Exhibit
10.38


 


AGREEMENT


 


Between


 


PARAGON
SYSTEMS, INC. (PSI)


 


and


 


INTERNATIONAL
UNION, SECURITY, POLICE,


FIRE
PROFESSIONALS OF AMERICA (SPFPA)


 


and its


 


AMALGAMATED
LOCAL 110


 


for the


 


COMMONWEALTH
OF KENTUCKY


 


 


EFFECTIVE


DECEMBER 16,
2003 – MIDNIGHT, DECEMBER 15, 2006


 
















 


ARTICLE I

PARTIES AND TERMS OF AGREEMENT


 


THIS
AGREEMENT is made and entered into this 16th day of December, 2003, by and
between Paragon Systems, Inc. (PSI), hereinafter referred to as the Company,
and International Union, Security, Police, and Fire Professionals of America,
and its Amalgamated Local Number 110, SPFPA. hereinafter referred to as the
Union.


 


All
current economic issues will stay in effect until the economic issues included
in this Agreement become effective on December 16, 2003, and shall
continue in full force and effect until Midnight, December 15, 2006,
unless the General Services Administration (GSA) elects to recognise this
Agreement in its entirety prior to December 16, 2003, inclusive; and
thereafter it shall be considered automatically renewed for successive periods
of twelve months unless, at least ninety (90) days prior to the end of any
effective twelve-month (12) period, either party shall serve notice upon the
other, as prescribed herein, that it desires cancellation, revision, or
modification of any provision or provisions of this Agreement. If either party
serves such notice, the parties shall attempt to reach an agreement with
respect to the proposed change or changes. At least forty (40) days prior to the
expiration date of the Agreement, the parties shall meet to consider such
changes.  In the event the parties do not
reach a written agreement by the expiration date of December 15, in the
particular year, as provided for herein, then this Agreement shall in all
respects be deemed void and terminated. In the event that the U.S. Government,
herein referred to as the Client, or GSA, terminates the current or any
succeeding Service Contract Act contract with the Company for security services
in the Commonwealth of Kentucky this Agreement will be become null and void.


 


ARTICLE II

PURPOSE


 


Section 1.   Whereas the general purpose of this
Agreement is to promote the mutual interests of the Company and its employees,
and to provide for the operation of the Company’s business under methods which
will further, to the fullest extent possible, the safety of the employees,
economy, and efficiency of operation, elimination of waste, realization of
maximum quantity and quality of output, cleanliness, protection of property,
and avoidance of interruptions to production, the parties to the Agreement
hereby agree to cooperate fully for the purpose of preventing and adjusting
misunderstandings by establishing rules and minimum wage rates based on the
standard of “a day’s work for a day’s pay.”


 


Section 2.   This Agreement covers only those matters
specifically contained herein and supersedes all prior agreements between the
Company and the Union.


 


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ARTICLE III

RECOGNITION


 


Section 1.   The Company recognizes the Union as the
exclusive bargaining representative with respect to rates of pay, wages, hours
of employment, or other conditions of employment for all security officers as
defined in Section 9 (b) (3) of the National Labor Relations Act, as
amended, employed by the Company by GSA under a Service Contract Act contract
for security services in the Commonwealth of Kentucky, excluding all office
clerical employees, professional employees, and supervisors as defined in the
Act.  A supervisor is an individual
having authority, in the interest of the employer, to hire, transfer, suspend,
lay off, recall, demote, promote, discharge, assign, reward, or discipline
other employees, or responsibility to direct them to adjust their grievances,
or effectively to recommend such action.


 


Section 2.   The Company reserves the right, in cases of
emergency, to hire employees in the Commonwealth of Kentucky under a GSA
Service Contract Act contract for security services within the Commonwealth of
Kentucky, for a period of ninety (90) days without said employees becoming
members of the Union or without requiring said employees to be covered by this
Agreement. During this ninety (90) day period, the Union shall not communicate
with said employees regarding membership in the Union.


 


ARTICLE IV

WORK OF EMPLOYEES


 


Section 1.   The work of employees shall be the work
presently performed by employees within the bargaining unit and new or
additional bargaining unit work assigned to the unit by the Company.  Employees covered by this Agreement shall
perform all duties and assignments outlined by the Company, including Company’s
Standard Operating Procedures, and the Company’s client, the General Services
Administration. The Contract Manager and Site Supervisors may be called to
perform the duties of a Security Officer in emergency situations (Security
Officer not reporting for duty, late for duty, becoming sick while on shift,
etc.). The Lead Supervisor will perform the duties of a Security Officer in
emergency situations until a bargaining unit member can be called in. The
Supervisor may provide required relief breaks to productive guards at any time
while they are acting in a supervisory/lead capacity.


 


Section 2.   Employees covered by this agreement are contract
employees and as such, are covered by the Service Contract Act.


 


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ARTICLE V

MANAGEMENT RIGHTS


 


Section 1.   The Union recognizes that any and all rights
concerned with the management of the business and the direction of work force
are exclusively those of the Company. The Company retains all of its normal,
inherent common law rights to manage the business, whether or not exercised, as
such rights existed prior to the time any union became the bargaining
representative of the employees covered by this Agreement, except as limited
by, and consistent with the rights of the Union and its represented employees
as set forth in this Agreement or as established by law, statutes, and
government regulations. The rights of management shall include the right to:
hire, assign, schedule, lay off, recall, promote, demote, transfer, suspend,
discharge, or otherwise discipline employees for just cause; determine,
establish, and implement terms and conditions of employment, determine
establish or continue reasonable policies, practices, and procedures for the
conduct of the business and, from time to time, to change or abolish such
policies, practices or procedures in order to prevent any redundancy or
duplication of work or for any other reason provided such rights and policies
are not in conflict with any provision of the Agreement and do not abridge the
rights and benefits of employees as conferred by this Agreement or otherwise;
determine and select the uniform and equipment to be used in the Company’s
operations and, from time to time, to change or to discontinue the use of any
uniform or equipment and to select new uniforms or equipment for its
operations, including equipment for new operations; to determine the number of
hours per day or week that operations shall be carried on; to establish day and
night shifts, to set the hours of work and the number of employees for such
shifts, and from time to time to change the shifts and the hours of employees
thereof, to determine the fact of lack or work; to make and enforce safety
rules and rules governing the conduct of employees within the Government
Facilities and for the maintenance of discipline; and take any other measures
which are reasonable and necessary for the orderly, efficient, and profitable
operation of its business.


 


Section 2.   The Company shall have the right at any time
to establish, administrate or alter the practices or customs of break periods
and telephone calls by employees and to limit or restrict such practices
(except as governed by Government regulations) or customs as the Company may
determine necessary.


 


Section 3.   The Company shall have the right to require
of any employee at any time a physical examination by a physician of its
choosing to determine said employee’s physical and mental ability to perform
their job assignment efficiently and safely. The Company shall have the right
to evaluate the ability of the employee to perform their job assignment
efficiently and safely. The Company may promote, demote, lay off, transfer, or
discharge said employee as a result of such evaluation. This Section shall
be interpreted in accordance with applicable federal and state law.


 


Section 4.   The Company shall have the right to conduct
job studies and to evaluate the work performance of the employees by this
Agreement, and shall have the right to


 


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transfer,
or discharge employees for inefficiency, incompetence, or inability to perform
the work assigned to them.


 


Section 5.   The Company shall have the right at any time
to establish, administer, or change a drug and alcohol abuse prevention
program. The Company shall have the right at any time to test employees for
drugs or alcohol and to discipline employees based on the results of such
tests.


 


Section 6.   The above Management Rights are
all-inclusive except where modified by this Agreement.


