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COLLECTIVE BARGAINING AGREEMENT

Between

L-3 COMMUNICATIONS VERTEX AEROSPACE LLC

AIMD PROGRAM

NAS Corpus Christi, Texas

And

INTERNATIONAL ASSOCIATION OF MACHINISTS AND

AEROSPACE WORKERS, AFL-CIO

LOCAL LODGE NO. 2916

DISTRICT LODGE 776

September 1, 2014 – August 1, 2017

TABLE OF CONTENTS

AGREEMENT

PREAMBLE

ARTICLE 1 - RECOGNITION

ARTICLE 2 - UNION SECURITY

ARTICLE 3 - MANAGEMENT RIGHTS

ARTICLE 4 - UNION ACCESS TO OPERATIONS

ARTICLE 5 - GRIEVANCE PROCEDURES

ARTICLE 6 - NO STRIKE/NO LOCKOUT

ARTICLE 7 - BULLETIN BOARDS

ARTICLE 8 - BARGAINING UNIT WORK

ARTICLE 9 - SENIORITY

ARTICLE 10 - FILLING OF VACANCIES

ARTICLE 11 – HOURS OF WORK

ARTICLE 12 – UNION REPRESENTATIVES

ARTICLE 13 - OFF-SITE ASSIGNMENTS

ARTICLE 14 - LEAVE OF ABSENCE

ARTICLE 15 - WAIVER, SEPARABILITY AND CONCLUSIVENESS OF

AGREEMENT

ARTICLE 16 - JURY DUTY

ARTICLE 17 - UNIFORMS AND SPECIAL CLOTHING

ARTICLE 18 - VACATION

ARTICLE 19 - PAID PERSONAL TIME (PPT)

ARTICLE 20 - BEREAVEMENT LEAVE

ARTICLE 21 - HOLIDAYS

ARTICLE 22 - PENSION/401K

ARTICLE 23 - INSURANCE

ARTICLE 24 - MILITARY RESERVE TRAINING LEAVE

ARTICLE 25 - WAGE RATES

SIGNATURE OF PARTIES

APPENDIX A - WAGES

AGREEMENT

This Agreement made and entered into this 18th day of July 2014 , by and between L- 3 Vertex Aerospace LLC (hereinafter referred to as the Company) and the International Association of Machinists and Aerospace Workers, AFL-CIO, and its Local Lodge 2916 (hereinafter jointly and severally referred to as the Union), is to be effective S e pte m be r 1, 2014.

This Agreement shall remain in effect until midnight on August 1, 2017, without reopening rights for any purpose by either party, and 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) days prior to August 1, 2017, or at least sixty (60) 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 an extension of this Agreement for a specified length of time beyond the expiration date.

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, 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.

For purposes of simplicity, the masculine gender is used throughout this agreement although it is understood that all references to gender include both sexes.

This agreement, including the associated current job descriptions, can be changed or modified only by a written Letter of Understanding (LOU) document signed by the duly authorized Business Representatives of the Company and the Union. However, nothing contained in this agreement shall be construed to require either party to engage in negotiations during the time this agreement remains in effect. If the Company makes a new job, which requires a new job description, the parties will meet and negotiate a new job description and wage rate.

ARTICLE 1 – RECOGNITION

1.1 The Company hereby recognizes the Union as the sole and exclusive bargaining representative of all its production and maintenance employees employed at its AIMD Program at U. S. Naval Air Station, Corpus Christi, Texas, for the purpose of collective bargaining with respect to wages, hours of work, and other conditions of employment of employees in the bargaining unit, as herein defined.

1.2 If any of the specific provisions of this Agreement are rendered unlawful by changes in the law, the Company and the Union have agreed to meet and discuss any changes which may be necessary to conform the terms of the contract to the requirements of the law. All other provisions not effected shall remain in full force and effect.

1.3 The Company acknowledges the Union's rights specifically designated by the terms of this Agreement. As the employees' representative, the Union recognizes its duty to cooperate in any reasonable manner with the Company to support the Company's efforts to assure a fair day’s work by each employee for a fair day’s pay, and to further cooperate in all practices which increase efficiency and maintain standards of quality and service within the scope of this Agreement.

ARTICLE 2 - UNION SECURITY

2.1 Membership in the Union is not compulsory. Employees in the bargaining unit must, as a condition of continued employment, be either a member of the Union and pay union dues, or pay an agency fee to the Union, but not both.

If such condition of employment is not met, the employee's employment shall be terminated and such discharge shall be deemed to be for just cause as in compliance with standards permitted by the N.L.R.B. and court decisions relating to Agency shop requirements. Employees have the right to join, not join, maintain or drop their membership in the Union as they see fit. Neither party shall exert any pressure on or discriminate against an employee as regards to such matters.

