CBA.doc

PREAMBLE

The Parties hereto are entering into this Agreement for the purpose of setting forth in writing the understandings they have reached with respect to wages, benefits and working conditions of the employees covered hereby as well as the rights of Siler Excavating, LLC. and International Association of Machinists and Aerospace Workers, District Lodgel 12, Local Lodge 2917, AFL- ClO. This Agreement contains terms that are intended to provide a peaceful means for the resolution of any disputes which may arise in the future with respect to the interpretation or application of the terms and conditions of this Agreement. This Agreement is by and between Siler Excavating, LLC. (hereinafter referred to as the "Company") and employees who are members of the Bargaining Unit (as such terms is hereinafter defined), a majority of whom are mem bers of the International Association of Machinists and Aerospace Workers, District Lodge 112, Local Lodge 2917, AFL-CIO, its designated agents and representatives, it successor and/or assigns (all of whom are hereinafter collectively referred to as "the U nion").

ARTICLE ! RECOGNITION

Section 1. The Company hereby recognized the Union as the sole and exclusive collective bargaining agent on behalf of all of the employees of the Company within the bargaining unit (as the term "bargaining unit" is hereinafter defined). The scope of this representation is for the Union to negotiate with the Company for this collective bargaining agreement and to represent its members in any disputes and/or Company-Covered Employee relationship problems which might arise under this Agreement i n the future. The Union will negotiate with the Company with respect to wages, hours of work, and all other terms or conditions of employment by the Company solely with respect to the employees of the Company who perform under Contract W9124M-1 4-C-0001 (and any successor contracts thereto as well as any modifications of this contract) (hereinafter all referred to as the "Contract"). The Union, through the terms of this

Agreement, will also oversee and represent its members and any non-member employees who request union representation in the event of any dispute regard i ng the terms of this Agreement or any matter with respect to such Union's member's employment and/or termination of employment from the Company. The above notwithstanding, should the Union be decertified as representing a majority of those "non-excluded persons" employed by the Company by the National Labor Relations Board ("NLRB") for any reason hereafter, this Agreement, upon the occurrence of the NLRB decertification, shall become null and void. For all purposes of this Agreement, the term "non-excluded persons" means all of the people employed by the Company to perform Contract W9124M-14-C-OOO I at Ft. Stewart, Georgia and Hunter Army Airfield, Savannah, Georgia other than office clerical Employees, professional Employees. managerial Employees. supervisors and guards as defined by the National Labor Relations Act, as amended.

Section 2. The bargaining unit is hereby defined as all full-time and regular part-time employees employed by the Company to perform Contract W9124M-1 4-C-0001 at Ft. Stewart, Georgia and Hunter Army Airfield, Savannah, Georgia, now or hereafter at any time during the term of this Agreement. All persons who are employed by the Company to perform the Contract who are members of the bargaining unit are hereinafter referred to as the "Covered Employees" or "Covered Employee" as the case requires. Nothing herein to the contrary withstanding, this Agreement specifically excludes from the definition of Covered Employees any office clerical employees, professional employees, managerial employees, supervisors and guards as defined by the National Labor Relations Act, as amended. The parties have expressly and conclusively agreed that the NLRB certification notwithstanding, the bargaining unit specifically does not include any employees of the Company engaged in working on any other contract between the Company and the Department of Defense, including, but not limited to, the Hazardous Material Handling

Contract and/or Heavy Equipment Operator Contract of the Company at Fort Stewart.

ARTICLE 2

NON DISCRIMINATION

There shall be no discrimination in regards to tenure, terms or cond itions of employment because of race, creed, color, sex, marital status, age, rel igion, national origin, ancestry, mil itary veteran status, hand icap status, union activity or disability regardless of the number of Covered Employees in the bargaining unit who are employed by the Company. The Company will not discriminate against any Covered Employee as a result of U nion activities. Such Union activities must be lawful, must not violate any provisions of this Agreement, and not interfere with the Covered Employee's job performance or the performance of the Company under its contract with the United States Government at Ft. Stewart, Georgia and Hunter Army Air Field i n Savannah, Georgia.

ARTICLE 3

UNION ACCESS TO OPERATIONS

Section 1. The Company agrees that the Business Representative and/or Grand Lodge Representative of the U nion will be allowed reasonable access to the premises, subject to approval of the Government and the Company, for the purpose of representing the Covered Employees. Prior to a U nion Representative visiting the shop, the Union will notify the Project Manager and/or his designee via e-mail with delivery receipt no later than 3 calendar days prior to the visit. This email notice must state the proposed date, time and the purpose(s) of the visit. Such visits shall be in conformance with all safety requ irements and shall not und uly interfere with production or work being performed. The Union Representative shall notify the Project Manager and/or his designee when the Union Representative is arriving at and leaving the Company's operations. The current Project Manager is Johnny Davis. The email address for email delivery of all notices under this section is dewavne(iVcontractsl.com. The Company shall be responsible to notify the Union of any changes to the Project Manager position and/or the email address to which notices under this section are to be addressed. The Company may cancel, ask for rescheduling and/or restrict the nature of any visit when so required by the government and/or by reasonable safety concerns.

