LABORERS' INTERNATIONAL UNION OF NORTH AMERICA A

SUPERVISION AGREEMENT

The General Executive Board ("GEB-) Attorney of the Laborers' International Union of
North America (''LIUNA'') and Local Union 5 ('Local 5" or "the Local"). by and through its
Executive Board (hereinafter. "the Parties"), enter into this agreement 7th day of October
1998, in order to resolve certain matters under investigation by the Inspector General ('"IG'') and
GEB Attorney's Office with respect to the internal affairs of Local 5

WHEREAS, the Inspector General and the GEB Attorney have become aware of allegations of.
financial malpractice within Local 5: improper record keeping; and undemocratic practices within Local 5
including, but not limited to, withholding meeting minutes and financial records from review and

WHEREAS, certain former officials of Local 5 have had strong ties to organized crime,
and

WHEREAS, such alleged financial malpractice, improper record keeping, and withholding
of minutes and of financial records, is contrary to both the letter and spirit of LIUNA's
Constitution. Ethical Practices Code, and Ethics and Disciplinary Procedure and

WHEREAS, the Parties agree that supervision over the affairs of Local 5 is appropriate
for the following purposes among others: assuring that financial malpractice is eradicated;
assuring that records are properly kept:assuring that the Local is operated in a democratic
manner. including but not limited to, the right of the membership to review minutes and financial

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records, assuring that organized crime has no influence over the Local: and, advancing the objectives of the
international and Local Union Constitutions in a manner that best serves the interests of the membership of
Local 5:

  1.      Pursuant to Article IX Section 7 of the Constitution of the Laborers' International
    Union of North American (LIUNA), Local 5 consents to the appointment of a Supervisor who
    shall be authorized to exercise all of the powers and responsibilities set forth in that Section. The
    Supervisor shall be authorized to take full charge of the affairs of Local 5 during the period of
    Supervision and to take any and all action that, in the Supervisor's judgment, is necessary to
    preserve or manage the Local and to protect its interests consistent with this Agreement and
    LIUNA's governing law. Such authority shall include, but shall not be limited to, the power: (a)
    to appoint, terminate or replace any employees or officers in accordance with paragraph 4 of this
    Agreement, (b) to appoint, terminate, replace and/or supervise stewards: (c) to retain or replace
    lawyers, accountants, other professionals, and service providers on behalf of Local 5 after
    consultation with the Executive Board; and (d) to retain or appoint persons to assist him in the
    exercise of his responsibilities.
  2.      The Supervisor stall have full and sole authority to manage, conduct, and oversee the financial affairs
    of the Local. including signature authority over checks, orders and accounts of Local 5. The Supervisor shall have
    the authority to delegate these powers at his discretion.
  3.     The GEB Attorney shall have the complete authority to appoint and, if necessary. replace the
    Supervisor during the period of Supervision.
  4.     The Supervisor. in his sole discretion, shall have the authority to remove and to

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replace an officer if he concludes that such action is consistent with the purposes and provisions
of the LIUNA constitution, the Eibical Procedures Code, and/or the Ethics and Disciplinary
Procedure, The current membersicif the executive board shall continue to exercise their
constitutional authoriLy under thaSupervisor's monitoring, with the exception that the Supervisor
shall have sole authority over theSnancial affairs of the Local, as stated in paragraph 2, above.

  1.     The costs of the Supervision, including the salaries or fees of the Supervisor, any
    deputy Supervisor, or assistants shall be borne by Local 5.
  2.     The GEB Attorny reserves all rights to seek to impose a trusteeship over Local 5
    in accordance with the LIUNA Constitution or to initiate disciplinary actions against any member
    or officer of Local 5. Deliberate violations of this Agreement by Local Union 5, its officers,
    members, or employees will constitute obstruction and may be grounds for a trusteeship or
    disciplinary action under the Ethics; and Disciplinary Procedure.
  3.     The anticipated term of this Supervision shall be for a period of twelve ( 12)
    months, however. Following consultation with the Supervisor of Local 5, the Trustee of the CDC
    (if the CDC is still under Trusteeship at that time) and LIUNA's Regional Manager, the GEB
    Attorney, in his sole discretion, may limit the period of the Supervision to less than twelve ( 12)
    months or extend the Supervision beyond the twelve (12) month period.

 

  1.     The appropriate officials of the Local shall continue to preside over all meeting's of
    Local 5 under the Supervisor's monitoring. However, in his sole discretion, the Supervisor may
    preside over any meetings of local 5 if he determines it to be within the best interest of the
    membership of the Local

 

  1.     The Supervision shall commence on October 7th, 1998

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  1.     Any dispute arising hereunder shall be adjudicated before the Independent Hearing
    Officer in accordance with such procedures as he may direct.
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Office of the GEB Attorney

Robert D. Luskin, GEB Attorney
Daniel Braun
Matthew Paul

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