2.2 The employee in the bargaining unit shall, beginning on the 31st day following the execution of this Agreement or the 31st day following his employment, rehire, reinstatement, reemployment, recall, transfer, or regression into the bargaining unit, as a condition of employment in the bargaining unit, execute and deliver to the Company (with a copy to the Union) a Dues/ Agency Fees Deduction Authorization as provided for in this Article that shall authorize the Company to deduct from the employee's pay an amount of money equal to the Union's regular and usual initiation fee or reinstatement fee and its regular uniform and usual monthly Union dues/ Agency fees to be remitted to the Secretary-Treasurer of District Lodge 776 of the International Association of Machinists and Aerospace Workers as set forth in this Article, or pay directly to the Union an amount of money equal to the Union's regular and usual initiation fee or reinstatement fee and an amount equal to its regular, uniform and usual monthly dues as certified by the Secretary-Treasurer of District Lodge 776 of the Association of Machinists and Aerospace Workers. It is understood that Union dues and Agency fees are due and payable on the first payday of each month.

Employees electing to use the Union Dues or Agency Fees Deduction Authorization shall be deemed to have met their obligation under this Article when the Company properly deducts dues from their paycheck on the first pay period of each month. Employees electing to pay their dues directly to the Union shall pay Union Dues or Agency Fees to the Union by the end of the calendar day on which the employee is paid.

2.3 Any employee within the bargaining unit who is required to contribute to the

Union as provided for in this Article and who is subsequently transferred or promoted out of the bargaining unit or laid off shall not be subject to any of the provisions of this Article during the period of time such employee remains outside the bargaining unit or on layoff.

2.4 No employee within the bargaining unit shall be required to pay fees or dues covering any period during which the employee was not in the bargaining unit or was not on the Company’s active payroll including layoff.

2.5 An employee within the bargaining unit shall be considered in good standing for the purpose of this Article when such employee tenders the amount of money equal to the Union's regular and usual initiation fee (due and payable only once per employee without regard to any interruption in service) or reinstatement fee and its regular uniform and usual monthly Union dues and Agency fees to the authorized agent of the Union or pay through authorized payroll deductions the Union's regular and usual initiation fee (due and payable only once per employee without regard to any interruption in service) and its regular uniform and usual monthly Union dues or Agency fees as are authorized by the employee to be withheld in accordance with this Article. Once the Union becomes aware of the employee's delinquency and the Union notifies the employee of the delinquency the employee will have fifteen (15) calendar days to resolve the delinquency. If the delinquency is not resolved, the Union shall notify the Company and the employee, and the Company shall discharge the employee on the fifteenth (15th) calendar day after said notification.

2.6 Deductions shall be made for the accrued regular monthly Union dues or Agency fees of each employee in the bargaining unit for whom the Union Dues or Agency Fees Deduction Authorization has been received, beginning with the pay for the first full pay period in the month following receipt of such authorization, provided that sufficient earnings remain to cover Union dues or Agency fees after all deductions required by law are made, and such Union dues or Agency fees deductions shall continue in like manner monthly thereafter, except as qualified in this Article.

A. Deductions shall be remitted to the Secretary-Treasurer of District Lodge

776 within ten (10) days following the first payday of each month. The Company will furnish the Secretary-Treasurer, at the same time, a list compiled in alphabetical order of those employees for whom deductions have been made and the amount of each deduction.

B. When ceasing to deduct Union dues or Agency fees for any reason, the

Company will submit the name(s) of such employee(s) in alphabetical order, and the reason for no deduction to the Secretary-Treasurer of District Lodge 776 at the same time the monthly dues deduction list is remitted.

C. When ceasing to deduct Union dues or Agency fees for any reason, the

Chief Steward will be notified of the stoppage within one (1) business day of the stoppage.

2.7 At the time this Agreement becomes effective, the parties agree to begin to use the below Dues Authorization form for all new dues/fees deductions. In addition, each individual authorization card signed and dated prior to the date of the contract ratification shall, upon ratification, have its effective date changed to reflect the ratification date and the initial irrevocable period shall run one (1) year from the date of ratification of the Collective Bargaining Agreement. Thereafter, dues authorization shall conform to the terms of the Dues Authorization Card.

Union Dues or Agency Fees Deduction Authorization form for the deduction and check-off of Union dues or Agency Fees is as follows:

2.8 The Union shall indemnify and hold the Company harmless against any and all claims, demands, suits or other forms of liability that shall arise out of or by reason of action taken or not taken by the Company for the purpose of complying with any of the provisions of this Article provided the Company has met its obligations under the terms of this Article.

2.9 The Company will provide office space to the Chief Steward for the purpose of carrying out his responsibilities under the grievance procedures and the storing of related records, provided there is space available and subject to the priorities determined by the Site Manager.