 


ARTICLE VI

DRUG AND ALCOHOL POLICY


 


Section 1.   The parties recognize that in the security
business, the use of controlled substances or alcohol that cause intoxication
or impairment on-the-job poses risks to the Employer, the affected employee and
his co-workers and the public. An employee cannot perform his or her work
adequately if he or she is under the influence of illegal drugs or alcohol; and
an employee under the influence of drugs or alcohol also presents a danger to
himself or herself and to others. 
Unlawful use of drugs and the abuse of alcohol when not on duty raises
serious questions concerning the competency to perform security work and is
ground for revocation of Employee’s firearms permit.  It is the Employer’s policy to maintain a
drug-free work place. The Employer and the Union agree to the Drug and Alcohol
Policy to maintain a drug-free work place. The Employer and the Union agree to
the Drug and Alcohol Policy attached hereto as Appendix II to this Agreement,
and fully incorporated by reference into this Agreement.


 


ARTICLE VII

DISCIPLINE AND DISCHARGE


 


Section 1.   The Union recognizes and acknowledges that
the Company has the duty of maintaining good discipline among its employees
because the Company is responsible for the efficient operation of its business.


 


Section 2.   The Company shall have the right to
discipline employees for just cause. The disciplinary action will be
administered within five (5) working days, excluding Saturday, Sunday, and
holidays, unless for operational reasons the five (5) working day period has to
be extended – however, disciplinary action will not be withheld for an unreasonable
period of time.


 


Section 3.   In the case of any offense for which an
employee may be discharged, the Company may, in its sole discretion, impose a
lesser penalty.


 


Section 4.   After imposing a penalty for an offense, the
Company may suspend all or part of such penalty or penalties on condition of
good behavior by the employee concerned for a period of not more than one year,
during which time the employee concerned shall be on disciplinary probation. In
the event of misbehavior by the employee during the term


 


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of
probation, the Company may reinstate the suspended penalty in addition to any
new penalty it may impose for the new offense.


 


Section 5.   When an individual accepts employment with
the Company, they are expected to conduct themselves with proper regard for the
rights of others and of the Company. PS1 employees are expected to be good
corporate, as well as private, citizens. Listed in the Rules for Disciplinary
Policies and Procedures Appendix I are a number of serious acts of misconduct,
and the penalties imposed when they occur. Other infractions will be dealt with
as the individual cases require.


 


Section 6.   While on Company or Client premises for the
purpose of investigating a grievance or for any other purpose for which the
Company has given its permission, an employee – representative of the Union
shall have no right to claim any immunity from the requirements of good
discipline. The Rules for Personal Conduct, as well as site specific orders,
and PSI Policies and Procedures will also apply.


 


ARTICLE VIII

NO STRIKES/NO LOCKOUT


 


Section 1.   There shall be no strikes (including
sympathy, unfair labor practice, or wildcat strikes), sit-downs, slow-downs,
work stoppages, boycotts, any acts honoring a picket line or any other acts
that interfere with the Company’s operations or the production or the sale of
its products or services during the term of this Agreement by the Union, its
officers, agents and members, or by the employees. It is understood that the
foregoing proscriptions are specifically intended to include, but are in no way
limited to, the following:


 


(a)   The honoring of a picket line, or any other concerted activity, of
either a sister or affiliated local of the Union, of any other organized unity
at the Company or of any other group or individual; and


 


(b)   The participation in or support or encouragement of any consumer
boycott, advertising boycott, or information picketing of either a sister or
affiliate local of the Union; of any other organized unit at the Company or any
other group or individual.


 


Section 2.   The Union agrees that it will not authorize,
ratify, or condone any strike or any other activity described herein.  In the event of any strike or any other proscribed
activity not authorized, ratified, or condoned by the Union, the Union and its
officers, agents, and representatives will make every good faith effort to end
such activity. Such good faith efforts must include, but are in no way limited
to the following:


 


(a)   The Union will, as soon as possible, declare publicly that such action
is unauthorized;


 


(b)   The Union will inform all employees who participate in the strike or
other proscribed activity that it is their individual responsibility; and


 


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(c)   The Union will instruct all employees involved in the strike or other
proscribed activity to immediately cease this violation of their Agreement and
to return to work


 


Section 3.   The Union shall not question the unqualified
right of the Company to discipline or discharge employees engaging in,
participating in or encouraging such action. 
It is understood that such action on the part of the Company shall be
final and binding upon the Union, and its members, and shall in no way be
construed as a violation by the Company of any provisions of this Agreement.


 


Section 4.   The Company shall have direct recourse to
the National Labor Relations Board or the courts for a violation of this
Article.


 


Section 5.   The Employer shall agree that there shall be
no lockout during the life of this Agreement.


 


ARTICLE IX

REDUCTION OR INCREASE IN FORCES


 


Section 1.   Bargaining unit seniority shall be
calculated from the last date of hire into the bargaining unit.


 


Section 2.   If laid off for lack of work, an employee
shall be retained on the recall list for a period of two years from the day of
lay-off or for a period of time equal to his/her total length of bargaining
unit service, whichever is greater.


 


Section 3.   Whenever there is to be a reduction in force
in the bargaining unit, the employee with the shortest bargaining unit
seniority, who has passed the shooting test and the FPS test, in the
classification affected will be given a minimum of one week notice of lack of work,
provided the Company receives the notification from GSA to that effect prior to
the one week requirement. Employees working less than thirty-seven (37) hours
per defined work week at the time of any layoff will not have more seniority
than those employees working thirty-seven (37) or more hours at the time of any
layoff. However, exceptions will be made to accommodate the Company’s
contractual requirement to maintain an adequate reserve force.


 


Section 4.   The employee notified of lack of work will
be placed in any available opening within the bargaining unit for which
the employee is qualified to perform, provided no additional training or moving
expense is required.


 


Section 5.   Whenever there is a reduction in force in
the bargaining unit due to the General Services Administration eliminating a
security post in an assigned area the employee(s) will have the same rights as
defined in Sections 3 and 4 above by filling available posts and by
replacing employees with the shortest bargaining unit seniority.


 


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Section 6.   Employees recalled from lay-off shall be so
recalled in like manner: reverse order of seniority, the last laid off, who has
passed the shooting test and the FPS test, is first to be recalled.


 


Section 7.   When a vacancy occurs, the vacancy will be
offered to the most qualified present employees in accordance with their
bargaining unit seniority before assigning a new employee to the post.


 


However,
the present employee candidates must meet the requirements for the job vacancy,
be acceptable to the Contracting Officers technical representative (the General
Services Administration Federal Protective Officer in charge of security), and
final selection will be based on work performance and seniority.


 


Section 8.   Seniority employees who are promoted out of
the bargaining unit, but continue to be employed by the Company, shall not
continue to accumulate bargaining unit seniority beyond the date of promotion.


 


ARTICLE X

PROBATIONARY EMPLOYEES


 


Section 1.   New employees and those hired after a break
in continuity of employment shall be considered as probationary employees for
the first ninety (90) calendar days of continuous employment. An employee’s probationary
period can be extended for an additional thirty (30) calendar days by their
supervisor, if warranted.


 


Section 2.   The Company shall have the right to
discharge or otherwise discipline probationary employees during or prior to the
end of the probationary period, with or without cause, and the discharge or
other discipline shall not be the subject of a grievance either by the employee
or by the Union.


 


ARTICLE XI

GRIEVANCE PROCEDURE


 


Section 1.   Any grievance as defined herein initiated by
an employee or group of employees shall be handled in accordance with this
grievance procedure.


 


Section 2.   A grievance is defined as a claim or dispute
with the Company by an employee or employees involving an alleged violation by
the Company of the terms of this Agreement.