Section 2. The Company shall allow the Union Representative privacy upon request for the purposes of conducting Union business. Unless otherwise agreed to by the Project Manager and/or his designee in advance, all Union business will only be conducted during periods when the employee(s) is on lunch break or on thei r morning or afternoon break.

ARTICLE 4 UNION COMPENSATION

Section I. Membership or Agency Fees. In order to compensate the Union for the valuable contract negotiation services rendered to each current and future employee, as a condition of employment, all present bargai n ing unit employees shall either become dues paying members of the Union or pay an agency fee to the Union (but not both) within thirty (30) days of the Company begi nning to pay the wage and benefits levels provided by this Agreement, and all new employees shall become and remain members of the Union or pay an agency fee not later than sixty (60) calendar days of their date of hire or transfer. The agency fee shall be calculated by the Union to include only the costs of representing employees in wage and benefits negotiations and in no event will the agency fee be greater than the monthly union dues.

Section 2. Discharge for Failn re to pay Union Dues. The Company will within Ten (10) working days after receipt of notice from the Union, discharge any Employee who is not i n good standing in the Union or paying the applicable Agency Service fees. i nitiation fees and reinstatement fees as required by Section I of this article. Any Employee discharged shall be discharged for "Just Cause". "Good Standing" is defined as in compliance with standards permitted by NLRB and court decisions relating Union Agency shop requirements. The above notwithstand ing, in the event that the Union notices the Company to terminate any employee whose entire duties are not performed on a federal enclave with sole federal jurisdiction, the Company, at the Company's option, may prior to terminat ion seek an opinion from the Georgia Attorney General that such term ination is not in violation of Georgia's Open Shop Act (Title 34, Chapter 6, Articles 1 and 2 of Georgia Code). The Union agrees to indemnify and hold the Company harmless against any and all claims, liabilities, demands, lawsuits (and the cost of defending the same) or other forms ofliability and demands made against the Company on account of any action taken by the Company in conjunction with this Article, including, but not exclusively, the cost of obtaining the ruling from the Georgia Attorney General, if any, is requested.

Section 3. List of Mem bers. The Union agrees to provide to the Company a complete written list of all of the Company's Employees who have elected to become union members at least monthly. The first such list shall be provided to the Company withi n 14 days of the ratification of this Agreement by the Covered Employees.

Section 4. Payroll Deduction for Dues and Agency Fees. Upon receipt of a signed authorization of the Covered Employee involved; the Company shall deduct from the employee's pay, the initiation fee, if any, dues payable by him to the Union and/or agency fee during the period provided for in said authorization. The parties agree that check-off authorizations shall be as follows:

INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS, AFL CIO

MEMBERSHIP APPLICATION AND/OR CHECK OFF A UTHORIZATION

Name No.

----------------- Date Card Address birth SS No-.----- Email

Phone Hire Date

CI la2ss o3f work ------------- Years of experience---Shift:

******************************************************* ********************** Membership Application. Check here: To the Officers and Members of Lodge No. (the "Lodge" or "Union"), I hereby tender my application for membership in the International Association of Machi nist and Aerospace Workers, AFL-CIO (IAM). I understand that while I may be required to tender monthly fees to the Union, I am not required to sign a membership application as condition of employment and that this application for membership is voluntary. I agree to obey the laws of the!AM and to support the principles of trade unionism, and I authorize the!AM and/or its designated affiliate to act as my representative for collective bargai ni ng.

If former mem ber of JAM: Card No. Lodge No. Location Last dues paid Check-off Authorization. Check here: I authorize my Employer to deduct from my wages and forward to the Union the monthly agency fee. This authorization shall be irrevocable for one (1) year or until the termination of the collective bargaining agreement between my Employer and Union not more than twenty (20) and not less than five (5) days prior to the expiration of the appropriate yearly period or contract term. I expressly agree that this authorization is independent of, and not a quid pro quo for, union membership, but recognizes the value of the services provided to me by the Union.

The following information is strictly vol untary and is requested for the sole purpose of prov id ing improved services to our membership:

I am Caucasian _African American Asian _Hispanic Pacific Islander _Native American Other.

