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AGREEMENT

Between

SAUDER CUSTOM FABRICATION, INC.

and

INTERNATIONAL BROTHERhOOD OF BOILERMAKERS,

IRON SHIPBUILDERS, BLACKSMITHS, FORGERS
AND HELPERS, LOCAL NO.83
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INDEX

PREAMBLE .
I

ARTICLE I PURPOSE
-
2

ARTICLE II- RECOGNITION 2

ARTICLE III MANAGEMENT RIGHTS

-
3

ARTICLE IV DISCIPLINE AND DISCHARGE

-
4

ARTICLE V GRIEVANCES
-
5

ARTICLE VI- ARBITRATION 8

ARTICLE VII- LAYOFFS, RECALLS AND TRANSFERS 10

ARTICLE VIII- HOURS OF WORK 11

ARTICLE IX- OVERTIME 12

ARTICLE X SENIORITY
-
13

ARTICLE XI- VACATIONS 15

ARTICLE XII HOLIDAYS -

17

ARTICLE XIII LEAVE OF ABSENCE

-
17

ARTICLE XIV JURY DUTY -

18

ARTICLE XV NO STRIKE-NO LOCKOUT

-
19

ARTICLE XVI- WAGES 19

ARTICLE XVII- COST OF LIVING ADJUSTMENTS 21

ARTICLE XVIII- GENERAL PROVISIONS 21

ARTICLE XIX INSURANCE PROGRAM

-
24

ARTICLE XX PROFIT SHARING

-
26
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I N D E X (Cont’d)

28
ARTICLE XXI PART-TIME EMPLOYEES’ BENEFITS
-

28
ARTICLE XXII AUTHORIZATION TO VISIT PLANT
-

28
ARTICLE XXIII FUNERAL LEAVE
-

28
ARTICLE XXIV LEGALITY OF CONTRACT
-

28
ARTICLE XXV CHECK-OFF SYSTEM
-

29
ARTICLE XXVI- DURATION OF AGREEMENT

GROUP CLASSIFICATIONS 30
SCHEDULE A -

AUTHORIZATION FOR CHECK-OFF FROM WAGES 31

SCHEDULE B -

SCHEDULE C - JOB CLASSIFICATIONS 32

SUBSTANCE ABUSE POLICIES AND PROCEDURES 35

SCHEDULE D -
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AGREEMENT

THIS AGREEMENT made and entered into by and between Sauder Custom Fabrication,
Inc. of Emporia, Kansas, hereinafter referred to as the Company, and the INTERNATIONAL
BROTHERHOOD OF BOILERMAKERS, WON SHIPBUILDERS. BLACKSMITHS,
FORGERS AND HELPERS, LOCAL NO. 83, hereinafter referred to as the Union.

FOR THE PURPOSES SET FORTH, and in consideration of the mutual promises of the
parties contained herein, the parties do hereby covenant and agree as follows:

ARTICLE I PURPOSE-

Section 1. It is the intent and purpose of this Agreement to promote the friendly
industrial and economic relationship between the employees of the Company and to set forth
herein the rates of pay, hours of work and conditions of employment to be observed between the
parties hereto.

Section 2. The Union, therefore, agrees that it will cooperate with the Company and
support its efforts to assure a full day’s work on the part of its members; that it will actively
combat any practices which restrict production. The Union further agrees that it will support the
Company in its efforts to eliminate waste in production; conserve materials and supplies;
improve the quality of workmanship; prevent accidents; and strengthen good will between the
Company, the employees and customers and the public.

ARTICLE II- RECOGNITION

Section 1. The Company hereby recognizes the Union as the sole and exclusive
collective bargaining representative for that unit certified in the National Labor Relations Board
Case No. 17-RC-4630, and covering the Company’s employees at its plant located at 220 Weaver
Street, Emporia, Kansas. The principal offices of the Company are located at 220 Weaver Street,
Emporia, Kansas.

Section 2. The Union’s representation is limited to the employees in the bargaining

unit, and does not pertain to the work they perform.

Section 3. The Company agrees not to sublet any of its work to any other concern to
be conducted on Company plant facilities for the sole and primary purpose of discrimination
against the Union. However, this section shall not be construed to prohibit the Company from
exercising any of its rights and prerogatives as provided in Article III of this Agreement.

Section 4. The employees represented by the Union and covered by this Agreement
are sometimes herein collectively referred to as employees or individually as the employee.

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Section 5. The term he shall be deemed and construed to mean he or she and the term
man shall be deemed to mean male and female.

Section 6. The Company agrees to abide by all valid applicable non-discrimination

laws.

ARTICLE III MANAGEMENT RIGHTS

-

Section 1. The Company retains sole and exclusive responsibility for the
management of the business and the direction of the working force and complete authority to
exercise those rights and powers incidental thereto, including the right to make unilateral
changes, except as specifically modified by this Agreement, including by way of general example
and not by limitation, exclusive authority to determine the nature and location of operations; the
sole right to hire, discipline, discharge for just cause, layoff, recall, assign shifts, assign work or
make job assignments, promote and transfer employees; to determine the source and essential
character of components, parts and pre-assemblies to be produced, contracted or subcontracted
and the type of products and components to be manufactured; the methods, processes, standards
of production and the continuance, discontinuance, establishment, or re-establishment or
modification of such methods; installation of new equipment, establishment of new departments
and discontinuance of existing departments and the right to sub-contract work; subject only to the
restrictions and regulations governing the exercise of these rights as are expressly provided in the
express provisions of this contract, all without liability to the Union or its employees, except as
may be required by law or an express provision elsewhere in this Agreement as that provision
expressly sets forth and applies.

Section 2. The Company shall retain the right to determine the location at which its
operations shall be conducted and may, in its discretion, discontinue, resume or relocate any
operation without liability to the Union or the employees, except as may be required by law or an
express provision elsewhere in this Agreement as that provision expressly sets forth and applies.
However, the Company agrees that it will not change the location of operations, in whole or in
part, for the sole and primary purpose of discrimination against the Union, however, this section
shall not be construed to prohibit the Company from exercising any of its rights and prerogatives
as provided above and elsewhere herein.

Section 3. The foregoing enumeration of the rights of Management is not intended to

exclude other management rights not specifically enumerated. The only limitation on any
management right, power, privilege, prerogative or authority which the employer had or
possessed prior to its having recognized the Union shall be such express limitation by a specific
provision of this Agreement as that provision expressly sets forth.

Section 4. The Company shall specifically retain the right to establish new
departments within the bargaining unit, and employees assigned to such departments shall be
paid in accordance with the provisions of Article XVI of this Agreement.
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Section 5. Provisions of this Article shall not be subject to the grievance procedure or
arbitration unless a specific Article of this Agreement applies to the specific situation and so
provides.

Section 6. It is understood and agreed by the parties that the exercise by the Company
of any of the rights and prerogatives set forth or provided herein shall not constitute a lockout.

ARTICLE IV DISCIPLINE AND DISCHARGE

-

Section 1. Employees are entitled to retain their job on the basis of good behavior,
efficiency, honesty and the availability of work to be performed. The Company shall have the
right to discipline or discharge any employee who fails to meet the foregoing conditions, and
particularly, but without limitation, the following will be considered just cause sufficient grounds
for discharge of an employee:

1. Stealing.

2. Unjustified refusal to follow instructions of a supervisor; provided, only a bona

fide reason based entirely on a bona fide question of health or safety for the
employee shall constitute a justified refusal.

3. Gambling, in any form, on Company property, or on the premises of any

Company project.

4. Violation of the company’s Substance Abuse Policies and Procedures, attached as

Schedule D.

5. Willful neglect or carelessness resulting in damage to Company property or

equipment, or deliberate destruction or damage of property or equipment of the
Company, of a customer or of another employee of the Company.

6. The Company will follow applicable law regulating their discipline of an

employee for excessive garnishments.

7. Absent from work or tardy in violation of the Company’s Attendance Policy.

8. Absent from work for three (3) consecutive working days without notification to
the Company.

9. Failure to return as scheduled from a leave of absence authorized by the Company

in writing.

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10. Failure to return to work from a layoff within the time limits provided in Article
VII, Section 7.

11. Working for another employer when the Company has available work during a
scheduled work period. Sundays and holidays are not scheduled work days unless
an employee is working a staggered work week.

12. Unreasonable or unjustified repeated tardiness within a six (6) month period.

13. Willfully punching, altering, making unavailable or destroying another employee’s

time card or falsifying a timekeeping or production record.

14. Refusal to accept an overtime assignment if the employee has not worked ten
(10) hours per day or sixty (60) hours per week, subject to the provisions of
Article IX, Section 1.

15. Violation of safety rules including failure to wear safety equipment specified and
provided directly or indirectly by the Company.

16. Recklessness or horseplay.

17. Possessing a prohibited weapon (by law) on the person on Company property.

18. Submitting or having submitted false information or omitting required

information when applying for employment with the Company where such matter
pertains directly or indirectly to the business or the operation thereof.

