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LETTER OF UNDERSTANDING <br />This Letter of Understanding (the "LOU") is made by and between the International <br />Longshore and Warehouse Union, Local 6 (the "Union"), and Alameda County Industries, LLC, <br />a California limited liability company ("ACI"). ACI and the Union are currently in the process <br />of negotiating an initial collective bargaining agreement (the "CBA") on wages, hours and other <br />terms and conditions of employment, covering Local 6 bargaining unit workers employed by <br />ACI at the materials recovery facility located at 610 Aladdin Avenue in San Leandro, California <br />(the "MRP). <br />ACI and the Union have reached a tentative agreement ("TA") on wages and benefits for <br />the Local 6 bargaining unit as part of their negotiations for an initial CBA. The terms of the TA <br />are as follows: <br />1. ACI and the Union have tentatively agreed to the wages and benefits set forth in <br />Attachment A to this LOU. <br />2. ACI and the Union agree that the TA is contingent upon approval by the cities <br />that are major users of the MRF (Alameda, Livermore and San Leandro) of <br />adequate rate increases for the franchised waste hauler of these cities that will <br />enable such hauler to pay processing fees at the MRF that are sufficient in amount <br />to cover ACI's operating costs at the MRF, including ACI's costs under the CBA. <br />3. ACI and the Union agree that the determination of whether approved rate <br />increases are sufficient in amount for purposes of incorporating the tentatively <br />agreed-upon wages and benefits set forth in Attachment A into a final CBA shall <br />be made by ACI in its sole discretion. <br />4. ACI and the Union agree that if any of the rate increases prove to be insufficient <br />to support the agreement memorialized in Attachment A then the parties will <br />continue bargaining in good faith towards a mutually acceptable initial collective <br />bargaining agreement. <br />This LOU expresses the mutual intent of ACI and the Union with respect to wages and <br />benefits. <br />THE UNION ACI <br />By: 13y <br />Title: Tit <br />