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COLLECTIVE BARGAINING AGREEMENT

KNOW ALL MEN BY THESE PRESENTS: This Agreement made and executed by and between: DUMOPOY, MALAKI AND ROLDAN MANUFACTURING INC., a

corporationduly organized and exist ing under and by virtue of the laws of the Philippines wit h principal o ffice at Illustre St., Davao Cit y hereinafter referred to as the company;

-and-

DUMOPOY,

MALAKI

AND

ROLDAN

MANUFACTURING

EMPLOYEES

ASSO CI AT I ON AMU, a la bo r u nio n du ly a f f iliat ed w it h As so c iat io n o f Manufacturing Union, a duly organized labor federation, registered under theC e r t i f i c a t e o f R e g i s t r a t io n N o . 9 7 4 5 ( F E D ) L C w i t h o f f i c e s a t D a v a o C it y, hereinafter referred to as the UNION.

WITNESSETH; THAT

WHEREAS, the UNION has shown to the satisfaction of the COMPANY that it continuesto represent the majority of the rank and file employees within the appropriate bargaining unit ashereinafter defined in Article 1, Section 1, hereof;

WHEREAS, the COMPANY and the UNION desire to enter into an agreement to promoteand improve the industrial and economic relations between the COMPANY and its employees andthe UNION to establish a basic understanding relat ive to rates of pay, hours of work and otherconditions of employment, to prevent strike and lockouts, slowdown and other disturbances orinterference with production and operation, to obtain high levels of productivity and employeesefficiency and performance, and to provide means from the prompt adjustments or dispositionsof all disputes or grievances at anyt ime arising hereunder, as will advance the welfare in theinterest of the employees and foster cooperation between the COMPANY and the UNION; N O W T H E R E F O R E , fo r a nd i n c o n s i d e r a t io n o f t he p r e m i s e s , a n d o f t h e m u t u a l premises, covenants, stipulat io n and condit ions herein contained, the parties hereto agreed asfollows:

ARTICLE 1

SCOPE OF AGREEMENT

Section1. Appropriate Bargaining Agreement Unit The appropriate bargaining unitcovered by this Agreement consist of regular rank and file employees of the COMPANY exceptthose listed among the exclusion under Section 2 hereunder. Whenever the word employee isu s e d i n t h i s A g r e e m e n t , it s h a l l b e d e e m e d t o i nc l u d e o n l y t ho s e w it h i n t h e a p p r o p r ia t e bargaining unit as defined.

Section 2. Exclusions: Excluded from the bargaining unit are: A] Employees occupying managerial and supervisory positions; B] Probationary, temporary, casual employees, project workers/employees, summer job workersand seasonal workers; C] Trainees under the Government Sponsored Program such as SPES, WAP, Learners, Apprentices and the like; D] Employees in the Accounting Department; E] Secretaries, Management and Technical Staff and their assistants; Technical Staff are as follow: e.1] Ad and Promotions Staff e.2] Information Technology Staff e.3] EDP Staff e.4] Market Research Staff e.5] HRTD Staff e.6] Building Maintenance and Engineering Department Staff e.7] Leasing/Marketing Staff e.8] Security Personnel e.9] Drivers e.10] Cinema Projectionist F] Confidential Staff/Employees G] Manufacturers and Factory workers and others employed by other companies assigned anddetailed at the COMPANY; H] All those specifically excluded by law; I] Employees who by reason of religious beliefs are forbidden to join the UNION.