19. Intimidating, coercing, threatening or interfering with an employee or a customer

of the Company on or off the Company premises.

20. Removing, destroying or defacing a Company-posted bulletin or property.

21. Deliberately testifying or reporting falsely concerning a matter pertaining directly

or indirectly to the business or to the operation thereof, a matter pertaining to the
application or the observance of this Agreement or to any incident, situation or
circumstance involved directly or indirectly in the application or the observance of
this Agreement.

22. it is also agreed that there are other conditions which will justify discharge and the
Company reserves the right to judge any offense in light of the actual happening.
The foregoing enumeration is merely by general example and not by way of
limitation.

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Section 2. Any employee who has been disciplined or discharged may appeal through
the grievance procedure as provided in Article V and Article VI, Section 3(g).

Section 3. The right and responsibility of the Company to detennine and establish
and to maintain and enforce reasonable standards of production and standards of quality is fully
recognized. Continued failure of an employee to meet the standards as established will be
considered as due cause for discipline or discharge. The Company shall not be required to retain
in its employment any employee who, by himself or in concert with others, engages in an attempt
or participates in any plan to control or limit the amount or speed of production or adversely
affect the quality of production items.

In the event the Company decides to establish an Incentive Plan during the term of this
Agreement, the Union shall be notified and given an opportunity to discuss the Incentive Plan
rates before the plan is placed into effect by the Company.

Section 4. The Company shall retain the right to establish and enforce reasonable
work rules.

ARTICLE V GRIEVANCES
-

Section 1. Definition of Grievance. For the purposes of this Agreement, a grievance

shall be limited to a written specific complaint or allegation by an employee that the Company
has not complied with the express terms of a cited provision or provisions of this Agreement as
such provision or provisions apply to such employee. Should any grievance arise, an earnest
effort shall be made to promptly resolve such dispute, claim or complaint in accordance with the
grievance procedure set forth herein.

Section 2. A grievance committee of not more than four (4) members may be
established by the Union for the purposes of representing employees in the plant for purposes of
grievance procedure. The selection of the committee and its chairman shall be left to the Union.

Section 3. It is understood that an employee may present an oral complaint to his

immediate supervisor at any time. A grievance shall be first presented in writing signed by the
employee to his immediate supervisor within three (3) work days after the grievance becomes
known or should have become known to the employee. The employee and a committeeman, if
the employee so desires, may meet with the employee’s immediate supervisor after working
hours to discuss a grievance, if a satisfactory solution is not reached at the time of filing the
grievance. In no event shall the employee or a grievance committeeman leave his area of
employment to discuss a grievance during working hours. The supervisor shall give his written
reply, within three (3) workdays following the presentation of the grievance.

Step 1. If the grievance, following such discussion, has not been resolved,
the employee may request a committeeman to initiate a written notice to grievance within

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three (3) work days on a form provided. If the grievance is not settled at this point, it
shall be handled in the following manner.

Step 2. A grievance not settled in Step 1 may be appealed by the

committeeman presenting the written grievance with notice of appeal to the immediate
supervisor within three (3) work days from the supervisor’s answer to Step 1. A meeting
shall be held within three (3) work days after notice of appeal is given between the
immediate supervisor and the Plant Superintendent or his designated representative, the
employee, the committeeman and the chairman of the committee. Such meeting shall be
held at the time designated by the Company. The Plant Superintendent or his designated
representative shall give his written answer within three (3) work days after the meeting
with a copy to the chairman of the committee.

Step 3. A grievance not settled in Step 2 may be appealed by the

conimittee presenting the written grievance with notice of appeal by a member of the
committee to the Plant Manager within five (5) work days from the receipt of the Step 2
answer. A meeting shall be held at a time designated by the Company within ten (10)
work days between the Plant Manager, or a delegate selected by the Company and any
members of Management, and a Representative of the Union and the Committee. Both
the Company and the Union may call in participants in previous steps in the grievance
procedure. The Plant Manager, or his designee, shall give his answer within ten (10)
work days after the date of such meeting.

Section 4. Rules Governing Grievances.

(a) A written notice of grievance, submitted and replied to, may not be resolved
between the aggrieved employee and any Company representative, unless the
Union is represented by a committeeman at such hearing.

(b) A grievance as provided above involving a dispute, claim or complaint between

the Company and the Union over the interpretation or application of any provision
of this Agreement, that affects all or a substantial number of employees, may be
initiated by the Union at the third step of the grievance procedure.

(c) Settlement of a written grievance shall be in writing with copies thereof retained
by both parties, and the parties, and the participating representatives of the
Company and of the Union in each step of the grievance procedure are hereby
fully empowered to bind the parties in respect to the settlement of a grievance, but
no such settlement shall operate as a change, modification or addition to this
Agreement or constitute a precedent in future cases; provided, however,
settlements reached at Step 3 of the grievance procedure shall be precedents only
in the case of a repetition of the identical circumstances and cited contract
provision exclusively as they both were involved in the previous case which is
claimed as a precedent.

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(d) Retroactive adjustment of any grievance shall be limited to the date the grievance
becomes known or should have become known to the employee in accordance
with Section 3 of this Article.

(e) Failure of the Company to answer any grievance within the time limits specified
herein shall automatically move the grievance to the next step. Any of the
foregoing time limitations may be extended by mutual consent of the parties.

(f) For the purpose of this Article, Saturdays, Sundays and holidays will not be
considered working days.

(g) When two or more employees have the same grievance, it shall be filed as one
grievance. Regardless of the number of employees affected, the Union may select
no more than four (4) employees to represent the group.

Section 5. A monthly meeting of the grievance committee and the Plant

Superintendent and/or his delegate shall be held on the second Wednesday of each month. These
meetings will be held before the committee’s regular work shift starts or after the shift ends.

Section 6. Notwithstanding any other provision contained in this Article, at any

meeting involving an employee and concerning a grievance, at the request of supervision, away
from the employee’s work area, the employee shall have the right to have a committeeman
present upon request of the employee.

ARTICLE VI- ARBITRATION

Section 1. Arbitrability of Grievance.

(a) The arbitration procedure hereinafter provided for shall extend only to those
issues which are arbitrable under this Agreement. For a grievance to be arbitrable, it shall meet
the following conditions:

1. It must have been properly and timely processed through the complete grievance
procedure, unless the time limitations have been extended by mutual agreement.

2. It must specifically allege the violation of a cited provision or provisions of this

Agreement as such provision or provisions are expressly set forth.

3. It must not require the Arbitrator, in order to rule on the grievance, to add to.
subtract, modify or to extend the express meaning to any extent of any terms of
this Agreement or to exceed the scope of this jurisdiction as specified in the
express terms of this Agreement.

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(b) In the event that a question of arbitrability is placed before an Arbitrator, he shall
decide the question of arbitrability prior to hearing of the case on its merits, if such is necessary;
however, the Arbitrator has authority to determine both issues simultaneously if he desires.

Section 2. Request for Arbitration.

(a) The Union may elect to seek arbitration of any arbitrable issue as such may be
specifically provided for above and in that event, a written request to arbitrate shall be made
within fifteen (15) calendar days following the date of reply in the third step of the grievance
procedure and such request shall state the issue proposed to be submitted to arbitration, the
provision or provisions of the Agreement on which the claim rests or out of which dispute arises,
and the relief or remedy sought.

Section 3. Selection of Arbitrator.

(a) Within ten (10) days after written notification to arbitrate has been submitted, the
Company and the Union shall meet for the purpose of selecting the arbitrator.

(b) If the Company and the Union are unable to select an arbitrator, they shall jointly
request the Federal Mediation and Conciliation Service to furnish a panel of five (5). The parties
shall alternately strike a name from the panel until one (1) name remains, which shall be the
arbitrator. As to the first matter arbitrated, the Union shall strike first, and in subsequent
arbitrations, the parties shall alternately strike first.

(c) The arbitrator’s jurisdiction to make an award shall be limited and confined to the
interpretation or application of the express provisions of this Agreement as they are expressly set
forth.

(d) The arbitrator shall not have jurisdiction to make an award which has the effect of
amending, altering, enlarging or ignoring the express provisions of this Agreement, nor shall he
have jurisdiction to determine that the Company or the Union by practice or implication have
amended or supplemented this Agreement, unless the Company and the Union shall expressly
submit to him the issue as to whether such an agreement by practice or implication was made.
The arbitrator’s award so made shall be final and binding. In addition, it is understood that any
past practices engaged in by management prior to the execution of this Agreement shall not be
considered as an amendment or supplement.

(e) Any claim for wages whether retroactive or not shall be limited to actual over-all
net losses incurred by the employee, his wages being computed at forty (40) hours per week, and
deducting such other compensation as he may have received or which may be due him for the
award period. In no case shall the arbitrator have authority to award punitive damages.

