ATCH_16_10_May_13_CBA_Luke_AFB _AZ_(WD_No2013-0111).PDF

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AGREEMENT

BETWEEN

AHNTECH INC

AND

INTERNATIONAL ASSOCIATION OF MACHINISTS

AND AEROSPACE WORKERS

LOCAL LODGE 519

Luke AFB, Arizona

24 July 2012 to 23 July 2015

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TABLE OF CONTENTS

PREAMBLE 3

AGREEMENT 3

ARTICLE 1- RECOGNITION 3

ARTICLE 2 – NON-DISCRIMINATION 4

ARTICLE 3- MANAGEMENT RIGHTS 4

ARTICLE 4- UNION ACCESS TO OPERATIONS 4

ARTICLE - 5- GRIEVANCE PROCEDURE 5

ARTICLE 6- ARBITRATION PROCEDURE 6

ARTICLE 7- NO STRIKE/NO LOCKOUT 7

ARTICLE 8- BULLETIN BOARDS 7

ARTICLE 9- BARGAINING UNIT WORK 7

ARTICLE 10 - SENIORITY 8

ARTICLE 11 - BUSINESS TRAVEL 9

ARTICLE 12 - FILLING OF VACANCIES 9

ARTICLE 13 - HOURS OF WORK 10

ARTICLE 14 OVERTIME 11

ARTICLE 15 - SHIFT DIFFERENTIAL 11

ARTICLE 16- LEAVE OF ABSENCE 12

ARTICLE 17- ASSIGNMENT OF SHOP STEWARDS 12

ARTICLE 18- CHECKOFF 13

ARTICLE 19- UNION SECURITY 13

ARTICLE 20- SAFETY 13

ARTICLE 21- SUCCESSORS AND ASSIGNS 13

ARTICLE 22- SUBSTANCE ABUSE POLICY 13

ARTICLE 23- WAGES 14

ARTICLE 24- HOLIDAYS 15

ARTICLE 25- VACATION 15

ARTICLE 26- JURY DUTY 16

ARTICLE 27- BEREAVEMENT 17

ARTICLE 28- EDUCATIONAL REIMBURSEMENT 17

ARTICLE 29- INSURANCE 17

ARTICLE 30–INSTALLATION OF NEW/REVISED JOB CLASSIFICATIONS 18

ARTICLE 31- SAVINGS PLAN 18

ARTICLE32– SPECIFIC PERFORMANCE 19

ARTICLE 33 – ECONOMIC IMPROVEMENTS 19

ARTICLE 34- TERM AND NOTICE OF CHANGE 20

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PREAMBLE

The Parties have entered into this Agreement for the purpose of setting forth in writing the understandings they have reached with respect to wages, work hours, and working conditions of the employees covered hereby, as well as to the rights of the Company and the Union, and to provide a peaceful means for the settlement of any disputes which may arise with respect to the interpretation or application of their understandings and agreements as set forth herein.

AGREEMENT

This Agreement is made and entered into this 24th day of July 2012 to be effective 1 October 2009 by and between AHNTECH Inc. (hereinafter referred to as the Company) and the International Association of Machinists and Aerospace Workers and its Local Lodge 519 (hereinafter jointly and severally referred to as the Union).

This agreement shall remain in effect until midnight on 23 July 2015without reopening rights for any purpose by either party. The parties do agree, however, that a final Department of Labor ruling which adjusts wage rates of affected employees may be incorporated and will only become effective in the succeeding option year by mutual agreement of the parties. This agreement shall automatically renew itself from year to year thereafter unless written notice of desire to terminate the Agreement is given by either party at least sixty (60) calendar days prior to or at least sixty (60) calendar days prior to any annual expiration date thereafter. If such written notice of desire to terminate is given, the parties may nevertheless mutually agree in writing to extend this Agreement for a specified length of time beyond the expiration.

ARTICLE 1 - RECOGNITION

Section 1. The Company hereby recognizes the Union, its designees and representatives, its successor and/or assigns, as the sole and exclusive bargaining representative for all full time and regular part-time electronic technicians, computer operators, pod loaders, and supply technicians at the ACTS program for the United States Air Force at Luke Air Force Base, Arizona as certified by the National Labor Relations Board in Case Number 28-RC-6027 and such other programs, contracts, tasks as may hereafter be added by mutual agreement of the parties hereto.

This agreement excludes office clerical employees, professional employees, managerial employees, and supervisors as defined in the act.

Section 2. Should any part of this agreement or any provision herein contained be rendered or declared illegal by reason of any existing or subsequently enacted legislation or a decree of a court of competent jurisdiction, such invalidation of any such part or portion of this agreement shall not invalidate the remaining portions herein and those remaining portions shall remain in full force and effect.