Section 3. It shall be understood that all the terms and conditions of employment of thee m p lo y e e co ver ed by t his A g r e e m e nt are e m bo d i e d h e r e i n, and t he sa me s ha l l go ver n

t h e relat io nship between the COMPANY and such employees. On t he other hand, all such

benefitsand/or privileges not expressly provided for in this Agreement but which are now being accorded,may in the future be accorded, or might have previously been accorded to the employees, shall bedeemed as purely discretionary acts of grace on the part of the COMPANY, in which case, can be withdrawn anytime and the continuance or repetition thereof now or in the future, no matter how lo ng o r ho w o ft e n, s h a l l n o t b e c o n s t r u e d a s e s t a b l i s h i n g a n o b l i g a t io n o n t he p a r t o f t h e COMPANY;

ARTICLE II MANAGEMENT PREROGATIVES

Section 1. Except as modified by express provisions of the Agreement, the UNION recognizes the right of the COMPANY to supervise, manage and conduct its business operations, including but not limited to, the direction of the working force, the hiring, rehiring, assignment, transfer, transfer to Manila and other places, promot ion, demot ion, discharge, lay-off, recall, suspensio n and discipline of employees; the determinat ion of the number of employees in any department, shift or job classificat ion; the determinat ion of the number and enforcement of regular and overtime work schedules; the establishment and revision of COMPANY policies, rules and regulations, including security working rules. I t i s f u r t h e r u nd e r s t o o d a nd a g r e e d t h a t a l l r i g ht s , p o w e r s o r a u t ho r it y p o s s e s s e d b y t h e COMPANY prior to the signing of this Agreement shall be retained by the COMPANY, except in sofar such rights, powers or authority are herein expressly modified by the terms of this Agreement.

Section 2. The COMPANY shall be at liberty to hire employees to fill in any positions itdeemed vacant upon such basis of compensation as may be agreed upon the time of hiring, andthe UNION recognizes that this is the exclusive prerogative of Management.

Section 3. The COMPANY may likewise transfer, discharge, lay-off or discipline an y probationary or temporary employees at its discretion, and such action shall not be subject of thegrievance procedure hereunder.

Section 4. The UNION however may seek reconsideration of any discharge, except fortheft, gross disrespect to immediate superiors and to company officers, serious misconduct or willfu l disobedience o f the lawful orders of his officers in connect ion wit h his work; gross andhabitual neglect of his studies, fraud or willful breach of the trust reposed in him by his employeror duly authorized representat ive; commission of a crime or offense against the person of hisemployer or any immediate member of the family or his duly authorized representative; and othercauses analogous to the

forego ing (as amended by Batas Pambansa Blg. 130) and furthermore,any other causes which are not covered by the Labor Code but maybe later on incorporated in theCode. Provisions on Employee Conduct & Discipline in the Companys Policies shall also formpart under this Section.

ARTICLE III UNION RECOGNITION AND SECURITY

Section 1. Recognition The COMPANY recognizes the UNION during the effectivity of this Agreement as the sole and exclusive bargaining representative of all employees wit hin theappropriate bargaining unit as defined in Section 1 and Section 2 of Article 1 hereof, for purposesof collective bargaining in all matters pertaining to rates of pay, wages, hours of work and otherterms and conditions of employment.

Section 2. The COMPANY hereby agrees and recognizes that all regular employees whoare members of the UNION at the time of the signing of this Agreement shall remain members of good standing in the UNION as a condit ion for their cont inued employment. Employees and workers who are not otherwise excluded from the bargaining unit as mentioned in Sect ion 2hereof or by reason of religious beliefs but who are not members of the UNION on the effectivedate of this Agreement, must beco me UNION members wit hin thirt y (30) days from signinghe r e o f, a nd m u s t r e m a i n m e m b e r s o f g o o d s t a n d i n g f o r t he d u r a t io n o f t h i s a g r e e m e nt a s condit ions for cont inued emplo yment wit h the COMPANY. Employees hired after the date of effectivity of this Agreement shall be required to become members of UNION within thirty (30)days after the termination of their probationary period. During the term of this Agreement, theemployees covered by t he Agreement herein shall remain members of good standing in theUNION, and employees losing their membership in the UNION by reason of resignation and/ore xp u l s i o n p r o v i d e d i n t h e l a t t e r c a s e , t h e a c t i o n o f t h e U N I O N i s i n a c c o r d a n c e w it h it s constitution and by-laws. May be recommended by the UNION to the COMPANY for dismissala n d t he C o m p a n y m a y, u p o n r e c e i p t o f t h e s a i d r e c o m m e n d a t io n, t a k e a p p r o p r i a t e a c t i o n, thereon as may be warranted. The UNION shall hold the COMPANY safe and harmless from any action which it decided to take under this provision.