(f) A grievance as provided above, alleging the violation of this Agreement and
pertaining to any disciplinary action, including discharge, taken by the Company and which was

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based upon a violation of a provision, work rule or regulation inlor provided for in this
Agreement shall be subject to arbitration; provided, in case of discharge or suspension and in
such case in which the employee denies his guilt and presents a grievance as provided herein
above and in so doing and at or prior to the Union’s and/or employee’s filing in Step 2 of the
grievance procedure presents the full evidence of his innocence which he would have an
arbitrator review, then in such case only, the sole question of whether the employee did commit
the violation on which the disciplinary action was based may be submitted to arbitrator. In such
case, should the Arbitrator, reviewing only such evidence as the claimant had timely submitted to
the Company and the evidence the Company had submitted in arbitration, rule that the employee
has not committed the alleged violation the grievant may be restored to his former position or at
the Company’s option, a position of substantially equal compensation basis, together with such
compensation as he would have received based upon his wage rate at the time of his termination
for forty (40) hours per week, for the elapsed period dating from and including the first workday
following the work day on which the Company received from him and had available during
business hours, such complete and full evidence of his innocence as required above in this
Section, and less any amount received by him or due him for such award period in wages,
commissions or other compensation from any sources.

(g) In any matter presented to him for arbitration, should the arbitrator find that the
Company had substantial or dominant reason for its decision and/or action in the matter
presented, the decision and/or action of the Company shall stand.

Section 4. Arbitrator Expenses.

(a) The expense of the arbitrator shall be borne equally by the parties.

ARTICLE VII- LAYOFFS, RECALLS AND TRANSFERS

Section 1. The parties recognize the right and need of the Company to have and
maintain a qualified work force at all times. In the event of layoffs which shall not exceed five
(5) days, said layoffs shall be by plant-wide seniority, subject to the right of the Company to
maintain at all times employees with greater ability, qualifications, and efficiency.

Section 2. In the event of layoffs of more than five (5) days, the following factors will
be considered as to employees and when factor (a) is determined by the Company to be
substantially equal as among two or more employees, factor (b) will be controlling:

Factor (a): Ability, qualifications, and efficiency in performing the available and
required work.

Factor (b): Seniority.

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Section 3. Employees will be retained or recalled under this Article only where such
employees, in the opinion of the Company, are competent and able to do the available work and
are willing to accept such work at the then prevailing wage rate for such work.

Section 4. While an employee shall not have a vested interest in a particular job
assignment, in the case of permanent transfers of employees from one group classification to
another group classification (as described in Schedule A), the Company will endeavor to give
due regard to seniority when, in the judgment of the Company, more than one employee in the
group classification is substantially equally qualified (including ability, qualifications, and
efficiency) to perform the work that must be filled.

Under the provisions of this section, a transfer shall be deemed temporary where an
employee is transferred to another group classification to fill a vacancy created by the absence of
another employee or where the transfer is for a period of less than five (5) work days.

Section 5. The employees will be notified five (5) days prior to a layoff, and a list of
employees to be laid off will be furnished promptly to the Steward(s) advising of the date of the
layoff.

Section 6. Employees with seniority who meet the above listed qualifications and
who are willing and qualified to perform the work to be done shall be recalled in reverse order to
that in which they are laid off and shall return to their previous assignment and the wage rate for
such work (including any annual contract changes as set forth in Article XVI, Section 1,
occurring during the employee’s layoff) as conditions permit subject to the provisions of Sections
1, 2 and 3 of this Article.

Section 7. Notice of recall may be given by telephone. If the Company is not able to
contact the employee by telephone, it will notify him by Registered or Certified Mail at his last
known address. Employees will have seven (7) calendar days from receipt or thirty (30) days
from mailing of such Notice, whichever occurs first, to report for work, unless special permission
is obtained from the Company. In no event shall an employee be entitled to back pay pursuant to
this clause, but shall be entitled to the work he would have been assigned if he reports to work
within the time limits set forth herein.

Section 8. Employees will be notified at the time of recall of the expected

duration of the recall. If such recall is expected to be of short duration (2 weeks or less),
then employees may refuse such recall with no loss of seniority or recall rights.

ARTICLE VIII- HOURS OF WORK

Section 1. An employee’s work day shall be defined as a consecutive twenty-four

(24) hour period beginning with the regular starting time of his shift.

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Section 2. The work week payroll period shall be from 12:0 1 AM Sunday morning
through 12:00 midnight the following Saturday. The regular schedule shifts shall consist of five
(5) consecutive eight (8) hour days, Monday through Friday, inclusive. However, by mutual
agreement between the Company and the Union, a four (4) day, ten (10) hours per day work
week may be established without paying overtime in excess of eight (8) hours in any one day.
Any work in excess often (10) hours in any one day during this schedule shall be paid at the
overtime rate in Accordance with Article IX, Section 2.

Section 3. Scheduling.

(a) The work shifts specified in this Article shall not restrict the Company’s right to
schedule work hours to begin and end at other times. Nothing in this Agreement shall be
interpreted as guaranteeing a definite number of hours per day or days per week.

(b) The Company may change or establish work schedules or shifts, and may increase
or decrease the number of scheduled workdays per week for an operation, department, or entire
plant.

(c) The Company shall endeavor to give at least forty-eight (48) hours advanced
written notification of employee shift assignments or work schedules, except in cases of
emergency.

Section 4. Employees shall have a ten (10) minute break period for every four (4)
hours worked. The time for the break period will be posted on the bulletin board. Smoking will
be limited to those areas where smoking is permitted by Company policy.

Section 5. Employees shall be paid normally on Friday, during working hours for all
work performed during the previous work week. Errors in paychecks of less than two (2) hours
straight time pay or equivalent shall be corrected and adjusted on the following paycheck.
Employees who are discharged shall receive their wages and personal property in full
immediately when practicable, but within five (5) work days thereafter. Employees who quit
shall receive their wages and personal property in full on the regular pay day for their last
employment. An employee being laid off shall be paid in full at the close of his last work day.

ARTICLE IX OVERTIME
-

Section 1. The Union recognizes the right of the Company to require overtime work.
The Union pledges on behalf of its members and itself that employees shall accept overtime
assignments occurring before and after their regularly scheduled working days or on days when
work is not regularly scheduled; however, consideration shall be given by the Company when
overtime would work a hardship on an employee. Overtime work shall be assigned equitably
over a quarterly period, insofar as reasonably practicable, provided that in the judgment of the
Company, the employee is qualified and capable of doing the work available.

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Section 2. Time and one-half the regular straight time rate will be paid for all hours
worked in excess of eight (8) hours in a day or forty (40) hours in a work week, except as
provided in Article VIII, Section 2, or on Saturday shift unless the employee has taken time off
during the preceding week other than at the direction of the Company. All hours worked on
Sunday shift will be paid at the double-time rate.

Section 3. For purposes of calculating weekly overtime, work week is defined as

from 12:0 1 AM Sunday through midnight Saturday.

Section 4. There shall be no pyramiding of overtime and/or premium pay for the
same hours worked.

Section 5. Hours paid but not worked shall not be counted in the computation of
overtime, except hours paid but not worked on Company paid holidays, regularly scheduled
vacations, funeral leave, jury duty, and paid lost time due to work related accidents. (A regularly
scheduled vacation is one scheduled fifteen (15) days prior to the vacation).

ARTICLE X SENIORITY
-

Section 1. After an employee has completed his/her probationary period by working

one hundred twenty (120) calendar days, he/she shall obtain plant seniority from the first day of
employment following his/her last date of hire except as may be provided elsewhere in this
Agreement.

Section 2. Plant seniority and regular employee status shall terminate when an
employee:

(a) Quits for any reason.

(b) Is discharged for just cause.

(c) Fails to report for work as scheduled for three (3) consecutive days without
notification to the Company.

(d) Is laid off for a period exceeding twelve (12) months up to five (5) years service
and one (1) additional month for each full year of service thereafter.

(e) Fails to return to work from a layoff within the time limits provided in Article VII,
Section 7.

(f) Is absent from work for any reason, other than military service or authorized leave
of absence including an on-the-job injury, for a period exceeding six (6) months,
except as provided for layoffs in Item (d) of this section.

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(g) Fails to return to work when scheduled to do so at the end of an authorized leave
of absence.

Section 3.

(a) For the purpose of determining seniority for an employee being returned to the
bargaining unit, any employee who as a result of promotion or transfer by the Company, becomes
classified outside of the bargaining unit immediately after having served within the bargaining
unit as described in Article II, Section 1, and who remains within the employ of the Company,
shall have his seniority frozen during the period that he is classified outside the bargaining unit.

(b) For the purpose of determining seniority, an employee being promoted or

transferred into a classification within the bargaining unit as described in Article II, Section 1,
but who, during his continuous uninterrupted service for the Company, did not previously serve
in a classification within the bargaining unit, shall accumulate seniority from the first day he
serves as an employee within the bargaining unit.

