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| PREAMBLE          |                                         |                                                                                                                                                                                      | 1        |
|-------------------|----------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
|              |                                         |                                                                                                                                                                                      |     |
| ARTICLE I    | APPLICATION OF AGREEMENT      | 1                                                                                                                                                                                         |
|              |                                         |                                                                                                                                                                                      |     |
| ARTICLE II        | PERIOD OF AGREEMENT           | 1                                                                                                                                                                                         |
|              |                                         |                                                                                                                                                                                      |     |
|              |                                         |                                                                                                                                                                                      |     |
| ARTICLE III       | MANAGEMENT RIGHTS CLAUSE      | 2                                                                                                                                                                                         |
|              |                                         |                                                                                                                                                                                      |     |
| ARTICLE IV        | CHECK-OFF OF UNION DUES       | 2                                                                                                                                                                                         |
|              |                                         |                                                                                                                                                                                      |     |
| ARTICLE V         | SENIORITY                                    |                                                                                                                                                                                      | 2        |
|              |                                         |                                                                                                                                                                                      |     |
|              | Section 1.                                   | Length of Service                                                                                                                                                          | 2        |
|              | Section 2.                              | Order of Seniority                                                                                                                                                         | 2        |
|              | Section 3.                         | Eligibility for Seniority                                                                                                                                                  | 3        |
|              | Section 4.                              | Filling Vacancies                                                                                                                                                          | 3        |
|              | Section 5.                                   | Qualifications for Job                                                                                                                                                     | 4        |
|              | Section 6.                         | Seniority List                                                                                                                                                             | 5        |
|              | Section 7.                              | Seniority Accrued                                                                                                                                                          | 5        |
|              | Section 8.                                   | Seniority - Outside Assignments                                                                                                                                            | 5        |
|              | Section 9.               | Discharges and Reemployment                                                                                                                                                | 5        |
|              | Section 10.                                  | Status of Employees Laid Off                                                                                                                                               | 6        |
|              | Section 11.                                  | Loss of Seniority                                                                                                                                                          | 6        |
|              |                                         |                                                                                                                                                                                      |     |
| ARTICLE VI        | HOURS OF WORK AND OVERTIME    | 7                                                                                                                                                                                         |
|              |                                         |                                                                                                                                                                                      |     |
|              | Section 1.                                   | Hours of Work                                                                                                                                                                             | 7        |
|              | Section 2.                              | Overtime and Call-Out Pay Rates                                                                                                                                            | 7        |
|              | Section 3.                                   | Shift Change Notice                                                                                                                                                        | 8        |
|              | Section 4.                              | Meal Time                                                                                                                                                                  | 8        |
|              | Section 5.                              | No Reduction of Work Week as Result of Overtime                        | 9        |
|              | Section 6.                              | Computation of Overtime                                                | 9        |
|              | Section 7.                              | Distribution of Overtime and Call-Out Time                             | 9        |
|              | Section 8.                         | Call-Out                                                                                                                                                                   | 9        |
|              | Section 8A.                             | Advance Scheduling of Overtime                                                                                                                                             | 10       |
|              | Section 8B.                             | Right to Assign Qualified Personnel                                                                                                | 10       |
|              | Section 9.                              | Holiday Pay                                                                                                                                                                          | 10       |
|              | Section 10.                                  | Reporting for Work and Not Used                                                                                                                                                      | 11       |
|              |                                         |                                                                                                                                                                                      |     |
| ARTICLE VII  | WAGE RATES AND CLASSIFICATIONS          | 11                                                                                                                                                                                   |
|              |                                         |                                                                                                                                                                                      |     |
|              | Section 1.                                   | Wages and Pay Period                                                                                                                                                                 | 11  |
|              | Section 2.                              | Changes in Classification of Work                                                                                                                                                    | 11  |
|              |                                         |                                                                                                                                                                                      |     |