ARTICLE IV CHECK-OFF

Section 1. The COMPANY agrees to make payroll deductions of membership dues andother assessments of the members of the UNION, provided, that no deduction shall be madeh e r e u n d e r

e x c e p t a s p e r m i t t e d b y l a w p u r s u a nt t o a c he c k - o f f a u t ho r i z a t io n s i g n e d b y t h e individual employees in the form heretofore agreed by the part ies. All deduct ions made by theC O M P A N Y w i l l b e t u r n e d o v e r t o t he T r e a s u r e r o f t he U N I O N w it h i n t e n ( 1 0 ) d a y s o f t h e following month. If no deductions can be made for any payroll period, the amount or amounts notdeducted shall be deducted from the salary of the employees when the latter resume work andstarts earning his salary; provided further that check-off shall commence upon the effectivity of this agreement. ARTICLE V JOB SECURITY

S e c t i o n 1 . T he C O M P A N Y r e c o g n i z e s t h e e m p l o ye e s r i g ht t o be s e c u r e d i n t h e i r employment without prejudice to and affecting the necessary action such as warning, suspensionand dismissal for just and valid causes as allowed by law and for violat ion of Company Rules,Regulations and Policies within the Company may take against an errant employee.

ARTICLE VI SENIORITY AND ROMOTIONS

Section 1. In matters relating to promotions, demotions, lay-off, rehiring after lay-off, voluntary transfers, and involuntary transfers overall performance and efficiency on the present job, quality of work, attendance, housekeeping, as well as qualifications, shall be considered at thesole discretion of the COMPANY. Seniority may be decisive factor of consideration only where theforegoing considerations and necessary qualifications are relatively equal.

Section 2. Should any vacancy occur or any position is created in any department of theCOMPANY, qualified employees within the COMPANY shall be given preference to the position,all other conditions being equal. ARTICLE VII OBLIGATIONS OF BOTH PARTIES Section 1. Justice and Fairness In the exercise of rights, the COMPANY shall observe j u s t i c e a n d fa ir ne ss, and t he C O M P AN Y shall no t discr iminat e a ga inst an e mp lo yee of

h i s membership in the UNION.

Section 2. D i s c i p l i n e T h e U N I O N s h a l l a s s i s t t he C O M P AN Y i n p r o mo t i n g a n d maint aining discipline, housekeeping, securit y of COMPANY assets and cooperatio n wit h

theobjective of achieving maximum efficiency in the COMPANYS operations and shall enjoin all itsmembers to render and perform their duties and responsibilities with due diligence, loyalty andefficiency.

Section 3. Mutual Cooperation Recognizing the job security and individual employees welfare will be further enhance through mutual cooperation, the UNION hereby agrees to extendfull support and cooperation with the COMPANY in cutting down unnecessary costs and expensesin its operations.

ARTICLE VIII SALARIES/WAGES, WORKING HOURS AND OVERTIME PAY

Section 1. Salaries and wages that are in accordance with law shall remain enforced. The Company likewise agreed to comply Regional Tripartite Wages and Productivity Board (RTWPB)-Region XI Wage Orders.

Section 2. Working hours of all employees within the appropriate bargaining unit whichare in accordance with the Labor Code followed by the COMPANY shall likewise remain the same.

Section 3. Any work performed beyond the working hours shall be considered overtime work and shall be compensated in accordance with the Labor Code, as amended.

