April 22, 1999

BY FAX ONLY

Mason M. Warren
Vice President & Regional Manager
620 Sunbeam Avenue
Sacramento, CA 95814

Dear Vice President Warren:

I am witing to you in your capacity as Supervisor of Local 270 in accordance with the terms of the Agreement of Supervision of October, 1997.

As we agreed at the meeting in California two weeks ago, you are directed to exercise your authority under the Agreement to relieve Ray Duran, Business Manager/Secretary-Treasurer, and George Ramirez, President, of all of their responsibilities as officers and Executive Board members forthwith. Additionally, Frank Romero is to be removed as a member of the Exective Board. Their positions are not to be filled pending an election of officers when the supervision is terminated.

Following the removal of these officers, we understand that you will resign as Supervisor and that I or the General President will appoint Paul Radford, formerly Business Manager of Local 185 in Sacramento, California, as your successor. As Supervisor, Mr. Radford is to serve as te principal executive officers of Local 270, exercising day-to-day responsibility for the conduct of its affairs. It is our understanding that Mr. Radford will move temporarily to San Jose and be present at Local 270 on a daily basis to discharge his responsibilities.

In consultation with the remaining members of the Executive Board, Mr. Radford may exercise his discretion to retain Mr.Ramirez as a field representative; likewise, they may also exercise their discretion to retain Sal Lopez. Neither Mr. Dunin nor Mr. Romero may be retained as employees of Local 270.

We expect that the trustees of the benefit funds will tender their resignations and their successors will be selected after consultation and review by the GEB Attorney and the Inspector General.

We look forward to working with you, Mr. Hammond and Mr. Radford to ensure that the affairs of Local 270 are conducted with great care and that, together, we can look forward to early elections and an end to the Supervision. We remain grateful for your service as supervisor and for the cooperation you and your staff have shown.

Yours Sincerely,

Robert D. Luskin