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|               | Section 3.                        | Mechanic Classifications, Opportunites and Training | 12  |
|--------------------|-----------------------------------|-----------------------------------------------------|----------|
|               |                              |                                                |     |
| ARTICLE VIII  | HANDLING OF GRIEVANCES       | 12                                             |
|               |                              |                                                |     |
|               | Section 1.                        | Routine Submission                             | 12  |
|               |                              |                                                |     |
| ARTICLE IX    | SHOP COMMITTEE AND STEWARDS  | 13                                             |
|               |                              |                                                |     |
|               | Section 1.                   | Shop Committee                                      | 13  |
|               | Section 2.                        | Stewards                                            | 14  |
|               |                              |                                                |     |
| ARTICLE X          | LEAVE OF ABSENCE                  | 14                                             |
|               |                              |                                                |     |
|               | Section 1.              | Personal Business                                   | 14  |
|               | Section 2.                        | Union Business                                      | 14  |
|               | Section 3.                        | Sickness or Accident                                | 15  |
|               | Section 4.                        | Notice to the Company                               | 15  |
|               | Section 5.                        | Military Reserve Training                           | 15  |
|               |                              |                                                |     |
| ARTICLE XI    | VACATIONS                         |                                                | 16  |
|               |                              |                                                |     |
| ARTICLE XII        | MILITARY LEAVE                    | 17                                             |
|               |                              |                                                |     |
|               | Section 1.                        | Military Selective Service Act                 | 17  |
|               | Section 2.                        | Pay in Lieu of Vacation                             | 18  |
|               |                              |                                                |     |
| ARTICLE XIII       | PHYSICAL EXAMINATIONS        | 18                                             |
|               |                              |                                                |     |
|               | Section 1.                        | Periodical Examinations                        | 18  |
|               | Section 2.                   | Certificate of Physical Fitness                     | 18       |
|               | Section 3.                   | Dispute Resolution                                  | 18  |
|               |                              |                                                |     |
| ARTICLE XIV        | MISCELLANEOUS AND GENERAL    | 18                                             |
|               |                              |                                                |     |
|               | Section 1.                   | Tool Check-In Time                             | 18  |
|               | Section 2.                   | Discrimination                                      | 19  |
|               | Section 3.                        | Wage Rate Changes                              | 19  |
|               | Section 4.              | Safety Provisions                              | 19  |
|               | Section 5.         | Discharges                                          | 19  |
|               | Section 6.                   | Recess Period (Smoking)                        | 19  |
|               | Section 7.                   |  Jury Duty                           | 20  |
|               | Section 8.                   | Termination Pay                                | 20  |
|               | Section 9.                   | Contract Work                                  | 20  |

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|                                                                                                                                                                                                       | Section 10.                            | Technical and Supervisory Employees | 20  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------|-------------------------------------|----------|
|                                                                                                                                                                                                       | Section 11.                                 | Minor Maintenance                   | 20  |
|                                                                                                                                                                                                       | Section 12.                                 | Minor Operating Functions           | 21  |
|                                                                                                                                                                                                       | Section 13.                            | Uniforms                            | 21  |
|                                                                                                                                                                                                       |                                        |                                |     |
| ARTICLE XV                                                                                                                                                                                                 | VALIDITY OF CONTRACT                   | 21                             |
|                                                                                                                                                                                                       |                                        |                                |     |
| ARTICLE XVI                                                                                                                                                                                                | NOTICE                                      |                                | 21  |
|                                                                                                                                                                                                       |                                        |                                |     |
| ARTICLE XVII                                                                                                                                                                                               | FUNERAL LEAVE                               | 22                             |
|                                                                                                                                                                                                       |                                        |                                |     |
|  ARTICLE XVIII                                                                                                                                                                                        | GROUP INSURANCE                        | 23                             |
|                                                                                                                                                                                                       |                                        |                                |     |
|  ARTICLE XIX                                                                                                                                                                                          | NO STRIKE OR LOCKOUT                   | 25                             |
|                                                                                                                                                                                                       |                                        |                                |     |
| ARTICLE XX                                 | SERVICE WITH COMPANY                   | 25                             |
|                                                                                                                                                                                                       |                                        |                                |     |
| ARTICLE XXI                                                                                                                                                                                                | CHANGE OR MODIFICATION OF AGREEMENT    | 25                             |
|                                                                                                                                                                                                       |                                        |                                |     |
| ARTICLE XXII                                                                                                                                                                                               | TERMINATION OF AGREEMENT               | 26                             |
|                                                                                                                                                                                                       |                                        |                                |     |
| SIGNATURE PAGE                                                                                                                                                                                        |                                        |                                | 27  |
|                                                                                                                                                                                                       |                                        |                                |     |
| EXHIBIT "A"                                                                                                                                                                                           | BASIC HOURLY WAGE RATE                 | 28                             |
|                                                                                                                                                                                                       |                                        |                                |     |
|                                                                                                                                                                                                       | RATE CHANGES DURING TERM OF AGREEMENT  | 29                             |
|                                                                                                                                                                                                       |                                        |                                |     |
|                                                                                                                                                                                                       | CLOTHING ALLOWANCE                     | 29                                  |
|                                                                                                                                                                                                       |                                        |                                |     |
| EXHIBIT “B”                                                                                                                                                                               | RECOGNIZED MAINTENANCE WORK GROUPS     | 30                             |

