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COLLECTIVE BARGAINING AGREEMENT BY AND BETWEEN SDH Services East LLC. at Chevron Houston - Facilities Management AND INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL 564, AFL-CIO July 27, 2020 - February 28, 2021 Table of Contents Index……………………………………………………… i Articles of Agreement……………………………………. 1 Intent and Purpose………………………………………... 1 Article I – Recognition…………………………………… 1 Article II – Construction………………………………….. 2 Article III Management Rights………………………….... 2 Article IV – Check-off……………………………………. 3 Article V – Employee Rights……………………………... 3 Article VI – Union Rights………………………………… 4 Article VII – Orientation Period………………………….. 4 Article VIII – Job Classifications…………………………. 5 Article IX – Seniority……………………………………... 5 Article X – Non-Discrimination…………………………... 7 Article XI – Notifications of Job Openings………………... 7 Article XII – Allowances…………………………………... 7 Article XIII – Call in Pay…………………………………... 7 Article XIV – Safety………………………………………. 7 Article XV – Leave of Absence…………………………... 7 Article XVI – Grievance and Arbitration Procedure………. 8 Article XVII – No Strike / No Lockout……………………. 9 Article XVIII – Discharge and Discipline…………………. 10 Article XIX – Drug and Alcohol Use……………………. 11 Article XX – Wages………………………………………. 13 Article XXI – Hours of Work……………………………… 13 Article XXII – Funeral Leave……………………………… 14 Article XXIII – Jury Duty………………………………….. 14 Article XXIV – Holidays…………………………………... 15 Article XXV – Vacation…………………………………... 16 Article XXVI – Personal/Sick Leave………………………. 16 Article XXVII – Election Day...................………………… 17 Article XXVIII – Time Off for Union Business…………… 17 Article XXIX – Group Insurance Benefits………………… 17 Article XXX – Training…………………………………... 17 Article XXXI – Pension….……………………………….. 17 Article XXXII – Change of Management………………… 18 Article XXXIII – Mutual Agreements......................……… 18 Article XXXIV – Savings Clause / Entire Agreement…… 18 Article XXXV – Term of Agreement……………………… 19 Appendix A – Hourly Wage Rates………………………… 20 ARTICLES OF AGREEMENT This Agreement is made and entered into by and between SDH Services East, LLC. (hereinafter referred to as the "EmployerEmployer") and INTERNATIONAL UNION OF OPERATING ENGINEERS, Local 564, AFL-CIO (hereinafter referred to as the "Union"). The Employer and the Union agree to be bound by the following contractual provisions. INTENT AND PURPOSE The purposes of this Agreement are to set forth certain standards governing wages, hours, working conditions for the employees in the unit for which the Union has been certified as collective bargaining representative; to set forth obligations of the parties; to prevent strikes, lockouts or other cessations of work; and to promote a friendly, cooperative and harmonious relationship between the EmployerEmployer and the Union. It is the intent and purpose of the parties hereto that this Agreement shall promote and improve the industrial and economic relationship between the Employer and its employees and that this Agreement shall set forth the hours of work, rates of pay, conditions of employment, and all other contractual responsibilities and obligations of the Employer in regard to the employees and the Union. ARTICLE I - RECOGNITION Section 1. The Employer recognizes the Union as the sole and exclusive collective bargaining representative for all operators, engineers, utility employees, and painters employed by the Employer at 1500 Louisiana Street, 1400 Smith Street, and 1600 Smith Street, Houston, Texas, but excluding all other employees, including office clerical employees, guards, watchmen, and supervisors, as defined in the National Labor Relations Act. Section 2. This Agreement relates only to the existing operations of the Employer at the locations set forth above. This Agreement does not apply to any other locations or operations of the Employer. Should the Employer obtain the operating rights, by any means, including purchase, of any other Employer or branch of any other Employer in whole or in part, such companies or parts of companies or portions of such acquired rights shall not be subject to this Agreement. Section 3. The Union recognizes that in consideration of commitments made by the Employer, there is an obligation upon every employee to give honest, efficient and economical service in the performance of his or her duties. Section 4. Nothing herein shall be construed as an exclusive grant of work to employees represented by the Union. The Employer shall continue to have the right to assign other employees to perform some or all of the duties of the employees in the bargaining unit. Supervisors shall continue to have the right to perform any of the duties of the employees in the bargaining unit. SectionS. The Employer retains the right to subcontract work performed