ARTICLE 3 - MANAGEMENT RIGHTS

3.1 Except as specifically abridged, delegated or modified by a specific provision of this

Agreement, or any supplementary agreements that may hereafter be made, all the rights, powers and authority the Company possesses prior to the signing of this Agreement are retained by the Company and remain exclusively and without limitation within the rights of management. The exercise of such rights does not require any prior discussion or negotiation with the Union, any bargaining obligation with respect to the exercising of such rights being hereby expressly waived by the Union. Rights of management include, among other things, but are not necessarily limited to, the right to establish or continue policies, practices and procedures for the conduct of business and from time to time change or abolish any of such policies, practices, or procedures; determine and from time to time redetermine, the number, location or relocation, of its operations and other facilities; from time to time determine the type of its operations, the methods, processes and materials to be employed and the services to be performed; establish, combine or split up departments or transfer work from one department to another; transfer work from one operation or facility to another; discontinue processes or operations;

subcontract work not normally performed by the bargaining unit; determine the number of hours per day or per week operations shall be carried on, including the starting and stopping times and rotation of shifts and jobs; select and determine the number and type of employees required; assign work to its employees in accordance with requirements determined by management; establish and change work schedules and assignments; determine methods of work measurement and establish standards of work performance; transfer, promote, or demote employees, or layoff, terminate, or otherwise relieve employees from duty for lack of work or other reasons; make and enforce reasonable rules for operations conduct and the maintenance of discipline and from time to time amend, modify or revoke any of such rules; suspend, discharge, or otherwise discipline employees for just cause.

3.2 The Company's failure to exercise any right, prerogative, or function hereby reserved to it, or the Company's exercise of any such right, prerogative, or function in a particular way, shall not be considered a waiver of the Company's right to exercise such right, prerogative, or function or preclude it from exercising the same in some other way not in conflict with the express provisions of this Agreement.

3.3 Written warnings not involving suspension or potential violations of law shall be removed from an employee's record after six (6) months as long as the employee has received no additional written warnings during the six (6) month period. Written warnings involving suspension will be removed from an employee's record after one

(1) year if they do not involve potential violations of law and if the employee has received no additional written warnings during the one (1) year period.

ARTICLE 4 - UNION ACCESS TO OPERATIONS

4.1 Subject to existing Government security regulations, The Company agrees that the

Business Representative or other authorized Business Representative of the Union 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 specific provisions of this Agreement. Prior approval must be obtained from the Site Manager or his designee, and such visits shall not interfere with production or work being performed.

The Business Representative shall notify the Site Manager or his designee when he is leaving the Company's operations.

4.2 The Company, if it desires, may have a Company representative accompany the

Business Representative while he is visiting its operations. The Chief Steward may accompany the Business Representative.

4.3 The Company reserves the right to withhold its permission for visits to its operations as set out in Section 4.1 in the event of abuse of the privilege by the Union official or representative.

ARTICLE 5 - GRIEVANCE PROCEDURES

5.1 For purposes of this Agreement, a grievance is defined as a dispute between the

Company and the Union or between the Company and any non-probationary employee covered hereby, with respect to the alleged violation of a specific provision of this Agreement. Grievances as herein defined shall be processed in keeping with the following procedure:

A. STEP ONE:

Both parties encourage the verbal resolution of disputes as quickly as possible. An aggrieved employee with his steward shall discuss the dispute with his immediate manager. However, grievances must be submitted to the immediate manager in writing within five (5) working days following the occurrence which caused the grievance. If the grievance has not been satisfactorily resolved within three (3) working days following its presentation to the manager, then

B. STEP TWO:

The grievance may be submitted in writing on a form mutually agreed to by the Company and the Union, containing information set out in Section 3, to the Site Manager within five (5) working days following the answer of the immediate manager. The Site Manager will discuss the grievance with the Chief Steward within five (5) working days following its submission to him.

The Business Representative will normally attend this meeting. The Site Manager will give his answer within five (5) working days following the meeting.

C. STEP THREE:

If there is no satisfactory settlement of the grievance in Step Two, then the Union or the Company may appeal the same to arbitration by making a written request for such action within not more than fifteen (15) working days following the Site Manager's answer in Step Two.

No grievance will be considered under the grievance procedure unless it is presented in Step One within five (5) working days following the occurrence of the event giving rise thereto except in the case of off-site assignments, in which case the grievance must be presented within five (5) working days of the date that the employee returns from the off-site assignment.

5.2 The parties understand and agree that the time limits set forth in the various steps of the grievance procedure are essential to the prompt resolution of the grievances.

Accordingly, if such time limits are not abided by, except in those instances where the parties mutually agree in writing to extend such time limits, then in the event the grievant and/or Union does not act within the time limits provided, the grievance shall be deemed to be withdrawn and forever settled and waived. In the event the Company fails to respond within the time limits provided, the grievance shall be automatically advanced to the next step of the grievance procedure provided;

however, there must be a written request for arbitration. In cases involving suspension or discharge, Step One will be waived and the matter taken up with the Site Manager within five (5) working days following such action by the Company.