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|   | 0-180 days  | -0- |
|--------|------------------|-----|

|   | 181 days to 2 years | Length of previously accrued seniority |
|--------|---------------------|----------------------------------------|

|   | 2 years or more | 2 years |
|--------|-----------------|---------|

|   | (a) | Quitting. |
|--------|-----|-----------|

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

|   | (c) | Discharge for just cause. |
|--------|-----|---------------------------|

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

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

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

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

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

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

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

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|   | 1. | Tightening loose mechanical connections. |
|--------|----|------------------------------------------|

|   | 2. | Tightening leaking packing. |
|--------|----|-----------------------------|

|   | 3. | Changing instrument charts. |
|--------|----|-----------------------------|

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|   | 4. | Tightening piping fittings to stop minor leaks. |
|--------|----|-------------------------------------------------|

|   | 5. | Changing light bulbs. |
|--------|----|-----------------------|

|   | 6. | Hooking up loading and unloading lines. |
|--------|----|-----------------------------------------|

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|   | (1) | Effective January 1, 2011, the employee’s cost share of 23%, per pay period, will be based on the total claims utilization and fixed costs commencing November 1, 2009, through October 31, 2010. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The specific cost share amounts to be effective January 1, 2011, will be constant throughout that year. |
|--------|---------------------------------------------------------------------------------------------------------|

|   | (2) | Effective January 1, 2012, the employee cost share of 24%, per pay period, will be based on the total claims utilization and fixed costs during the period, commencing November 1, 2010, through October 31, 2011. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The specific cost share amounts, per pay period, to become effective January 1, 2012, will be constant throughout that year. |
|--------|------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Effective January 1, 2013, the employee cost share of 25%, per pay period, will be based on the total claims utilization and fixed costs, during the period commencing November 1, 2011, through October 31, 2012. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Cap on employee contribution rate remain, but increase by 25% in January 2011, 27.5% in January 2012 and 30% in January 2013 in each category of coverage. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (See chart for dollar amounts) |
|--------|--------------------------------|

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|                    | 2010         | 2011         | 2012         | 2013         |
|-------------------------|--------------|--------------|--------------|--------------|
| \MEDICAL                |         | 23%          | 24%          | 25%          |
| Capped Rates:           |         |         |         |         |
| Employee                |  $36.15 |  $45.19 |  $60.12 |  $81.41 |
|                    |         |         |         |         |
| Employee & Children | $67.13       |  $83.91 | $111.64      | $151.18      |
|                    |         |         |         |         |
| Employee & Spouse   | $111.02      | $138.78      | $184.63      | $250.02      |
|                    |         |         |         |         |
| Family                  | $142.00      | $177.50      | $236.15      | $319.79      |
|                    |         |         |         |         |
| DENTAL                  |         |         |         |         |
| Employee                | $10.15       | $12.69       | $16.88       | $22.86       |
|                    |         |         |         |         |
| Employee Family         | $26.35       | $32.94       | $43.82       | $59.34       |
|                    |         |         |         |         |

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| Classification                                                             | 10/17/10     | 10/17/11     | 10/17/12 |
|----------------------------------------------------------------------------|--------------|--------------|----------|
|                                                                       |         |         |     |
| "A" Mechanic                                                               | $21.10       | $21.31       | $21.63   |
| "B" Mechanic                                                               | $19.63       | $19.83       | $20.13   |
| "C" Mechanic                                                               | $18.90  | $19.09  | $19.38   |
| "D" Mechanic                                                               | $13.98       | $14.12       | $14.33   |
| "E" Mechanic-New Hire                                                      | **           | **           | **       |
| (First 180 Days)                                                           |         |         |     |
| ** Rate of pay determined by Company on basis of employees qualifications. |         |         |

| Specialist I   | $23.28       | $23.51  | $23.86 |
|----------------|--------------|--------------|--------|
|           |         |         |   |
| Specialist II  | $25.28  | $25.53       | $25.91 |
|           |         |         |   |
| Specialist III | $27.28       | $27.55       | $27.96 |
|           |         |         |   |

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