ARTICLE IX VACATION, SICK AND OTHER LEAVES

Section 1. VACATION LEAVE The COMPANY shall extend to all regular rank and fileemployees the following vacation leave with pay: 1]7 days 1 year but less than 5 years of service 2]9 days 5 years but less than 10 years of service 3]10 days 10 years and above service

This section shall apply to all employees who are considered regular on or after April 2,2005 and takes effect upon signing of this Agreement thus repealing the conditions previously agreed. This provision does not apply to current regular employees who are already receiving 9-day vacat ion leave pay at the time o f renewal o f this CBA. Vacat ion leave is convertible to cash,and shall be given to the employees. The COMPANY policies and procedures shall be followed ingranting vacation leave.

Section 2. S I C K L E AV E T h e C O M P A N Y s h a l l e xt e n d t o a l l r e g u l a r r a n k a n d f i l e employees the following sick leave with pay: 1]3 days 1 year but less than 5 years of service 2]6 days 5 years but less than 10 years of service 3]7 days 10 years and above service

This section shall apply to all employees who are considered regular on or after April 2, 2005 andtakes effect upon signing of this agreement thus repealing the conditions previously agreed. Thisprovision does not apply to current regular employees who are already receiving 6-day sick leavepay at the time of renewal of this CBA. Sick leave is convertible to cash, and shall be given to theemployees. The COMPANY policies and procedures shall be followed in granting the sick leave.

Section 3. BIRTHDAY LEAVE an employee is ent it led to a birthday leave of one (1)day with pay during his/her birthday. A written notice of his/her intention to avail of such leaveshall be filed at least one (1) day in advance, otherwise, failure shall mean for forfeiture of the birthday leave with pay. Any emplo yee who may be required to work on such occasion shall begiven a premium equivalent to his/her daily rate.

Section 4.BEREAVEMENT LEAVE Any death that occurs among the immediatemembers of the family, an employee shall be entitled to a bereavement leave of three (3) days withpay. Any employee desiring to extend his/her leave may do so as long as he/she shall first secure a written approval from the COMPANY and such extended leave is understood to be without pay.

Immediate members of the family shall be defined as follows:

For single employee:A Parent (father, mother), legit imate brother/s and sister/s only. Fo r mar r ie d e mp lo ye e: A s po us e ( w ife o r hus ba nd) , le g it imat e c h ildr e n a n d p a r e n t s b y consanguinity only.

Section 5. WEDDING LEAVE. The Company shall allow an employee a one (1) day leave with pay on his/her wedding day. Only one wedding ceremony is considered in granting the leave. A written notice of his/her intention to avail of such leave shall be filed at least (1) day in advance,otherwise, failure shall mean forfeiture of the wedding leave with pay.

Section 6. UNION LEAVE. The COMPANY shall allow a maximum of one (1) week union leave with pay for one (1) duly appointed or elected union representative per calendar yearfor the specific purpose of unio n training and educat ion, provided that if the employee duly appointed or designated is one whose service is indispensable or necessary, the COMPANY shallhave the right to ask for a replacement or deferment unt il such t ime that the UNION LEAVE becomes convenient.

ARTICLE X OTHER BENEFITS, RIGHTS AND PRIVILEGES

Section 1. AWARDS Any employee who renders exemplary performance in his/herassigned duty shall be entitled to a performance award. Such awards may be in the form of cash,gift, plaque, certificate of any other form at the sole discretion of the COMPANY. Determination of the deserving employees shall be exclusive prerogative of the COMPANY and its decision forgiving the award, shall be final and can not be appealed.

S e c t i o n 2 . E X C E P T I O N A L S E R V I C E A W A R D A n y e m p l o ye e w h o r e n d e r s a n except ional service to the COMPANY, such as but not limit ed to, putting out of fire, catching athief or shoplifter, exposure of anomaly, invention of time and cost saving device and others, shall be granted an Except ional Service Award by t he COMPANY. The determinat ion of the service which merit the award, the nature of the award and the frequency of its being given shall be thesole and exclusive prerogative of the COMPANY and its decision in this matter is final.

