COLLECTIVE BARGAINING AGREEMENT

                                    between

                         ALLIED TECHNOLOGY GROUP, INC.


                                      and


                INTERNATIONAL UNION OF OPERATING ENGINEERS #280

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                               TABLE OF CONTENTS



                                                                         PAGE
                                                                   
Article 1   -    Preamble                                                   4
Article 2   -    Union Recognition                                          4
Article 3   -    Union Security                                             4
Article 4   -    Payroll Deduction                                          5
Article 5   -    Business Representative Access                             5
Article 6   -    Bulletin Board                                             5
Article 7   -    Non-Discrimination                                         6
Article 8   -    Management Rights                                          6
Article 9   -    Due Process in Discipline                                  6
Article 10  -    Seniority/Reduction in Work Force                          7
Article 11  -    Jury Duty                                                  8
Article 12  -    Funeral Leave                                              8
Article 13  -    Hours of Work and Overtime                                 8
Article 14  -    Vacation                                                  10
Article 15  -    Holidays                                                  11
Article 16  -    Compensation for Travel Time                              12
Article 17  -    Tuition Assistance/Commercial Driver's License (CDL)
                  Miscellaneous Facilities                                 12
Article 18  -    Sick Leave                                                13
Article 19  -    Health and Welfare Programs                               14
Article 20  -    Pensions                                                  14
Article 21  -    Performance of Duty, Strikes and lockouts                 14


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Article 22  -    Grievance Procedure                                       15
Article 23  -    Savings Clause                                            16
Article 24  -    Entire Agreement                                          16
Article 25  -    Probation                                                 17
Article 26  -    Substance Abuse                                           17
Article 27  -    Health and Safety                                         17
Article 28  -    Appendices Incorporated into Agreement                    18
Article 29  -    Term of Agreement                                         18
Article 30  -    Subcontracting                                            18
Signature Page                                                             19
Appendix A                                                                 20
                                                      

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Article 1                                                     
Preamble                                                      
                                                              
This mutual Agreement is entered into by the International Union of Operating
Engineers Local #280 (hereinafter referred to as the Union) and Allied
Technology Group, Inc., Richland, WA (hereinafter referred to as the Employer).
The purpose of this Agreement is the promotion of harmonious relations between
the Company and the Union; the establishment of equitable and peaceful
procedures for the resolution of differences; and the establishment of rates of
pay, hours of work, and other terms and conditions of employment.

Article 2
Union Recognition

The Employer recognizes the Union as the sole and exclusive bargaining agent for
all employees employed at its Richland, Washington facility in the job
classifications set forth in Appendix A of this Agreement. Excluded are all
Office Clerical Employees, Managerial Employees, Confidential Employees, Guards,
and Supervisors as defined by the National Labor Relations Act. Unit
certification is granted to the Union per National Labor Relations Board
certification case 19-CR-l3183. If the Company establishes a new operation in
Richland, Washington, the Company and the Union agree to discuss whether or not
the employees in the operation should be included in the bargaining unit. Absent
agreement on this subject; either party may petition the NRLB to determine
whether or not the employees should be included in the bargaining unit.

Article 3
Union Security

Section 1. All regular full-time employees hired after the effective date of
this Agreement shall become members of the Union within thirty (30) days
following the signing of this Agreement and shall remain members in good
standing during the life of this Agreement as a condition of continued
employment.

Section 2. The Employer shall discharge non-complying employees upon receipt of
a written request to the Plant Manager from the Union.

Section 3. The Union agrees to defend at its own expense and hold the Employer
harmless in the administration of Article 3 and Article 4.

Section 4. The Employer shall notify the Union of any changes to the bargaining
unit.

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Article 4
Payroll Deduction

The Employer agrees to deduct from the paycheck of each employee covered by this
Agreement, who has so authorized it by signed notice submitted to the Employer,
the initiation fee and regular monthly dues. The Employer shall transmit such
fees to the Union once each month on behalf of the employees involved.