 


Section 3.   The employee(s) will attempt to resolve the
grievance by discussion with the Site Supervisor within forty-eight (48) hours
of the time the events giving rise to the grievance occurred, either with or
without their designated representative, as the employee shall elect, in an
attempt to settle the grievance. Pending settlement of the dispute and /or
grievance, the Site Supervisor’s order shall be followed.


 


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Grievances
to be discussed at Step 1 meetings may be investigated by the appropriate Union
Steward who shall be afforded such time off without pay as may be necessary for
purposes of such investigation. The time off shall occur between the date of
the filing of the grievance and its discussion at the Step 1 meeting, and;


 


Section 4.   Step 1:  Upon receiving the decision of the Lead
Supervisor, within five (5) working days, excluding Saturday, Sunday, and
holidays, the employee(s), if dissatisfied with the Lead Supervisor’s
disposition of the request or complaint, may formally present the alleged
grievance in writing to the Contract Manager, with or without their designated
representative being present, as the employee(s) may elect. The grievance
presented in this Step shall be set forth in writing on appropriate forms furnished
by the Union. The written grievance must recite the Article of this
Agreement or Government regulations, which the individual and/or the Union
alleges the Company has violated. The Contract Manager shall be required to
answer the complaint within five (5) working days, excluding Saturday, Sunday,
and holidays, in such written form. Time limits may be extended by mutual
agreement of the parties.


 


(a)   The grievance form shall be completed by the Chief Steward or Shift
Steward and/or alternate Steward, as applicable, dated and signed by the
employee. Two (2) copies will be given to the Contract Manager for disposition.
The Contract Manager will sign and date the form and return one (1) copy to the
employee(s).


 


(b)   If the Contract Manager’s decision is not appealed to Step 2 within
five (5) working days, excluding Saturday, Sunday, and holidays, the grievance
shall be considered settled on the basis of the decision made and shall not be
eligible for further appeal.


 


Section 5.   Step 2:  Any response to a grievance having been
processed through Step 1 without satisfactory settlement, including appeals to
Step 2, shall be reduced to writing by the Chief Steward or Shift Steward
and/or alternate Steward, as applicable, signed and dated by the aggrieved employee
and the Chief Steward or Shift Steward and/or alternate Steward, as applicable,
and submitted to the Vice President or designated representative within ten
(10) working days. Within ten (10) working days from receipt of the written
grievance, the Program Manager will submit an answer in writing to the Union.


 


The
Company reserves the right to conduct Step 2 grievances as a conference call
with the results reduced
to writing.


 


Section 6.   Step 3:  In the event that a grievance has been
processed through Step 2 without satisfactory settlement, either party may
request in writing within five (5) working days, a meeting at the Federal
Building in Louisville, KY between the International Union’s designated
representative(s) and the Company’s designated representative(s) to attempt to
resolve the matter prior to appeal to arbitration. This meeting will occur no
later than five (5) working days after receipt of request for the


 


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meeting
by either party, unless other arrangements are mutually agreed upon by both the
Company and the Union.


 


The
results of this meeting will be reduced to writing, signed and dated by both
the Union representative and the Company representative and each will receive a
copy.


 


In
the event that a grievance has been processed through Step 3 without
satisfactory settlement, the dissatisfied party may, by written notice served
on the other party within ten (10) working days, excluding Saturday, Sunday,
and Holidays, from receipt of the answer to the Step 3 meeting, appeal the
grievance to arbitration.


 


Section 7.   Only the Union or the Company may require
arbitration of the other party to this Agreement.


 


Section 8.   Any grievance submitted that does not
conform to this Agreement will be considered null and void.


 


ARTICLE XII

ARBITRATION


 


Section 1.   If arbitration is requested in accordance
with the above requirements, the parties shall attempt to reach agreement upon
the name of the arbitrator. If the parties are unable to agree upon an
arbitrator within five (5) working days from the date of the request of
agreements to arbitrate, either party may request the Federal Mediation and
Conciliation Service to submit a list of seven (7) arbitrators names from which
to select an arbitrator. When the list is received, either party may reject the
list and request the Federal Mediation and Conciliation Service supply a second
list of seven (7) new names. The representative of the party requesting
arbitration shall strike one name from the list. This process shall then be
repeated with the parties alternating strikes in sequence until only one name
remains. The person whose name remains on the list shall be the arbitrator.


 


Section 2.   Jurisdiction of the arbitrator selected
shall be limited to:


 


(a)           Adjudication of the issues which, under the written terms of the
Agreement which shall be entered into between the parties hereto, are subject
to submission to arbitration;


(b)           Interpretation of the terms of this Agreement which are applicable to
the issue presented to the arbitrator;


(c)           The rendition of a decision or award which in no way modifies, adds to,
subtracts from, changes, or amends any term or condition of the Agreement or
conflicts with the provisions of the Agreement;


(d)           No claims including claims for back wages, by an employee covered by
this Agreement, or by the Union, against the Company shall be valid for a
period prior to the date the grievance was filed in writing;


 


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(e)           A decision or award shall not grant relief extending beyond the
termination date of the contract between GSA and the Company;


(f)            The rendition of a decision or award in
writing which shall include a statement of the reasoning and grounds upon which
such decision or award is based;


(g)           The rendition of a decision or award based solely on the evidence and
arguments presented to the arbitrator by the respective parties in the presence
of each other, and the arguments presented in the written beliefs of the
parties; and


(h)           The rendition of decision or award within thirty (30) calendar days of
the date of presentation of written beliefs by parties.


 


Section 3.   Any dispute which arises under the Agreement
but which is based on events that occur after its termination is expressly
excluded from the jurisdiction of the arbitrator.


 


Section 4.   No one arbitrator shall have more than one
(1) grievance submitted to them, and under consideration by them, at any one
time unless the parties hereto otherwise agree in writing. A grievance shall be
deemed under consideration by an arbitrator until the arbitrator has rendered
their decision and award in writing.


 


Section 5.   The Arbitrator’s decision will be final and
binding upon the Company, the employee or employees involved, the Union and
its’ members.


 


Section 6.   Only grievances which involve an alleged
violation by the Company of a provision in this Agreement and which are
processed in the manner and within the time limits herein provided shall be
subject to arbitration. Notwithstanding any other provision of the Agreement,
no grievance shall be arbitratable with respect to:


 


(a)           Any matter involving the administration, interpretation, or application
of any insurance plans;


(b)           Any claim which, if true, would constitute a violation of any Federal
or State legislation concerning discrimination and/or the National Labor
Relations Act, or which, in any case, would be within the jurisdiction of the
National Labor Relations Board, and;


(c)           A decision of the Company to discipline, discharge, or otherwise not
retain or hire an employee based on the U.S. Government’s or any of its
Officials determinations that an employee is unacceptable to the Government to
perform service on the service contract irrespective of the reason or reasons the
U.S. Government, or arty of its Officials find the employee unacceptable to
perform services. Evidence of the Government’s determination shall be given to
the employee upon termination from the Company.


 


Section 7.   Arbitrator’s fees and expenses shall be
shared equally by the Union and the Company. Each party will bear its own legal
expenses and costs incidental to witnesses.


 


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ARTICLE XIII

CONTRACT MANAGER AND LEAD SUPERVISOR


 


Section 1.   The operation of and the authority and
control over the security force shall be vested exclusively in the Company
through its representatives, the Contract Manager and Lead Supervisors. The
Contract Manager and Lead Supervisors may be called to perform the duties of a
Security Officer in emergency situations (Security Officer not reporting for
duty, late for duty, becoming sick while on shift, etc.). The Site Supervisor
will perform the duties of a Security Officer in emergency situations until a
bargaining unit member can be called in. The Supervisors may provide required
relief breaks to productive guards at any time while they are acting in a
supervisory/lead capacity.


