees must be received by registered mail one month
in advance of the change by the International Treasurer's office.

     SECTION 2.     The Union shall indemnify, defend, and save the Company
harmless against any and all claims, demands, suits, or other forms of liabil-
ity that shall arise out of or by reason of action taken by the Company under
Section 1, or upon a wage deduction authorization submitted under Section 2.


                                ARTICLE III
                             MANAGEMENT RIGHTS

     The Union expressly recognizes that the Company has the exclusive
responsibility for and authority over (whether or not the same was exercised
heretofore) the management, operation, and maintenance of its facilities and,
in furtherance thereof, has, subject to the terms of this Agreement, the right
to determine policy affecting the selection, hiring, and training of employ-
ees; to direct the work force and to schedule work; to institute and enforce
reasonable rules of conduct, to assure discipline, and efficient operation; to
determine that work is to be done, what is to be produced and by what means;
to determine the quality and quantity of workmanship; to determine the size
and composition of the work force; to determine the location of the business,
including the establishment of new locations or departments, divisions, or
subdivisions thereof; to arrange for work to be done by other companies or
other divisions of the Company; to alter, combine, or eliminate any classifi-
cation, operation, service, or department; to sell, merge, or discontinue the
business or any phase thereof; provided, however, in the exercise of these
prerogatives, none of the specific provisions of the Agreement shall be
abridged.

     The Company will not use the vehicle of subcontracting for the sole
purpose of laying off employees or reducing the number of hours available to
them.


                                ARTICLE IV
                                   WAGES

     SECTION 1.     Rates of Pay.

     A wage schedule setting for the rates of pay of the various classifica-
tions is attached hereto as Appendix "A".  The listing of classifications is
for purpose of establishing a pay rate and does not constitute a job descrip-
tion.

     SECTION 2.     Reporting Pay.

     An employee who reports for work at his regular starting time and who
has not been given at least four (4) hours previous notice not to report,
shall receive a minimum of four (4) hours' work, or four (4) hours' straight-
time pay in lieu thereof, unless the Company is prevented from giving such
notice by acts of God or other conditions beyond its control.  Contact or
attempted contact by telephone at the number listed by the employee with the
Company will be considered as notice as referred to above in this Section.

     SECTION 3.     Call-In Pay.

     When an employee is called in to work at any other time other than his
designated or scheduled shift, he will be given not less than four (4) hours'
work at one and one-half (1-1/2) his regular rate.  If such work does not
extend for four (4) hours, he, nevertheless, shall be paid four (4) hours at
one and one-half his regular rate.


                                 ARTICLE V
                        HOURS OF WORK AND OVERTIME

     SECTION 1.     For the purpose of computing pay for an employee, the work
week shall begin at 11:00 p.m. Sunday and end at 11:00 p.m. the following
Sunday.  The normal work day shall be eight (8) hours of work per day and a
designated thirty (30) minute unpaid lunch period.  The normal work week shall
be forty (40) hours per week during a five (5) day period.

     Nothing in this Article V shall be construed as a guarantee of work or a
limit of work.

     SECTION 2.     The normal work week shall be Monday through Friday, and the
normal working hours shall be scheduled by management.  It is understood that
the above-mentioned days and hours are normally scheduled days and hours, and
that the Company has the right to change the days and hours of work, subject
to the needs of the operation, recognizing that it is a service organization.

     For the purpose of entitlement to shift differential pay, shift sched-
ules are defined in Appendix "B".

     Recognizing that the Company is a service organization, employees shall
be paid the appropriate shift differential pay according to Appendix "B".

     SECTION 3.     One and one-half (1-1/2) times the regular rate will be paid
for:

          (a)  All work performed in excess of eight (8) hours in a work
     day, unless, pursuant to Sections 2 and 4, the work week or work days
     are for different periods of time or hours of work;

          (b)  All work performed in excess of forty (40) hours in a work
     week;

          (c)  Work performed on Saturday and Sunday.