The Union shall provide at least thirty (30) calendar days written notice in
advance of a change in either initiation fees or dues.

Employees who authorize deduction of dues may cancel this authorization once
annually on the anniversary date of contract or at the expiration of the
Agreement upon thirty (30) days written notice to the Employer and the Union.

Article 5
Business Representative Access

The Employer agrees to allow reasonable access to Company facilities for
business representatives who have been properly authorized by the Union. The
Union shall notify the Plant Manager in writing of the name(s) of such
representatives. Such access shall be permitted in a manner as not to in any way
interfere with the work of employees of the functions of the Company. This
Article shall apply within the constraints of federal or state regulations and
statutes.

Such business representatives shall in each case obtain prior permission from
the Plant Manager or his designated representative of their presence on the
property prior to contacting employees. Such access shall not be unreasonably
denied. Nothing in this Article shall be construed as entitling the business
representative to talk to the employees during their work hours. Lunch and break
periods are not considered work time.

Article 6
Bulletin Board

A bulletin board found to be acceptable and in compliance with the needs or
limited use by the Union shall be provided by the Employer. This bulletin board
shall be used, maintained, and controlled exclusively by the Union members. It
is understood and agreed to that no material shall be posted which is obscene,
defamatory, or libelous.

The location of this bulletin board shall be out of public view and in the lunch
room.

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Article 7
Non-Discrimination

It is mutually agreed between the Employer and the Union that there shall be no
discrimination against any employee because of race, color, creed, national
origin, sex, age, disability or Vietnam-era status. Military leaves shall be
administered in conformance with Title 38 of the Revised Codes of Washington.

Normally, discrimination issues that arise in the work place will be handled by
the proper agency. However, with an appropriate waiver, an employee may elect to
use the grievance and arbitration procedure to finally resolve the issue.

Article 8
Management Rights

Except as otherwise specifically stated elsewhere in this Agreement, the
Employer has the sole right and discretion to operate and run its business as it
sees fit. By way of example, and not limitation, the Employer shall have the
exclusive right and power to set work schedules; determine the products to be
manufactured; determine production levels, quality and quantity standards, sales
methods, prices, types of equipment, tools and machinery to be used; determine
when employees should be promoted or demoted; determine when layoffs tire
necessary; subcontract part or all of its operations or work; determine the
number of employees to be employed, including the number of employees to be
assigned to any particular machine or shift; fill openings; establish work
rules; direct and supervise all of its employees; evaluate the performance and
capabilities of its employees; assign employees to various machines, jobs, and
shifts; determine when overtime must be worked (nothing in this Agreement shall
be read to preclude supervisors or management employees from performing
bargaining unit work when reasonably necessary and when such work does not
permanently displace regular full-time employees); determine when temporary
employees must be utilized, providing that temporary employees will not be
utilized at a time that regular employees are on layoff (aside from layoffs due
to medical, disability, or voluntary absences from work); determine the skills,
abilities, and competency of its employees; and determine whether or not to
terminate or shut down its operations in Richland, Washington.

Article 9
Due Process in Discipline

The Employer may discipline employees for just cause. In any meeting between
representatives of the Employer and an employee in which disciplinary action is
to be taken, the employee shall be entitled to have present, the Union's
business representative or steward. Any disciplinary action involving a written
reprimand, suspension, demotion, or discharge shall be subject to the grievance
and arbitration procedure set forth in this Agreement. Copies of all documented
disciplinary action taken against an employee shall be provided to the Union
upon employee request.

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Article 10
Seniority / Reduction in Force

Section 1. The decision to reduce the work force shall be the exclusive
authority of the Employer.

Section 2. Layoffs will occur according to seniority within the applicable job
classification to which individuals are assigned only if skills, performance,
and abilities are equal. The Employer will have sole discretion to determine
skills, performance, and abilities of its employees so long as such
determinations are not arbitrary or capricious.