Important Notice. I have examined and acknowledge receipt of the attached "Notice to Employees subject to Union Security Clauses" (on back of pink sheet). I also understand that !AM members have certain rights and pri vileges as set forth in the !AM Constitution and in various Federal laws, l ike the Labor Management Reporting and Disclosure Act (LMRDA).

Copies of the JAM Constitution and the LMRDA may be obtained by contacting the!AM General Secretary-Treasurer, 9000 Machinists Place, Upper Marlboro, MD 20772. U nion mem bership dues and agency fees are not deducti ble as charitable contributions for Federal income tax purposes. Dues and agency fees, however, may be deductible in limited circumstances subject to various restrictions imposed by the Internal Reven ue Code.

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YOUR SIGNATURE DATE

When available, deductions shall be made on account of dues and/or initiation fees, if appropriate, from each weekly paycheck of the employee after receipt of the authorization and weekly thereafter. In the event that an employee's payroll is less than the amount of the requested deductions, the Company will make no deduction, and instead will notify the Union of such fact.

Section 3. The sums deducted as stated above shall be forwarded to the designated financial officer of the U nion no later than the beginning of the 2"d pay period of the month following the month in which deductions are made.

Section 4. The Union will indemnify and hold the Company harmless from and against any and all claims, demands, charges, complaints or suits instituted against the Company wh ich are based on or arise out of any action taken by the Company in accordance with or arising out of the foregoing provisions of this Article, or in reliance on any list, notice or assessment furnished under any of such provisions.

ARTICLE S ASSIGNMENT OF SHOP STEWARDS

Section 1. It is hereby understood and agreed that the Union may assign two (2) Shop Stewards and one ( 1) alternate Shop Steward to represent Covered Employees with one of Stewards to be an employee whose primary dut ies are at Fort Stewart and one of the Stewards to be an employee whose primary duties are at Hunter Army Air Field. The alternate Shop Steward shall only act in the absence or unavailability of both of the Shop stewards. The Union shall notify the Company in '-'Tiling on Union letterhead of the individuals so selected to serve in each of these capacities. Subject to the requirements of this contract, the Shop Steward or Alternative Shop Steward shall be empowered to investigate and present a grievance i n accordance with the provisions of this Agreement.

Section 2. As soon as possible after the effective date of this Agreement, the Union shall notify the Company of the names of the Business Representative, District Lodge 112 Financial Secretary, the Chief Stewards and the Alternative Stewards.

Section 3. The conduct of Union business will be scheduled so that no employee, including the Shop Steward, is interrupted during paid working time. However, should a Steward wish to conduct Union business matters of a serious and time sensitive nature during scheduled working hours, as herein set forth, he shall first request permission from the Project Manager or his designee and state the Union business he desires to conduct on Company time. Such permission shall be granted, unless it should substantially interfere with operations. In no event will the Chief/Shop Steward be granted more than 2 hours in any one calendar month to handle U nion business during paid working time. He shall report to his Supervisor upon completing each function. Such time shall be kept to a minim um.

ARTICLE 6 SUBSTANCE ABUSE POLICY

Section 1. 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, U nion and Employees.

Section 2. The Violat ion of this Drug Free Workplace Policy is just cause for immediate termination. The unauthorized use, sale, transfer or possession of alcohol, drugs, controlled substances and/or "mood altering" substances, (except the possession or use of prescribed med ication, verifiable by a current, properly issued prescription) during work hours (including meal and rest periods), on Company premises, in Company vehicles, or in personal vehicles while conducting Company business is prohibited (unopened alcoholic beverage containers not included). Violation of this section of the Agreement is just and sufficient cause for immediate termination.

Section 3. The Company has adopted testing practices to include pre-employment, random, reasonable suspicion and post-accident screening. Employees may now or in the future be scheduled for random alcohol and drug testing. Employees may also be tested for alcohol and drug use upon reasonable probable cause, and work related accidents. Time spent by Employees for testi ng shall be considered paid time. The Company shall advise the Union of the processes and facilities to be used for sample collection, and will provide a clean and pri vate setting, as much as possi ble. The Employees may be required to provide samples includ ing urine, and or blood to check for the illicit or illegal use of drugs and alcohol .Refusal to submit to the req u i red drug testing shall result in immed iate termination of employment. Iflhe testing presents a positive result, the employee may, at their own expense, be retested within twenty four hours after receiving the positive results. The retesting shall be at the same facility that performed the i nitial test. If there is reason to suspect that the employee is or was working while under the influence of illegal drug or alcohol, the employee will be suspended (with or without pay) pending the results. All chain of custody issues shall be strictly adhered to. Ifone test result is positive and one is negative, the tests results will be discarded without penalty to the employee. Pre-employment drug testing is a condition of employment.