Section 3. DEATH AID The COMPANY shall give aid to the heirs or dependents of thedeceased emplo yee who die during the effect ivit y of his/her contract, the amount of which issubject to the COMPANYS discretion.

Section 4. RETIREMENT PAY is paid to the Rank and File employee upon reachingthe retirement age established in this Collective Bargaining Agreement (CBA). A retirement pay isequivalent to one half (1/2) month pay for every year of service based on his/her latest basic pay.In the case of compulsory retirement, retirement pay is in accordance and as provided for by law.

A] OPTIONAL RETIREMENT Rank and File employee may retire even before his/her45th birthday if he or she rendered at least fifteen (15) years of continuous service with the COMPANY. B] COMPULSORY RETIREMENT A Rank and File employee shall compulsorily beretired upon reaching his/her 45th birthday, regardless of his/her length of service with the COMPANY.

Upon retirement of an employee, whether optional or compulsory, his/heremployment is deemed terminated and he/she is thereby effectively separated fromthe service. 1.In the event that the employee reaches the compulsory age of ret irement andsignifies his/her intention to continue rendering his/her service to theCOMPANY, the COMPANY shall have the sole discretion to allow the employee tocontinue his/her service. Submission of a written request by the employee forextension or continuation of service should be given two (2) months beforehis/her retirement.

Section 5.FREE MEDICAL CONSULTATION The COMPANY agrees to providefacilities for free medical consultation to employees who suffer from minor illness, which requireno hospit alizat ion. No emplo yees however, shall be ent it led to consult wit h a physician or hischoice unless he first obtains the approval and consent of the COMPANY.

Section 6. EMPLOYEES PUCHASE DISCOUNT The COMPANY agrees to grant to allemployees discounts on purchases they make at the COMPANY except on grocery, items on saleand other items at low margin. It is understood that the rate of percentage of discounts andperiod during which the discounts are to be availed shall be fixed at the sole discret ion of theCOMPANY.

Section 7. UNIFORM SUBSIDY The COMPANY agrees to partly subsidize uniform of the emplo yees but for the purpose of insuring proper handling, care and maint enance o f suchuniform, the COMPANY shall have the right to impose condit ions, as it may deem proper andconvenient.

Section 8. CALAMITY AID Given to the employees and/or members of the family whoare victim of flood, fire and other calamities that causes great loss to them. The COMPANY hasthe sole discretion to determine the assistance to be given whether in the form of cash or in kind.

ARTICLE XI JOB ENRICHMENT AND WORKING CONDITIONS Section 1. FAMILY PLANNING The COMPANY and the UNION hereby mutually agree to require all UNION members to attend family planning seminars to be conducted monthly and to print informative family planning materials such as leaflets and brochures or publicationsand/or distribution to members.

Section 2. WORKERS EDUCATION The COMPANY and the UNION hereby mutually agree to require at least a majorit y of the UNON members to attend educat ion seminars to beconducted

inside the COMPANY premises once or twice in every three months on labor relationscompany rules, union rules, labor code and its implementing rules including any all other laborsubjects; and for purposes o f enriching their basic knowledge of their job, the COMPANY shallconduct workshop clinics, educational movies and apprenticeship and learnership programs andseminars at such time and place as it may deem proper and convenient.

Section 3. REDUCTION OF MONOTONY In order to reduce monotony at work andpromote the health, in mind and body of its employees, the COMPANY agrees to provide better working condition, ventilation, lighting system, music system and sanitation facilities, wholesomecanteen, locker rooms and comfort rooms.

Section 4.RECREATIONAL ACTIVITIES To promote well-being and happiness of itsemplo yees, the COMPANY agrees to hold any of the following act ivit ies, namely excursio ns,picnics, audiovisual presentations, programs and sport activities, contests and tournaments.

ARTICLE XII GRIEVANCE PROCEDURE

S e c t i o n 1 . D e f i n it io n o f G r i e v a n c e A g r ie v a n c e i s a n y c o nt r o ve r s y be t w e e n t h e COMPANY and the UNION or an employee(s) covered by this agreement concerning any ruling,practice of terms and conditions of employment in the COMPANY, or any dispute arising as to themeaning of application of any provision of this Agreement.