 


Section 2.   Bargaining unit officers shall perform any
and all bargaining unit work pertaining to their respective work assignments.


 


Section 3.   The Company shall designate the days and
nights or combination of days and nights which each employee shall work during
the week.


 


Section 4.   The Contract Manager and Site Supervisor
shall have the authority to call their work force or any part of it to work at
different hours.


 


Section 5.   If an employee works a holiday or is called
in when not scheduled, their schedule later in the defined work week will
not be adjusted without the employee’s approval.


 


Section 6.   The Lead Supervisor shall post a two (2)
week work schedule every other Thursday by 2:30 pm EST. If changes are to
be made, the Lead Supervisor will make every effort to change as few employee’s
schedules as possible. The Lead Supervisor will notify all effected employees
of said changes.


 


ARTICLE XIV

HOURS OF WORK


 


Section 1.   Eight (8) hours, exclusive of lunch period,
shall constitute a shift’s work, forty (40) hours shall constitute a week’s
work. The workweek shall be from Monday 0001 to 2400 hours Sunday, exclusive.
The provisions of this Article are intended merely to provide for normal
hours of work and to provide a basis for determining the number of hours work
for which an employee shall be paid at overtime rates, and nothing herein shall
be constructed as a guarantee by the Company of any specified number of hours
of work per day or per week or as a limitation on the hours of work per day or
per week.


 


Section 2.   An  unpaid
lunch period, not to exceed thirty minutes (30) shall be provided on each
shift. The Company shall designate the time of said lunch period.


 


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Section 3.   Each employee will be given a paid fifteen
(15) minute break for every four (4) hours of continuous work. This break time
will be paid to the employee only if the employee demonstrates that they have
taken this rest period away from their work assignment.


 


Section 4.   The Company shall have the exclusive right
to establish new shifts in addition to the shifts in effect at the time this
Agreement was executed.


 


Section 5.   Posts and hours are contingent upon the
contractual agreement between the Company and the Government.  Any changes of shift hours will be discussed
with the Union prior to implementation; however, the Company will have final
authority in establishing shifts.


 


Section 6.   A shift differential of $.35 per hour shall
be paid for each hour worked on any shift between 1500 hours and 2259 hours. A
shift differential of $.50 per hour shall be paid for each hour worked on any
shift between 2300 hours and 0659 hours. Shift differential does no apply to
shifts starting at 0700 hours. All hours worked beyond the end of an employee’s
shift of record will continue to be paid in the same manner as the hours worked
during the shift of record. A shift cutting across two (2) calendar days shall
be treated as worked on the day on which the shift begins.


 


Section 7.   The employee shall enjoy two (2) consecutive
days of rest every defined workweek, unless operational commitments preclude
the same.


 


Section 8.   An employee’s applicable shift begins when
the employee is properly posted and the other employee is properly relieved in
accordance with the post hour of operation. Eastern Standard Time or Central
Standard Time (as applicable by post location) shall be recognized as the
official time of record.


 


Section 9.   Any employee called in to work at a time
other than his normal shift will be guaranteed four (4) hours work or four (4)
hours pay at the applicable hourly rate. A call out is considered to be after
an employee has completed his normal shift and has punched out and departed
from his assigned work area.


 


Whenever
an off duty employee is called for overtime by a supervisor or his designee,
the supervisor or his designee must speak to the employee for the overtime to
be acknowledged.


 


ARTICLE XV

OVERTIME


 


Section 1.   Overtime payment shall be as follows:


 


(a)   At the rate of time and one half for hours worked in excess of forty
(40) hours in any given workweek.


(b)   The overtime wage shall not include any fringe benefit payment.


 


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(c)   Leave time is always disregarded in computing overtime.


(d)   If an employee works in excess of twelve (12) consecutive hours in any
twenty-four (24) hour period, the employee will be compensated at double-time
for any hours worked in excess of twelve (12) consecutive hours.


 


Section 2.   The Company shall make every effort to
distribute overtime as evenly as possible during the life of this Agreement.


 


Section 3.   Overtime will be distributed to the assigned
regional area defined as the area under the jurisdiction of the Regional Lead
Supervisor. In an effort to minimize cost to the Company, overtime will be assigned
in a manner both beneficial to the Company and the employee. Distribution is as
follows:


(a)   Part-time employees


(b)   The most qualified senior level employees


 


ARTICLE XVI

SCALE OF WAGES


 


Section 1.   Beginning the effective date of this
Agreement, or as determined by Article I of this Agreement, the Company
agrees to pay not less than the following minimum wage rate:


 


	
  Job
  Position

  	
   

  	
  Rate

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Guard
  II

  	
   

  	
  $

  	
  14.97

  	
   

  
					



 


Beginning
December 16, 2004, or the date of the modification to the service contract
between the Client and the Company incorporating wage rates found in this
Section, whichever is later, the Company agrees to pay not less than the
following minimum wage rate:


 


	
  Job
  Position

  	
   

  	
  Rate

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Guard
  II

  	
   

  	
  $

  	
  15.49

  	
   

  
					



 


Beginning
December 16, 2005, or the date of the modification to the service contract
between the Client and the Company incorporating wage rates found in this
Section, whichever is  later, the
Company agrees to pay not less than the following minimum wage rate:


 


	
  Job
  Position

  	
   

  	
  Rate

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Guard II

  	
   

  	
  $

  	
  16.03

  	
   

  
					



 


Section 2.   New hire personnel, while in training, will
be paid at the minimum wage rate established by the U.S. Department of Labor.


 


13
















 


Section 3.   Incumbent personnel, while attending annual
or refresher training specific to the work site will be paid at the wage rate
established in Section I of this article. 
If attendance at training classes results in the employee working in
overtime, the above pay rates will be paid at time-and-a-half. If an employee
is in an overtime status, as defined by Article XV section l(d), they
shall be compensated at that rate.


 


Section 4.   It is understood that the Company may hire
part-time employees to perform bargaining unit work. The Company shall not be
required to employ such part-time employees for any minimum number of hours per
day or days per week.


 


ARTICLE XVII

HOLIDAYS


 


Section 1.   The following paid holidays will be provided
annually:


 


New
Years Day


Martin
Luther King’s Birthday


Washington’s
Birthday


Good
Friday


Memorial
Day


Independence
Day


Labor
Day


Columbus
Day


Veterans
Day


Thanksgiving
Day


Christmas
Day


 


In
addition to the Holidays listed above, employees shall be granted any Holiday
that is designated by the U.S. Government as a holiday, or other day which
federal employees are not required to report to work under Presidential
Proclamation and will be paid as provided, in this Article, provided the
Company receives approval for reimbursement for the Holiday from the
Government.


 


Section 2.   All holidays shall be observed on the day
designated by the Federal Government.


 


Section 3.   Holiday pay will be administrated according
to CFR 29, sections 4.171 and 4.176 (attached).


 


Section 4.   Employees receive holiday pay based upon the
number of hours worked in the previous defined workweek. Holiday hours paid to
at employee is calculated as the number of regular hours worked (regular
productive, training hours, holiday, and authorized PTO taken) divided by
thirty-seven (37) hours. The result is multiplied by eight (8) hours. The
maximum amount of holiday pay earned by any employee as a


 


14
















 


result
of this calculation shall not exceed eight (8) hours. Holiday pay will be
recorded and paid in whole number increments only, decimal places will not be
considered.


 


Example 1:   James worked 30 regular hours
the workweek previous to the Christmas holiday. For the Christmas holiday,
James would be entitled to six (6) hours of holiday pay (30 hours worked the
previous workweek divided by 37 hours multiplied by eight (8) hours holiday =
six (6) hours holiday pay due James).