It is provided however, that only the straight-time rate will be paid for
Saturday and Sunday work for:

          (a)  The number of hours an employee misses from his normal work
     week of Monday through Friday because of personal reasons; and

          (b)  For the hours worked by an employee who is normally sched-
     uled to work on Saturday and Sunday.

     SECTION 4.     It is understood that the above-mentioned days and hours are
the normal scheduled days and hours, and that the Company has the right to
change the days and hours of work.

     SECTION 5.     In no case will overtime be paid twice for the same hours
worked.

     SECTION 6.     No employee will be called off his regular shift for the
sole purpose of avoiding the payment of overtime.


                                ARTICLE VI
                            GRIEVANCE PROCEDURE

     SECTION 1.     Any employee may discuss with his or her supervisor any
complaint or other matter which he feels requires adjustment.  Should they
fail to reach a settlement, the complaint may be treated as a grievance,
provided the difference arises over the interpretation, application, or
compliance of any article or section of this Agreement.

                                  Step 1

     The aggrieved employee shall submit his grievance in writing to the
Services Manager or designated representative stating the article and/or
sections violated.  In order to be valid, the complaint shall be submitted
within five (5) days after occurrence of the basis of the grievance.  The
Services Manager or designated representative shall render his decision, in
writing, within ten (10) working days following presentation of the grievance.

                                  Step 2

     If the grievance is not settled by the Services Manager or designated
representative, the aggrieved employee and/or his steward, representative of
International Union, designated representative, or Grievance Committee, shall
submit the grievance to the Manager of Blasting Services or his designated
representative within ten (10) days after receiving the Services' Manager or
designated representative's answer.  The Manager of Blasting Services or his
designated representative shall have fifteen (15) days to submit his answer to
the grievance.


                                ARTICLE VII
                                ARBITRATION

     If the Manager of Blasting Services' or his designated representative's
answer does not satisfactorily settle the grievance and the aggrieved employee
desires to proceed to arbitration, he may do so provided he notifies the
Manager of Blasting Services or his designated representative within thirty
(30) days after receiving the Manager of Blasting Services or his designated
representative's reply to the grievance.

     In the event the Company and the Union are unable to agree on an arbi-
trator, they shall jointly request the Federal Mediation and Conciliation
Service to submit a panel of seven (7) arbitrators.  The Company shall strike
three (3), the Union shall strike three (3), with the remaining member to be
designated as the arbitrator.

     The arbitrator shall not have the power to add to, subtract from, or
modify any of the terms of this Agreement.

     The decision of the arbitrator shall be final and binding on both
parties.  Each party shall bear its own expenses in connection with such
arbitration, and the expenses of the arbitrator shall be borne equally by the
Company and the Union.

     Wage rates and classifications will not be the subject of arbitration.

     Unless it is mutually agreed otherwise, only one (1) grievance will be
arbitrated at the same hearing.


                               ARTICLE VIII
                            SAFETY AND SECURITY

     SECTION 1.     All employees are required to follow the Company safety
rules and working procedures and are to report or correct any unsafe acts or
conditions to his or her supervisor.

     Likewise, employees will participate in keeping the work place in a safe
condition by practicing good housekeeping methods.

     SECTION 2.     For safety and security reasons, all visitors to the job
site must be properly approved by the Services Manager.  All visitors will be
logged in and instructed concerning Company safety rules.

     SECTION 3.     The Company shall continue to make reasonable provisions for
the safety and the health of its employees during their hours of employment. 
Protective devices, including goggles, gloves, first-aid facilities, and other
articles necessary to properly safeguard the health of the employees and
protect them from injury shall be provided by the Company.  This does not
include shoes, uniforms, or safety and prescription glasses, which shall be
the obligation of the employee.  The Company will provide an annual protective
equipment allowance of One Hundred Thirty-Three and 00/100 Dollars ($133) each
contract year, effective the signing date of this Agreement.  Commencing with
the contract year 1996 and thereafter, the Company will provide the annual
protective equipment allowance on the anniversary date of each individual
employee and each employment date anniversary thereafter.


