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National Master DHL AgreementDHL Express (USA), Inc.

For the Period of April 1, 2008 Through March 31, 2013

covering:

operations in, between and over all of the states, territories andpossessions of the United States, and operations into and outof all contiguous territory, to the extent specifically set forthherein and as may be modified from time to time by operationof the terms of this Agreement, its Operational Supplements,Regional Supplements, Local Riders, and/or other agreementsreached by of the Parties.

DHL EXPRESS (USA), INC., hereinafter referred to as"Company" or "Employer" and the TEAMSTERS DHLNATIONAL NEGOTIATING COMMITTEE, representingLocal Unions affiliated with the INTERNATIONAL BROTH-ERHOOD OF TEAMSTERS, and Local Union No.____ , which is an affiliate of the INTERNATIONALBROTHERHOOD OF TEAMSTERS, agree to be bound bythe terms and conditions of this Agreement.

ARTICLE 1. PARTIES TO THE AGREEMENT

Section I, Employer Covered

The Employer signatory to this National Agreement,Operational Supplements, other Supplemental Agreementsand/or Local Riders is DHL EXPRESS (USA), INC. ThisAgreement does not apply to the corporate parent of DHLEXPRESS (USA), INC. nor to any other wholly or partiallyowned or controlled subsidiaries of said corporate parent.

Section 2. Unions, Operations and Employees Covered

The Union consists of any Local Union which may become aparty to this Agreement, Operational Supplements and anyother Supplemental Agreement and/or Local Rider as here-

inafter set forth. As used herein the general term"Supplements" includes the Operational Supplements. SuchLocal Unions are hereinafter designated as "Local Union." Inaddition to such Local Unions, the Teamsters DHL NationalNegotiating Committee ("TDHLNNC") representing LocalUnions affiliated with the International Brotherhood ofTeamsters, hereinafter referred to as the "National UnionCommittee" is also -a party to this Agreement and the Agree-ments Supplemental hereto.

The Employer recognizes the Union as the sole and exclusivecollective bargaining agent with respect to rates of pay, hoursand other terms and conditions of employment for theemployees in previously certified or recognized units refer-enced in Attachment A.

A list of all the Local Unions covered by this NationalAgreement and the associated categories of employees repre-sented by said Local Unions is described in Attachment A tothis National Agreement, which will be updated by the partiesby mutual written agreement as additional operations becomecovered by this National Agreement.

Section 3. Transfer of Employer Title and Interest

The Employer's obligations under this Agreement and theSupplements hereto shall be binding upon its successors,administrators, executors and assigns. The Employer agreesthat the obligations of this Agreement shall be included in theagreement of sale, transfer or assignment of the business. Inthe event an entire active or inactive operation, or a portionthereof, are sold, leased, transferred or taken over by sale,transfer, lease, assignment, receivership or bankruptcy pro-ceedings, such operation shall continue to be subject to the

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terms and conditions of this Agreement for the life thereof.Transactions covered by this provision include stock sales orexchanges, mergers, consolidations, spin-otTs or any othermethod by which a business is transferred.

It is understood by this Section that the signatory Employershall not sell, lease or transfer such business to a third (3rd)party to evade this Agreement. In the event the Employer failsto require the purchaser, transferee, or lessee to assume theobligations of this Agreement, as set forth above, theEmployer (including partners thereot) shall be liable to theLocal Union(s) and to the employees covered for all damagessustained as a result of such failure to require the assumptionof the terms of this Agreement until its expiration date, butshall not be liable after the purchaser, the transferee or lesseehas agreed to assume the obligations of this Agreement. Theobligations set forth above shall not apply in the event of thesale, lease or transfer of a portion of the Employer's businesscomprising less than all of the signatory Employer's businessto a non-signatory company unless the purpose is to evade thisAgreement. Corporate reorganizations by the signatoryEmployer, occurring during the term of this Agreement, shallnot relieve the signatory Employer or the re-organizedEmployer of the obligations of this Agreement during its term.

The Employer shall give notice of the existence of thisAgreement to any purchaser, transferee, lessee, assignee, orother entity involved in the sale, merger, consolidation, acqui-sition, transfer, spin-off, lease or other transaction by whichthe operation covered by this Agreement or any part thereofmay be transferred. Such notice shall be in writing, with acopy to the Local Union, at the time the seller, transferee orlessor makes the purchase and sale negotiation known to thepublic or executes a contract or transaction as hereindescribed, whichever first occurs. The Local Union shall alsobe advised of the exact nature of the transaction, not includingfinancial details.