5.3 The grievance form shall contain the following information:

A. Name(s) of the employee(s) involved, B. Approximate date of alleged grievance, C. Date of first discussion of grievance with the Manager, D. Date of Manager’s answer, E. Nature of grievance, F. Date of presentation of written grievance, G. Section or sections of the contract alleged to have been violated; and

H. Proposed remedy.

5.4 The handling of grievances, as outlined in Step One and those involving suspension or discharge, will be during the working hours of those involved without any loss of pay. The handling of grievances as outlined in Step Two will be on paid time for a maximum of one hour. Any arbitration shall be handled on unpaid time unless otherwise specifically requested by the Company.

5.5 Upon receipt of a notice of desire to take a grievance to arbitration, the parties shall jointly request the Federal Mediation and Conciliation Service to furnish a panel of seven (7) arbitrators for the purpose of selecting an arbitrator.

5.6 Only the Union or the Company may request arbitration of the other.

5.7 Upon receipt of the panel, the parties shall make mutually satisfactory arrangements for the purpose of selecting an arbitrator by the process of alternately striking the names from the list until only one remains. The last remaining member shall serve as arbitrator. The party striking first shall alternate from panel to panel. Either party may reject one (1) panel. Upon such rejection, an additional panel shall be requested in writing from the Federal Mediation and Conciliation Service by the party rejecting such panel with a copy of such request to the other party.

5.8 The arbitrator's authority shall be limited to disposition of the grievance arising under the contract, and he may only interpret and apply the contract provisions to the facts of the particular grievance. The arbitrator shall have no power or authority to change, alter, modify, detract from or add to the terms of this Agreement. No award shall have retroactive effect prior to the date of the occurrence, which led to the filing of the grievance upon which the arbitrator's award is based.

5.9 The arbitrator's award shall be final and binding upon the Company, the Union, and the employee.

5.10 The fees and costs of the arbitrator shall be borne equally by the parties. Each party shall otherwise pay its own cost and expenses. All arbitrations shall be held in Nueces County, Texas.

5.11 Representatives of management and the Union will meet monthly for the purpose of discussing pending grievances, future plans, and other appropriate matters.

ARTICLE 6 - NO STRIKE/NO LOCKOUT

6.1 The Union, its officers, agents, representatives and members agree that for the duration of this Agreement there shall be no strikes, sit downs, slow-downs, stoppages of work or any acts of any nature which would slow down or interfere with production and no picketing of any kind, whether predicated upon economics issues, grievances, contract violations whether real or alleged, unfair labor practices whether real or alleged, sympathy for other employees of the Company or of any other employer, or otherwise; nor shall any such acts be promoted, condoned or encouraged by the Union, its officers, agents, or representatives.

Failure or refusal on the part of any employee of the Company to comply with any or all provisions of this Section shall be sufficient grounds for discipline or discharge. The Company agrees that for the duration of this Agreement there shall be no lockouts. A lockout as mentioned herein shall not be construed as the closing down of the operation or any part thereof or curtailing any operations for business reasons.

6.2 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 about an end to such misconduct.

6.3 Neither the violation of any provision of this Agreement nor the commission of any act constituting an unfair labor practice or otherwise made unlawful, nor the fact that a particular grievance or dispute is not subject to arbitration under the provisions of this Agreement, shall excuse the Union, its officers, agents and representatives or the employees of the Company, its officers, agents, and representatives from their obligations under this Article.

ARTICLE 7 - BULLETIN BOARDS

7.1 The Company agrees to provide three (3) bulletin boards for the sole purpose of posting legitimate Union notices in the three main shops. With the exception of routine notices involving union meetings, the Union agrees to review all notices to be posted with the Site Manager prior to their posting.

ARTICLE 8 - BARGAINING UNIT WORK

Managers and employees not covered by this Agreement shall not perform work normally performed by employees in this bargaining unit, except in cases of emergency, research work, experimental work, job instruction, systems evaluation or licensing certification. Managers and employees not covered by this Agreement may perform work normally performed by bargaining unit employees when performing that work is exploratory in nature or for the purpose of determining severity or existence of defect and effort required for repair. The term "emergency" is defined to mean an unforeseen combination of circumstances that call for immediate action. This Article shall not be construed to prevent employees outside the bargaining unit from performing work normally within their regular duties. Work performed by managers and non-bargaining unit employees pursuant to this Article is not intended to reduce work or overtime hours or result in the replacement of bargaining unit employees.

ARTICLE 9 - SENIORITY

9.1 Definitions

The purpose of seniority is to provide preference in layoff and recall to work, job bidding, shift assignment and consideration for additional duties that receive adder pay not to include Collateral Duty Inspectors (CDI). In the application of seniority principles, the Company will give preference to seniority if other factors are substantially equal. For seniority to be applicable, the employee involved must have the ability and meet the qualifications to perform the work involved.