Section 4. A new seniority list shall be posted on the Company bulletin board after
the end of each three (3) months, wherein after being posted for five (5) consecutive workdays
without being challenged, the list shall become official and binding upon the Company and
employees for the current posting period.

Section 5. Shift preference will be determined by the following factors:

Factor (a): Ability, qualifications, and efficiency in performing the available

and required work.

Factor (b): Seniority.

Any senior employee who wishes to transfer from one shift to the other may do so if a
qualified replacement is available from the shift he or she wishes to transfer to.

Section 6. The Company shall post for two consecutive days any openings on any
shift. Qualified employees may apply for such openings with the qualified senior employee
being awarded the opening. An applicant’s qualifications will be determined based upon the
following factors:

Factor (a): Ability, qualifications, and efficiency in performing the available

and required work.

Factor (b): Seniority.

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If no employee applies for the opening, or none of those applying are qualified for the
position, then the Company may fill that position however they choose, either by training a
current employee or hiring a new employee.

ARTICLE XI- VACATIONS

Section 1. Except as provided in Article XIII of this Agreement, an employee’s

vacation time will be computed as of the anniversary date of his last date of hire, and he shall be
entitled to the following number of hours of straight-time pay as set forth below for vacation
purposes:

(a) After completion of their probationary period, employees receive .8 hours

vacation per full week of service, retroactive to the date of hire.

(b) After two (2) years from their date of hire, employees receive 1.6 hours
vacation for each full week of service.

(c) After seven (7) years from their date of hire, employees receive 2.4
hours vacation for each full week of service.

(d) After fifteen (15) years from their date of hire, employees receive 3.1
hours vacation for each full week of service.

An employee who takes one (1) day of vacation from work will be recognized as
taking eight (8) hours of vacation time.

Section 2. Eligibility for vacation pay will be based upon continuous employment
commencing with the employee’s last date of hire.. Therefore, when an employee has completed
his first year of employment, he shall be paid his vacation pay by a separate vacation paycheck in
accordance with Section 1(a); after completing his second year of employment, he shall be paid
his vacation pay in accordance with Section 1(b); after completing his tenth year of employment,
he shall be paid his vacation pay in accordance with Section 1(c); and after completing his
twentieth year of employment, he shall be paid his vacation pay in accordance with Section 1(d).

An employee who has completed his first year of employment and has worked a portion
of the second year shall be entitled to a pro rata portion of his vacation (based upon one-twelfth
(1 / 12) per each month worked since the anniversary date of the previous year) should he quit, be
laid off or terminated; provided, however, that such employee who quits the Company has given
the required one -week notice on a form furnished by the Company.

Section 3. Except as provided in Article XIII of this Agreement, eligibility for

vacation pay will be based upon continuous employment commencing with the employee’s last
date of hire. Continuous employment will require at least sixteen hundred (1,600) hours worked
during his qualifying employment year. To be eligible for vacation pay, an employee must have
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worked sixteen hundred (1,600) hours during the employee’s preceding employment year.
However, regular employees who have successfully completed their probationary period, and
have worked for the Company for less than one year, shall be eligible for twenty-four (24) hours
of vacation pay after having worked eight hundred (800) hours. Employees then shall be eligible
for their additional vacation pay of sixteen (16) hours after completing one year of service as
provided elsewhere in this Article.

Section 4. An employee is eligible for vacation pay who is requested by the Company
to work rather than take his vacation and shall receive the pay whether a vacation is taken or not.

Section 5. Vacation days will be arranged at the mutual convenience of the employee
and the Company insofar as possible. The employee’s request for vacation days should be made
to the employee’s immediate supervisor so that the request can be processed to the convenience
of both employee and the Company. However, the Company reserves the right to close the plant
for one (1) or more weeks each year for the purposes of allowing vacation time to employees.

Section 6. The Company may require an employee or employees to work during a

vacation period accomplished by a plant closing where production or maintenance demands
require it; however, the Company shall endeavor to permit as many employees as possible to be
absent during their vacation; provided, further, employees required to work at such times shall be
entitled to a vacation arranged at the mutual convenience of the employee and the Company.

Section 7. Vacation pay may be accumulated, not to exceed 160 hours with the
following schedule:

At least four (4) weeks prior to March 1 of each year, each employee shall notify the
Company, in writing, of his or her first and second choice for vacation periods and insofar
as practicable, his or her vacation will be granted at times most desired by the employee
in question, with due regard for seniority; provided, however, that the final allocation of
vacation periods shall rest with the Company in order to insure continuity of plant
operation. At least two (2) weeks prior to March 1, the Company will inform employees
of the vacation period allotted to them.

No vacation will normally be scheduled to exceed two (2) consecutive weeks.

Section 8. Personal Leave. All regular employees who have successfully completed
their probationary period shall be eligible for forty (40) hours of paid personal leave time each
year. This personal leave time may be taken in one hour increments for personal or other needs.
This time may not be accumulated from year to year, and any unused leave will be paid to the
employee the first full payroll period in January, provided the employee is still employed with the
Company.

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ARTICLE XII HOLIDAYS

-

Section 1. Employees who have completed thirty (30) days of continuous

employment shall be eligible to receive eight (8) hours straight time pay for the following
holidays:

New Year’s Day’ Thanksgiving

Memorial Day Friday after Thanksgiving
Independence Day Christmas
Labor Day Floating Holiday*
Veterans’ Day

*A floating holiday will be selected by mutual consent of the Company representatives

and the Union Stewards before March 1 of each year. Employees returning to work after having
been absent for any reason and who still retain their seniority as provided in Article X shall be
eligible t receive holiday pay.

Section 2. In order to qualify for such holiday pay, each employee meeting the
requirements of Section 1 of this Article must also have worked their regularly scheduled work
day immediately preceding and immediately following such holiday, unless such employee is on
a scheduled vacation or unless prevented from doing so by illness, injury, or other unusual
condition or beyond the control of the employee, and the burden of proof of such condition shall
rest on the employee.

Section 3. Employees who qualify for such holiday pay shall receive such pay even
though the holiday falls on Saturday or Sunday, unless Monday or Friday is designated by the
Company as the holiday, in which case they shall receive holiday pay for such designated
holiday’.

Section 4. Employees who meet all of other requirements in this Article and who
perform work on the above described holidays shall receive eight (8) hours pay for the holiday
and also shall receive two (2) times their regular hourly rate for the time worked on a shift which
begins on one of the above described holidays.

For the purpose of this Article, the holiday is agreed as starting at the beginning of the
first shift on the designated holiday, and continuing through the succeeding second and third
shifts.

ARTICLE XIII LEAVE OF ABSENCE

-

Section 1. The Company agrees to consider employees’ request for leaves of absence.

Section 2. Reasonable (as determined by the Company) leaves of absence, not to

exceed six (6) months duration, may be granted where the Company determines that its operation
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can continue in the employee’s absence and where a temporary replacement to perform the
employee’s job assignment is available; provided, however, when the employee request is based
upon temporary physical incapacity of the employee, availability of a replacement shall be
considered. When leave of absence is due to sickness or injury of the employee, one (1)
extension not to exceed an additional six (6) months duration can be requested by the employee.

Section 3. Working as a self-employed individual or working for another employer

during the leave of absence without the prior written approval of the Company shall
automatically terminate an employee’s leave of absence if an employee is physically able to work
for the Company.

Section 4. An employee on leave of absence which exceeds thirty (30) calendar days
shall not accrue service credit during the leave except when the leave is due to a compensable
occupational injury incurred while in the active service of the Company or as may be required by
the Military Service Act.

Section 5. Employees will be granted time off for military service as required by law.
If an employee takes time off for training duty in the Reserves and/or National Guard which is in
addition to the employee’s regular vacation, the Company will pay the difference between pay
received from such duty and regular straight time pay which the employee would have received
for not to exceed eighty (80) hours, provided the employee has completed one (1) year of active
service with the Company prior to such training duty. In order to qualify for such payment, the
employee must notify his supervisor promptly on receipt of military training orders and must
submit a statement from the appropriate military unit verifying the dates of training and the total
military pay not including reimbursed expenses received at the time the employee returns to
work.

Section 6. The Company agrees to abide by the provisions of the Family and Medical
Leave Act of 1993 (or as amended) and the Union agrees that the Company may implement
employee policies to that effect.

ARTICLE XIV JURY DUTY

-

Section 1. An employee who is called and reports for jury duty on a schedule
workday shall be excused from work and paid for time (not to exceed eight (8) hours) while the
employee is involved in such jury duty and reasonable time for travel to and from such jury duty.
The employee will be required to present proof ofjury service.

Section 2. No employee shall receive more than fifteen (15) eight (8) hour days pay
under this Article in the course of a calendar year.

Section 3. For the purpose of computing overtime pay in any week where an
employee has served as a member of a jury, any day ofjury service will be considered as an eight
(8) hour day.
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Section 4. Nothing in this Article shall be construed as relieving the employee of the
duty of notifying the Company that he will be absent from work.