Section 3. Employees laid off in accordance with the provisions of this Article
will be eligible for rehire in the inverse order or layoff for a period of
eighteen (18) months following layoff.

Section 4. Except in cases or emergencies, power failure, or Acts of God,
written notice shall be provided to each employee scheduled for layoff at least
ten (10) work days prior to layoff.

Section 5. In the event an employee is eligible for recall as in Section 3,
above, the Employer will notify the employee by certified mail, return receipt
requested, at the last address provided in writing by the employee. The employee
must accept the recall within two weeks of notification. Failure either to
respond or to accept the recall releases the Employer from all further
obligation to the employee. The Employer may use temporary employee(s) until
such time as the employee accepts or rejects the recall.

Section 6. A seniority roster will be provided annually to the Union.

Section 7. The parties recognize the necessity for the Company to employ
temporary employees to augment the regular full-time work force during periods
of increased production. Temporary employees are not covered by this Agreement.
Temporary employees may be employed for up to (180) days in a twelve (12) month
period. If a temporary employee is employed for more than 180 days in a 12 month
period without mutual agreement by the parties, such employee shall become a
regular full-time employee of the Company.

Section 8. As regular full-time vacancies occur, regular full-time employees
shall be given first consideration to fill vacancies that constitute a promotion
within the bargaining unit. Following first consideration of regular full-time
personnel, should a vacancy remain, next consideration to fill such a vacancy
will be given to temporary employees. Upon acceptance to full-time positions and
following successful completion of the ninety (90) day probationary period,
temporary employees shall be credited seniority from the first day of their most
recent continuous employment as a temporary employee.

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Article 11
Jury Duty

The Employer will giant employees time off for mandatory jury duty. Employees
who have successfully completed their probationary period will receive full pay
less witness fees received for up to 40 hours. Employer compensation for service
as a subpoenaed witness (not Employer related) or on jury duty only applies to
absence from regularly scheduled work hours.

For service required by the Employer as a witness, Employer compensation outside
of regularly scheduled work hours is payable at the overtime rate if such
service is in excess of the normal daily or normal weekly working hours'
schedules.

Employees who are involved in suits against the Employer as plaintiffs or
complaints shall do so without compensation and on their own time (off-shift
hours, vacations, etc.).

Employees called for jury/witness duty to report to the Court and are
released early will contact their Supervisor and return to Employer duties if so
instructed.

Article 12
Funeral Leave

The Employer shall allow up to three (3) working days per bereavement with pay
to employees who have been employed for thirty (30) or more days of
uninterrupted service and who have suffered the loss by death of a member of the
employee's immediate family. In the event either extended travel or estate
administration duties are required by the employee, the Plant Manager, in his
discretion, may grant up to five (5) days of funeral leave. The two (2)
additional days shall be deducted from the employee's accumulated sick leave or
accrued vacation.

For the purpose of the above "immediate family" is defined as spouse, parent,
daughter son, brother, sister, mother-in-law, father-in-law, daughter-in-law,
son-in-law grandparent, grandchild, a person who is legally acting in one of the
above capacities, or another relative living in the employee's residence, but
not more distant relatives.

Article 13
Hours of Work and Overtime

Section 1 Hours of Duty - The normal work day for employees shall be 6:30 a.m.
to 3:00 p.m. or an optional 4-10 hour shift may be established beginning at 6:30
a.m. and ending at 5:00 p.m.

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The normal work week shall consist of consecutive days, Monday through Friday. A
thirty (30) minute uncompensated mealtime is normally scheduled. The equivalent
of two fifteen (15) minute rest periods during a normal work shift shall be
provided in a normal work day. The break periods are to be taken in the break
room or as otherwise approved by the Supervisor.

Compensation for the normal work week will be straight time for the first forty
(40) hours of work and time and one half for additional hours as required in the
above schedule.

Company will initiate a "Letter of Understanding" that assures, that, absent
extraordinary situations, employees normal work week will not be shortened or
adjusted to avoid the payment of overtime.