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The Company and the Union, within thirty (30) days of knowledge of such an occurrence shall discuss the impact of such actions. If either party desires to negotiate a new provision regarding the affected portion, then that party may serve notice upon the other, in writing, of its desire to negotiate the provision of the Agreement affected by such legislation or court decree.

The parties shall meet within thirty (30) days of the presentation of the written notice to negotiate changes to the Agreement. Any mutually agreed upon modifications or changes to this Agreement brought about by the above negotiations shall be in writing and signed by the parties.

ARTICLE 2- NON-DISCRIMINATION

Section 1. This Agreement shall be applied fairly and shall not in any way be used to discriminate against employees on account of race, color, religious affiliation, sex, age, national origin, veteran or disability status. It is understood that wherever in this Agreement employees or jobs are referred to in the male or female gender; it shall be recognized as referring to both male and female employees.

Section 2. There shall be no discrimination, interference, restraint, or coercion, by the Company or any of its agents against any employee because of Union membership or because of acting as an officer of or in any other bona fide activity on behalf of the Union. There shall also be no discrimination, interference, restraint or coercion, by the Union, its agents or members, against any Company employee not in the bargaining unit who is not a member of the Union.

ARTICLE 3- MANAGEMENT RIGHTS

Section 1. Except as specifically limited by this Agreement, the management of the Company and the direction of the work force, including but not limited to the service performed, the location of the work force, the schedules and fair standards of employee performance, the schedules and hours of shifts, the methods, processes, and means of providing services, materials to be purchased, determination of staffing levels, the right to hire, promote, demote, transfer, assign and reclassify employees, the establishment of reasonable rules of conduct, the discharge or discipline of employees for just cause, and the management of efficiency of employees, are the sole and exclusive rights and responsibilities of the Company.

Section 2. The Union and employees shall be notified prior to the enforcement of new work rules or changes in existing work rules. The Union reserves the right to pursue through the Grievance and Arbitration procedures, as spelled out in this Agreement, rules which it believes to be unreasonable.

ARTICLE 4- UNION ACCESS TO OPERATIONS

Section 1. The Company agrees that the Grand Lodge Representative, Directing Business Representative, Director, Aerospace Coordinator, Business Representative or acting Business Representative (hereinafter referred to as Union Representative) will be allowed to visit employees while they are on the job in the Company's operations for the sole purpose of investigating specific grievances or complaints related to the provisions of this Agreement or

Page --5 insuring the terms and conditions of the Agreement are being complied with. Prior approval must be obtained from the Site Manager or his designee and such visits shall not interfere with production of work being performed. Such approval shall not be unreasonably withheld. The union representative shall notify the Site Manager or his designee when he is leaving the Company's operations.

Section 2. The Company, if it desires, may have a Company representative accompany the business representative while he is visiting its operations recognizing that the Union Representative is entitled to private conferences with any represented employee.

ARTICLE 5 - GRIEVANCE PROCEDURE

Section 1. "Grievances" shall mean, and be limited to disputes of differences between the Company and the Union, or employees so represented, with respect to the interpretation or application of any specific provision of this agreement. Both parties agree to use their best efforts, including informal meetings involving management, supervision, Shop Steward, and the grievant, to resolve matters without resorting to the grievance procedure except that any such meetings shall not extend the time limits set forth in this Article. In the event such informal methods do not resolve the grievance, all grievances shall be reduced to writing and processed in accordance with the following steps:

Section 2. All grievances beyond Step 1 below, involving employee claims shall be in writing on grievance forms provided by the Union and shall be signed by all employees claiming rights hereunder. In an effort to adjust employee grievances by mutual agreement, they shall be presented in the following order and within the following time limits;

Step 1: The employee(s), with or without their steward, shall promptly bring a grievance to their supervisor within five (5) working days following the event or discovery of the event giving rise to the grievance. In the event an employee is unavoidably absent due to illness or injury, or unavailable due to vacation or other approved reasons, the employee's shop steward may bring the grievance to the supervisor. If such grievance is not settled within five (5) working days then:

Step 2: Within fifteen (15) working days following the event or discovery of the event giving rise to the grievance a written grievance containing the article or section which is claimed to be violated and the remedy requested, must be signed by the employee and submitted by the Shop Steward and taken up with the Site Manager, or his designee. A meeting will be scheduled within five (5) subsequent working days. If no agreement has been reached within ten (10) working days, the Company will reply in writing. If the written reply is not satisfactory, it may be moved to Step 3.

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Step 3: Within five (5) working days of the Step 2 reply, the grievance may be moved to Step 3 by written appeal to the ACTS Program Manager or designee. The ACTS Program Manager or designee, and the Business Representative of the Union, shall meet within ten (10) working days after receipt of the grievance into a third step. A written reply from the Company Labor Relations Representative will be given to the Union within ten (10) working days after the meeting. If no agreement has been reached within ten (10) working days from the Step Three meeting, either party may submit the grievance or dispute to arbitration as covered in the "Arbitration Procedure" article.