ARTICLE XV NO STRIKE-NO LOCKOUT

-

Section 1. The Union will not cause or engage in or permit its members to cause or
engage in, nor will any member of the Union take part in a strike, sit-down, stay-in, slow-down,
picketing, sympathy strike, or any other interference with production in or upon the premises or
equipment of the Company, or interference with delivery to a customer of the Company during
the life of this Agreement. Any employee who violates this provision shall be subject to such
disciplinaiy action without recourse including discharge as the Company may determine.
Further, the union agrees to actively combat any such strike, or any other interference with
production in or upon the premises or equipment of the Company. The words “actively combat”
as used in this section shall mean commencement of positive, corrective action continuing until
the strike, sit-down, stay-in, slow-down, picketing, sympathy strike, interference with production
or interference with deliveries has ended.

Section 2. The Company agrees that there will be no lockout of employees during the
life of this Agreement. It is understood that a lockout means a voluntary cessation of operations
of the Company for the sole primary purpose of preventing employees from working. It is further
understood and agreed by the parties that the exercise by the Company of any of its rights,
privileges or prerogatives set forth as provided in Article III or elsewhere in this Agreement shall
not constitute a lockout.

Section 3. An employee who is on strike shall forfeit all wages which might
otherwise become due for the period he is on strike, all benefits as they would otherwise apply
during such period as he is on strike except where the employee has paid for such benefit, and he
shall not accrue seniority or credit for service toward qualifying for any wage increase or benefit
during such period as he is on strike.

ARTICLE XVI- WAGES

Section 1. All employees shall have their wages increased by $1.25 the first full
payroll period after ratification by the Union and employees of this Agreement. The first full
payroll period after August 29, 2008, all employees shall have their wages increased by 2.5%,
and the first full payroll period after August 29, 2009, all employees shall have their wages
increased by 3%.

Each job classification shall be placed in wage groups as set forth in Schedule A with
duties as provided in Schedule C, provided that an employee shall be placed in one job
classification for the purposes of determining that employee’s pay. However, an employee may
be qualified to perform more than one job classification, and such ability to perform other job
classifications shall be considered when determining job vacancies, qualifications, and shift
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preference. The minimum rate and maximum rate for an employee normally shall be in
accordance with the rates set forth below and by reference made a part hereof.

Wage Groups

I II III IV V

Effective the first full payroll period after the following dates:

8-30-07
Minimum $15.07 $13.00 $11.00 $7.25 $7.25
Maximum 19.83 19.35 16.11 10.97 10.89

8-30-08
Minimum $15.45 $13.33 $11.28 $7.43 $7.43
Maximum 20.33 19.83 16.51 11.24 11.16

8-30-09
Minimum $15.91 $13.73 $11.62 $7.65 $7.65
Maximum 20.94 20.42 17.01 11.58 11.49

Section 2. Employees who are not at the maximum rate for their Wage Group shall
receive step increases of $.25 every three months until they reach the maximum of their rate.
Section 3. The Company shall have the sole discretion of designating and assigning
leadmen as it deems appropriate. The Company agrees to pay all leadmen $.50 per hour above
their regular rate of pay.

Section 4. It shall be the sole and exclusive right of the Company to pay higher rates
and/or grant other compensation than are provided in this Agreement to an employee in any
classification without prejudice to itself or to other employees.

Section 5. Shift differential shall be $.80 per hour for all consecutive hours of work
which begin on the 2nd or 3rd shift.

Section 6. When an employee is temporarily transferred to another classification

paying a higher rate, he shall receive the higher rate for the duration of such employment, except
in a case where in the judgment of the Company, the employee had not established his
qualifications to perform the work of the higher classification and the employee had been
assigned to the higher classification primarily for training purposes; in which case he shall be
paid at the regular rate of his former position until qualified or disqualified within a period of two
(2) months; but when an employee is temporarily transferred to another classification receiving a
lower rate, his wages shall not be reduced. Recognizing the fact the employer must have some
flexibility in placing its employees, it is agreed that an employee moving into a classification
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paying higher rate of pay, the employee shall not receive the higher rate until after two (2)
working days, except field crew as shown in Section 3 above.

Section 7. The Company has the right to pay individuals more but not less than the
rates set forth in the Agreement and it shall also have the right to grant progression raises or
blanket raises sooner but not later than the dates shown in the contract.

Section 8. An employee called back after having clocked out and having left the
premises shall be guaranteed for (4) hours pay for each such call back provided the call back is
not contiguous with his normal working schedule.

Section 9. Any employee who works on heated metal and cannot be protected from
temperatures exceeding 150 degrees F. by means of insulation, shields, protective apparel or
other means will have his or her straight time rate increased by $.60 per hour for such time he is
actually working in this environment. (The temperature reading is to be taken at the nearest point
of the person involved to the source of the heat).

Section 10. The Company may, during the term of this Agreement, create new job
classifications or amend existing ones. The Company shall determine the rate of pay and write a
job description for such new or amended job classification, and if the Union fails to protest the
rate or job description for any such classification within thirty (30) calendar days, by filing the
same in writing with the Company, such rate and job description shall become a part of this
Agreement. If the Union protests such rate or job description within the thirty (30) calendar day
period, the permanent rate and job description shall be established through prompt negotiations
between the Company and the Union, based upon the nearest related classification.

ARTICLE XVII- COST OF LIVING ADJUSTMENTS

If the consumer price index has raised over five percent (5%) from August 1, 2007,
through July 31, 2008, then all employees shall receive a cost of living upward adjustment
computed at three cents ($.03) for each five tenths percent (.5%) increase in the CPI above five
percent (5%). If the consumer price index has raised over five percent (5%) from August 1,
2008, through July 31, 2009, then all employees shall receive a cost of living upward adjustment
computed at three cents ($.03) for each five tenths percent (.5%) increase in the CPI above five
percent (5%). If the consumer price index has raised over five percent (5%) from August 1,
2009, through July 31, 2010, then all employees shall receive a cost of living upward adjustment
computed at three cents ($.03) for each five tenths percent (.5%) increase in the CPI above five
percent (5%).

ARTICLE XVIII- GENERAL PROVISIONS

Section 1. In cases of sickness, accident, or suspected illness, physical injury or

impairment of an employee, the Company may require an employee to submit to a physical
examination by a doctor selected by the Company. Unless the physical examination shows
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physical competence and freedom from contagious or infectious diseases. the employee shall not
be permitted to resume work.

If the employee does not agree with the medical report, he may notifr the Company of
such fact within one (1) working day after receipt of such report and be examined by a physician
of his own choosing on his own time and at his expense within five (5) working days from such
notification. If the employee’s physician report shows physical competence and freedom from
contagious or infectious diseases, the two (2) physicians shall jointly select a third physician who
shall examine the employee to determine his physical competence and freedom from contagious
or infectious diseases. The third physician’s decision shall be final and binding on all parties.
The cost of this third opinion and any lost time work by the employee shall be borne equally by
the employee and the Company.

Section 2. The Company will erect a bulletin board in a suitable place to be used
solely by the Union for posting notices. Notices shall be restricted to the following types:

(a) Notices of Union recreational and social affairs.

(b) Notices of Union elections, appointments and results of Union elections

pertaining to the local Union;

(c) Notices of Union meetings.

The bulletin board shall not be used by the Union nor its members for disseminating
propaganda of any kind whatsoever; and among other things, shall not be used for posting or
distributing pamphlets or political materials.

Section 3. It is understood that the Company may fill any supervisory, group lease or
leadman position as it sees fit.

Section 4. All inventions, ideas, techniques or processes developed by employees that

have any relation to the work performed for the Company, during the course of their employment
by the Company, shall become the sole property of the Company.

Section 5. It is not the intent of the Company to replace any employee by working
foremen; however, in the event a foreman is required to work and before he starts to work, the
shop steward on the shift will be notified of the need. If such notification is impossible, the shift
steward will be notified at the beginning of the following shift.

There shall be no restriction on the work performed by leadmen or group leaders.

Section 6. If an employee is physically unable to perform his assigned work due to

health or other physical reasons and at the same time is physically able to satisfactorily perform

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other work assignments within the bargaining unit, the Company will endeavor to assign the
employee to another work assignment in line with his seniority and ability.

Section 7. Employees shall be required to clock in and out of the plant. Clocking in
shall not be permitted at a time earlier than five (5) minutes prior to the commencement of the
scheduled work shift. An employee shall not receive compensation for such time unless approval
is first received from his immediate supervisor. Employees completing their work schedules
shall immediately clock out and leave the plant. No employees shall be permitted to clock in a
card of another employee.