Section 2. Overtime Pay and Exceptions - Except as provided below, overtime
shall be paid for hours worked in excess of 40 hours per week.

Exceptions:

          (a)  When an employee is involved in trading days off with another
               employee which results in work in excess of the normal work week;
          (b)  When, due to a shortage of personnel or extraordinary
               circumstances, an employee's previously approved vacation must be
               cancelled and rescheduled.

Section 3. Notice of Work Schedule Change - Employees shall be provided twenty-
four (24) hours advance notice in the event or work schedule changes, except in
extraordinary situations.

Extraordinary situations are defined as any situation outside the normal which
impacts Company operations and for which the Company has no control.

Section 4. Approval for Overtime Work and Compensation - Authority for approval
of any overtime work shall be limited to Supervision. Approval shall be in
advance where practicable. Overtime shall be paid at one and one-half times the
rate of pay for the work performed, there shall be no compounding or
"pyramiding" of overtime pay. Also, see holidays.

Section 5. Call Time - An employee called back to work, while on personal time,
will be paid a minimum of two (2) hours call time. Employees required to report
in early for their normal shift and for employees held over after their normal
shift will not be eligible for call time minimum.

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Section 6. Job Transfers - An employee permanently transferred from a job in one
classification to a job classified at either a higher or lower rate of pay, will
receive the rate of pay for the job to which he is transferred.

Section 7. Overtime List - A separate, voluntary overtime list shall be
established for each classification represented by the bargaining unit. The
overtime list will be purged of all hours at the beginning of each month.

Overtime will be offered first to the qualified employee with the least amount
of total overtime hours. Overtime will be distributed as equally as practicable.
Employees shall be called for overtime work starting with the name at the top of
the appropriate list. When an employee has worked four (4) or more hours of
overtime, his name shall rotate to the bottom of the list. If an employee
refuses to work offered overtime, except for illness or during vacation, his
name shall be rotated to the bottom of the list.

In the event overtime is refused by all employees in a classification, the
qualified employee with the least overtime hours will be required to work.

If employees in the needed classifications cannot be contacted, employees on the
other classification lists may be called.

Article 14 Vacation
Annual vacation with pay shall be granted to employees on the following basis:

Section 1. Scheduling of Vacation Leave: Regular full-time employees may request
and use vacation leave, subject to the approval of the Supervisor.

Section 2. Limits on Accumulating Vacation Leave: Accumulated vacation (annual)
leave shall not exceed thirty (30) working days as of December 31st of any year.

Section 3. Vacation Schedule - Vacation time shall be computed for those on the
regular full-time payroll of the Employer on the following basis:
 
  (a)    1 to 5 years    5/6 of a day per month        80 hours
  (b)    5 to 10 years   1.25 days per month (1-1/4)  120 hours
  (c)    10 to 35 years  1.67 days per month (1-2/3)  160 hours

The amount of vacation will be set forth from the schedule. The number of days
accrued to his credit will be computed from the schedule. Vacation accrual shall
occur only while an employee is on regular full-time employee status.

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After a new employee has completed six (6) months of regular full-time
employment, he will be entitled to vacation subject to the approval of the
Supervisor.

Section 4. Payment for Vacation Leave at Termination - Should an employee leave
the employment of the Employer, prior to his having had the opportunity to take
his vacation, the Employer, upon his separation from the employment thereof,
will pay any accrued vacation time, at the above rate, provided that the
employee has been employed at least 90 days as a regular full-time employee, on
the next pay period following separation from the Employer.

Section 5. Annual Accrual of Vacation - Employees shall not be entitled to use
their annual accrual of vacation in advance of actual accrual except in
instances of Plant Manager approval.

Section 6. Cancellation and Rescheduling - In the event of an emergency or a
personal shortage due to unusual circumstances, vacations may be delayed by the
request of the Plant Manager, provided that those vacations will be promptly
rescheduled at a mutually agreeable time.