This Article does not apply to business transactions where theCompany is simply selling, leasing, subleasing, assigning orotherwise transferring to a non-affiliated third (3rd) partyfacilities, vehicles, equipment or other assets previously usedin its business, but is not transferring to such party any of thework of bargaining unit employees, and where such work willcontinue to be performed by bargaining unit members usingother facilities, vehicles, equipment or other assets as theEmployer in its discretion deems most efficient and appropri-ate for the operation of its business.

ARTICLE 2. SCOPE OF AGREEMENT

Section 1. Scope and Approval of Local Supplements

It is the intent of the parties that generally negotiated termsand conditions of employment will be set forth in the NationalAgreement and applicable Operational Supplements, and that

locally negotiated conditions generally will be narrowly limit-ed in scope to locally negotiated economic provisions andlocal terms and conditions of employment. All RegionalSupplements and/or Local Riders must be submitted to theNational Union Committee for review and approval. Failureto be approved in writing by said Committee shall render aSupplement or Rider null and void. This provision does notalter or substitute for any procedures the Union has for mem-bership ratification. Present Supplements, Riders, andAddenda negotiated and approved shall remain in effect untilrenegotiated.

Section 2. Non-Covered Units

This Agreement shall not be applicable to those operations ofthe Employer where the employees are covered by a collectivebargaining agreement with a Union not signatory to thisAgreement, or to those employees who have not designated asignatory Union as their collective bargaining agent.

Notwithstanding the forgoing, the provisions of the NationalMaster DHL agreement and the applicable Supplementsand/or Riders shall be applied without evidence of union rep-resentation of the employees involved to all subsequent addi-tions to, and extensions of, current operations covered by theNational Master DHL agreement which adjoin and are con-trolled and utilized as a part of such current operation, andnewly established terminals and consolidations of terminalswhich are controlled and utilized as a part of such operation.

Section 3. Single Bargaining Unit

It is the intent of the parties that each of the groups of repre-sented employees referenced in Attachment A will be gov-erned by this National Agreement and applicable OperationalSupplements, together with any Regional Supplements and/orLocal Riders.

All employees covered by this National Agreement, theOperational Supplements, and the various Supplements and/orRiders shall constitute one (I) bargaining unit. The printing ofthis National Agreement and the various Supplements and/orRiders in separate agreements is for convenience only and isnot intended to create separate bargaining units.

Any lesser conditions contained in any Supplement, Rider orAddendum shall be superseded by the conditions contained inthis National Agreement. However. nothing in this NationalAgreement shall deprive any employee of any superior benefitor term contained in their Supplement, Rider or Addendum.

Section 4. New or Changed Classifications

Any modifications to the current bargaining unit c1assit1ca-tions must be negotiated with the National Union Committeeand Local Unions involved. If agreement cannot be reachedthe dispute shall be submitted to the National GrievanceProcedure.

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MASARTICLE 3. UNION SECURITY AND CHECKOFF

Section 1. Union Shop

All present employees who are members of the Local Union onthe effective date of this subsection or on the date of execution ofthis Agreement, whichever is the later, shall remain members ofthe Local Union as a condition of employment. Union member-ship for purposes of this Agreement, is required only to theextent that employees must pay either (i) the Union's initiationfees and periodic dues or (ii) service fees which in the case of aregular service fee payer shall be equal to the Union's initiationfees and periodic dues, and in the case of an objecting servicefee payer shall be the proportion of the initiation fees and duescorresponding to the portion of the Union's total expendituresthat support representational activities. All present employeeswho are not members of the Local Union and all employees whoare hired hereafter shall become and remain members of theLocal Union as a condition of employment on and after the thir-ty-first (31 st) calendar day following the beginning of theiremployment or on and after the thirty-first (31 st) calendar dayfollowing the effective date of this subsection or the date of thisAgreement, whichever is the later. An employee who has failedto acquire. or thereafter maintain, membership in the Union asherein provided, shall be terminated seventy-two (72) hours afterhislher Employer has received written notice from an authorizedrepresentative of the Local Union, certifying that membershiphas been, and is continuing to be, offered to such employee onthe same basis as all other members and, further, that theemployee has had notice and opportunity to make all dues or ini-tiation fee payments. This provision shall be made and becomeeffective as of such time as it may be made and become effectiveunder the provisions of the National Labor Relations Act, but notretroactively. For purposes of this Article, "present employees"and "employees who are hired hereafter" shall include proba-tionary, "casual" and/or "part-time" employees. Such "casual" or"part-time" employees will be required to join the Union prior totheir employment on or after the thirty-first (31st) calendar dayfollowing their first (I st) day of employment.