Section 3. A final decision made with respect to any grievance in the first or second step shall apply to that grievance only and shall not become a binding precedent in the case of other grievances nor a precedent which shall bind the parties as an interpretation of the Agreement. All settlements must be consistent with the terms and conditions of the Agreement.

Section 4. Any aggrieved employee and Union representative shall have the right to be present at any stage of the grievance procedure in which the grievance is being considered. No employee may leave the job, take up, or handle a complaint or grievance without requesting permission from the immediate supervisor. Such permission will be granted provided it does not retard or interfere with operations or create a hazardous condition. If permission cannot be granted, time limits will be waived until permission is granted. Witnesses called by either party may attend the grievance meeting at any step, subject to the same provisions outlined above.

Section 5. The Local Union or its authorized representative shall have the right to examine time sheets and other records pertaining to the computation of compensation of any individual or individuals whose pay is in dispute or other records pertaining to a specific grievance.

Compensation will be paid for reasonable time spent discussing or investigating grievances during, normal work schedules.

Section 6. It is understood that the time limits specified herein may be extended by mutual agreement of the parties hereto.

Section 7. Nothing in this article precludes the union from filing, a general grievance on behalf of an employee or employees in the event of unusual or unforeseen circumstances.

ARTICLE 6- ARBITRATION PROCEDURE

Section 1. The party choosing to arbitrate shall give written notice to the other party setting forth the matter to be arbitrated. If said notice is not served within the thirty (30) working day period specified in Section 2, Step 3 of Article V, it shall be deemed that the grievance has been satisfactorily adjusted and the right to arbitrate waived.

Section 2. In the event the Union or the Company submits a grievance to arbitration, a panel of seven (7) arbitrators will be requested from the Federal Mediation and Conciliation Service. The

Page --7 right to first strike a name will be determined by lot; the other party shall then strike a name. This procedure shall continue alternately until one (1) name remains.

Section 3. The decision of the arbitrator shall be final and binding on all parties. However, the arbitrator shall not have jurisdiction or authority to add to, subtract from, modify or in any way change the provisions of this agreement. The expense and fees of the arbitrator will be borne equally by both parties.

Section 4. Only the Union or the Company may demand arbitration of the other.

ARTICLE 7- NO STRIKE/NO LOCKOUT

Section 1. The Union agrees that neither it nor any of the employees in the bargaining unit, covered by this Agreement will collectively or individually engage in or participate in any strike, slowdown or stoppage of work during the term of the Agreement and the Company agrees that during the term of this Agreement it will not lock out any of the employees covered by the Agreement.

Section 2. In the event of any violation of Section 1 of this Article, it shall be the duty and obligation of the Union, its officers, agents, or representatives (employee or non-employee) to immediately take all reasonable steps required to bring an end to such misconduct.

Section 3. If the reasonable steps attempted in Section 2 do not return the striking employee(s) to work then the employee(s) may be subject to immediate discharge by the Company.

ARTICLE 8 -BULLETIN BOARDS

Section 1. The Company agrees to provide one (1) bulletin board for the posting of legitimate Union notices pertinent to the Union at the facility. Only notices concerning Union meetings, Union elections, results of Union elections, etc., which a representative of the Union has authorized, will be posted. The Union agrees that all notices will be submitted to the Site Manager, or his designee, for review and approval prior to their posting.

ARTICLE 9 - BARGAINING UNIT WORK

Section 1. Company employees in Job Classifications not covered by this agreement shall not perform work preformed by employees in the bargaining unit, except in cases of emergency, research work, audit, experimental, training to instruct employees properly, or to maintain proficiency. The term “emergency” is defined to mean an unforeseen combination of circumstances. The Company agrees that none of the above circumstances will cause a bargaining unit employee to be laid off, replaced or displaced from the bargaining unit nor shall it cause any bargaining unit employee to be excluded from overtime.

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ARTICLE 10 - SENIORITY

Section 1. Probationary Period: Any employee who has been in the employment of the Company or the predecessor contractor for ninety (90) consecutive calendar days shall be considered a Seniority Employee of the Company. During the probationary period the employee shall be subject to layoff, discipline, or discharge at the sole discretion of the Company, and such action shall not be subject to the grievance procedure. Except as specifically mentioned in this section, the employer is required to maintain all provisions of this agreement for probationary employees.