Article 15 Holidays

Section 1. Except as hereinafter specified, the following days shall be observed
as holidays. Employees shall be paid for such day(s) based upon the normal shift
schedule being worked in the work week in which the holiday is observed:

                                    HOLIDAY

               (a)  New Year's Day
               (b)  President's Day
               (c)  Memorial flay
               (d)  Independence Day
               (e)  Labor Day
               (f)  Thanksgiving Day
               (g)  Day after Thanksgiving
               (h)  Day berate Christmas
               (i)  Christmas Day
               (j)  Day before New Year's Day

Section 2. Employees shall normally be scheduled off with pay on each of the
identified holidays as observed by the Employer.

Section 3. If an employee works any of the holidays lined above, that employee
shall be compensated at the rate of two times his regular pay for the hours
worked only on the day actually observed by the Employer.

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Section 4. In order to be paid for a holiday not worked, an employee must have
worked the last scheduled day preceding the holiday, and the first scheduled day
following the date of which the Employer observes the holiday, or must be on an
approved absence.

Section 5. When any of the holidays falls on a Saturday, the Friday immediately
preceding such a holiday shall be observed as the holiday, when any of the
holidays fall on a Sunday, the Monday immediately following shall be observed as
a holiday.

Article 16
Compensation for Travel Time

Section 1. The Employer agrees to reimburse employees required to travel for
reasonable out-of-pocket expenses that may be incurred for transportation,
meals, and lodging. Expenses covered shall be limited to those incurred only in
connection with the assignment and shall cover employee expenses only. Proof of
expenditures shall be required for reimbursement. Per diem allowances may be
authorized by the Company in lieu of actual expenses. However, per diem
allowances will be discussed and agreed by employee and Employer prior to
assignment.

Section 2. An employee's normal pay on an eight or ten hour work day shall apply
in connection with travel assignments.

Section 3. When travel by an employee's private vehicle is required and
authorized by management, such travel shall be reimbursed in accordance with the
mileage reimbursement at the ATG Corporate approved rate.

Article 17
Tuition Assistance / Commercial Driver's License (CDL)/ Miscellaneous Facilities

The employer agrees to provide the following:

A.  The Employer will reimburse employees for the cost of job related education
and training that has been approved in advance by the Employer.

B.  The Company shall reimburse employees for the costs incurred by the employee
to maintain his/her Employer required CDL and the endorsements required for
his/her job duties. Reimbursement shall be limited to license testing fees;
license fee, exclusive of regular basic driver's license fee. Employees shall
each be responsible to timely obtain and maintain their CDL with the
endorsements necessary to perform their job duties.

The Company shall arrange for and pay up front for the cost of the required CDL
physical exam at a location to be determined by the Company.

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C.  The Employer agrees to furnish adequate microwave ovens and refrigerators to
be located in the common lunch room.

Article 18 Sick Leave

A.  Upon successful completion of the 90 days probation period, regular full-
time employees shall begin to accumulate sick leave at the rate of 1.54 hours
every two weeks for each full month of continuous employment. Employees may
accumulate up to forty (40) hours of sick leave per year. Employees may credit
against sick leave those absences which are necessary only for reasons of
illness or injury defined below.

B.  Any employee, who must take sick leave, shall as soon as possible notify the
Supervisor. The Supervisor will, on a continuous basis, determine that sick
leave privileges are not abused. After an illness absence, the Employer may
require the employee to obtain a release from his/her physician before returning
to work.

C.  Sick leave may be taken for absences covered by the State and Federal Family
Leave Statutes.

D.  An employee who suffers a compensable on the job injury requiring absence
from work will be permitted to apply accumulated sick leave to the first three
(3) work days of such absence less any state compensation which may be
applicable. During the absence of such employee, said employee will be
considered as being "on leave of absence-compensable injury" and as such the
Employer will continue to pay the medical, hospital, dental, vision, and hire
insurance premium. If the employee qualifies for time loss payments, those
payments will he made at a rate established by the State of Washington
Department of Labor and Industries and payment will be made directly to the
employee. The employee agrees to follow State approved claim procedures and to
keep the Employer informed of the claim's processing status.