Section 4. The Company considers any violation of drug use, possession, distribution, or sale of drugs or drug paraphernal ia a serious matter that may result in the immediate termination of the employee. The Company also considers any violation of alcohol use, including reporting to work under the influence, on Company premises a serious issue that may warrant immediate termination of the employee.

Section 5. Employees being drug tested shall be permitted to complete a medical/patient over the-counter and prescription medicine form to inform the laboratory personnel of possible false positive sources prior to providing a sample.

ARTICLE 7

NO LOCKOUT-NO STRIKE

Section 1. The procedures described herein, for settlement of grievances, shall serve as the means for peaceful settlement of all disputes that may arise between the parties. During the life of the agreement the Union will not collectively, concertedly, or individually, engage in, participate, directly or indirectly in, work stoppages, slow downs, or strikes (including sympathy strikes), or any other interference with or interruption of the work. There shall be no lockouts caused by the Company.

The Union agrees for the Covered Employees, that they wi ll ind ividually and collectively perform safe, efficient and diligent service, and that they will use their influence and best efforts to protect the property of the Company and its interests; and that they will cooperate in promotion and advancement of the Company and its service at all times as a matter of enlightened self-interest.

No rules, customs or practices shall be permitted which limit production or unreasonably increase the time required to do any work.

Nothing in the above shall preclude any right to which the Company may be entitled to secure legal or other redress of any individual who has caused damage or injury to or loss of property, nor does the Company give up any rights in this regard to which it may be entitled.

Nothing in this Article shall cause the Union to be held to any standard beyond that described under 29 USC I 06 or infringe upon its right in exercising its lawful duties.

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 nonemployee) to immediately, and upon proper notification, 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 or other disciplinary action by the Company. Any such disciplinary action shall be subject to the grievance and arbitration proced ures of this agreement. Should the company prove that the employee(s) did participate in action in violation of this Article, the disciplinary action shall not be altered.

ARTICLE S VACANCIES/NEW JOBS

Section I.As vacancies occur which the Company decides to fill, the Company reserves the right and shall have the right to fill any vacancies on the basis of training, education, experience, and qualifications. 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 before filling the position.

Section 2. The Company has the right to determine the job qualifications. Copies of job descriptions and required qualifications shall be retained by the Human Resources Department and shall be made available to Employees upon request. The Union shall be advised, in writi ng, of any revisions or modifications of job descriptions or qualifications.

Section 3. Any positions in management are excluded from this Article 8.

ARTICLE 9 PROMOTIONS

Section I.In effecting a promotion, the Company shall make every effort to promote from within the employees of the Company. The Company shall promote to a vacant position(s) when qual ified employees are available, interested, and deemed suitable in all respects and when determined the promotion is in the best interest of the Company. Should no present employee fully qualify, the Company has the right to hire the outside applicant. Iftwo (2) or more employees are eligible and express an interest, seniority will be considered, if qualifications are relatively equal.

Section 2. The Company will notify the all employees, including Covered Employees, of any openings to be filled within the bargaining unit prior to filling the position.

Section 3. U pgraded employees will be considered on probation in the new position for ninety days after upgrad ing. During this period, the Company may, at its discretion, reclassify the employees to their former classifications if it is determined by the Project Manager, or his designee, that the employee is not fully meeting the qualifications for that upgraded job classification. Any upgraded employee who fails to perform as expected during his or her probationary period will, if at all possible, be offered the return to his or her old job and/or job classification.

Section 4. The Company may temporarily upgrade an employee to a higher paid classification. The employee shall receive the pay rate for the classification of work that he is performing.

Promotion and seniority rules apply to all permanent promotions to a higher paid classification. Temporary promotions shall not be used to circumvent promotion to any regularly permanent position.

ARTICLE 10 SENIORITY

Section 1. Probationary Period. New Covered Employees shall be on probation for ninety (90) calendar days from the initial hire date during which time they may be discharged at the sole discretion of the Company. Ifretained after the probationary period, their names shall be placed on the Seniority List as of their date of hire.

Section2. Definitions. Seniority is defined as including the whole span of continuous service with the present contractor, or successor, and with predecessor contractors. Seniority will not be broken for:

Periods of approved absence with leave for no more than 30 days during any calendar year;

(b) (c) Periods oflayoff due to lack of work, not to exceed one ( I ) year; and Periods of absence due to workers comp injury or illness.

Section 3. Seniority List. A seniority list will be maintained by the Company and will be made available to the Union annually or upon request, however, the Union may not request a seniority l ist more than once every 6 months. The Company will also furnish a list to the Union reflecting new hires or rehires, their classification, their date of hire, and termination or layoff dates.