When the Employer needs additional employees, it shall give theLocal Union equal opportunity with all other sources to providesuitable applicants, but the Employer shall not be required to hirethose referred by the Local Union. Violations of this subsectionshall be subject to the National Grievance Procedure.

Any employment examination for applicants must test skillsor physical abilities necessary for performance of the work inthe job classification in which the applicant will be employed.Violations of this subsection shall be subject to the NationalGrievance Procedure.

State Law

No provision of this Article shall apply in any state to theextent that it may be prohibited by state law. If under applica-

ble state law additional requirements must be met before anysuch provisions may become effective, such additionalrequirements shall be first met.

Agency Shop

If any agency shop clause is permissible in any state where theprovisions of this Article relating to the Union Shop cannotapply, the following Agency Clause shall prevail:

(I) Membership in the Local Union is not compulsory.Employees have the right to join, not join, maintain, ordrop their membership in the Local Union. as they see fit.Neither party shall exert any pressure on, or discriminateagainst, an employee regarding such matters.

(2) Membership in the Local Union is separate, apart and dis-tinct from the assumption by one of his/her equal obliga-tion to the extent that he/she receives equal benefits. TheLocal Union is required under this Agreement to representall of the employees in the bargaining unit fairly andequally without regard to whether or not an employee is amember of the Local Union. The terms of this Agreementhave been made for all employees in the bargaining unitand not only for members in the Local Union, and thisAgreement has been executed by the Employer after it hassatisfied itself that the Local Union is the choice of amajority of the employees in the bargaining unit.Accordingly, it is fair that each employee in the bargainingunit pays hislher own way and assumes hislher fair shareof the obligations along with the grant of equal benefitscontained in this Agreement.

(3) In accordance with the policy set forth under subpara-graphs (I) and (2) of this Section, all employees shall, as acondition of continued employment, pay to the LocalUnion, the employee's exclusive collective bargaining rep-resentative, an amount of money equal to that paid byother employees in the bargaining unit who are membersof the Local Union, which shall be limited to an amount ofmoney equal to the Local Union's regular and usual initia-tion fees, and its regular and usual dues. For presentemployees, such payments shall commence thirty-one (31)days following the effective date or on the date of execu-tion of this Agreement, whichever is the later, and for newemployees, the payment shall start thirty-one (31) daysfollowing the date of employment.

Savings Clause

If any provision of this Article is invalid under the law of anystate wherein this Agreement is executed, such provision shallbe modified to comply with the requirements of state law orshall be renegotiated for the purpose of adequate replacement.If, however, such negotiations shall not result in mutually sat-isfactory agreement, either party may submit the dispute to theNational Grievance Committee, which shall issue a decisionimplementing one of the parties' final offers.

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MASEmployer Recommendation

[n those instances where the Union Shop provision hereof maynot be validly applied, the Employer agrees to recommend to allemployees that they become members of the Loca[ Union andmaintain such membership during the life of this Agreement, torefer new employees to the Local Union representative, and torecommend to delinquent members that they pay their dues sincethey are receiving the benetits of this Agreement.

Business agents shall be permitted to attend new employeeorientation. The sole purpose of the business agent's atten-dance is to encourage employees to join the Union.

Future Law

To the extent such amendment may become permissible underapplicable federal and state law during the life of thisAgreement as a result of legislative, administrative or judicialdetermination, all of the provisions of this Article shall beautomatically amended to include the greater Union securityprovisions permitted by the amended federal or state law.

No Violation of Law

Nothing contained in this Section shall be construed so as torequire the Employer to violate any applicable law.

Section 2. Probationary Employees

Provisions regarding the use of probationary employees are asset forth in this section, except as modified and/or expanded inthe applicable Supplement and/or Rider.

A. Definition. All newly hired employees within any unit cov-ered by this Agreement, and any Regional Supplement orLocal Rider thereto, shall be subject to a probationary periodfor sixty (60) calendar days. commencing with the first dayon which the probationary employee regularly performswork for the Employer as a regular full-time or part-timeemployee. Days lost from work for any reason during theprobationary period shall not be considered in computingsuch time period. The Employer, Employee and the Unionmay agree in writing to a thirty (30) calendar day extensionof the probationary period for new employees.

B. Seniority. Seniority shall not accrue during the proba-tionary period. Upon successful completion of the proba-tionary period, however, an employee's seniority shallrelate back to and be calculated from his/her date ofbeginning work within the unit covered by thisAgreement.