E.   Under no circumstances will sick leave be taken in lieu of annual leave
     (vacation).

F.   January 1st of each year, regular full-time employees will begin to accrue
     sick time from a zero balance. Sick time which has not been used will not
     be carried into the new calendar year.

Each employee shall receive an itemized statement of total sick leave earned and
accrued quarterly. Any discrepancies or errors must be reported within the next
quarter and reconciled with 
payroll.

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Article 19
Health and Welfare Programs

Section 1. Upon successful completion of the probationary period, all regular
full-time employees shall be enrolled in the MSC-PP04 medical insurance and
Fortis Group Dental insurance programs. The Company will maintain the full cost
of the insurance plan, for employees, for the life of this Agreement. The
Company agrees to maintain the benefit(s) and cost of employee (only) life
insurance for the term of this Agreement.

Section 2. Should it become cost effective to change insurance carriers during
the life of this Agreement, the Company may choose to do so provided benefits of
the described insurance plans are not diminished.

Section 3. Beginning in the second year/anniversary of this Agreement, the
Company will apply $50.00 towards the monthly insurance premium for employees
optioning for dependent coverage. This contribution applies towards Company
sponsored insurance programs only.

Article 20
Pensions

Section 1.   Beginning in the second year/anniversary of this Agreement, the
Company agrees to enroll its regular full-time employees in the IUOE Central
Pension Plan. Contribution rate to the plan shall be in the amount of twenty-
five (5.25) cents per hour worked up to a maximum of 2,080 hours per contract
year for each regular full-time employee covered by this Agreement. Employees
are not entitled to participate in the Company's 401(k) plan.

Section 2.   The Company agrees to make a payroll deduction to an annuity plan
which the Union may sponsor in lieu of the existing Company 401(k) plan. No
Company contributions will be made to said plan.

Article 21
Performance of Duty, Strikes, and Lockouts

Section 1.   The Union agrees that no employee shall engage in a slowdown, work
stoppage, or strike including a sympathy strike provided that a reserved gate is
established, nor shall any employee refuse to perform assigned duties.

Section 2.  The Employer agrees that there shall be no lockouts.

Section 3.   The conditions stated in Sections 1 and 2 of this Article shall
remain in effect with or without a signed labor agreement, unless either party
serves notice to the other following the expiration date of this contract.

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Article 22
Grievance Procedure

A.   Should differences arise between the Company and the Union or employees as
to the meaning and application of the provisions of this Agreement, or as to the
compliance of either party with any of the obligations under this Agreement,
earnest effort will be made to settle such differences immediately under the
following procedure:

     (1) Between the aggrieved employee or employees, with the Union
     representative or steward, together with the Supervisor of the department
     involved. All grievances must be submitted within seven (7) days after
     occurrence.

     (2) Between the Union representative or representatives, not exceeding two
     (2), with or without the aggrieved employee or employees, and the Plant
     Manager or designated representative. All grievances must be reduced to
     writing, identifying the factual basis of the grievance and the section of
     the Collective Bargaining Agreement that has been violated and presented in
     this step within teal (10) days after the previous step.

     (3) If a settlement agreement is not reached in the preceding manner, then
     either party may submit the case to arbitration. Within five (5) days after
     notice of intent to arbitrate, designated representatives of the Company
     and of the Union will meet for the purpose of selecting an arbitrator, who
     shall be selected either by the agreement of the parties or by alternately
     striking arbitrators from a list provided by the FMCS.

B.  The respective parties shall bear the expenses they incur in preparing the
arbitration and expenses of the arbitrator shall be equally shared by the
parties hereto.

C.  The arbitrator shall not decide any grievance or dispute which does not 
specifically arise out of the express terms of this Agreement.