Employees transferring from other sites within the company retain their original seniority date for benefit and vacation purposes only. The Union will withi n 14 days of the Company's mailing (or email ing) of such proposed seniority list give the Company written feedback as to whether the seniority list so proposed is accurate and can be used as the starting point for all seniority with the Company or if the Union bel ieves it to inaccurate. lf the Union believes the proposed list to be inaccurate, the Union shall within the above 14 day period provide details and proof regarding any claimed inaccuracies. The two parties agree to diligently work together to conclude a final seniority list. ln the event that no agreement as to the seniority list can be obtained within 45 days from the date it was mailed (or emailed) to the Union, the parties will use the original proposed list with any agreed upon changes until such time as the Union can provide evidence sufficient to convince the Company that any unmade changes should have i n fact been made i n the Seniority List.

Section 4. Personnel Act ions. Seniority will be a primary factor in making layoff, recall and promotion decisions. However, seniority may be disregarded where an employee with less seniority possesses a "special skill" necessary to maintain contract performance.

Section 5. Employee Transfers. An employee who has established seniority rights and who is transferred to a position not covered by this Agreement, shall retain seniority rights. Also, employees transferring from other sites within the Company shall retain thei r original seniority date for purposes of benefits and vacations purpose only.

ARTICLE ll LAYOFFS AND RECALL

Section 1. Layoff Notice. Should it become necessary to reduce the number of employees i n a classification; employees in a job classification shall be laid off in accordance with their seniority. However, seniority may be disregarded where an employee with less seniority possesses a "special skill" necessary to maintain contract performance. The Company shall notify the Union and affected employees no later than 30 days after the layoff or as soon as the facts are known to the Company of upcoming layoffs.

Section 2. Recall. All employees shall be eligible for recall for up to one (1) year, barring a break in seniority for other reasons. Eligible employees laid off will be recalled as follows:

Section 3. The Company will send recall notices, by certified mail, to the eligible employee's last official address, which w ill instruct the laid off Employees when to report to work. The employee has ten (10 ) working days after receipt by the employee of the notice in which to give written notice to the Company that he/she intends to report to work. Ifthe employee does not make a timely response or the employee does not report to work on the day established by the Company in the recall notice sent to the employee, the employee will be deemed to have abandoned his job and will be removed from the Seniority list. The above notwithstanding, an employee may req uest a later retu rn to work date for extenuating circumstances. The Company shall consider the extenuating circumstances and in its sole discret ion, the Company may grant the requested later date for the employee to return to work. In order to be effective, any extension in the return date granted by the Company shall only be effective when granted in writing by the Company to the employee.

ARTICLE 12 GRIEVANCE PROCEDURE

Section 1. Grievances or complaints arising between the Company and its non-probationary Covered Employees, or the Company and the U nion, with respect to the interpretation or application of any of the terms of this Agreement. shall be settled according to the following procedures:

Step 1: Both parties encourage the verbal resolution of disputes as quickly as possible. A n aggrieved Covered Employee with his/her Steward shall discuss the dispute with the Shift Supervisor and/or Project Manager, and/or Assistant Project Manager or the Project Manager's designee. If the grievance has not been satisfactorily resolved within five (5) working days following its presentation to the Project Manager or his alternate, then the parties will proceed to Step 2.

Step 2: The grievance shall be presented to the Contract Manager or his designee in writing for resolution. (Presently Dewayne Carson is the Contract Manager). The grievance shall be submitted in writing on a form mutually agreed to by the Company and the Union. A Covered Employee or the Shop Steward shall submit the grievance to the Project Manager within ten (10) working days following the Step I decision. The Project Manager or his designee shall give his/her written answer to the grievance within ten (10) working days after its submission in Step 2.

. Either side may request a meeting to discuss the details of the grievance and attempt to reach a resolution prior to the issuance of the written answer. The Directing Business Representative, or his/her designee, or Grand Lodge representative may attend this meeting. In the event there is no satisfactory settlement of the grievance at this step, then Step 3 may be invoked.

Step 3: Within ten (10) working days of the Step 2 reply, the grievance may be moved to Step 3 by written appeal to the Contract Manager or his designee. The Contract Manager or his designee, and the Business Representative or designee of the U nion, shall meet at a mutually agreeable time and place to discuss a resolution to the grievance. A written reply from the Contract Manager or his designee will be given to the Union within ten (I0) working days after the meeting. Ifno agreement has been reached within ten (10) working days from the Step 3 meeting, either party may submit the grievance or dispute to arbitration as covered in the "Arbitration Procedure" Article 13.

Section 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. However, it is understood that the time limits specified herein may be extended by mutual agreement of the parties hereto. In cases involving suspension or discharge, Step 1 will be waived and the matter taken up with the Project Manager within five (5) working days following such action by the Company. Unless otherwise agreed by the parties, a settlement made with respect to any grievance in the first two steps of the grievance procedure shall apply to that particu lar grievance only, and shall not become a binding precedent in the case of other grievances, nor a precedent which shall bind the parties in interpretation of this Agreement.