A. "Union Seniority" is defined as the AIMD contract hire date into a job within the defined work unit, on the AIMD contract at Naval Air Station, Corpus Christi, Texas.

B. "Adjusted Start Date" is the date used for purposes of vacation computation, which includes the amount of unbroken continuous service with the respective predecessor contractor(s) and all service time with L-3 Vertex Aerospace.

Employees hired at the AIMD Program at Naval Air Station, Corpus Christi, Texas with L-3 Vertex Aerospace, after the effective date of this Agreement shall accumulate seniority from their date of employment upon successful completion of their probationary period.

Relative seniority for employees on site as of July 1, 1999, will be determined by the July 1, 1999 seniority list as distributed in Section 9.7 below. Future seniority for employees hired with the same hire date will be determined by the last four digits of each employee’s social security number, i.e., the lowest number has the most seniority.

9.2 Layoff

In the event of a layoff the Company shall designate the number of employees to be laid off in each such job classification, and in each such job classification the employees with the least seniority shall be laid off first. An employee who is designated to be laid off or who is bumped may bump a less senior employee if the bumping employee is qualified to perform the work, but in no event can an employee bump an employee who is classified higher than himself. Bumping rights must be exercised within three (3) working days after an employee is notified that a layoff will take place. An employee who is bumped to a lower job classification will receive the rate of his new job classification. Employees who are offered lower classified positions which do not involve bumping will have the option of taking layoff. Whenever possible the Company will provide advance written notice of layoff.

Whenever a surplus condition exists, employees may seek a layoff out of the line of seniority by submitting a written request to the Site Manager. The Company will give favorable consideration to such requests as long as they do not necessitate recalling or hiring a person to fill the billet. Whenever two or more employees in the same classification and department request an out of line of seniority layoff, priority will be given to the senior employee. Unless the senior employee(s) seeking an out of line of seniority layoff waives his right to be laid off under this Agreement, the

Layoff will occur as otherwise described in this Section. Employees who are laid off out of line of seniority will retain recall rights as set forth in Section 3. The Company may deny any request to an out of line of seniority layoff without prejudice.

Decisions by management will be final and are excluded from the grievance/arbitration procedure contained in Article 5.

9.3 Recall

Following any layoff, as employees are needed for recall they shall be recalled by job classification in reverse order to the order in which they were laid off. An employee who has bumped to a lower job classification in lieu of layoff will be offered recall to his previous job classification only one time. If he declines the offer he will not have further recall rights to his said previous job classification. When an employee returns to his previous job classification, he shall receive the designated rate of pay for that job classification.

9.4 Termination of Seniority

An employee's seniority shall be terminated, and he shall cease to have any rights under this Article, in the following situations:

A. If he resigns, is discharged or retires.

B. If he fails to return to work within ten (10) days after he is sent a notice of recall by certified mail.

C. If he is absent for three (3) consecutive working days without reporting a reason sufficient to justify his absence.

D. If he fails to return to work upon expiration of a leave of absence.

E. If he is laid off for a period of twelve (12) months.

9.5 Return of Personnel to the Bargaining Unit

If an employee who has been in a bargaining unit position for a period of one year is transferred to a supervisory management or other position with L-3 Vertex Aerospace, so as to be excluded from the coverage of this Agreement, such employee shall retain his seniority in the position from which he was transferred for up to six (6) months.

9.6 Shift Changes

The Company and the Union agree to the principle that shift preference for available jobs shall be given to senior employees when qualifications, rate of pay, and classifications are equal. Employees who wish to be considered for shift change must submit a written request at least 15 days before the effective date of the desired change. Once an employee has made a shift change, that employee must remain on that shift for a minimum of three (3) months before he will be eligible to request another shift change.

9.7 Seniority List

The Company shall provide the Union with a current seniority list every January 1 and July 1. Within ten (10) workdays following receipt of the seniority list, the Union must notify the Company in writing of any corrections, challenges or errors.

Otherwise, the list shall be considered correct and may be challenged only at the publishing of the next seniority list.

9.8 Probationary Employees

New employees shall be considered probationary and not entitled to seniority until they have acquired ninety (90) calendar days of continuous service credit. Upon completion of said period of employment, the employee shall be considered a regular employee, and his seniority shall date from the start of the probationary period, and when thus established, will equal the employee's continuous unbroken service credit, not to exceed current seniority date at the Naval Air Station, Corpus Christi, Texas.

There shall be no requirement that the Company reinstate or rehire probationary employees if they are discharged during their probationary period, and no grievance shall be filed concerning any such discharge. It is understood however, that probationary employees are represented by the Union and that with the exception of discharge; all other disciplinary actions and violations of this Agreement are subject to the grievance procedure.

If mutually agreed to in writing between the Business Representative and the Site Manager, on a case-by-case basis, an employee's probationary period may be extended up to thirty (30) calendar days.