D.  The arbitrator shall not decide on the merits of wisdom or any action or
failure to act, but only on the contractual obligations inherent in this
Agreement.

E.  it is the intent of this Agreement that the arbitrator submit his decision
with the least practicable delay.

F.  When a settlement is agreed upon at any step set forth in this Article, such
settlement agreements shall be final and binding upon both parties.

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G.  Nothing in this Agreement shall be deemed to limit the right of the Company
to discharge an employee for cause. Any case involving the discharge of any
employee may become a grievance and be honored immediately in accordance with
the procedures act forth in this Agreement. The complaint must be filed in
writing with the Company within seven (7) days of such layoff or discharge.
Failure to file automatically precludes any claim.

The parties hereto agree that the arbitrator may award either partial or all
backpay as justified in instances where reinstatement is ordered, but may not
award emotional distress, punitive, liquidated, or consequential damages.
Backpay awards shall not exceed sixty (60) days.

H.  Unless the parties otherwise agree, each grievance and arbitration shall be
separately grieved and arbitrated..

I.  Any of the time limitations specified in this procedure may be extended by
mutual agreement between the parties.

Article 23
Savings Clause

If any Article of this Agreement or any Appendix hereto should be held invalid
by operation of law or by any tribunal of competent jurisdiction, or if
compliance with or enforcement of any Article or Appendix should be restrained
by such tribunal the remainder of this Agreement and Appendices shall not be
affected thereby, and the parties shall enter into collective bargaining
negotiations if deemed necessary by either one, for the purpose of arriving at a
mutually satisfactory replacement of such Article.

Article 24
Entire Agreement

Section 1. This Agreement expressed herein in writing constitutes the entire
agreement between the parties and no oral statement shall add to or supersede
any of its provisions.

Section 2. The parties acknowledge that each has had the unlimited right and
opportunity to make demands and proposals with respect to any matter deemed a
proper subject for collective bargaining. The results of the exercise of that
right are set forth in this Agreement. Therefore, except as otherwise provided
in this Agreement, the Employer and the Union for the duration of this
Agreement, each voluntarily and unqualifiedly, agree to waive the right to
oblige the other party to bargain with respect to any subject or matter whether
or not specifically referred to or covered in this Agreement.

                                       16
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Article 25
Probation

Regular full-time employees shall serve a probation period of ninety (90)
calendar days from date of being accepted in that capacity. Within this period,
the Employer shall have the right to terminate any probationary employee without
a showing of cause and the employee shall not be entitled to use the grievance
and arbitration provisions of this Agreement.

Article 26
Substance Abuse

The Employer and Union mutually agree that the we of drugs, alcohol, and other
substances which impairs the ability of an employee to safely and effectively
perform his duties is not in the best interest of the Employer, Union, or the
public safety. Therefore, the Employer and Union agree to the development,
implementation, and administering of a reasonable testing program.

Article 27
Health and Safety

The Employer will provide safety inspections, first aid service, and radiation
protection equipment to minimize accidents and health hazards to the Employees
at the plant during the hours of their employment. The union agrees to cooperate
with the Employer to the end that employees will use any required safety
equipment when so provided and observe such safety and health regulations as
prescribed by the Employer.

The Employer will set up a Safety Committee for the employees and employees will
be asked to serve on the committee for a fixed period of time. The Union shall
designate, to serve on the committee in an advisory capacity, a number of
employees equal to the number of Employer designees. The committee will meet at
least once monthly the Employer will, upon request, provide the Union minutes
of reports of the Safety Committee meetings as prepared for distribution.

The Employer will provide for periodic medical examinations of all employees.
Employees may discuss their examinations with the examining doctor. All
employees covered by this Agreement will comply with safety rules and
regulations established by the Employer covering work performed under this
Agreement.