Section 3. The written grievance shall contain the following information:

I. Name(s) of the employee(s) involved and witnesses;

Section 4. Except for meeting solely between the Company's management and/or the Company's management and the Company's attorney, any aggrieved Covered 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.

Section 5. Nothing in this article precludes the Shop Steward from filing a general grievance on behalf of any Covered Employee(s).

Section 6. Covered Employee(s) have the right to the Union's representation by the Shop Steward during any interview that may be disciplinary in nature or lead to any discipl ine. Covered Em ployee(s) shall be notified by the Union of these rights prior to any such interview taking place. The Shop Steward shall be notified and given the opportu nity to attend such interviews.

ARTICLE 13 ARBITRATION PROCEDURE

Section 1. The arbitration procedure of Article 13 is invoked as set forth in Article 12, above. Section 2. In the event a grievance is submitted to arbitration, a panel of seven (7) arbitrators will be requested from the Federal Mediation and Conciliation Service. The right to first strike a name will be determined by flipping a coin; the other party shall then strike a name. This procedure shall continue alternately until only one (I) 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 any provision of this Agreement.

Section 4. The expense and fees of the arbitrator will be borne equally by both parties.

ARTICLE 14

RULES AND DISCIPLINARY PROCEDURE

Nothing herein to the contrary withstanding, the rules and disciplinary provisions only apply to Covered Employees. Any grievance by a non-union Employee of the Company shall be handled in accordance with the Company Employee Manual and not this Agreement.

Section 1. It is recogn ized that reasonable rules must be established by the Company to ensure that a safe, orderly and efficient operation of the plant can be maintained. Said rules shall not be in conflict with this Agreement and will be set forth in the Company's Employee Hand book.

The rules displayed and/or set forth in the Company's Employee Handbook shall be the current effective rules along with the method and procedure of discipline. The absenteeism policy shall be separate and apart from the work rules.

Section 2. The parties agree to the concept of progressive discipline, and as such the Company shall spel l out and post such procedure along with the work rules. I n most cases, the issue can be discussed with a supervisor to decide on the best course of action to improve the situation. The progressive discipline steps shall be as follows:

Step 1. A verbal warning notifying the employee of the rule infraction.

Step 2. A written warning, notifying the offending employee of the infraction with a copy given to the Union.

Step 3. A second written notice, or u npaid suspension of not more than 3 days, may follow if the problem continues. A copy of such disciplinary notice shall be provided to the Union.

Step 4. Ifthe problem is still not resolved, the employee may be subject to dismissal or other appropriate measures. This may occur after these steps are taken, or sooner, depending on the severity of the problem and the Covered Employee's work and performance history. A copy of such disciplinary notice shall be provided to the Union.

The above notwithstanding, any employee may be immediately terminated for any of the following violations:

Reporting to work under the influence of any alcohol or any non-prescribed drug.

Bringing any weapon, other than a knife with no blade longer than 4 inches, into any Company facility, work place or Company vehicle without the Company's written permission. For the commission of any act which results in revocation of the Employees permission to enter Fort Stewart and/or Hunter Army Airfield.

For the commission of any act which results in l im itation of the Employees permission to enter Fort Stewart and/or Hunter Army Airfield, where such lim itation imposed significantly impacts the employee's ability to perform his or her job for the Company.

In the event any driver has his or her CDL license suspended, revoked or a driver fails to renew it as required.

There are no guarantees that the steps in our disciplinary system will identify and correct the problem, or that all steps can or will be followed in every case. This system is simply intended to be a useful guideline to follow in resolving many work-related problems.

Section 3. The Company will notify the Union of the establishment of new rules or changes to existing rules, within five (5) work days prior to implementation of such rule(s).

Section 4. Any Covered Employee subject to disciplinary action shall be advised by the Union that he/she may have a Union representative present. A copy of such discipline/d ischarge notice/letter of any Covered Employee shall be provided to the Union.

Section 5. It is understood that the reasonableness and/or appl ication of any such rules shall be subject to the grievance procedure u nder the provisions of Article 12 of this Agreement.

Section 6. Any employee who has received discipline, except as contained in step 4 above, but has remained discipline free for a period of twelve (12) months after any other offense shall have their record cleaned.

Section 7. No employee will be disciplined or discharged without just cause. Any employee discipl ining shall be conducted in a confidential setting.

ARTICLE 15 HOURS OF WORK

Section 1. The normal workweek will begin at 7:45 a.m. Monday and end at 4: 15 pm the following Friday.