 


Example 2:   Jane worked 37 regular hours
the workweek previous to the Christmas holiday. For the Christmas holiday, Jane
would be entitled to the maximum eight (8) hours of holiday pay (37 hours
worked the previous workweek divided by 37 hours multiplied by eight (8) hours
holiday = eight (8) hours holiday pay due Jane).


 


Example 3:   John worked 40 regular hours
the workweek previous to the Christmas holiday. For the Christmas holiday, John
would be entitled to the maximum eight (8) hours of holiday pay (40 hours
worked the previous workweek divided by 37 hours multiplied by eight (8) hours
holiday = eight (8) hours maximum holiday pay due John).


 


Section 5.   An employee that performs no work during the
workweek in which a named holiday occurs is not entitled to holiday pay in
accordance with 29 CFR 4.174 of the Service Contract Act.


 


ARTICLE XVIII

PERSONAL TIME OFF


 


Section 1.   The following Personal Time Off (PTO)
schedule will be observed:


 


	
  Years of Service

  	
   

  	
  Maximum Hours Earned

  
	
  One

  	
   

  	
  176 Hours

  
	
  Four

  	
   

  	
  216 Hours

  
	
  Seven

  	
   

  	
  256 Hours

  
	
  Ten

  	
   

  	
  296 Hours

  



 


PTO
includes vacation, sick leave, and personal time off with pay.


 


Section 2.   PTO will be administrated according to CFR
29, sections 4.173 and 4.176 (attached).


 


Employees
earn PTO based upon the number of regular hours worked (regular productive,
training, holiday, and authorized PTO taken) from the previous year’s seniority
date to the current year’s seniority date divided by 1,924 hours. The result is
multiplied by the maximum number of PTO hours attainable for their years of
service. The maximum amount of PTO earned by any employee as a result of this
calculation shall not exceed the maximum hours attainable for their years of
service. PTO pay will be earned in whole number increments only. Decimal places
will not be considered.


 


15
















 


The
Company shall provide a separate check to officers who cash out their PTO days
on their anniversary date.


 


Example 1:   James’ seniority date is
June 1, 1999.  On June 1, 2000,
James’ first seniority anniversary. Payroll would research the regular hours
James worked from June 1, 1999, to June 1, 2000. Payroll found that
James worked 1,000 regular hours during this time and that for one year of
service, an employee working on James’ contract could earn a maximum of 80
hours of PTO. James would have 41 hours of PTO posted to his account (1,000
hours worked the previous seniority year divided by 1,924 hours multiplied by
80 hours PTO = 41 hours PTO).


 


Example 2:   Jane’s seniority date is
June 1, 1999. On June 1, 2000, Jane’s first seniority anniversary,
Payroll would research the regular hours Jane worked from June 1, 1999, to
June 1, 2000. Payroll found that Jane worked 1,924 regular hours during
this time and that for one year of service, an employee working on Jane’s
contract could earn a maximum of 80 hours of PTO. Jane would have the full 80
hours of PTO posted to her account (1,924 hours worked the previous seniority
year divided by 1,924 hours multiplied by 80 hours PTO = 80 hours PTO).


 


Example 3:   John’s seniority date is
June 1, 1999. On June 1, 2000, John’s first seniority anniversary,
Payroll would research the regular hours John worked form June 1, 1999, to
June 1, 2000. Payroll found that John worked 2.080 regular hours during
this time and that for one year of service, an employee working on John’s
contract could earn a maximum of 80 hours of PTO. John would have the full 80
hours of PTO posted to his account (2.080 hours worked the previous seniority
year divided by 1,924 hours multiplied by 80 hours PTO = 80 hours maximum PTO
earned).


 


When
two (2) or more employees request PTO during the same time period, and the
Company cannot release then due to work requirements, seniority shall be the
deciding factor, except in emergency situations.


 


The
employee may utilize PTO time to which they are entitled, with approval from
the Contract Manager or Lead Supervisor in accordance with PSI Policies and
Procedures.


 


The
Company reserves the exclusive right to schedule and change in operational
emergency situations the PTO time of each employee and to generally administer
the PTO plan to assure efficient and orderly operation of the Company.


 


ARTICLE XIX

JURY/WITNESS DUTY


 


Section 1.   Leave of absence shall be granted to
employees who are summoned for jury duty or subpoenaed as a witness. Any
employee summoned to jury duty or subpoenaed as a witness shall present the
summons or subpoena to the Company in a timely manner. Employees shall be
compensated based on the difference between the jury or witness pay and their
regular straight time rate for up to eight (8) hours for each scheduled work
day


 


16
















 


missed,
up to a maximum of ten (10) days per calendar year. Employees will be required
to produce evidence that they were called and required to serve on a jury or as
a witness on the days for which compensation is requested. If subpoenaed as a
witness for the Company, the employee will be paid regardless of the time.


 


Section 2.   Any security officer who witnesses an
occurrence, which is in connection or related to the contract between the
Company and the GSA contract, and as a result of the witness of said occurrence
and pursuant to proper subpoena, has to testify in court as part of his duty as
a security officer employed by the Company, will be paid the difference between
the fee received for such services and the amount of straight-time earnings
lost by the employee by reason of such service as Contractor/GSA witness duty
pay, provided that the employee submits evidence of the total amount received
as a witness and the total amount of court time spent as a witness.  


 


Any
other type of jury or witness duty is unpaid leave


 


Section 3.
Contractor/GSA witness duty pay will not be paid in addition to any other type
of pay for the same days. The hours paid for, but not worked, will count as
leave with pay.


 


ARTICLE XX

BEREAVEMENT LEAVE


 


Section 1.   An employee who is absent from work because
of the death and funeral of their wife, husband, mother, father, son, daughter,
sister, brother, grandfather, grandmother, grandson, or granddaughter will be
granted up to three (3) consecutive work days bereavement leave at
straight-time pay. Also included are current step and in-law relationships
based on the above listing.


 


Section 2.   Notices of intent to be absent on
bereavement leave shall be given by the employee to the Contract Manager or Lead
Supervisor in accordance with PSI Protective Forces Policies and Procedures.


 


Section 3.   No more than three (3) consecutive work days
will be allowed should more than one (1) death occur in the immediate family
within any three (3) day period. Additional days off may be taken as leave
without pay, subject to the approval of the Lead Supervisor and Contract
Manager.


 


Section 4.   No absence shall be granted in cases where,
because of the distance or other cause, the employees do not attend the funeral
of the deceased.


 


Section 5.   Bereavement pay will not be paid in addition
to any other type of pay for the same days, or when the employee is on approved
leave of absence for any other reason. 
The hours paid for, but not worked, will count as leave with pay, and
shall not be used in computing any health and welfare or uniform allowance
payments or any PTO or any holiday pay earned.


 


17
















 


ARTICLE XXI

NOTICE


 


Section 1.   Whenever notice is to be given under the
terms of this Agreement to either party hereto, it shall in all cases, except
where some other method is specifically prescribed herein, be sent by
“Certified Mail, Return Receipt Requested,” to the following addresses with
respect to the Company and the Union:


 


 


Company:


Paragon
Systems, Inc.


3317
Triana Blvd.


Huntsville,
AL 35805


 


 


Union:


Local
110, SPFPA


P.O.
Box 21324


Louisville,
Kentucky 40221-0324


 


ARTICLE XXII

CONFLICTS WITH THE LAW


 


Section 1.   In the event any federal or state law
conflict with any provision of this Agreement, the provision or provisions so
affected shall no longer be operative or binding upon the parties, but the
remaining portion of the Agreement shall continue in full force and effect.


 


ARTICLE XXIII

SAFETY AND HEALTH


 


Section 1.   The Company agrees to maintain conditions of
health and sanitation conformity with all applicable federal and state laws.