                                ARTICLE IX
                           STRIKES AND LOCKOUTS

     The Union agrees that there shall be no strike, sympathy strike, slow-
downs, or other interruption of work by any of its employees during the term
of this Agreement.

     The Company agrees that there shall be no lockouts during the term of
this Agreement.


                                 ARTICLE X
                                 HOLIDAYS

     The following days will be observed as holidays:

                              New Year's Day
                               Memorial Day
                             Independence Day
                                 Labor Day
                             Thanksgiving Day
                               Christmas Day
                            Employee's Birthday
                            Three optional days

     When a holiday falls on Saturday, the preceding Friday will be observed
as the holiday.

     When a holiday falls on Sunday, the following Monday will be observed as
the holiday.

     The three (3) optional holidays will be selected by the Company.  The
Company will provide the Employees with no less than thirty (30) days notice
in advance of the selected dates for the three (3) optional holidays.

     Each employee will be paid a holiday bonus equal to eight (8) hours of
straight-time pay on each holiday.  However, this payment will not be made if
he/she is:

          (a)  Scheduled to work on the holiday and fails to report to work
     without permission;

          (b)  On leave of absence;

          (c)  On lay off and not on payroll.

     If it is necessary to work on a holiday, an employee will be paid time
and one-half (1-1/2) for all hours worked in addition to his holiday bonus.

     Holiday time paid for but not worked shall be counted as time worked in
computing overtime over forty (40) hours in a work week.

     To be eligible for holiday pay, an employee must work the scheduled work
day before and the scheduled work day after the holiday, unless excused.


                                ARTICLE XI
                                 VACATIONS

     An employee must complete one (1) year of continuous active service
before becoming eligible for a vacation with pay or pay for any vacation
credit.  If hired on or before the 15th day of the month, it will be consid-
ered that the whole month was worked.  If hired after the 15th of the month,
it will not be considered as a month worked.

     Each employee shall receive a paid vacation each year in accordance with
the following rules:

          (a)  January 1 of each year is the official beginning of the
     vacation period for purposes of scheduling and taking vacation.

          (b)  The employee's date of hire will be used for purposes of
     calculating accrued vacation.

          (c)  Vacations may not be carried over from one year to the next.

          (d)  Those employees who have continuous length of service of one
     (1) through five (5) years shall receive a vacation with pay of two (2)
     weeks (80 hours).

          (e)  Those employees who have continuous length of service of six
     (6) years or more shall receive a vacation with pay of three (3) weeks
     (120 hours).

     It may be necessary to schedule vacations for all employees at the same
time to meet customer service schedules.  If so, employees will be notified as
soon as practicable to do so.

     All vacations must be scheduled with the Services Manager and are
subject to his approval.  It may be necessary to limit the number of employees
scheduling vacations at any one time to meet customer service schedules.


                                ARTICLE XII
                                 SENIORITY

     SECTION 1.     Seniority.

               The Company recognizes the principle of seniority.  Employ-
ees who have the greatest time of service in the employment of the Company
shall have preference in retention or regaining employment in case of any
curtailment or expansion of operations, subject to the individual qualifica-
tion of each employee.

     SECTION 2.     Employees shall be assigned, promoted, demoted, transferred,
laid off, and recalled in accordance with skill, ability, and fitness except
that where two or more employees have the same foregoing qualifications,
seniority shall be the determining factor.

     SECTION 3.     Probationary Period.

     New employees shall not be considered regular employees of the Company
until after a probationary period consisting of sixty (60) calendar days in
any consecutive 120-day period.  During such period, the Company shall have
the right to discharge such probationary employee for any reason, which
decision shall not be subject to the grievance and arbitration procedures. 
Employees retained after the probationary period acquire seniority status
dating from the first day of employment.