Section 2. Definitions:

a) Seniority is defined as including the whole span of continuous service with the present contractor, or successor, and with predecessor contractors, in the performance of the ACTS Program at the Luke Air Force Base facility. Employees hired on or after the date of contract ratification will establish their seniority from date of hire, except for the purposes of vacation accrual at the Luke Air Force Base facility.

b) Seniority will not be broken for: (1) periods of approved absence with leave, (2) periods of layoff due to lack of work, (3) periods of absence due to injury or illness. Periods of absence set forth in (2) and (3) shall not exceed 12 months in order to maintain seniority.

In the case of occupational injuries, continuous employment will be for the length of the disability.

c) When two or more employees are hired on the same day, the last four digits of their

Social Security number shall then be used for purposes of lay off, recall, promotion, and shift assignments, i.e., if two employees have the same seniority date, the employee that has the lowest number shall be considered to be the most senior of the employees hired on the same day.

Section 3. Loss of Seniority: All seniority of any employee shall terminate if the employee:

a) Voluntarily resigns,

b) Is discharged for cause.

c) Is on layoff status in excess of 12 months.

d) Security clearance has been revoked and is not legally reinstated within six (6) months.

e) Refuses recall

Section 4. Seniority List: A seniority list by job classification will be maintained by the Company and will be made available to the Union upon request or semi-annually. The Company will also furnish a list to the Union reflecting new-hires or rehires/recalled, their classification, their date of hire, and termination or layoff dates or other dates of leaving the bargaining unit as they occur.

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Section 5. Layoff: In any layoff the least senior employees in the affected classifications shall be laid off first. If the employees in the classification to be laid off have seniority over other employees in other classifications, which they have previously held and meet the minimum qualifications of the job description, then they shall have the right to exercise their seniority and displace the least senior employee in that classification. The company shall notify affected employees as soon as the facts are known to the Company of upcoming layoffs, but not less than two (2) weeks notice and/or two (2) weeks pay in lieu thereof.

Section 6. Steward Seniority. Shop Stewards shall be given seniority over all employees whom they represent during reduction in forces, provided work in their classification or work in classifications to which they have a displacement right is available, and so long as the official’s duties would permit such seniority preference under existing law.

Section 7. Recall: Employees will be recalled in reverse order of layoff. The Company will send recall notices, by certified mail, to employee's last official address. The employee has five (5) working days after receipt is received by the company but no later than fifteen (15) calendar days from the date of mailing to accept reemployment. If no laid off employees in a job classification who are recalled accept reemployment, then laid off employees outside the classifications, who are qualified in the classification, will be recalled as stated above.

ARTICLE 11 - BUSINESS TRAVEL

Section 1. The most senior qualified employees will be asked to volunteer for the temporary assignments. If no volunteers are available, Management may require the least senior qualified employee to take the temporary assignment.

Section 2. Employees who travel more than 25 miles from the work site to perform work for the Company will be furnished transportation designated by the Company. Air travel will be on the carrier designated by the Company. All air travel will be coach/economy/tourist class.

Employees may be authorized to use their personal cars (POV) and will be reimbursed for travel at the appropriate government (i.e. IRS) rate. All allowable travel expenses will be reimbursed.

Section 3. Employees traveling on days other than their regularly scheduled work days or on the same day after working their regularly scheduled workday will be paid actual travel time at the applicable hourly working rate. Travel to and from an airport will be considered travel time.

Section 4. Travel expenses will be reimbursed in a timely fashion accordance with the Company operational procedure for expense reporting

ARTICLE 12 - FILLING OF VACANCIES

Section 1. If the Company determines to fill a new or existing vacancy or job within the bargaining unit, the Company will post a notice of vacancy or job opening for a period of not less than five (5) working days prior to filling the vacancy or job opening. Subject to the

Page --10 provisions of Section 3, any employee may submit a bid for the job to the Company's Site Manager, in writing, during the posting period. The notice posted declaring that such vacancy or job opening is to be filled shall contain at least the following information:

a) The date the notice is posted and the date and time the notice will be removed;

b) The job to be filled and the classification;

c) Job Specifications;

d) Effective date the job is to be filled.

The Union's Steward will be furnished a copy of any bid upon request, as long as the individual submitting the bid agrees to provide personal information to the union.

Section 2. The Company will award the job to the most senior qualified employee. Qualified as it is used in this article shall mean the employee meets the minimum qualifications of the job specifications and has the physical ability to perform the work. Qualifications shall not be applied in an arbitrary or capricious manner, but shall be based upon reasonable expectations for the work preformed.

Section 3. Restrictions on Bidding. An employee who is awarded a job for which he bid must accept it providing the award is made within seven (7) work days of the effective date that the job is scheduled to be filled as provided in Section 1 d) of this Article, otherwise the employee shall have the option of withdrawing his bid.

Section 4. Disqualification of Bidder. An employee who is unable to perform the job to which he bid to the satisfaction of the Company within thirty (30) calendar days after being awarded the job shall be returned to the job classification and labor grade he held at the time of submitting the bid. The employee will be told the reasons for such disqualification in writing along with a explanation of what will be required to acquire that position.