Probationary employees are not eligible to utilize PPT or vacation until completion of the probationary period. They may use their floating holiday with management’s approval.

Probationary employees may bid for open vacancies; however, their probationary period shall continue in effect.

New hires will be evaluated no later than ten (10) days prior to the end of their ninety (90) day probationary period regarding their suitability for regular status.

9.9 Super Seniority

The permanent and duly elected Stewards shall be the last to be laid off in their classification, provided they are willing and qualified to perform the available work, and shall be given preference for shift assignment to positions that they are qualified to fill.

9.10 Common Access Card

Where an employee’s base access or Common Access Card is revoked and is restored by the Federal Government within twelve (12) months of revocation, the Company will reinstate the employee’s employment (without loss of seniority) into his/her previously held position at the time of termination, if a vacancy exists, or any lower available classification for which he/she is qualified and there is a vacancy. The Company shall not be obligated to reinstate any employee whose base access was revoked as a result of circumstances otherwise justifying a just cause termination pursuant to the terms of this Agreement.

ARTICLE 10 - FILLING OF VACANCIES

10.1 Except for non-bargaining unit, Quality Control Inspectors (QCI), EH&S Coordinator, Collateral Duty Quality Control Inspectors (CDQCI), Collateral Duty Inspectors (CDI) and Leadman job positions which the Company may fill in accordance with its own discretion, if the Company determines to fill a new or existing job within the bargaining unit the most senior applicant, who meets the job qualifications, shall be selected to fill the vacancy and receive the hourly rate applicable thereto upon beginning performance on the new job. Posted jobs will be filled by the most senior person within the bargaining unit who meets the job qualifications.

10.2 Notices of job openings in the bargaining unit covered herein will be posted on the

Union's and Company's bulletin boards for a period of three (3) working days during which time the job shall not be permanently filled. The Company shall not be required to post a notice of vacancy or job opening for a particular job more than once every sixty (60) days. Any bid submitted within the posting period shall remain valid for sixty (60) days.

An employee who has been on sick leave throughout the posting period and returns to work within three (3) working days after the end of the posting period, or who is on vacation, or on off-site assignment throughout the posting period, may claim the posted vacancy within twenty-four (24) hours after returning from vacation, sick leave or off-site assignment, if the position has been awarded to a less senior employee and if the individual is qualified to perform the work.

10.3 Employees desiring to bid on a posted job will submit their requests/resume in accordance with Company procedures, i.e. by computer or in writing, as required by the Site Manager. For those positions which the Company decides to fill due to a leave of absence, employees may bid following the procedure set forth above and the successful bidder will be placed into the position on a regular basis unless the incumbent employee returns from the leave of absence. Bid notices will indicate positions vacated by employees placed on a leave of absence. Employees who are displaced by another employee returning from a leave of absence may exercise their seniority to bump into another job in accordance with other provisions of this article.

When there is no qualified bidder for a posted job opening from any full-time employee who meets the job qualifications, the Company may fill the job with a qualified individual available from any source.

10.4 If the Company determines within a period of thirty (30) working days that an employee selected to fill a job vacancy is not performing the job satisfactorily, the employee will be returned to his previous job classification without loss of seniority.

Upon request the Company shall provide any and all information upon which this decision is based to the Chief Steward. Employees will be apprised of their progress about fifteen (15) working days after starting the new job. An employee selected to fill a job vacancy may return to his previous job classification within thirty (30) days without loss of seniority.

ARTICLE 11 - HOURS OF WORK

11.1 The purpose of this Article is to define the normal hours of work; however, nothing in this Agreement shall be construed as a guarantee of hours of work for any period.

11.2 The employee's assigned work day for each shift shall consist of eight and one half (8 1/2) consecutive hours, except in emergency situations or while on off-site assignments, including one-half hour of unpaid lunch for each shift in the 24 consecutive hour period following his assigned starting time of his respective shift on his first scheduled work day.

11.3 The calendar day worked for the respective shifts shall be determined as of the time of day the first shift is scheduled to start to work.

11.4 Each work week for payroll purposes begin at 0001 on Saturday and end 168 hours later at midnight on Friday.

11.5 The "regular" assigned work week shall consist of 40.0 hours, five (5) consecutive days. The work week of an employee will not be intentionally altered in order to prevent the payment of overtime.

11.6 An employee's starting time will not be changed during the same work week except in emergency situations or because of operational commitments previously unannounced by the Navy or activities that are supported by the AIMD. The starting time of the various shifts will be as follows:

First Shift: Beginning at or after 4:00 a.m. but before noon.

Second Shift: Beginning at or after noon but before 8:00 p.m.

Third Shift: Beginning at or after 8:00 p.m. but before 4:00 a.m.