Section 2. Since the grievance may emanate from either the worker or the COMPANY,t h e M a n a g e r o r h i s d u l y a u t ho r iz e d r e p r e s e nt a t i v e t a k e s u p t h e c o m p l a i nt l e v e l e d b y t he C O M P A N Y against t he e m p l o ye e w it h the P r e s i d e nt of t he UNION or his duly

a u t h o r i z e d representative and vice versa. Upon the filing of the complaint or grievance, the Manager and thePresident of the UNION or their duly authorized representat ives shall meet and discuss saidcomplaint or grievance with presence of the respondent. Complaints should be settled after two(2) meet ings, fro m the t ime the same is filed. In case of settlement, a written report shall berendered signed by the Manager, President of the UNION or their duly authorized representativesand the respondent concerned, stating the grievance complained of and the decision or settlementarrived at. Such settlement or decision shall be accepted as final and binding upon the COMPANY and the UNION. Should the parties fail to settle or decide the complaint or grievance, the sameshall be referred to the Union-Management Council.

Section 3. UNION-MANAGEMENT COUNCIL There shall be a council o f three (3)members; one to be appointed by the COMPANY as its representative, another to be appointed by the UNION and the third, shall be appointed by agreement of the two (2) representatives, whoseduties are: A] To thresh out any problem(s) that may arise from employer-union and emplo yerw o r k e r r e l a t io n s a nd r e c o m m e n d w a ys a nd m e a n s o r a c t io n s fo r it s s o l u t io n t o t h e respective heads of the two (2) organizations; B ] I t s h a l l r e c e i v e a l l c o m p l a i nt s a n d g r i e v a nc e a r i s i n g f r o m e m p lo y e r - u n io n a n d emplo yer-worker relat ions and it shall recommend measures to both parties for theirmutual advantages; C] All matters including grievances brought before the Union-Management Council shall be decided within five (5) days from filing of said matters.

In all meet ings of this council, all members must be present and no business shall bedeliberated upon if any member is absent. However, if any member shall be absent before themeeting starts, the party not represented shall immediately appoint one to represent him in theabsence o f the regular member, but if the absent member is the one appointed by agreement of both representatives present of the Employer and the UNION, the two (2) representatives shallagree between themselves on any person to take the place of the absent member. Any business ormatter shall be considered as passed and approved by the Council when there is a vote thereof by a t l e a s t t w o ( 2 ) me m b e r s p r e s e n t , a n d t h e s a m e s h a l l b e f i n a l a nd b i n d i n g o n t he p a r t i e s concerned.

T h e r e s h a l l b e no a c t io n t a k e n o n a n y ma t t e r p e nd i n g i n t h e C o u nc i l b y e it h e r t h e Employer or UNION before any action shall have been taken by the said council.

Members of the Council shall hold office at the pleasure of this appointing power whereast he third member who is appointed by representat ives shall hold office at the pleasure of therepresentatives.

The council shall immediately convene in a meet ing upon receipt of any co mplaint s orgrievance of any business or matter which is under its powers and duties.

T h e p a r t y w ho r e c e i v e s o r w ho d e s i r e s t o s u b m it a n y b u s i n e s s o r m a t t e r b e f o r e t h e council shall notify the other at least two (2) days before the date the council meets.

ARTICLE XIII ARBITRATION PROCEDURE

Section 1. Any disputed matters or controversies submitted to the Union-ManagementCouncil not otherwise settled therein shall be settled by arbitrat ion in accordance wit h the procedure set out in this Article XIII and shall be represented for arbitration unit all the steps of the grievance procedure are exhausted.