 


ARTICLE XXIV

UNPAID LEAVES OF ABSENCE


 


Section 1.   The Company will permit an authorized
representative of the Union an unpaid leave of absence to attend meetings
and/or conventions of the Union, provided a written request is received by the
Contracts Manager two (2) weeks prior to the beginning of such leave and
providing that this leave doesn’t negatively impact Company operations. In no
event will more than two (2) Union representatives be permitted a leave under
this provision. The maximum period of such leave shall be seven (7) days each
per year.


 


18
















 


Section 2.   Unpaid leaves of absence other than Union
business will be made in conformance with PSI Policies and Procedures.


 


Section 3.   Unpaid leaves of absence will not be counted
as hours worked.


 


ARTICLE XXV

UNION REPRESENTATIVES


 


Section 1.   The Union shall designate from the employees
such representatives as it deems appropriate and the Company shall recognize
them as such. The amount of Unit Representatives shall not exceed one Chief
Steward in Louisville, KY. A Shift Steward for the eastern region. A Shift
Steward for the western region. A Shift Steward for the central region. A Shift
Steward for the southern region. Alternate Stewards will be elected where
necessary. The union will notify the Company, in writing, of all elected
officers and Stewards. The alternate Steward(s) shall only function in their
assigned Shift Steward’s absence and shall only represent those employees
reporting to the same office (Louisville, KY or Corbin, KY) as the Chief
Steward or Shift Steward, as applicable. Upon return of the Chief Steward or
Shift Steward, the alternate Steward will immediately surrender representation
on any issue to the Chief Steward or Shift Steward, as applicable. The Union
shall notify the Company within seventy-two (72) hours of the names of those so
elected or appointed. When it is necessary for any Steward to leave work for
the purpose of handling a grievance, he/she shall first notify the Contract
Manager or Lead Supervisor and shall again advise the Contract Manager or Lead
Supervisor after the business has been concluded. Under no circumstances will
the Union conduct business/discussions regarding any issues, with the Company’s
customers. Time spent by Union representatives and employees conducting Union
business for the purpose of adjudicating grievances or negotiating
Company/Union Agreements shall be counted as leave without pay. Union business
will not be conducted by any employee during their normal duty hours.


 


Section 2.   The Chief Steward, Shift Steward or
alternate Steward, as applicable, will give seven (7) working days notice time
to the Contract Manager or Lead Supervisor to allow for a replacement to be
reasonably obtained to stand duty at the Chief Steward’s, Shift Steward’s or
alternate Steward’s, as applicable, post.


 


Section 3.   The Company will not be forced to call in an
off duty employee or hold over an employee to stand in for the Chief Steward
the Shift Steward or the alternate Steward, as applicable.


 


ARTICLE XXVI

NO DISCRIMINATION


 


Section 1.   The parties in this Agreement agree that
there shall be no discrimination in the employment opportunities because of
sex, race, religion, color, national origin, age, membership or activity in the
Union nor in violation of the Civil Rights Act of 1964.


 


19
















 


ARTICLE XXVII

UNION SECURITY CLAUSE


 


Section 1.   Following the signing and ratification of
this Agreement, all incumbent employees shall be required to pay periodic dues
established by the Union, or as prescribed for under the Beck decision (Beck vs.
CWA, 487US735, 1988), as a condition of continued employment. All employees
hired after the execution of this Agreement shall be required to join the Union
within thirty (30) calendar days following the date of their employment and
continue to be members in good standing and pay initiation fees and the
periodic dues established by the Union, or as prescribed for under the Beck
decision (Beck vs. CWA 487US735, 1988), as a condition of continued employment.


 


Section 2.   The Company will, for every employee who so
desires and remits to the Company a signed, original Union Dues Authorization
card, deduct from the earnings payable to such employee, each pay period, the
dues (including initiation fee, when the Union notifies the Company to deduct
the fee) for such employee membership in the Union and shall remit same to the
Financial Secretary-Treasurer of the Local Union monthly. The Company will not
be responsible for collection of dues in arrears. At the time that dues are
remitted by the Company to the Union, the Company will submit a list of the
names of the employees hired under this Agreement during the same month for
which the Company is remitting dues to the Union.


 


ARTICLE XXVIII

POSTING


 


Section 1.   The Company shall make a bulletin board
available for use by the Union for the posting of notices.


 


ARTICLE XXIX

ISSUES OF GENERAL APPLICATION


 


Section 1.   The Company shall issue all items of uniform
and equipment, which are prescribed by the Federal Government and in accordance
with contractual agreement between GSA and Paragon Systems. Inc., making
available such list to the Union or its Representative(s) upon written request
to the Contract Manager.  Uniforms and
equipment are the property of PSI. Employees are required to turn in all
uniforms and equipment upon termination from the Company,


 


Section 2.   The Company will furnish all employees with
an initial adequate number of uniforms without cost to the employee. In
addition, where uniform cleaning and maintenance is made the responsibility of
the employee, the Company shall reimburse all employees for such cleaning and
maintenance at a rate of $2.00 a day. 
Uniform allowance is not paid on training hours. The Company will
provide at no cost to the employee, replacement uniforms and equipment as
needed when they are worn out and cannot be repaired, except for neglect.
Uniforms will be kept cleaned, pressed, and serviceable, to include proper fit
and tailoring, by the employee. The Company reserves


 


20
















 


the
right to inspect uniforms and/or equipment at any time to ensure that the
employee is properly maintaining their uniforms and/or equipment.


 


Section 3.   The Company shall provide all training and
equipment as mandated by the Federal Government and shall make such information
available to the Union or its Representative upon written request.


 


Section 4.   Travel pay (auto or truck mileage) at the
approved Government rate in effect at the time of travel, will be paid only for
mileage using a personal owned vehicle (POV) and travel is at the direction of
the Company, to a location that is not the regularly assigned Post for any
individual employed by Paragon Systems if the distance is greater than 60 miles
one-way. In the event the individual is required by Company supervision to
spend the night at any location specified by the company, then the individual
is eligible for per diem at the Government – allowed rate for that location.
Receipts must be turned in to the company for all charges and charges that are
not covered by receipts will not be paid. The Company’s liability is limited to
the per diem rates in effect at the location at the time of travel.


 


In
no case shall the Company pay any individual travel pay for transportation to
or from a regularly scheduled work assignment location. The Company will make
every effort to assign the individuals as close to home as possible for their
work assignments but it retains the freedom to assign personnel as required to
fulfill the requirements of the contract.


 


ARTICLE XXX

HEALTH AND WELFARE BENEFITS


 


Section 1.   The Company will pay to each employee $2.75
per regular hour worked, including regular productive, authorized PTO taken,
holiday and training, health and welfare pay for the purpose of purchasing medical
related insurance, up to a maximum of 40 hours per defined workweek and 2,080
hours per year for the duration of this Agreement, December 16, 2003
through December 15, 2006.


 


Health
and welfare requirement will be administrated according to 29 CFR,
section 4.175 (attached).


 


21
















 


Signature Page


 


 


	
  /s/
  Charles Keathley

  	
   

  
	
  Charles
  Keathley – President

  
	
  Paragon
  Systems, Inc.