ARTICLE 13 - HOURS OF WORK

Section 1. Workday: The workday shall consist of a 24-hour period beginning at the start of their assigned shift and a regular day’s work shall consist of eight hours.

Section 2. The workweek shall consist of seven (7) consecutive days beginning at 12:01 a.m.

Saturday and the regular weekly work schedule shall consist of five (5) consecutive eight (8) hour workdays or other schedules as mutually agreed to.

Section 3. Determination of starting time and hours of work shall be dictated by the Air Force flying schedule. Work shift will be changed with a minimum of one-week notice or not later than 4:00 PM the day prior at the direction of the customers flying schedule if less than one (1) week.

Section 4. Shifts: First Shift: The first shift will begin between the hours of 5:00 AM and 8:59 AM. Second shift will be considered any hours of work that begin at or after 9:00 AM. In the event a third shift is required by the customer the party’s will meet and negotiate the hours.

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Section 5. When an employee is called and reports back for additional work after he has completed his regularly assigned shift and departed from the premises, he shall receive a minimum of 4 hours pay at the applicable working rate.

Section 6. When an employee is not scheduled, and is called and reports for work, outside his scheduled work-week, he shall receive a minimum of 4 hours work or 4 hours pay at the applicable working rate unless the employee opts to leave when the work is completed.

Section 7. If an employee is specifically notified and scheduled to start work 4 hours or less before the starting time of his regularly scheduled shift, within his assigned work-week as set forth in Section 4, he shall be given the opportunity to remain at work until the end of his regular shift with the approval of the site manager.

ARTICLE 14 - OVERTIME

Section 1. When the Company determines that an employee must perform work on an overtime basis, the following shall apply:

Overtime will be paid at the rate of one and one-half times the regular rate of pay for all hours worked in excess of 40 hours per week. Overtime rate will include lead and shift differentials as applicable. For example, if an employee’s regular rate of pay is $10.00 per hour, and a lead differential is .50 per hour, the Overtime rate is calculated as follows:

$10.50 X 1.5 = $15.75 (plus applicable Health and Welfare Benefits defined in Article 29, INSURANCE) Hours worked shall include hours paid for but not worked, to include paid holidays and vacation hours etc.

Section 2. There shall be no pyramiding of overtime pay, and nothing in this Agreement shall be considered to require the payment of overtime pay more than once for the same hours worked.

Section 3. Available overtime shall be rotated and equalized among the qualified volunteers. If no volunteers are available to work the necessary overtime, it will become mandatory and assignment shall be made by reverse seniority order.

Section 4. Notice for mandatory scheduled weekend work will be given as soon as the customer informs site management that weekend work will be required. A minimum 48- hour notice will be given to the effected employee(s) where possible. Employees will be paid a minimum of 3 hours if required to work on Saturday, Sunday, or any Holiday as defined in Article 24.

ARTICLE 15 - DIFFERENTIAL

Section 1. All employees beginning work after 9:00AM will be paid a $.50 cent per hour shift differential. If additional shifts are needed they will be agreed upon by mutual agreement of the Company and the Union before implementation. Shift differential will be paid for holidays, vacation, bereavement leave and jury duty.

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ARTICLE 16 - LEAVE OF ABSENCE

Section 1. Personal Leave. The Company may approve a leave of absence without pay up to sixty (60) calendar days for personal reasons. The sixty-day limit may be extended by the mutual agreement of the parties. Such leave must be requested in writing and approved by the Site Manager through the employee's supervisor. Said request must also state the reason for the unpaid leave. Employees must request such leave at least five (5) calendar days prior to the date the leave would commence, except in cases of emergency.

Section 2. Failure to Return to Work from Leave of Absence. Failure to return from a leave of absence on the first scheduled workday following the expiration date of said leave, will result in termination of the employee, except in extenuating circumstances involving reasons acceptable to the Company.

Section 3. Short Term Military Annual Leave. Employees ordered to active duty for annual training with the National Guard or organized military reserve units, shall be granted a leave of absence not to exceed a maximum of ten (10) working days each fiscal year, provided the employee furnishes the Company a copy of their military orders at the time the leave is requested. Such leave of absence shall be referred to as military leave. Employees may request vacation pay while on an approved military leave. Employees will be paid the difference between their regular base pay and their military pay, provided a Leave and Earnings Statement is submitted.

Section 4. The company agrees to extend the benefits of the Federal Family Medical Leave Act to bargaining unit employees.

ARTICLE 17 - ASSIGNMENT OF SHOP STEWARDS

Section 1. It is hereby understood and agreed that the Union may assign one (1) Shop Steward to represent Bargaining Unit employees and one (1) alternate Shop Steward. The alternate Shop Steward shall only act in the absence of the Shop Steward. The Union shall notify the Company in writing on Union letterhead of the individuals so selected in this capacity.