Section 2. The Arbitration Committee shall be composed of three (3) members, one to be a p p o i n t e d b y t h e C O M P A N Y , t h e o t he r b y t he U N I O N , a nd t he t h i r d , w ho s h a l l a c t a s Chairman to be appointed by mutual agreement of said representatives of both COMPANY andthe UNION within ten (10) days fo llowing receipt by eit her party of a written request for theappointment of the third member. If within the aforesaid 10-day period, the representatives of theC O M P A N Y a n d t h e U N I O N a r e u n a b l e t o a g r e e u p o n t he t h i r d m e m b e r , t he N L R C s ha l l b e r e q u e s t e d t o s u b m i t a l i s t o f f i v e ( 5 ) r e s p o n s i b l e a nd q u a l i f i e d a r b it r a t o r s fr o m w h i c h t he COMPANY and the UNION shall select the third member of the Arbitration Committee. Thes e l e c t io n s h a l l b e m a d e b y e l i m i n a t io n, o ne a t a t i m e f i r s t b y t he U N I O N a n d t he n b y t he COMPANY until there remains on the list only one Arbitrator, who shall be the third member of the Arbitration Committee.

Section 3. A party desiring to submit a dispute or controversy to arbitration shall submita notice in writing, which shall contain the name of the arbitrator to the other party. Within five(5) days fro m the receipt of t he written notice, the other party shall select the arbitrator andinform the opposite party of such choice.

Section 4. The Arbitrat ion Committee shall adopt such procedures as will enable thepart ies to the dispute, disagreement or controversy to present fully but expedit iously, theirrespect ive sides. The concurrence of two (2) members of the Arbitrat ion Committee shall benecessary to render a decision, which shall be in writing and signed by at least two (2) members of the Arbitration Committee.

Section 5. During the effectivity of this Agreement, Arbitration Committee shall have nopower to add, to subtract from or modify any of the terms of this Agreement made supplementary hereto. The decision of the Arbitration Committee shall be final and binding upon the COMPANY, the UNION and the employees and may be enforced in any court of competent jurisdiction.

Section 6. The Arbitrat ion Committee in rendering a decision should be guided by existing Agreement, the applicable laws, rules and regulations, the relevant jurisprudence and theevidence presented.

Section 7. The Arbitration Committee shall endeavor to render its decision within ten(10) days after the dispute, disagreement or controversy is submitted for decision.

Section 8. The cost of the Arbitration shall be shared equally between the parties.

ARTICLE XIV NO STRIKES AND LOCKOUTS

Section 1. NO STRIKE CLAUSE The UNION recognizes that the way to preserve jobsecurity, and to improve the welfare of the employees is to increase the goodwill and prosperity of t he b u s i n e s s o f t h e C O M P AN Y a n d t ha t t h i s i s a c c o mp l i s h e d i n l a r g e p a r t t hr o u g h p r o m p t , courteous, interested, lo yal and complete service by the employees to the COMPANY and it sclientele and it, therefore, being to the mutual interest of the COMPANY, the UNION and theemployees that the business of the COMPANY shall continue without inconvenience to the public,the UNION and its members or any emplo yee, individually or collect ively shall not, during thet e r m o f t h i s A g r e e m e n t , it s r e n e w a l o r e x t e n s io n, c a u s e , p e r m i t o r t a k e p a r t i n a n y s t r ik e , stoppages or slow-down, boycotts, secondary boycotts, refusal to handle work, picketing, sit-downstrikes or any kind of sympathetic or general strikes or any interference with the operations of theCOMPANY, including walkouts and demo nstratio ns against the COMPANY or any office oremployee of the COMPANY.

Section 2. NO LOCKOUT CLAUSE On the same premise as above, the COMPANY shall not, during the term of this Agreement, engage in a lockout against the UNION.