Section 8. The Company agrees to make any necessary and reasonable provisions for
the safety and health of the employees during the hours of their employment including
establishment of a Safety Committee to meet at regular intervals not to exceed three (3) months
together with regular communications to employees concerning the current status of appropriate
safety matters. Specific procedures will be set forth in the Company Safety Policies. Protective
devices, equipment and clothing shall be provided by the employer whenever the Company
deems necessary to properly protect employees against occupational injury or disease. The
Company shall provide necessary lockers and other facilities for maintaining sanitary conditions
throughout the plant. The Company shall provide at no cost to the employee no more often than
once in a twelve (12) month period, one (1) “green” welding jacket to the employees required to
weld on a regular basis. The Company shall reimburse each employee, once in a twelve-month
period not more than one (1) reimbursement of $160.00 each year of the contract for safety
shoes, and once in a twelve-month period not more than $150.00 for prescription lens safety
glasses or not more than $200.00 for bifocal lens safety glasses, if the glasses are of a style
approved by the Company. Examination, prescription, or fitting fees are not paid by the
Company. Reimbursement will be made only after submission ofproofofpurchase. It shall be
the obligation of the employee to provide and wear such safety equipment during his work hours.

It is understood and agreed by the parties that the Company shall not be in any way
responsible to any extent for any claim resulting directly or indirectly from the use of or failure of
any safety equipment provided by the Company directly or indirectly under the above
reimbursement plan.

Section 9. Medical Treatment.

(a) Any employee who is injured on the job to the extent that medical care is required
shall be provided transportation at the time of injury to and from the place where such care is
given and shall be paid at his regular hourly rate for such time lost, not to exceed the regular
scheduled shift. Should the employee be sent home because of injury, he shall be compensated
for the balance of the day not worked at his regular hourly rate.

(b) Any employee who is required to take time off from his employment during
working hours to secure medical treatment or diagnosis as a result of an injury arising out of and
in the course of his employment shall be paid at his regular hourly rate not to exceed the regular
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scheduled shift for such time required to be lost, provided the employee reports to either a doctor
of his or her choice or to the doctor designated by the Company.

Section 10. Employees at their discretion will be permitted to clock out and leave the
premises upon their receiving notice of a tornado alert.

Section 11. The Company will agree to continue to grant promotions to employees in
preference to newly hired employees when an eligible, qualified candidate is available.

Section 12. The Company will reimburse an employee for tuition and book costs for
education courses that are directly related to the employee’s work. Courses must be approved by
the employee’s supervisor prior to enrollment. To qualify for reimbursement, the employee must
have completed the course with a C grade or better. Proof of final grade and receipts for the
employee’s course costs (tuition and books) must be approved by the employee’s supervisor who
will submit them to the Accounting Department for payment.

Section 13. The Company agrees to provide an air respirator in each work area.

ARTICLE XIX - INSURANCE PROGRAM

Section 1. Life Insurance. The Company agrees to maintain the present life
insurance program of $25,000 per employee and further agrees to pay the costs of the premium
for each employee covered by said insurance. No provision of the insurance program shall be
subject to the grievance or arbitration provision of this Agreement.

Section 2. Medical Insurance.

(a) Coverage. The Company shall provide existing or equivalent medical coverage,
or such other coverage as shall be mutually agreeable between the parties, during the term of this
Agreement.

(b) Cost

(1) Single Employee. The Company will pay up to $213.49 per month for
each employee towards the cost of the insurance premium for such
medical coverage for single employees. The Company will pay 100% of
any increases during each of the remaining 2 years of the contract, up to a
maximum of 10% premium increase per year. Any increases in excess of
10% per year shall be split 50% by the Company and 50% by the
employee.

(2) Family. The Company will pay up to the following per month for each
employee towards the cost of the insurance premium charged for family
medical coverage:
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With children $249.38

With spouse $247.21
With family $218.14

The Company will pay 100% of any increases during each of the
remaining 2 years of the contract, up to a maximum of 10% premium
increase per year. Any increases in excess of 10% per year shall be split
50% by the Company and 50% by the employee.

(3) Former Employees. Employees who retire or otherwise leave the

Company employment may purchase insurance as provided by COBRA or
other governing law.

(4) Should the parties find it necessary, they shall meet on or about the 1st
week of June 2008 and 2009 for discussion on medical insurance. Should
the parties fail to reach an agreement on discussed changes, then the
language in section 2. shall govern.

(c) Continuation of Coverage. The Company will pay the Company’s portion of the
health insurance premium for the employee, when the employee has any major illness or accident
causing the employee to be absent from work in excess of thirty (30) calendar days for a period
not to exceed six (6) months.

Section 3. Salary Continuation. The Company will provide to the employees for up
to six (6) months, after a seven (7) day waiting period, the same amount provided by the State
Workers’ Compensation Insurance for lost time due to personal sickness or non-compensable
accident, while under a doctor’s care. The present payment is $510.00 per week. This may be
funded in whole or in part by insurance paid for by the Company.Certification from a Healthcare
Provider must be provided to receive Salary Continuation payment. These forms are available
from Human Resources.

Section 4. Dental Insurance. The Company will provide a dental insurance

program. The Company will pay the following amount for dental coverage:

Employee Coverage - $20.44

Employee With Children - $33.26
Employee With Spouse - $33.05
Full Family - $37.04

The Company will pay 100% of any increases during each of the remaining 2 years of
the contract, up to a maximum of 10% premium increase per year. Any increases in excess of
10% per year shall be split 50% by the Company and 50% by the employee. The Company will

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retain the right to provide existing or equivalent dental coverage or such other dental coverage as
mutually agreeable between the parties during the term of the Agreement.

ARTICLE XX PROFIT SHARING

-

The following 401(k) Profit Sharing Plan has been established for all bargaining unit
employees:

Profit Sharing Formula

The Company will make, subject to approval by the Board of Directors, a contribution for
each eligible employee equal to two percent (2%) of their annual compensation. The
contribution will be made following the end of the plan year in accordance with the Plan
requirements.

The Company will contribute a minimum of 8% of pre-tax profits to the 401(k) Profit
Sharing Plan following the end of the plan year in accordance with the Plan requirements.
Distribution will be made to the accounts of each eligible employee based on their annual
compensation from the Company.

Profits shall be determined on the basis of standard accounting principles used by the
certified public accounting firm employed by the Company to audit its annual fiscal year
financial statements and such audited statements shall be made available to the Union.
The profit sharing calculations shall be made in accordance with the Plan requirements by
such certified public accounting firm who shall also certify that all income and expenses
have been allocated as provided in the Plan.

Matching Formula

Employees may defer up to the maximum contribution allowed by law of their monthly
compensation. The Company will match 100% of the first 3% of the employee’s salary
deferral.

Plan Year

Twelve (12) consecutive months, commencing January 1 and ending December 31.

Eligibility

Must be 18 years of age to be eligible.

Trustee

The Trustee shall be selected by the Company.

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Investments

Employees will be able to direct the investment of their 401(k) deferrals in accordance
with the Plan.

Vesting: (Company contributions):

Years %
1 20
2 40
3
4 80
5 100

Employee deferrals are always 100% vested.

Early Retirement

Age 55.

Normal Retirement

Age 65.

Distributions

To be made upon occurrence of one of the following:

1) Death
2) Disability
3) Early or normal retirement
4) Separation from Company

Distributions will be made within 180 days following the end of the plan year during
which the event occurs.

Form of Distribution

Lump-sum payment.

The Company retains the right to amend or terminate this program, but in such event, the
Company will notify the Union and, upon prompt request by the Union, negotiate concerning the
effects of such action by the Company.

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ARTICLE XXI PART-TIME EMPLOYEES’ BENEFITS

-

Employees who regularly work less than forty (40) hours per week shall receive 1/2 of the
following fringe benefits provided by the Company for holidays, jury duty, insurance, funeral
leave, and reimbursement for safety shoes and safety glasses. Vacation and Profit Sharing
benefits shall be covered pursuant to Article XI and Article XX.

ARTICLE XXII AUTHORIZATION TO VISIT PLANT

-

Authorized representatives of the International Union may request authorization to visit

the plant or operation of the Company during the working hours. The request must first be
approved by the Company, but it is agreed that the authorization shall not be arbitrarily withheld.

ARTICLE XXIII FUNERAL LEAVE

-

Employees shall be entitled to three (3) days funeral leave with pay for eight (8) hours at
their regular rate upon the death of the employee’s spouse, parent, child, brother, sister,
grandparents, grandchildren, mother-in-law, father-in-law, brother-in-law, and sister-in-law.
These designations shall also include A step-relation.

ARTICLE XXIV LEGALITY OF CONTRACT

-

Should any individual Article or section of this Agreement be held to be illegal by courts
of law or Administrative Agencies, and therefore, invalid in whole or in part, the parties shall
meet within thirty (30) days of the effective date of such invalidation or within an extended
period as may be agreed upon by the parties, and shall attempt to negotiate a renewal or
appropriate modification of such other Article and/or sections of this Agreement as may be
affected or which may derive new or reduced application or significance because of such
invalidation; provided, such invalidation shall not result in a reopening of the contract for
consideration of provisions not affected as provided above, and such illegality and invalidity
shall not affect the legal and valid provisions of this Agreement.