11.7 Employees will be allowed one scheduled 15 minute rest period before and one 15 minute rest period after lunch in each complete scheduled work day, the time of and zones for such periods to be fixed by the Company. The Company will attempt to establish the first rest period at approximately mid-way between the beginning of the shift and the lunch period, and will attempt to establish the second rest period approximately mid-way between lunch period and the end of the shift. Employees required to work beyond their regular shifts shall be entitled to the regularly scheduled rest period and be at their place of work at the end of the rest period.

Employees will be allowed sufficient time to clean up their work stations prior to the end of the shift.

11.8 Employees are responsible for entering their work hours into the payroll accounting system on a daily basis. In the event that an employee is unable to be at their assigned place of work, then he will notify their Lead and their Lead will inform Management so that appropriate time can be entered into payroll accounting system. If an employee is previously scheduled to be off (Vacation or PPT) then the

Employee is responsible for ensuring that the appropriate time is entered in to the payroll accounting system prior to the scheduled off time. No employee may start work prior to the scheduled working hours without prior management approval.

11.9 An employee shall be expected to be at his work station ready for work at the beginning of his shift and shall be expected to continue working until the end of said shift except as provided for in Section 7.

11.10 A lunch period will be established and designated by the Company for a period of thirty consecutive minutes, at approximately the mid-points of the shifts, in keeping with sound work practices and efficiency.

11.11 Should conditions occur whereby the Company gives the employees the option to do other available work outside their classification or take time off, the employees affected shall have the option to use sick leave, vacation time or to take time off without pay.

11.12 At its sole discretion the Company may permit employees to work flexible shifts on a voluntary basis. The Company will determine the hours and duration of the flexible shifts. Employees who volunteer for flexible shifts will be selected on the basis of seniority and qualifications and the employees will rotate every three (3) months.

ARTICLE 12 - UNION REPRESENTATIVES

12.1 Designation of Stewards

The number of Stewards shall not exceed three (3); one (1) of the three shall act as Chief Steward. Before a change to the number of stewards previously agreed upon can occur, a meeting between the Site Manager and the Business Representative shall be held. No unilateral change may be made to the number of stewards to be so recognized. The stewards shall be employees of the Company and shall be elected/appointed by the Union. The Union will provide the Company with a list in writing of the names of the accredited stewards and their assigned areas of responsibility on a current basis.

12.2 Scope of Steward’s Union Activities

A. To consult with an employee regarding the presentation of a request complaint, or grievance for which the employee desires him to be present.

B. To investigate a complaint or grievance of record before presentation to the appropriate manager.

C. To present a request, complaint, or grievance to an employee’s immediate manager in an attempt to settle the matter for the employee or group of employees who may be similarly affected.

D. To meet by appointment with an appropriate manager or other designated representative of the Company, when necessary, to adjust grievances in accordance with the Grievance Procedure.

Stewards will receive their regular pay for time spent performing the above duties to the extent that it is necessary to perform these duties during their scheduled work hours. The parties are in agreement that the minimum amount of time should be spent in the performance of these duties.

12.3 Introduction of Employees

New or transferred employees who are employed in occupations covered by this Agreement shall be introduced to the Union Steward in the work area to which such employees will be assigned within twenty-four (24) hours following such assignment. The function of the Steward under this Section is to explain his responsibilities under this Agreement and provide the agreed upon deduction card as part of the check-in process.

ARTICLE 13 - OFF-SITE ASSIGNMENTS

13.1 Under the terms of the contract with the U.S. Navy, the Company is required to send personnel off-site to outlying fields, or other locations as determined by contractual requirements.

13.2 Assignments

A. The Company will select employees based upon seniority and qualifications for off-site technical assignments other than logistics assignments.

B. Personnel for logistics assignments will be selected based on company need, personnel availability and impact on workload.

C. Secondary personnel when required may be chosen based on company need, personnel availability, and impact on workload. Non-bargaining unit personnel may be utilized to fill secondary personnel requirements at the discretion of the Site Manager.

13.3 Personnel assigned to off-site assignments may be eligible to receive per diem in accordance with current Joint Travel Federal Regulations. Employees authorized to use their personal cars will be paid the current mileage rate listed in the Joint Travel Federal Regulations. In all cases, employees must comply with the Joint Travel Federal Regulations.

13.4 Employees will be paid for the travel time to and from the assignment site.

13.5 In the following circumstances employees shall be furnished transportation to NAS

Corpus Christi:

Emergency hospitalization of an immediate family member, Bereavement leave, and

Loss of primary residence due to fire, flood or weather.

ARTICLE 14 - LEAVE OF ABSENCE

Leaves of absence shall include Family Leave, Other Leave and Medical Leave and will be administered in the following manner:

14.1 Family Leave of Absence

A family leave of absence, without pay, of up to twelve (12) weeks during any twelve

(12) month period may be granted for one of the following reasons:

the birth of a child, the placement of a child with an employee for adoption or foster care, to care for a spouse, child, or parent who has a serious health condition, or because of an employee’s own serious health condition.