Section 2. It is agreed that Stewards have full-time job duties to perform as employees and that they shall keep time spent in handling grievances to a minimum. Time spent performing Union business shall not interfere with normal operations whenever possible.

Section 3. Should a Steward be required to leave the job to handle a grievance, he shall first request the permission of his Supervisor, and shall report to his Supervisor upon returning to work. When a Steward makes the effort to comply herein, permission to leave the job to handle a grievance shall not be unreasonably withheld.

Section 4. No Union Representative will be restrained, coerced, intimidated or discriminated against because of activities preformed on behalf of the Union nor will Union Representatives be denied any rights or privileges otherwise entitled to him for serving as a Union Representative.

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ARTICLE 18 - CHECK OFF

During the existence of the Agreement, the Company, insofar as permitted by State and Federal law, shall deduct out of the current net earnings payable biweekly to an employee covered by the Agreement, applicable service fees or Union dues, initiation fees and reinstatement fees, upon receipt of and in accordance with a deduction authorization, duly executed by the employee, on a card as agreed upon between the Company and the Union and shall continue deductions until such authorization is duly revoked by the employee. The Company shall make such remittance to the Union in one lump sum within ten (10) days after the end of the month in which said deductions are made.

ARTICLE 19 - BLANK

Left Blank

ARTICLE 20 - SAFETY

Health and Safety. The Company will continue to comply with the applicable State and Federal OSHA requirements and make reasonable provisions for the comfort, safety and health of employees. The Union shall have the right to confer with the Company regarding these matters.

The Company will provide such tools and personal protection equipment as required to perform daily operations in a safe manner.

Except for shoes, all safety wearing apparel, safety equipment, and/or protective devices shall be provided by the Company and remain property of the Company and are intended solely for the use by employees during working hours. On or about October 1st of every other year the company will provide funds for the replacement of safety shoes. The Company will pay a maximum of $100.00 toward the purchase of safety shoes. Employees who receive payment for the purchase of safety shoes shall be required to wear safety shoes while performing work for the Company. The Company shall furnish safety and protective equipment to employees as required by industry standards established by Occupational Safety and Health Administration (OSHA) and the United States Air Force.

ARTICLE 21 - SUCCESSORS AND ASSIGNS

This Agreement shall be binding upon and shall inure to the benefit of the parties hereto, their successors and assigns; but in the event the Company ceases to perform on the contract as identified in Article 1, the Company shall be released from all obligations on the project(s) so affected under this Agreement.

ARTICLE 22 - SUBSTANCE ABUSE POLICY

The Company and the Union are committed to providing employees with a drug-free and alcohol-free workplace. It is our goal to protect the health and safety of employees and to promote a productive workplace, and protect the reputation of the Company, Union and employees.

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Consistent with these goals, the Company prohibits the use, possession, distribution or sale of drugs, drug paraphernalia or alcohol on Company premises. A program of testing, if necessary to comply with Federal or State regulations, will be instituted upon mutual consent of the Company and the Union.

Pre-employment drug testing is a condition of employment.

ARTICLE 23 - WAGES

Section 1. The wage rates listed below will be effective for the term of this Agreement and apply to all Bargaining Unit employees at the Company's ACTS Luke Air Force Base, Arizona facility. An employee's regular rate of pay shall be defined as his Base Rate. This Base Rate will be increased annually as designated below. These increases will be effective on the dates indicated in this Agreement.

Section 2. Wages. Effective October 1, 2012 the following current rates of will be increased as follows:

Classification Current + $.20 0/1/2012 +$.25 10/1/2013 +$.30 10/1/2014 Elect. Tech. I $22.32 $22.52 $22.77 $23.07 Elect. Tech. II $31.78 $31.98 $32.23 $32.53 Elect. Tech III

$34.38 $34.58 $34.83 $35.13 Elect. Tech Quality Control Inspector $34.91 $35.11 $35.36 $35.66 Computer Op I

$16.25 $16.45 $16.70 $17.00 Computer Op II $20.59 $20.79 $21.04 $21.34 Computer Op III $23.42 $23.62 $23.87 $24.17 Aircraft Pod Loader $20.39 $20.59 $20.84 $21.14 Supply Tech $28.15 $28.35 $28.60 $28..90 Radar Operator

$22.90 $25.60 $25.85 $26.15

RCO $27.38 $27.58 $27.83 $28.13

Computer Systems Analyst $33.96 $34.16 $34.41 $34.71

Section 3. Pay Differentials The Lead A/C Pod Loader per shift will be paid an additional $.75 per hour for all hours worked.