  
	
   

  
	
  For
  the Union:

  
	
   

  
	
   

  
	
  /s/ James Allen

  	
   

  
	
  James
  Allen – International Vice President

  
	
  Region
  IV, International Union

  
	
  Security,
  Police and Fire Professionals of America (SPFPA)

  
	
   

  
	
   

  
	
  /s/ Gene McConville

  	
   

  
	
  Gene
  McConville

  
	
  Director
  of Special Projects (SPFPA)

  
	
   

  
	
   

  
	
  /s/ John Cummins

  	
   

  
	
  John
  Cummins – President

  
	
  Local
  110 (SPFPA)

  
	
   

  
	
   

  
	
  /s/ Gary Meredith

  	
   

  
	
  Gary
  Meredith – Steward

  
	
  Local
  110 (SPFPA)

  
	
   

  
	
   

  
	
  /s/ William Stewart

  	
   

  
	
  William
  Stewart – Steward

  
	
  Local
  110 (SPFPA)

  
	
   

  
	
   

  
	
  /s/ Druie Garrett

  	
   

  
	
  Druie
  Garrett – Shift Steward

  
	
  Local
  l10 (SPFPA)

  



 


 


22
















 


APPENDIX I


 


MEMORANDUM


 


30
July 2001


 


TO:  All Paragon Systems, Inc. Employees


 


FROM:  Charles “Chuck” Keathley


 


SUBJECT:  Disciplinary Policies and Procedures


 


Paragon
Systems Inc. supervisors and administrators will have the authority to
recommend disciplinary action on employees for just cause. All incidents will
be fully investigated, documented, and evaluated by the Project Manager before
disciplinary action is taken.


 


Project
Manager will have the authority to impose less punishment than is promulgated
in this policy, but not more.


 


1.     Written Reprimand or Suspensions will be put into effect on first offense, whenever misconduct or
behavior is not of a serious nature. Suspension time may vary depending on
seriousness of the offense.


 


2.     Dismissal will be
effected in those cases when deemed by management to be extreme and serious in
nature.


 


No
employee will be dismissed on the basis of race, color, religion, sex, or
national origin.  Employees who are
dismissed will not be eligible for re-employment with Paragon Systems Inc.


 


3.     Table of Offenses


 


	
  Offense’s

  	
   

  	
  1st Off

  	
   

  	
  2nd Off

  	
   

  	
  3rd Off

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  a.  Leaving work location during working hours
  without permission of supervisor.

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  b.  Loitering or loafing during working hours
  sitting down, reading, listening to radio, etc.

  	
   

  	
  LOC

  	
   

  	
  LOW

  	
   

  	
  S
  or D

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  c.  Failure to be at work site, ready to begin
  work at starting time.

  	
   

  	
  LOC.

  	
   

  	
  LOW

  	
   

  	
  S
  or D

  



 


1
















 


	
  Offense’s

  	
   

  	
  1st Off

  	
   

  	
  2nd Off

  	
   

  	
  3rd Off

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  d.  Failure to turn in a worksheet whenever
  required

  	
   

  	
  LOC

  	
   

  	
  LOW

  	
   

  	
  S
  or D

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  e.  Failure to call supervisor and check in
  when assuming duties.

  	
   

  	
  LOC

  	
   

  	
  LOW

  	
   

  	
  S
  or D

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  f.  Refusing to obey orders pertaining to work
  or Supervisors duties.

  	
   

  	
  S
  or D

  	
   

  	
  D

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  g.  Personal work on Paragon Systems Inc. time.

  	
   

  	
  LOC or LOW

  	
   

  	
  S or D

  	
   

  	
  D

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  h.  Unauthorized use of telephone, machines or
  other officer equipment.

  	
   

  	
  LOC
  or LOW

  	
   

  	
  S
  or D

  	
   

  	
  D

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  i.  One absence (without good cause)

  	
   

  	
  LOW

  	
   

  	
  S
  or D

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  j.  Tardiness without good cause.

  	
   

  	
  LOC

  	
   

  	
  LOW

  	
   

  	
  D

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  k.  Creating or contributing to unsanitary
  Conditions.

  	
   

  	
  LOC

  	
   

  	
  LOW

  	
   

  	
  S
  or D

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.  Signing in another employee who is late
  with wrong time.

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  m.  Posting or removal of notices, signs or
  writing in any form on Paragon Systems Inc. bulletin boards, without
  permission.

  	
   

  	
  LOW
  or S

  	
   

  	
  S
  or D

  	
   

  	
  D

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  n.  Signing daily worksheet for another
  employee.

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o.  Speeding or careless driving, while
  operating a Paragon Systems Inc. vehicle.

  	
   

  	
  S
  or D

  	
   

  	
  D

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  p.  Unauthorized use of Paragon Systems Inc.
  vehicles.

  	
   

  	
  S
  or D

  	
   

  	
  D

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  q.  Obscene, abusive language and/or malicious
  gossip and/or spreading of rumors.

  	
   

  	
  S
  or D

  	
   

  	
  D

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  r.  Threatening, intimidating, coercing fellow
  employees at any time.

  	
   

  	
  S
  or D

  	
   

  	
  D

  	
   

  	
   

  



 


2
















 


	
  Offense’s

  	
   

  	
  1st Off

  	
   

  	
  2nd Off

  	
   

  	
  3rd Off

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  s.  Theft or attempted theft of any property.

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  t.  Gambling or playing any game of chance on
  Paragon Systems or employers premise while on duty.

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  u.  Possession of or drinking of any alcoholic
  beverage on premises.

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  v.  Reporting to work under the influence of
  drugs or alcoholic beverage or having alcohol on your breath.

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  w.  Deliberate destruction or damage of
  Company, Government, or other Employee’s property.

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  x.  Misuse or removal from the premises without
  proper authority of any document or confidential information.

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  y.  Boisterous, offensive immoral or indecent
  conduct on Paragon Systems Inc. or employer premises.

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  z.  Possession of illegal weapons or Paragon
  Systems Inc. or employers premises.

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  aa.  Possession or use of illegal drugs on
  Paragon Systems Inc. or employers premises.

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ab.  Sleeping during working hours

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ac.  Overstaying a leave of absence without
  permission.

  	
   

  	
  S
  or D

  	
   

  	
  D

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ad.  Incomplete uniform or mixed uniform.

  	
   

  	
  LOC

  	
   

  	
  LOW

  	
   

  	
  S
  or D

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ae.  Unauthorized use of uniform during
  non-working hours.

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  af.  Misconduct on company or client’s property

  	
   

  	
  S
  or D

  	
   

  	
  D

  	
   

  	
   

  



 


3
















 


	
  Offense’s

  	
   

  	
  1st Off

  	
   

  	
  2nd Off

  	
   

  	
  3rd Off

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ag.  Violation of company or client’s rules

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ah.  Fighting on company or client’s property.

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ai.  Testing positive for drugs or alcohol use.

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  aj.  Disparagement of the company whether this
  occurs on or off company or clients property.

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ak.  Insubordination to any company executive or
  project manager, supervisor, or administrator, of Paragon Systems Inc. or its
  clients.

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  al.  Giving false information on their
  employment in the employment application regardless of the employee’s length
  of service at the time Paragon Systems Inc. discovers the false information.

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  am.  False statement or giving misleading
  information about the company or any company executive or project manager of
  false information about our client.

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  an.  Refusal to answer any questions related to
  the job to the project manager or company executive or our client.

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ao.  Racial or sexual harassment.

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ap.  Refusal to submit to a drug or alcohol
  test.

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  aq.  No call, no show for work when scheduled.

  	
   

  	
  LOW

  	
   

  	
  S
  or D

  	
   

  	
  D

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ar.  Not knowing when you are scheduled to work,
  (this is an employee’s responsibility).

  	
   

  	
  LOW

  	
   

  	
  S
  or D

  	
   

  	
  D

  



 


4
















 


	
  Offense’s

  	
   

  	
  1st Off

  	
   

  	
  2nd Off

  	
   

  	
  3rd Off

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  as.  Making a change to the
  schedule without the Supervisor (CPT) prior approval.

  	
   

  	
  S
  or D

  	
   

  	
  D

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  at.  Calling off from duty with less than four
  (4) hours notice.