ARTICLE XXV CHECK-OFF SYSTEM

-

Section 1. Label Check-Off System. The Company agrees to make payroll

deductions for Union dues for each employee who authorizes such deductions in the form set
forth in Schedule B of this Union Agreement. The deductions shall be made for the current
month on the fourth (4) pay period of the month, and shall be transmitted to the Financial
Correspondent Secretary of Local Lodge 83.

Section 2. Company Protection. The Union agrees to defend, indemnify and hold
harmless the Company from any and all claims, suits, and damages arising out of or in any way
connected with action by the Company taken for the purpose of complying with this Article of

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the Contract, including disposition of such funds after they have been remitted by the Company
to the Union.

Section 3. Personnel Changes. The Company will advise the Union monthly of the
names and classifications of any employees hired into or laid off or terminated from the
bargaining unit.

ARTICLE XXVI- DURATION OF AGREEMENT

This Agreement shall take effect as of 12:0 1 AM August 30, 2007, and shall remain in
full force and effect through 12:00 Midnight, August 29, 2010, and shall continue in full force
and effect from year to year, thereafter, unless written notice is given by either party to the other
at least sixty (60) days prior to the original or any subsequent date of expiration of a desire to
terminate or modify this Agreement, in which event the Agreement shall terminate at the
anniversary date.

SAUDER CUSTOM FABRICATION, INC. INTERNATIONAL BROTHERHOOD OF’

BOILERMAKERS, IRON SHIP-
BUILDERS, BLACKSMITHS, FORGERS
AND HELPERS, LOCAL NO.83

By By

Bf&Lp

By7% J/6L

By

By//i a’/7

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SAUDER CUSTOM FABRICATION, INC.

SCHEDULE A
GROUP CLASSIFICATIONS

Wage Group I Oualified Wage Group II employees will advance to this wage group after
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20 years of service.

1. Senior Non-Destructive Tester

2. Senior Vessel Fabricator
3. Senior Maintenance Technician
4. Senior Painter

Wage Group II

1. Welder A
2. Machine Operator A
3. Material Handler A Machinist A
4. Maintenance Technician A Plate Roll A
5. Press Brake A
6. Inspector A
7. Non-Destructive Tester A
8. Painter A

Wage Group III

1. Welder B
2. Machine Operator B
3. Material Handler B
4. Maintenance Technician B Machinist B
5. Plate RollB
6. Inspector B
7. Non-Destructive Tester B
8. Painter B
9. Hydro Tester Stress Relieve Furnace
Press Brake Operator B

Wage Group IV

1. Tool Checker
2. Utility Worker

Wage Group V

1. Janitor
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SCHEDULE B

AUTHORIZATION FOR CHECK-OFF FROM WAGES

I hereby authorize
(Name of Employer)
to deduct from any wages earned or to be earned by me, as your employee, and assign to Local
Lodge No. 83, of the International Brotherhood of Boilermakers, Iron Ship Builders,
Blacksmiths, Forgers and Helpers, the sum of money set by the Union in accordance with its
Constitution and Bylaws, in payment of my membership dues. The deductions are to be made
monthly on a pay period agreed to by the Union and Management.

This assignment, authorization and direction shall be irrevocable for the period of thirty
(30) days, or until the termination of the current Agreement between the Employer and the
Union, whichever occurs sooner; and I agree and direct that this assignment, authorization and
direction shall be automatically renewed and shall be irrevocable for successive periods of thirty
(30) days each, or for the period of each succeeding applicable Agreement between the Employer
and the Union, whichever shall be shorter, unless written notice is given by me to the Employer
and the Union not more than twenty (20) days and not less than ten (10) days prior to the
expiration of each period of thirty (30) days, or of each applicable collective agreement between
the Employer and the Union, whichever occurs sooner.

Executed at this day of________________

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Employee’s Clock Number_________

Employee’s Signature

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SCHEDULE C
JOB CLASSIFICATIONS

Hydro Tester: Must be able to setup vessels for testing, and operate necessary pumps and related
hardware as required for testing. In addition, shall have such other duties as determined by the
Company.

Inspector A: Must be highly qualified to interpret blueprints and ASME codes; must be qualified
in Level II P.T. and M.T. In addition, shall have such other duties as determined by the
Company.

Inspector B: Must be qualified in Level I P.T. and M.T., and must be able to interpret blueprints,
code specifications, and perform all duties required to complete the work. In addition, shall have
such other duties as determined by the Company.

Janitor: Must have the ability to perform janitorial work. In addition, shall have such other duties
as determined by the Company.

Machine Operator A: Must be able to operate any one of the following with minimal supervision:
angle roll; flame cutter; radial drill; iron worker machine; saw and pipe burner; and shear. Must
be able to perform setup and layout work, and interpret blueprints. In addition, shall have such
other duties as determined by the Company.

Machine Operator B: Must be able to operate any one of the following after they are setup: angle
roll; flame cutter; radial drill; iron worker machine; saw and pipe burner; and shear. In addition,
shall have such other duties as determined by the Company.

Machinist A: Must be able to interpret blueprints, setup work, select proper tools, and operate all
mills and lathes. In addition, shall have such other duties as determined by the Company.

Machinist B: Must be able to operate the mills and lathes after they are setup. In addition, shall
have such other duties as determined by the Company.

Maintenance Technician A: Must be able to perform all maintenance as required on the plant and
equipment including electrical, hydraulic, and mechanical systems. Must be able to perform
preventive maintenance on a regular basis. In addition, shall have such other duties as
determined by the Company.

Maintenance Technician B: Must be able to perform mechanical maintenance duties as required.

In addition, shall have such other duties as determined by the Company.
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Material Handler A: Must be able to operate all material handling equipment in a safe manner,
know machine capacities, have complete knowledge of materials and their locations, keep the
storage area in an orderly condition, know the material control system and be able to process the
required paperwork, have complete knowledge of loading and rigging of all Company shipments,
and be able to complete any job in the yard. In addition, shall have such other duties as
determined by the Company.

Material Handler B: Must be able to operate the forklifts, receive and place shipments in their
proper location, perform necessary paperwork in a neat manner, understand the material control
system, build shipping crates and follow shipping list instructions, keep warehouse in an orderly
condition, and perform any other duties as required. in addition, shall have such other duties as
determined by the Company.

Non-Destructive Tester A: Must be qualified to Level II in R.T., U.T., M.T., and P.T., as well as
pass tests. Must be able to perform all duties necessary to complete the work. In addition, shall
have such other duties as determined by the Company.

Non-Destructive Tester B: Must be qualified in Level I P.T., M.T., and R.T., as well as pass tests.
Must be able to interpret blueprints. In addition, shall have such other duties as determined by
the Company.

Painter A: Must be able to interpret specifications as required, select proper equipment, thinner,
and operate equipment as required; must be able to apply all types of paints per specifications
and sandblast. In addition, shall have such other duties as determined by the Company.

Painter B: Must be able to operate spray painting equipment and sandblaster. In addition, shall
have such other duties as determined by the Company.

Plate Roll A: Must know the machine capacities and be able to setup machines as required,
operate machines, and produce a finished product to standards established by various codes and
specifications. In addition, shall have such other duties as determined by the Company.

Plate Roll B: Must be able to operate the machine under direct supervision. In addition, shall
have such other duties as determined by the Company.

Press Brake A: Must know machine capacities and be able to setup machine with proper dies,
interpret blueprints, do layout work as required, perform braking operation, and perform all
duties required to finish the work. In addition, shall have such other duties as determined by the
Company.

Press Brake B: Must be able to operate the machine with the assistance of the Press Brake A or
his supervisor. In addition, shall have such other duties as determined by the Company.
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Senior Maintenance Technician: Must be able to perform all mechanical and electrical duties
required in the Maintenance Department as well as preventative maintenance with minimum
supervision. Must also be able to keep records as required, and interpret all schematic drawings
and written instructions. Must have five (5) years minimum experience. In addition, shall have
such other duties as determined by the Company.

Senior Non-Destructive Tester: Must be qualified in Level III P.T., M.T., R.T., and U.T. as well
as pass tests. Must have five (5) years minimum experience. In addition, shall have such other
duties as determined by the Company.

Senior Vessel Fabricator: Must be code qualified on all materials, as required on sub-arc, manual
stick and manual tig. Must be able to interpret blueprints and do layout work, operate the cutting
torch, do setup and fitup work as required in fabrication, and do all of the above with minimum
supervision. Must have five (5) years minimum experience. In addition, shall have such other
duties as determined by the Company.

Stress Relieve Furnace: Must be able to start-up and operate the furnace and maintain the
required heat and time for each job as required. In addition, shall have such other duties as
determined by the Company.