For purposes of calculation, the twelve-month period will consist of the twelve months preceding the effective date of the leave and will be a rolling period.

Employees may be required to use all accrued sick/personal leave and vacation prior to being placed on an unpaid family leave of absence in excess of 75 hours. Health insurance benefits will remain in effect during the family leave of absence for a period not to exceed twelve (12) weeks. Employees will be responsible for the share of the premium that they normally pay and the coverage can be canceled by the Company if the employee fails to pay his share. Employees who return to work before the allotted twelve (12) weeks are exhausted will be entitled to their former position or to an equivalent position unless they otherwise would be ineligible to return to work.

The intent of this provision is to meet the requirements of the Family and Medical Leave Act, the requirements of which will govern its application. Family leaves of absence in excess of twelve (12) weeks during any twelve (12) month period may be granted by the Company at its sole discretion. In such cases the employee will be responsible for the cost of insurance premiums which must be paid in advance by the employee if they are to remain in force during the additional leave period.

To be eligible for a family and medical leave of absence, an employee must have worked for the Company for twelve (12) months (continuous or non-continuous) and worked at least 1,250 hours during the past twelve month period.

14.2 Other Leaves of Absence

Leaves of absence without pay may be granted by the Company upon request by an employee, for a period of not more than sixty (60) days.

Applications must be made to the Site Manager. The application must be in writing and must state the reason for the requested unpaid leave. Except in cases of emergency, employees must request such unpaid leaves at least five (5) work days prior to the date the unpaid leave of absence would begin.

Employees on unpaid leave of absence shall continue to accrue seniority and other benefits, except holidays and sick/personal leave credits, for a period of up to thirty

(30) days. This will include employees who are on leave of absence for union activities for periods of sixty (60) days or less.

Failure to return from a leave of absence at the scheduled expiration date will result in the termination of the employee. However, in extenuating circumstances involving reasons acceptable to the Company, the leave of absence may be extended.

Any member of the Union shall, upon written request by the Union, be granted a leave of absence for Union activities on a fiscal year basis. Such leave of absence may be extended on a fiscal year basis by mutual agreement between the Company and the Union. A maximum of one (1) employee may be on long-term leave for Union activities at any one time. Employees on leave for Union activities will retain and continue to accrue seniority, but will not otherwise be entitled to compensation or benefits except in circumstances where group insurance is continued through the Company, in which case the full insurance premium will be paid by the Union or the employee. Upon receipt of written notification from the Union, the Company will offer employment to the Union member in his previous job classification based upon his seniority. If the employee’s job classification no longer exists he will be offered employment to a substantially similar classification for which he is qualified based upon his seniority.

14.3 Medical Leave of Absence

Leave of absence for legitimate personal health reasons may be granted to an employee for a period of up to thirty (30) calendar days and may be extended up to twenty-six (26) calendar weeks when supported by satisfactory medical proof supplied by a licensed physician to the Company. Employees will be placed on layoff status after exhausting twenty-six (26) weeks of Short Term Disability benefits. In the event the employee is released within six (6) months of the date of such placement in layoff status and the employee has notified the Company, in writing, of their ability to return to work, the employee will be returned to active status and will be provided the opportunity to exercise bumping rights as if he or she were to be laid off at that time, provided their prior position is no longer available or no longer exists and they are qualified.

In order for the employee to return to active status prior to or at the expiration of such leave, they must provide a full release by a licensed physician provided he/she is able to perform his duties safely. Should the Company question the employee’s capabilities to perform his duties safely, the Company may have the employee examined by another physician at the Company’s expense. Should the physician selected by the Company and the employee’s physician disagree, the employee will be examined by a third mutually acceptable physician and his decision will decide the employee’s capability. Any such additional examination shall be paid for by the Company.

Leaves of absence in compensable injury and legal occupational disease cases will be granted up to twelve (12) months of such injury or disease. Seniority will

Accumulate for the full period of such leave. It is understood and agreed that the Company’s contributions to the employee’s benefit plan as outlined by this agreement will cease upon the exhaustion of such leave. The leave of absence and seniority accumulations will end whenever the employee is determined to be permanently disabled or is released to return to work and fails to report to work.

The leave of absence and seniority accumulations will end whenever the employee is released to return to work and fails to report to work, or at the expiration of twelve

(12) months, whichever occurs first.

ARTICLE 15 - WAIVER, SEPARABILITY & CONCLUSIVENESS OF AGREEMENT

15.1 Waiver

The waiver of any breach or condition of this Agreement by either party shall not constitute a precedent for any further waiver of such breach or condition.

15.2 Separability

Should any part of this Agreement be declared invalid by reason of any existing or subsequently enacted legislation or by decrees of a court of competent jurisdiction, such invalidation shall be limited to such part(s) and shall not invalidate the remaining…

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