This lead will be selected by the Site Manager and will perform additional duties involving scheduling, training and act as Point of Contact for all Load related issues.

A differential of $1.25 per hour will be paid to the designated Assistant Site Manager on all hours worked for assuming additional responsibilities in the absence of the site manager. The Assistant Site Manager will be selected by the Site Manager.

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A differential of $1.00 per hour will be paid to the designated Lead RCO on all hours paid for assuming additional responsibilities involving scheduling, training and act as the point of Contact for all RCO related issues. The Lead RCO will be selected by the Site Manager.

A differential of $0.75 per hour will be paid to the designated Lead Radar Operator on all hours paid for assuming additional responsibilities involving scheduling, training and act as the point of Contact for all RCO related issues. The Lead Radar Operator will be selected by the Site Manager.

ARTICLE 24 - HOLIDAYS

Section 1. Each year the following ten (10) days will be guaranteed paid holidays:

New Year's Day Labor Day Martin Luther King, Jr.'s Birthday Columbus Day President’s Day Veteran's Day Memorial Day Thanksgiving Day Independence Day Christmas Day

Section 2. Any holiday falling on a Saturday or Sunday will be celebrated on the day set by the Federal Government.

Section 3. If an employee is on an approved vacation in a week in which a Holiday falls, time will be charged to Holiday rather than vacation.

Section 4. Based on Government training requirements, Holidays may be otherwise arranged by mutual agreement.

Section 5. Holiday pay will mean the employee’s regular rate multiplied by the number of hours that would otherwise have been scheduled to work, not to exceed eight (8) hours, on such day if it had not been observed as a holiday. Employees required to work on days designated as a holiday will be compensated at 1.5 times the employee’s rate of pay for all hours of work performed on the holiday in addition to his holiday pay.

ARTICLE 25 - VACATION

Section 1. Allowances. The vacation year for eligibility and service credit shall be from employee's Company benefit date to Company benefit date. Upon ratification, for the purpose of application of this section the seniority date will be used as the Company Benefit Date. Of the vacation hours indicated below, thirty two (32) hours will be designated as “personal” time and requires site manager notification but not advance approval. Paid vacation for full time employees will be awarded as follows:

a)

Years of Service (Continuous) Vacation Hours

Accrued per Year

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From Start of Year 1 Through End of Year 4 114 From Start of Year 5 Through End of Year 9 154 From Start of Year 10 Through End of Year 15 194 From Start of Year 16 or More 234

b) All vacation will be paid at the working rate of pay. Employees may carry over a maximum number of hour’s equivalent to the amount of vacation accrual they draw annually from one benefit year to the next if they are unable to take vacation due to conflicts with the normal work schedule.

c) In the event of a change in contractors AHNTECH will be responsible for the payout of unused vacation inclusive of all benefits.

Section 2. Terminating employees will be paid accrued vacation at the rate one-twelfth for each month since their last benefit date including the month of layoff where the majority of the calendar days have been worked and for all earned and unused vacation.

Section 3. Vacation scheduling requests must be made in writing to their supervisor fourteen

(14) calendar days prior to the vacation start date. The Company reserves the right to approve or deny vacation requests based on business operations. Vacation requests will be approved based on date request received. If two or more request are received at the same time then Seniority will govern. Vacation may be used in increments of no less than one (1) hour.

Section 4. Vacation will be vested as it is earned.

ARTICLE 26 - JURY DUTY

Employees summoned to serve on jury duty will receive full jury duty pay for a maximum of twenty (20) working days for all such time spent on jury duty. The employee will receive the difference between gross fees received, excluding legitimate mileage, and the employee's regular earnings that would have been paid for an eight (8) hour shift at the base rate of pay, for each day of service. Notice of jury duty must be given to the Company upon receipt of a jury summons, and proof of such service must be submitted to the satisfaction of the Company before this Article shall apply. Employees required to work shift work will be considered as assigned to day shift for the duration of the jury duty and shall receive payment as outlined above. Employees summoned to jury duty that are released by the Court with less than four (4) hours of service shall return to work.

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ARTICLE 27 - BEREAVEMENT LEAVE

Section 1. Full time employees with the Company shall be given up to three (3) paid workdays off to attend the funeral of his immediate family. In the event the funeral is in excess of 100 miles from the employee’s residence, then an additional two days can be taken from either the employee’s accrued leave or the site manager can authorize a leave advance

"Immediate family" shall be considered as follows:

Spouse, parent, parent of spouse, legal guardian, child, brother, sister, stepparent, stepparent of spouse, stepchild, stepbrother, stepsister, grandchild, grandparent, and grandparent of spouse, brother and sister of spouse and guardian of spouse.

Section 2. Employee may be required to provide proof of claim.