When an employee is involved in an industrial accident that combines personal
injury and/or radioactive contamination, the employee's pay is continued up to
the time of his release from the area in which the employee undergoes prescribed
decontamination procedure. If the employee is released from his area prior to
the end of his/her regular shift, he/she is continued in a pay status until the
end of such regular shift, unless overtime premiums are involved. When in such
situations, the employee is directed to report to a

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<PAGE>
 
medical facility, or the Whole Body Counter, he/she will be continued in a pay
status until the end of his/her regular shift if he/she is released from the
facilities mentioned above prior to the end of his/her regular shift or if
he/she is working hours other than his/her regular shift, he/she will be paid at
the applicable rate until such time as hue/she is released from the facilities
mentioned above. 

The parties hereto recognize the principle that radiation exposure should be
held to the lowest practical level consistent with the requirements of the job
and the interests of the affected employees.

Article 28
Appendices Incorporated into Agreement

Pay Rates, Appendix A or other appendices are conditions agreed to and are
hereby incorporated into this Agreement by this Article.

Article 29
Term of Agreement

This Agreement shall extend from the date of ratification by the parties and
expire twenty-four (24) calendar months later unless extended by mutual
agreement.

Article 30
Subcontracting

The Employer shall advise the Union of any decision to subcontract work normally
performed by bargaining unit employees. If the subcontracting of bargaining work
results in a loss of bargaining unit jobs, the Employer will negotiate about the
effect of the subcontracting upon the affected employees. If the decision to
subcontract work is based upon labor costs, the Employer agrees to negotiate
with the Union about the decision to subcontract. The Union and Employer agree
that they will promptly meet to negotiate about this subject.

                                       18
<PAGE>
 
                                 SIGNATURE PAGE
                         ALLIED TECHNOLOGY GROUP, INC.
                                      and
              INTERNATIONAL UNION OF OPERATING ENGINEERS LOCAL 280

IUOE LOCAL 280                       ALLIED TECHNOLOGY GROUP, INC.

_____________________________        _____________________________
Business Manager                     Plant Manager

_____________________________
President

_____________________________
Recording Secretary

_____________________________
Business Representative

_____________________________  ATTEST:
Steward

                                               _________________________________

                                               Title: __________________________

                                       19
<PAGE>
 
                             WAGES & QUALIFICATIONS
                                   APPENDIX A


1.   Effective upon the ratification date of this Agreement, the Company agrees
     to increase the hourly rate of employees pay by thirty-five (0.35) cents
     per hour.

2.   Effective upon due sixth, twelfth, and fifteenth month anniversary dates of
     this Agreement, the Company agrees to increase the hourly rate of employees
     pay by an additional twenty-five (0.25) cents per hour.

3.   Parties agree that a minimum of one (1) Board Qualified bargaining unit
     employee shall sit on the Board Qualification interview committee.

4.   An employee who achieves his or her first Board Qualification shall receive
     a one (1.00) dollar per hour wage increase.

5.   After achieving the initial Board Qualification, subsequent salary
     adjustments will be provided upon promotion(s) of employees into vacancies
     where different Board Qualifications am required and achieved by the
     employee. Other than specified herein, the Employer may determine, at its
     discretion, when employees may seek a second or any additional Board
     Qualifications.

6.   Aside from not being able to participate in the Employer's 401(k) Plan, no
     bargaining unit employee shall suffer a pay or benefit reduction as a
     result of the signing of this Agreement.

                                 WAGE SCHEDULE

                               Upon Ratification


                                                     DOUBLE BQ
ENTRY LEVEL               SINGLE BQ               (As Authorized)                LEAD
                                                                        
   10.357                  11.35                      12.35                      13.35
 
                               6 Month Contract Anniversary
 
   10.60                   11.60                      12.60                      13.60
 
                              12 Month Contract Anniversary

   10.85                   11.85                      12.85                      13.85

                              15 Month Contract Anniversary

   11.10                   12.10                     13.10                       14.10
 

                                       20

Source: OneCLE Business Contracts.