ARTICLE XIV WAIVER AND SEPARABILITY PROVISIONS

Section 1. WAIVER CLAUSE. The COMPANY and the UNION acknowledge thatd u r i n g t h e n e g o t ia t io n s r e s u lt e d i n t h i s Ag r e e m e nt , e a c h o f t he m h a d t h e u n l i m i t e d a n d unrestricted right and opportunit y to make demands and proposals wit h respect to any and allmatters which could properly be the subject of collective bargaining, and that it was through theexercise of that right and prerogative that the covenants and stipulations herein contained werearrived at and agreed upon. The COMPANY and the UNION, therefore, agree that during theeffect ivit y of this Agreement any benefits granted herein if already provided by law shall not beobligated to bargain collectively with respect to any subject or matter whatsoever whether coveredherein or not, or whether or not within the knowledge or contemplation of either or both partiesat the time they negotiated and signed this

Agreement, or for the purpose of amending, revising ,supplementing or any manner or modifying, or revoking or terminating this Agreement.

Section 2. SEPARABILITY. The parties hereto further agree that in the event any partof this Agreement is held invalid by operation of law, the remainder thereof shall not be affectedthereby and shall continue in full force and effect.

ARTICLE XVI TERM OF AGREEMENT

Section 1. This Agreement shall be binding upon the signatories hereto and upon their respective successors for five (5) yearsand shall be in full force and effect beginning April 2,2005 up to April 1, 2010 subject to reopening of negotiation for economic benefits after three(3) years from the signing. This Agreement is subject to extension unless terminated at the end of the original period of any subsequent term, upon at least sixty (60) days written notice prior tothe expiration date of either party to the other of its intention to terminate, amend or supplementthis Agreement.

Section 2. It is further agreed that provisions of this CBA shall cont inue to remain ineffect until new agreement is signed by the parties.

IN WITNESS WHEREOF, the parties hereto have caused these presents to be signed on ________________ at Davao City, Philippines.

For the UNION: ASSOCIATIONS OF MANUFACTURING UNIONS (AMU) By:

DAVID M. MUSTAINE National President

For the COMPANY: DUMOPOY, MALAKI AND ROLDAN MANUFACTURING INC. By:

ALEXI L. LAIHO

Factory Manager

For the Local: DUMOPOY, MALAKI AND ROLDANMANUFACTURING EMPLOYEES ASSOCIATION AMU By: JOHN P. PETRUCCI Local President SIGNED IN THE PRESENCE OF: ____________________________ __________________________________ ACKNOWLEDGEMENT Republic of the Philippines CITY OF DAVAO x----------------------------B E F O R E M E , t he u nd e r s i g n e d N o t a r y P u b l i c i n a n d fo r D a va o C i t y, P h i l i p p i n e s o n t h i s _________ day of ________, 2005, personally appeared M R . A E X I L . L A I H O i n hisc a p a c i t y as t h e Factory Manager of DUMOPOY, MALAKI AND

R O L D A N , MANUFACTURING Inc. with Community Tax Cert. No. 11581791 issued on February 16, 2010at Davao Cit y, Philippines, and M R . D A V E M . M U S T A I N E i n h i s c a p a c it y a s NationalPresidentof the ASSOCIATION OF MANUFACTURERS UNIONS, with Community TaxC e r t . N o . 1 2 9 5 0 8 5 7 i s s u e d o n F e br u a r y 1 1 , 2 0 1 0 a t T a g u m C i t y, P h i l i p p i n e s a n d JOHN P.PETRUCCI i n h i s c a p a c i t y a s t h e L o c a l P r e s i d e n t o f D U M O P O Y , M A L A K I AND ROLDAN MANUFACTURING EMPLOYEES ASSOCIATION AMU, wit h

Co mmunit y Tax Cert. No. 12950877 issued on February 11, 2010 at Davao City, Philippines known to me thes a m e p e r s o n s w ho s i g n e d t h e fo r e g o i n g C O L L E C T I V E B A R G AI N I N G c o m p o s e d o f 9 p a g e s including this page and acknowledges to me that the same is executed by them in their free and voluntary act and deed. WITNESS MY HAND AND SEAL on the day month and year and the place first hereinabove written. Doc. No. ___________ Page No. ___________

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