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November 12, 2013 VIA PRIORITY MAIL Officers of International Union of Operating Engineers, Local 501 Executive Board Members Advisor Board Members 2405 W. Third St. Los Angeles, California 90057 Re: Demand for Corrective Action Pursuant to Title V of the LMRDA

Officers, Executive Board Members, and Advisory Board Members of International Union of Operating Engineers, Local 501: Pursuant to the Labor-Management Reporting and Disclosure Act of 1959 (LMRDA), section 501(b), this correspondence constitutes the demand by union members Finn Pette, James McLaughlin, Daniel Himmelberg, Glenn Szalay, Jay Brophy, Anne Brophy, Cheryl Culbreath, Robert Fox, John Crooks, Nye Nelson, Linda Pette, Judy McLaughlin, Christine Himmelberg, Erik B. Smith, Christopher Menor, and Patrick Adams for prompt action by the governing board or officers of International Union of Operating Engineers, Local 501 (Local 501) to bring suit against Local 501s leaders to recover damages resulting from their wanton disregard for their duties as labor leaders, including damages resulting from the misconduct alleged in the matter of Pette, et al. v. International Union of Operating Engineers, et al., Case No.: 12-cv-09324 DDP (VBKx). The operative complaint is attached hereto, and the allegations therein, including all allegations related to the misuse of Local 501 assets and breaches of fiduciary duties, are incorporated herein by reference. The Labor-Management Reporting and Disclosure Act of 1959 (LMRDA) imposes special duties upon the officers, agents, shop stewards, and other representatives of a labor organization. In particular, 29 U.S.C. 501(a) declares that it is the duty of the officers, agents, shop stewards, and other representatives of a labor organization to hold its money and property solely for the benefit of the organization and its members and to manage, invest, and expend the same in accordance with its constitution and bylaws and any resolutions of the governing bodies adopted thereunder, to refrain from dealing with such organization as an adverse party or in behalf of an adverse party in any matter connected with his duties and from holding or acquiring any pecuniary or personal interest which conflicts with the interests of such organization, and to

Officers of International Union of Operating Engineers, Local 501 Executive Board Members Advisor Board Members November 12, 2013 Page 2 of 2 account to the organization for any profit received by him in whatever capacity in connection with transactions conducted by him or under his direction on behalf of the organization. The conduct alleged in Pette, et al. v. International Union of Operating Engineers, et al., Case No.: 12-cv-09324 DDP (VBKx) describes numerous actions over many years by leadership of Local 501 that violate section 501(a) of Title V of the LMRDA. In addition, the officers of Local 501 misused the assets of Local 501 during the conduct of the last election, which, to the extent not alleged in Pette, et al. v. International Union of Operating Engineers, et al., Case No.: 12-cv-09324 DDP (VBKx), is a separate violation that must be investigated and remedied through suits to recover the misused assets. On behalf of members Finn Pette, James McLaughlin, Daniel Himmelberg, Glenn Szalay, Jay Brophy, Anne Brophy, Cheryl Culbreath, Robert Fox, John Crooks, Nye Nelson, Linda Pette, Judy McLaughlin, Christine Himmelberg, Erik B. Smith, Christopher Menor, and Patrick Adams, we demand that the governing board or officers bring suit to recover damages or secure an accounting or other appropriate relief within 30 days of the receipt of this request. Because the current officers of Local 501 are complicit in the injuries described herein, we insist that the officers of Local 501 recuse themselves from the deliberative process and direct the Executive Board and/or Advisory Board to act in their stead. We also demand the prompt resignation of the officers of Local 501 and other involved agents who, under the clear terms of the LMRDA, are unfit to serve in any capacity in a labor organization. Sincerely,

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H. Scott Leviant HSL:sp cc: J. Mark Moore (via e-mail, w/o enclosure)

MOORE & LEVIANT LLP

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