  	
   

  	
  LOW

  	
   

  	
  S
  or D

  	
   

  	
  D

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  au.  Calling off from duty on weekend or holiday.

  	
   

  	
  LOW

  	
   

  	
  S
  or D

  	
   

  	
  D

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  av.  Calling off from duty after a weekend or
  holiday, (1st duty day scheduled).

  	
   

  	
  LOW

  	
   

  	
  S
  or D

  	
   

  	
  D

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  aw.  Excessive use of force.

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ax.  Failure to report Hazardous conditions.

  	
   

  	
  S
  or D

  	
   

  	
  D

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ay.  Failure to cooperate in an official
  investigation.

  	
   

  	
  S
  or D

  	
   

  	
  D

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ba.  Any breach of security procedures
  discovered by Paragon Systems Inc. or its client.

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  bc.  Falsification, concealment, removal,
  mutilation or destruction of government documents or records.

  	
   

  	
  S
  or D

  	
   

  	
  D

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  bd.  Unauthorized use of authority or
  credentials.

  	
   

  	
  S
  or D

  	
   

  	
  D

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  be.  Misuse of weapons.

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  bf.  Other security violations

  	
   

  	
  S
  or D

  	
   

  	
  D

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  bg.  Use of personnel cell phones on Paragon
  Systems Inc. time.

  	
   

  	
  LOW

  	
   

  	
  S
  or D

  	
   

  	
  D

  



 


NOTE:
The company will identify inefficiency as follows:


Neglect
of duty, unexcused absence and tardiness, breach of the company and clients
SOP, Security Procedures, refusal to perform work assigned to them without an
acceptable excuse. Managers will have the discretionary authority and power to
determine final disposition of inefficiency. 
These offenses are not all inclusive.


 


5
















 


It
is each employee’s responsibility to be knowledgeable of and review monthly all
Memorandums and Security Procedures and Policies.


 


	
  LEGND:

  	
   

  	
  LOC

  	
   

  	
  Letter
  of Counseling

  
	
   

  	
   

  	
  LOW

  	
   

  	
  Letter
  of Warning

  
	
   

  	
   

  	
  S

  	
   

  	
  Suspension

  
	
   

  	
   

  	
  D

  	
   

  	
  Dismissal

  



 


 


	
  /s/ Charles Keathley

  	
   

  
	
  Charles
  Keathley, President

  



 


6
















 


APPENDIX II


 


Drug
and Alcohol policy


 


Paragon
Systems, Inc. will not tolerate the use or the possession of any
controlled/illegal substance or alcohol while on Company property or at any
Paragon site for any reason.  


 


An
exception will be made for those controlled substances prescribed by a licensed
physician, and then only when the performance of an employee will not be
impaired.


 


If
an employee reports to post seemingly under the influence of either drugs or
alcohol, Paragon Systems management reserves the right to remove the employee
from that post and order testing if deemed necessary.  All employees will report to work sober and
of sound mind, this is imperative to maintain the safety of those who depend on
our services.


 


Any
employee found to violate this policy will face immediate disciplinary action,
which could include termination.


 


NO DRUGS ARE ALLOWED OR TOLERATED ON ANY
PARAGON SYSTEMS


PREMISES OR LOCATIONS AT ANY TIME FOR ANY REASON EXCEPT THOSE


LEGITIMATELY PRESCRIBED BY A DULY LICENSED
PHYSICIAN AND THEN


ONLY WHEN THE PERFORMANCE OF AN EMPLOYEE IS
NOT IMPAIRED.


 


ANY INDIVIDUAL VIOLATING THIS POLICY WILL BE
DEALT WITH

IMMEDIATELY AND APPROPRIATELY.


 


Having
defined the policy broadly, it will be further refined and defined below. The
Federal Government requires Paragon Systems to have a drug and alcohol free
policy and Paragon Systems fully endorses that requirement. Productive work
cannot be conducted nor can the safety and well being of employees and of customers
be ensured if there are drugs or alcohol allowed or tolerated on the
premises.  Specifically, it is an
offense;


 


•      To bring
to the workplace any drugs not prescribed by a licensed physician


•      To
manufacture illegal drugs on Paragon Systems’ premises or customer locations


•      To
distribute illegal drugs on Paragon Systems’ premises or customer locations


•      To
possess illegal drugs on Paragon Systems’ premises or customer locations


•      To
dispense illegal drugs on Paragon Systems’ premises or customer locations


•      To
condone or protect others who participate in any of the above actions”


•      To report
to duty under the influence of alcohol


•      To report
to duty with alcohol in your possession


 


The
above list contains some instances that are considered violations of the
policy. However this list is not all-inclusive and each case will be handled
individually and according to circumstance.


 


Any
persons Found engaging in any of the above-mentioned activities will be subject
to immediate disciplinary action including but not limited to.


 


•      The
individual may be relieved of duty and terminated on the spot


•      The
individual, depending on the circumstance, may be counseled and given ONE
warning for violation of policy.


•      The
individual may be allowed to go to a Drug/Alcohol Rehabilitation Program that
the individual will be responsible for selection of and payment.


 
















 


•      The
individual may be placed on adminstrative leave without pay until he/she can
prove to the satisfaction of Paragon Systems’ management that he/she is drug/alcohol
free and can reasonably be expected to remain that way


 


Paragon
Systems does not have a drug/alcohol rehabilitation program, but will allow an
employee to select a program.  The
employee is responsible for required attendance and for any monetary
obligations attributed to the program. Paragon Systems Management will take any
employee, into consideration, with a drug or alcohol dependency, who decides to
come forward on his/her own accord, and expresses a desire to receive
professional assistance. Paragon Systems will try to give that employee every
opportunity to help himself/herself within bounds of the contractual
requirements the employee is working under. However, Paragon Systems reserves
the right to protect the company’s interest in all cases and the decision of
Paragon Management will be the final decision on the issue.


 


Each
employee, as a matter of employment, must certify to the Personnel Department
that they are drug free at the time of hire and will remain drug/alcohol free
during the time he/she is in the employ of Paragon Systems.  Paragon Systems reserves the right to conduct
a drug test on any individual at any time without prior notice.  The first drug test will be conducted at
Paragon’s expense.  If the employee does
not agree with the test, the employee has the right to take a second test at
his/her own expense.  The retest must be
done under a controlled environment and under the direction of the doctor or
certified technician that administered the first test. This is to insure that
there has been no cheating or “fixing” on the test.


 


Dangers
of drugs/alcohol in the workplace are extensive and counterproductive to
productive work and or work ethics.  Many
of the Paragon Systems personnel carry loaded weapons in the conduct of their
duty. Impaired judgment presents a serious hazard to all persons within range
of that weapon and will not be tolerated in any manner. In other cases,
individuals driving company vehicles or other vehicles, become a serious hazard
when under the influence of illegal drugs or alcohol. Further, personnel in
Paragon Systems must make decisions that, wrongly made, could cost the
Government and Paragon Systems untold amounts of money and create a serious
hazard not only to the personnel in the field they are to support, but to
themselves and to others working around them, Persons under the influence of
drugs or alcohol are a serious hazard and a serious liability and will not be
allowed to participate in any company activities. Those that are found to be in
violation will be dealt with immediately,


 


In
accordance with Federal regulations, and requirements, each individual must be
given a copy of the drug-free policy and that person must acknowledge that
he/she has received that copy.  Each
individual who signs an acknowledgement of receipt of this handbook
acknowledges that they have received a copy of the drug-free policy and will
abide by the requirements as defined in the Drug-Free Workplace Act of 1988.


 


	
  Approved
  By

  	
  /s/ Charles Keathley

  	
   

  
	
  Charles Keathley, President