Tool Checker: Must have some knowledge of tools and have some mechanical ability. In
addition, shall have such other duties as determined by the Company.

Utility Worker: Must have some mechanical ability. In addition, shall have such other duties as
determined by the Company.

Welder A: Must be code qualified in carbon steel, as required on S.A.W., S.M.A.W., and
G.T.A.W. Must be able to interpret blueprints and do layout work, operate cutting torch, and do
setup and fitup or any other work as required in fabrication. In addition, shall have such other
duties as determined by the Company.

Welder B: Must be AWS qualified in carbon steel as required, interpret simple blueprints, do
minor layout and fitup work, operate the cutting torch, and any work necessary to complete the
job. In addition, shall have such other duties as determined by the Company.
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SCHEDULE D

SAUDER CUSTOM FABRICATION, Inc.

SUBSTANCE ABUSE POLICIES AND PROCEDURES

Effective Date: August 30, 2007

Sauder Custom Fabrication, Inc. (the “Company”) has a vital interest in providing and
maintaining a healthy and safe working environment for its employees, as well as a commitment
to ensure a drug free environment. The abuse of drugs andlor alcohol presents serious safety and
health risks. The Company believes a drug free workplace will reduce workers’ compensation
injuries and promote the health and safety of our employees. It is with the desire of a drug free
workplace that the Company adopts the following policies and procedures which apply to all
Company employees:

1. Illegal or Controlled Substances

The unlawful manufacture, use, possession, distribution, sale or purchase of alcohol,

*illegal or controlled substances by an employee while on Company premises, in any Company
vehicle, or while conducting Company business are prohibited. Having detectable amounts of
illegal or controlled substances in an employee’s system or being under the influence of alcohol
while on Company premises or in any Company vehicle, or while engaged in Company business,
is also prohibited. Such will be considered just cause for discharge and the employee will be
immediately discharged, subject to the provisions of the rehabilitation program.

Definitions:

*illegal or controlled substances means any drug:

A. Which is not legally obtainable; or

B. Which is legally obtainable but has not been legally obtained.

2. Alcohol

The unauthorized use, possession, distribution, sale or purchase of alcohol by an

employee or having measurable levels of alcohol in an employee’s system while on Company
premises, in any Company vehicle, or while conducting Company business, are prohibited and
will be considered just cause for discharge. An employee who violates this prohibition will be
immediately discharged.
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3. Tests Required.

As a condition of employment, the Company maintains the right to require conditionally

hired applicants and employees to submit to the testing or analysis of samples of their hair, urine,
blood or other samples under the circumstances described herein.

All positive initial tests/analyses will be confirmed by a certified laboratory and the
results may be used by the Company in legal proceedings involving an applicant or employee,
including but not limited to workers’ compensation and unemployment compensation
proceedings.

Employees have the right to refuse to cooperate in the required tests. However, refusal to
cooperate in such test by any employee will be considered just cause for immediate discharge and
the employee who refuses to cooperate will be immediately discharged.

4. Disciplinary Action

The testing levels that are considered “positive” are set forth in Attachment “A.”

Any applicant who tests positive for illegal or controlled substances or alcohol will not be
hired and if a conditional offer of employment has been extended the conditional offer will be
withdrawn.

An employee that tests positive for an illegal or controlled substance or alcohol will be
placed on suspension without pay and will be given the opportunity of rehabilitation by agreeing
to participate in a Company approved treatment and/or rehabilitation program.

An employee otherwise eligible for Family and Medical Leave who voluntarily, and
without having tested positive in any testing, informs the Company that he or she desires
treatment and rehabilitation for the abuse of drugs or alcohol will be granted Family and Medical
Leave as required by the Company’s policy so that the employee can participate in a Company
approved treatment and/or rehabilitation program.

Failure of the employee who tests positive, or failure of the employee who voluntarily
seeks treatment, to agree to participate in and successfully complete the rehabilitation program
will result in termination. Business necessity may require the Company to replace any employee
who participates in an in-patient drug and alcohol rehabilitation program. Upon successful
completion of in-patient rehabilitation which has required replacement of the employee, the
returning employee will be offered a similar job at a comparable rate. The returning employee
will be subject to follow-up testing at the Company’s discretion, in addition to all other testing,
for a period of two years from the date of return to work.

An employee who tests positive for any illegal controlled substance or alcohol a second
time, or after voluntarily completing the treatment program, will be immediately terminated.
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All medical, mental health, and rehabilitation costs beyond those covered by health
insurance are the responsibility of the employee.

5. Searches and Investigations

In order to accomplish the purpose of the policy, the Company reserves the right to carry
out searches of individual employees and their personal effects when employees are on Company
premises or in any Company vehicle, while employees are on duty, or while employees are
otherwise engaged in Company business. Items that may be searched include, but are not limited
to, personal vehicles, baggage, back packs, lockers, tool boxes, lunch pails, coolers, briefcases,
file cabinets and desks.

Searches by the Company may be initiated without prior notice and conducted at times
and locations as deemed appropriate by the Company.

Employees have the right to refuse being searched or having their personal effects
searched or to cooperate in the tests called for in this policy. However, refusal to allow such
searches or cooperate with testing will be considered just cause for discharge and the employee
will be immediately discharged.

6. Types of Testing

A. Conditionally Hired Applicant Testing

All applicants for employment who have successfully completed the initial screening
process will be required to consent to and participate in a Substance Abuse Screen (drug and/or
alcohol test). The results of the Substance Abuse Screen will be evalLated when determining
employment. Failure to pass the screen or failure to submit to the screen in a timely manner will
result in a denial of employment, and the applicant will not be eligible to be considered again for
employment for one year.

B. All Employee Testing

1. Post Accident Testing Any employee engaged in Company activities who has an
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occupational accident or is a participant in an occupational accident that results in an injury

requiring medical treatment more extensive than Company administered first aid will be required
to submit to a Substance Abuse Screen. Failure to pass the Substance Abuse Screen or failure to
submit to the screen in a timely manner (3 hours post injury or accident) will be considered just
cause for discharge and will result in immediate discharge.

2. “For Cause” Testing A Substance Abuse Screen will be required when there is
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cause for the Company to believe, in the Company’s discretion, that the employee has violated
the policy concerning the use of controlled substances or alcohol. Violations of safety rules,

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unsafe practices and damage to Company property are some non-exclusive examples of “causes”
for which the Company may require for cause testing. An employee’s failure to submit to and
pass a “for cause” substance abuse screen is considered just cause for discharge and will result in
immediate discharge.

3. Follow Up Testing Any employee who has returned to work following a

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Company approved program of substance abuse treatment and/or rehabilitation will be subject to
unannounced follow up testing in addition to all other types of testing for two (2) years. Failure
to submit to and pass follow up substance abuse screens is considered just cause for discharge
and will result in immediate discharge.

NOTE: Prescribed and Non-Prescribed Drugs Because prescribed and non-

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prescribed drugs may affect the results of a Substance Abuse Screen, any
employee taking such drugs is encouraged to report his/her use of such
drugs to the Company designated Substance Abuse Screening facility.

C. Test Substances

A Substance Abuse Screen may include but is not limited to screening for the presence
of:

* Amphetamines * Benzodiazepines
* Cocaine * Barbiturates
* Phencyclidine (PCP) * Opiates
* Methaqualone * Alcohol
* Marijuana

7. Reporting

It is required that employees abide by these Policies and Procedures and notify the
Company of any criminal drug statute conviction for a violation occurring in the workplace no
later than five (5) days after such conviction. Failure to do so is considered just cause for
discharge arid will result in immediate discharge.

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 Sauder Custom Fabrication, Inc.

Employee/Applicant Acknowledgment

I acknowledge that I will be required to submit to Substance Abuse Screening utilizing

hair, urine, blood, breath and/or other analysis or testing as set forth in the Company Substance

Abuse Policies and Procedures and that all test results become and remain the sole property of

the Company. If I am an applicant for employment test results will not be released to me.

I have received my own copy of the Company’s Substance Abuse Policies and Procedures

and agree to read it. I also acknowledge that I have had the opportunity to ask questions about it.

Employee/Applicant Signature Date

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ATTACHMENT “A
’
t
CUT-OFF LEVELS FOR DRUG AND
ALCOHOL TESTING

1. Urine Testing
DRUGS SCREEN (ng/ml) CONFIRMATION (zig/mi)
Marijuana 50 15
Cocaine 300 150
Opiates 300 300
Phencyclidine (PCP) 25 25
Amphetamines 1000 500

2. Hair Testing

DRUGS CUT-OFF LEVELS

Marijuana 2 ng/grn
Cocaine 5 ng/10 mg
Opiates 2 ng!1 0 mg
Phencyclidine (PCP) 3 ng/l0 mg
Amphetamines 5 ng/10 mg

2. Testing for Alcohol

DRUGS CUTOOFF LEVELS

Ethanol (alcohol) .04 ng/ml (initial and confirm)

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