by employees in the bargaining unit on a temporary basis. The Union recognizes that the Employer's customer has the right to remove work from the Employer, or to add work, and agrees that neither practice shall be a violation of this agreement. ARTICLE II - CONSTRUCTION Section 1. In this Agreement, except where the context otherwise requires, words in the singular number include the plural and words in the plural include the singular. Section 2. In this Agreement, except where the context otherwise requires or where a bona fide occupational qualification or requirement exists, words of the masculine gender include the feminine and the neuter and, when the sense so indicates, words of the neuter gender may refer to any gender. ARTICLE III - MANAGEMENT RIGHTS The Union acknowledges that all rights and prerogatives of management are retained exclusively by the Employer, without limitation, except as specifically modified by the express terms of this Agreement, including, but not limited to: the right to maintain order, discipline and efficiency; the right to make, initiate, alter and enforce employee rules, regulations, policies and practices; the right to discipline and discharge employees; the right to select, hire, train, direct and control the working force and employees; the right to transfer, assign, promote, demote, classify, reclassify, layoff, recall, replace, suspend, and retire employees; the right to introduce new and eliminate or change existing product equipment, machinery, or services; the right to subcontract; the right to make changes in job assignments; the right to detennine in good faith the existence of facts which are the basis of any and all management decisions; the right to plan, direct and control operations; the right to select and retain employees for positions excluded from the bargaining unit; the right to detennine prices and rates of production; the right to change reporting practices and procedures; the right to determine the location and extent of its operations and their commencement, expansion, curtailment or discontinuance in whole or in part, including but not limited to, the right to drop or add service, to sell, merge, consolidate, or lease the business, or any part thereof, free of the liabilities of this contract; the right to control productivity; the right to determine the standards, methods, and means of production, the right to determine the job content and requirements of any job or classification; the right to determine the number and qualifications of employees needed by the Employer at any time and the number of employees who shall operate on any given job shift, operation or unit of equipment; and the right to determine both the schedule and number of hours and shifts to be worked; the right to maintain or establish standards of quality and quantity to be maintained, including the establishment of production standards and quotas; and the right to determine the disposition of materials and supplies; and the right to require overtime of employees. The above enumeration of rights is by way of example and is not a limitation on the Employer's right to manage the enterprise and its business without interference, which rights are solely and exclusively the rights of the Employer, and the continuance or discontinuance of any past practice or benefit not enumerated in this Agreement is vested solely in the discretion of the Employer. ARTICLE IV - CHECK-OFF Section 1. For the convenience of the Union and those employees who may now be, or who may hereafter become, Union members, the Employer agrees to deduct from each such employee's pay the regular monthly Union dues and remit same to the Union in one lump sum by the 20th day of the calendar month following the month in which these deductions are made. Section 2. The Union agrees to procure new check-off authorizations from those employees covered hereby who may desire the Employer to deduct such monthly Union dues from their paychecks. Section 3. The Union agrees to hold the Employer harmless and to pay any and all Employer attorneys' fees, court costs and any judgments which may be procured against the Employer by reason of any controversy over the check-off of regular monthly Union dues. ARTICLE V - EMPLOYEE RIGHTS Section 1. Each employee covered by this Agreement shall have the right to individually decide to join or to refuse to join the Union or to continue to or refiise to remain a member thereof. Section 2. No employee's employment, continued employment, wages or other terms or conditions of employment shall be determined by, or be conditioned upon, either his non- membership or membership in the Union. ARTICLE VI - UNION RIGHTS Section 1. The Employer agrees that the Union shall have the right to designate one (1)

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