     SECTION 4.     Loss of Seniority.

     An employee shall lose his seniority and will be taken off the seniority
list if:

          (a)  He quits;

          (b)  He is discharged for cause; or

          (c)  He is on lay off for a period in excess of one (1) year.

     SECTION 5.     Reemployment After Lay Off.

     Each employee on lay off shall be notified by the Company of the first
opportunity for reemployment, such notice of recall to be given in writing by
registered mail, return receipt requested, to such employee's last known
address filed with the Company.  Any employee who fails to accept an offer for
reemployment within five (5) days after receipt of notice by registered mail
shall thereupon forfeit his seniority rights with respect to employment.

     The rights of an employee otherwise eligible for recall shall expire
after one (1) year or length of previously accrued service, whichever is less,
from the date of lay off.


                               ARTICLE XIII
                               MISCELLANEOUS

     SECTION 1.     Jury Duty.

     The Company will pay to an employee performing jury duty requiring
absence from his regularly scheduled work the difference between what would
have been the employee's regular straight-time rate of pay (maximum: eight (8)
hours per day) during such absence and the amount received by the employee for
such jury service.

     SECTION 2.     Funeral Leave.

     An employee having a death in his immediate family shall be given two
(2) scheduled work days off with pay at his regular straight-time hourly rate
to attend the funeral.  A third day at his regular straight-time rate will be
given when a distance of more than one hundred (100) miles is required to
attend the funeral.  Time paid for while on funeral leave shall count as time
worked for purposes of computing overtime.

     The "immediate family," as used herein, shall mean and include spouse,
children, parents, brothers, sisters, grandmother, grandfather, grandparents-
in-law, spouse's sisters and brothers, and parents-in-law of the employee.

     SECTION 3.     Legality.

     In the event that any provision of this Agreement shall, at any time, be
declared invalid by any court of competent jurisdiction, the decision shall
not invalidate the entire Agreement; it being the express intention of the
parties that al other provisions shall remain in full force and effect.

     SECTION 4.     Break Periods.

     Break periods will be of ten (10) minutes duration, twice per shift.  An
unpaid mealtime of thirty (30) minutes duration will be scheduled.

     SECTION 5.     Non-discrimination.

     The Company and the Union agree that there will be no discrimination in
hiring or advancement because of race, creed, color, sex, age, national
origin, or physical disability.

     SECTION 6.     Sickness Benefits.

     The Company agrees to provide group insurance benefits as submitted in
draft form to the Union's committee during negotiations.  Effective with the
date of the Agreement, the Company and the employees will share the cost of
employee and dependent group medical insurance on the following basis:

          Company will contribute an amount equal to seventy-five percent
     (75%) and each employee will contribute twenty-five percent (25%) of an
     amount to be determined as of each November 30, on the basis of employee
     and dependent group medical insurance utilization costs for the preced-
     ing fiscal year.

          Effective with the date of the Agreement, the Company will pay the
     entire premium cost of Long Term Disability and Life Insurance for
     employees.


                                ARTICLE XIV
                                 DURATION

     This Agreement shall become effective on the 1st day of November, 1995,
and shall remain in full force and effect to and including the 30th day of
October, 1998, and shall continue in full force and effect from year to year
thereafter unless either party to this Agreement desires to change or modify
any of the terms or provisions of the Agreement.  The party desiring the
change or modification must notify the other party to this Agreement in
writing, at the address given below, not less than sixty (60) days and not
more than seventy-five (75) days prior to any subsequent anniversary date
hereof.  Should either party to this Agreement serve such notice on the other
party, a joint conference of the Company and the Union shall commence not
later than thirty (30) days prior to the expiration date in the year in which
the notice is given.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
signed by their duly authorized representatives as of the day and year first
above written.