Section 2. In order to ensure high quality, continuity, standardization and stability to the customer, the company agrees to staff this site in a manner that will maxi mize full-time and minimize part-time Employees.

Section 3. Determination of starting time shall be made by the Company and such schedule may be changed in the event of a change in the Government schedule. The regu lar hours of work each day shall begin each day at 7:45 AM and extend until 4: 15 PM each afternoon. However, AKEA Employees may be required to work during other than regular hours of work. The Government reserves the right to schedule support 24 hours a day, 7 days a week. Therefore, the Company reserves the right to schedule labor to meet Government schedu les. Off shift assignments will be rotated between qualified Employees based upon a rotation schedule ranked by seniority. The Project Manager will set schedules as far in advance as possible.

Section 4. When an employee arrives at the site earlier than the normal starting time for his shift, the employee shall not record time on his time sheets prior to fifteen (15) minutes before the shift starting time. No payment will be made for early staring unless the Project Manager or supervisor has requested i n writi ng that the employee start to work at a time earlier than the normal starting time and such time is approved. Without prior written request of the supervisor, the employee wi l l not start to work prior to his schedule starting time.

Section 5. A n employee who is scheduled and reports for work at the scheduled time without having been told not to report shall be given four (4) hours of any type of work available, or if no such work is available, he shall be given (4) hours pay at his applicable rate of pay

Section 6. An employee who is called back to work after he has completed his full regularly assigned shift shall receive a minimum of four (4) hours pay at his applicable rate plus any premium rate due.

Section 7. When an Employee is not schedule to work, and is called and reports for work outside his schedu led work week, he shall receive a minimum of four (4) hours pay at the applicable rate plus any premium rate due.

Section 8. Pay for work in other Classifications: When an employee is assigned work in a higher rate of pay the employee shall be paid at the higher rate for all hours worked at the higher rate of pay. When an employee is assigned to perform the work of a lower rate of pay the employee shall continue to receive their regular rate of pay for all hours.

ARTICLE 16 OVERTIME

Section 1. Overtime will be paid i n accordance with the Federal Enclave Federal Law regarding overtime payment.

Section 2. Siler Excavating,. Employees may be required to work during other than regular hours of work. The government reserves the right to schedu le support 24 hours a day, 7 days a week. Therefore, management reserves the right to schedu le labor to meet Government schedu les. The Project Manager will set schedules as far in advance as possible and shall give the employee as much advanced notice as possible when assigning overtime. The Company will distribute overtime work as is necessary, and as fairly as possible among Employees affected by such overtime work based upon a rotational list ranked by seniority.

Section 3. There shall be no duplication or pyramiding of overtime payments.

ARTICLE 17 LEAVE OF ABSENCE

Section 1. Military Leave. Employees who lose time from work by reasons of attending annual training with the Nation Guard or Reserve component of organized military reserve units, not to exceed 10 working days each calendar year, shall be pa id "make-up pay", w hich is the difference between the amount of pay received for such service and the base rate of pay. Such leave of absence shall be referred to as mil itary leave. In order to receive "make-up" pay while on military leave, service members must provide advance written or verbal notice to the Company for all military duty unless giving notice is impossible, unreasonable, or precluded by military necessity. The Employee will provide notice as far in advance as is reasonable under the circumstances. Upon return from leave, the employee shall provide a mi l itary pay voucher.

Section 2. Sick Leave. Each Employee shall receive up to 40 hours of Sick leave per calendar year. Sick time is not additional paid vacation and/or hol iday pay, but is solely to be used by an employee who actually suffers from an illness or accident which prevents such employee from safely performing substantially all of his duties for the Company. No sick leave will be paid for dates taken immediately prior to or after any Holiday time or Vacation time. Additionally, no sick leave will be paid for three consecutive sick days or for 3 days sick leave taken in any calendar month, unless the employee brings to the Company a written statement from the employee's physician stating the employee was too sick or injured to work on the third day. Each employee shall be allowed to carryover a maximum of forty 40) hours of unused sick leave to the following calendar year. In no event will any employee have more than sixty (60) hours of sick leave granted in any given calendar year. All unused sick leave will be rolled over at the end of the contract or if extended.

Section 3. Bereavement. In the event of death of an employee's immediate family, the employee may be granted up to three (3) days bereavement leave. Two (2) additional days of Bereavement leave shall be granted upon request if the Distance required for travel to the funeral is more than four hundred (400) miles from the Employee's work site and the Employee travels to the location. Ifthe Employee desires the two (2) additional days, he or she must provide the Company with a copy of the obituary for such funeral. For purposes of this provision, the term "Immediate family" shall be considered as follows: such Employees spouse, parent, parent of spouse, legal guardian, child, brother, sister, brother or sister of spouse, stepparent, stepparent of spouse, stepchild, stepbrother, stepsister, grandchild, grandparent and grandparent of spouse.