ARTICLE 28 - EDUCATION REIMBURSEMENT

Section 1. The Company will provide employees reimbursement of approved educational expenses to a maximum of $2500 per year for classes which are job related. A minimal acceptable grade of “C” or better for Undergraduate courses or a “B” for Graduate degree courses is mandatory. Education request for reimbursement must be approved prior to class start date.

Section 2. The Company recognizes the importance of a well-trained workforce to successfully support the Customer’s Training Missions and will work with the employees to identify areas where training is necessary or beneficial. Those requirements will be presented to the Customer, and if approved and funded, employees whose job duties would benefit from training will receive it.

ARTICLE 29 - INSURANCE

Section 1. The Company will pay each employee the amount specified in the table below per hour paid to be used for the purchase of Health and Welfare benefits.

Health and welfare benefits shall include life, accident and health insurance plans. All existing AHNTECH benefits plans will be offered to employees for their consideration, in accordance with the Company's plans for the duration of this agreement.

Current $6.10 10/01/12 to 09/30/13 $6.10 10/01/13 to 09/30/14 $6.15 10/01/14 to 09/30/15 $6.20

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ARTICLE 30 -INSTALLATION OF NEW AND REVISED JOB CLASSIFICATIONS

When new Bargaining Unit jobs are required that cannot be properly encompassed within an existing job specialty, the Company will notify the Union of the requirements and will negotiate with the union the rate of pay and job duties prior to the Company establishing the new classification and rate of pay. Implementation of such jobs and their rates of pay shall be mutually agreed to prior to filling any such positions.

ARTICLE 31 –SAVINGS PLAN

Section 1. The Company’s Master Savings Plan (401K) shall be made available to those eligible employees covered by this agreement in accordance with the provisions of the plan:

a) Employees may elect to participate in the plan immediately upon hire and will become eligible for matching and discretionary profit sharing upon completion of one year of service.

b) The total contribution of a given employee shall not exceed a maximum annual dollar limit for their age group according to current law. After completion of one year of service with the Employer, the Employer will match fifty percent (50%) of the employee’s contribution up to a total of 6%.

Section 2. The 401K program will be administered in accordance with the 401K Plan Summary 2003.

Section 3. PENSIONS

A. The Employer shall contribute to the I.A.M. National Pension Fund, National Pension Plan for each day/hour or portion thereof for which employees in all job classifications covered by this Agreement are entitled to receive pay under this Agreement to a maximum of forty (40) hours per week for each employee as follows:

$.85 per hour effective 1 Oct 2012

If the employee is paid only for a portion of an hour/day, contributions will be made by the Employer for the full hour/day.

B. The Employer shall continue contributions based on a forty (40) hour work week while an employee is off work due to paid vacations or paid holidays. The Employer shall also make contributions whenever an employee receives severance pay, vacation pay at termination, or vacation pay in lieu of time off.

C. Contributions for a new, temporary, probationary, part-time and full-time employee are payable upon the completion of the employee's probationary period, but no later than ninety (90) calendar days after date of hire

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D. The I.A.M. Lodge and Employer adopt and agree to be bound by, and hereby assent to, the Trust Agreement, dated May 1, 1960, as amended, creating the I.A.M. National Pension Fund and the Plan rules adopted by the Trustees of the I.A.M. National Pension Fund in establishing and administering the foregoing Plan pursuant to the said Trust Agreement, as currently in effect and as the Trust and Plan may be amended from time to time.

E. The parties acknowledge that the Trustees of the I.A.M. National Pension Fund may terminate the participation of the employees and the Employer in the Plan if the successor collective bargaining agreement fails to renew the provisions of this pension Article or reduces the Contribution Rate. The parties may increase the Contribution Rate and/or add job classifications or categories of hours for which contributions are payable.

F. This Article contains the entire agreement between the parties regarding pensions and retirement under this Plan and any contrary provisions in this Agreement shall be void. No oral or written modification of this Agreement shall be binding upon the Trustees of the I.A.M. National Pension Fund. No grievance procedure, settlement or arbitration decision with respect to the obligation to contribute shall be binding upon the Trustees of the said Pension Fund.

EMPLOYER'S IRS IDENTIFICATION NO. 33 01022321

Address 3333 Camino Del Rio South, Suite120 San Diego, CA 92108

ARTICLE 32 SPECIFIC PERFORMANCE

Either party hereto shall be entitled to require specific performance of the provisions of this agreement.

There shall be no individual arrangements or agreement made covering any part or all of this Agreement contrary to the terms herein provided, and it is distinctly understood and agreed that all previous agreements, whether oral or written, by and between the Company and the Union are superseded by this agreement, and subject to any amendment that is agreed upon by both parties.

ARTICLE 33 ECONOMIC IMPROVEMNETS

All new economic improvements will be implemented October 1, 2012.