EL DORADO CHEMICAL, INC.           UNITED STEELWORKERS OF AMERICA
CENTRAL CITY, KENTUCKY AREA        AFL-CIO-CLC
WORK GROUP
c/o LSB Industries                      District 35
P.O. Box 754                            205 E. Reynolds Rd., Suite E
Oklahoma City, Oklahoma  73101               Lexington, Kentucky  40517


   By:    __________________________________      
_____________________________________
                                   George F. Becker, Int'l President

__________________________________      
_____________________________________
                                   Leo W. Gerard, Int'l Secretary-
                                   Treasurer
__________________________________
                                   
_____________________________________
                                   Richard H. Davis, Int'l V.P.
                                   (Administration)

                                   
______________________________________
                                   Leon Lynch, Int'l V.P.
                                   (Human Affairs)

                                   
______________________________________
                                   David Wilson, Director, Dist. 8

                                   
______________________________________
                                   Claude Hall, Sub Dist. Director

                                   
______________________________________
                                   Frank D. Pittman, Staff Rep.


                                   LOCAL UNION COMMITTEE:   

                                   
______________________________________

                                   
______________________________________

                                   
______________________________________

                               APPENDIX "A"


CLASSIFICATION                BASIC HOURLY WAGE RATE

                         EFFECTIVE      EFFECTIVE      EFFECTIVE
                         11/01/95       11/01/96       11/01/97    


Shift Leader             $11.00         $11.25         $11.50
Operator A               $10.75         $10.90         $11.00
Operator                 $10.37         $10.55         $10.75
Junior Operator          $ 8.30         $ 8.30         $ 8.30
Probationary Operator    $ 7.30         $ 7.30         $ 7.30

     Employees who successfully complete their probationary period as provid-
ed in Article XII shall then be classified as Junior Operator and paid the
rate of pay listed above for such classification.  Upon completion of one (1)
year of active service, such employee shall be considered for advancement to
higher paying classifications in accord with the provisions of Article XII,
Seniority, Sections 1 and 2.  The Company shall have the right to give credit
for previous experience or qualifications and to advance employees on that
basis.

Shift Leader:

     The Company may, in its sole discretion, designate an Operator as a
Shift Leader within the production group.  The determination to select or
retain an individual in this capacity and the qualifications therefore will be
made solely by the Company.

     In addition to the duties of the Operator, all individuals selected as
Shift Leaders will have the following duties:

     Responsible to convey instructions from management to a group of workers
     as set up by management.  Also works as part of the group; fills in and
     performs any job necessary to expedite work flow.  Works from general
     instructions of the supervisor to schedule or assign work to individual
     operators in accordance with their skills and responsibilities and to
     maintain quality and quantity standards.  Checks, reviews and expedites
     work flow.  Detects faulty operations or defective material and reports
     these and other operating conditions to management.  Instructs and
     trains new employees in proper work methods, quality, performance
     standards, safety regulations, etc.  Shift leaders will have no supervi-
     sory authority to hire, fire, promote, demote, discipline, or effective-
     ly recommend such action.  They will only have the authority to pass on
     orders issued by a supervisor.

                               APPENDIX "B"

     The first shift consists of an eight (8) hour work period during any
twenty-four (24) hour period, with starting times between 4:00 a.m. through
11:59 a.m.

     The second shift consists of an eight (8) hour work period during any
twenty-four (24) hour period, with starting times between 12:00 noon through
7:59 p.m.

     The third shift consists of an eight (8) hour work period during any
twenty-four (24) hour period, with starting times between 8:00 p.m. through
3:59 a.m.

     Those employees who are regularly assigned to the second shift schedule
shall receive, in addition to their regular hourly rate of pay, a differential
of fifteen cents ($.15) for each hour worked during each such eight (8) hour
shift.

     Those employees who are regularly assigned to the third shift schedule
shall receive, in addition to their regular hourly rate of pay, a differential
of thirty cents ($.30) for each hour worked during each such eight (8) hour
shift.