Section 4. Union Leave. At any given time, only one Bargaining unit employee that is req u ired to travel for official Union business shall be granted an unpaid leave of absence for performing such business. While on such leave, Employees shall not lose any benefit of seniority or have any adjustments made to their benefit date. Union leave shall not exceed five (5) workdays per calendar year. Unpaid leave will be granted upon request as long as it does not interfere with the Company's operations. Employees shall submit such requests for leave accompanied by official Union communication author izing them to travel or act in such capacity. These requests will normally be made at l east ten ( l 0) calendar days i n advance of such requirement. Nothing herein contained to the contrary, it is the agreement of the parties that al no lime will there be more than one employee out on leave for union business at any given time.

\ \ev Section 5. Leave Without Pay. In very special circumstances, AKM may grant a leave for a personal reason, but never for taking employment elsewhere (whether paid or unpaid) or to allow the employee to go into or carry on any business for his or her self. The employee should request an unpaid personal leave of absence from their supervisor or superintendent in writing at least 5 days or as soon as practical prior to the unpaid leave date using the form entitled "Personal unpaid leave of Absence". A personal leave of absence must not interfere with the operations. The employees' supervisor or superintendent will submit your request to the appropriate memher of management for final approval. The following will be considered before unpaid leave is authorized:

Section 6. Cancellation of Leave. Any leave granted under sections 3, 4 and 5 above may be cancelled at anytime upon 24 hours notice to an employee when the operations of the Company require such employee to return to work. It shall be the responsibility of the employee to provide the Company with correct contact information that can be used in the event of such a recall for each and every leave of absence.

Section 7. Jury Duty : The Company will compensate Emp loyees called to Jury Duty the difference between their Jury Duty and their regular straight time pay if such jury duty service falls on the Employees regular scheduled work day

ARTICLE 18 HOLIDAYS

Section 1. The following ten ( I 0) holidays will be provided:

New Year's Day President's Day Independence Day Columbus Day Thanksgivi ng Day Martin Luther King Jr.'s Birthday Memorial Day Labor Day Veteran's Day Christmas Day

Section 2. Any holiday falling on a Saturday or Sunday will be observed on the day set by the Federal Government. The Company reserves the right to substitute another day off in lieu of the actual holiday at the regular rate of pay.

Section 3. Employees working on a holiday and not receiving an alternate day off pursuant to Section 2, shall receive one and a half (I 1/2 ) times the basic hourly rate for all hours worked, plus eight (8) hours hol iday pay.

Section 4. Paid time off for holidays shall not be counted as hours worked for the purpose of calculating overtime.

ARTICLE 19 VACATION

Section 1. Allowances. The vacation year for eligibility and service cred it shall be from their anniversary/service date to anniversary/service date at their normal rate of pay. Paid vacation will be awarded on the Employee's anniversary/service date as follows:

hours of vacat ion on their anniversary/service date.

Vacation time may be carried over beyond the Employee's anniversary date. However, the amount of vacation time that can be carried over each year may not exceecl hoJ!rS. The Company reserves the right to have Employees use all vacation during the last year of the government contract they are performing under.

Section 2. Scheduling. Vacation requests must be made in writing to the Project Manager or his designee far in advance for approval. Rights for sched u ling vacation within classifications of Employees shall be based upon a rotational list with the most senior Employees in such classification getting first pick in the first rotational list. When obtaining unscheduled vacation approval it m ust be understood that approved vacations shall be recognized first in cases where an employee is req uesting the same day(s) off as another Employee who has prior approval to take their vacation. The Company reserves the right to limit the number of Employees taking vacation at any one time, at the Company's sole discretion. Vacation requests due to emergency situations must be reviewed and approved by the Project Manager or his designee. Unless approved by the Project Manager or his designee, vacation may be used i n increments of no less than one (I) day.

ARTICLE 20 WAGE RATE SCHEDULE

Section 1. The wage rates and c l assification for wage rates l isted below shall apply throughout the term of th is Agreement. An employee's regular rate of pay shall be defined as his/her straight time hourly rate. The wage rates are as follows:

Truck Driver (Heavy) Current $ 20.47 l-Oct-14 $ 20.88 l-Oct-15 $ 21.51 l -Oct-16 $ Z1.16 Metal Yard Equ ip Opr $ 20.47

Recycle Lead Man* $ 17.43

Recycle Specialist $ 16.83

Recycling Laborer $ 14.87

Recycle Lead Man - means an employee who is called upon to replace a manager temporari ly in case of the manager's absence.