C. Discharge. At any time during the probationary period.the Employer may layoff, discharge or discipline proba-tionary employees and such action shall not be subject tothe grievance and arbitration procedures of thisAgreement.

D. Benefits Eligibility. Unless otherwise provided, proba-tionary employees shall not be entitled to fringe benefitsset forth in this Agreement during their period of proba-tionary employment and there shall be no retroactive pay-ment for the same upon the successful completion of suchperiod. Such probationary employees, however, shall bepaid the contractual minimum wage rate for the classitica-tion in which they are placed. [n those areas whereHealth. Welfare and Pension funds require payment thenEmployer shall make the necessary contributions.

Section 3. Checkoff

The Employer agrees to deduct from the pay of all employeescovered by this Agreement the dues, initiation fees and/or uni-form assessments of the Local Union having jurisdiction oversuch employees and agrees to remit to said Local Union allsuch deductions. Where laws require written authorization bythe employee, the same is to be furnished in the form required.The Local Union shall certify to the Employer in writing eachmonth a list of its members working for the Employer who havefurnished to the Employer the required authorization, togetherwith an itemized statement of dues, initiation fees (full orinstallment), or uniform assessments owed and to be deductedfor such month from the pay of such member. The Employershall deduct such amount within two (2) weeks followingreceipt of the statement of certification of the member and remitto the Local Union in one (I) lump sum within three (3) weeksfollowing receipt of the Statement of Certification. TheEmployer shall add to the list submitted by the Local Union thenames and Social Security numbers of all regular new employ-ees hired since the last list was submitted and delete the namesof employees who are no longer employed. Checkoff shalt beon a monthly or per pay period basis at the option of the Union.The Local Union and Employer may agree to an alternativeoption to deduct Union dues bi-monthly.

When an Employer actually makes a deduction for dues, initi-ation fees and assessments, in accordance with the Statementof Certification received from an appropriate Local Union, theEmployer shall remit same no later than three (3) weeks fol-lowing receipt of the statement of certification and in the eventthe Employer fails to do so, the Employer shall be assessedten percent (10%) liquidated damages. All monies required tobe checked off shall become the property of the entities forwhich it was intended at the time that such checkoff isrequired to be made.

Where an employee who is on checkoff is not on the payrollduring the week in which the deduction is to be made, or hasno earnings or insufficient earnings during that week, or is onleave of absence. the employee must make arrangements withthe Local Union and/or the Employer to pay such dues inadvance.

The Employer agrees to deduct from the paycheck of allemployees covered by this Agreement voluntary contributions toDR[VE. DRIVE shall notify the Employer of the amounts desig-

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nated by each contributing employee that are to be deductedfrom hislher paycheck on a weekly basis for all weeks worked.The phrase "weeks worked" excludes any week other than aweek in which the employee earned a wage. The Employer shalltransmit to DRIVE National Headquarters on a monthly basis, inone (1) check, the total amount deducted along with the name ofeach employee on whose behalf a deduction is made, theemployee's social security number and the amount deductedfrom that employee's paycheck. The International Brotherhoodof Teamsters shall reimburse the Employer annually for theEmployer's actual cost for the expenses incurred in administer-ing the weekly payroll deduction plan.

The Employer will recognize authorization for deductionsfrom wages, if in compliance with state law, to be transmittedto Local Union or to such other organizations as the Unionmay request if mutually agreed to. No such authorization shallbe recognized if in violation of state or federal law. No deduc-tion shall be made which is prohibited by applicable law.

In the event that an Employer has been determined to be in viola-tion of this Article by the decision of an appropriate grievancecommittee and/or arbitrator, and if such Employer subsequentlyis in violation thereof after receipt of seventy-two (72) hours writ-ten notice of specific delinquencies, the Local Union may striketo enforce this Article. However, such strike shall be terminatedupon the delivery thereof. Errors or inadvertent omissions relatingto individual employees shall not constitute a violation.

Upon written request of an employee, the Employer shallmake payroll deductions for the purchasing of U. S. SavingsBonds. The Employer hereby agrees to participate in theTeamsters National 40 I (k) Savings Plan (the "Plan") onbehalf of all employees represented for purposes of collectivebargaining under this Agreement. The Employer is notrequired to participate in the Teamsters National 40 I(k) ifTeamsters employees were eligible to participate in anEmployer sponsored 40 I(k) as of January I, 1998.

The Employer will make or cause to be made payroll deductionsfrom participating employees' wages, in accordance with eachemployee's salary deferral election subject to compliance withERISA and the relevant tax code provisions. The Employer willforward the withheld sum to State Street Bank or its successor atsuch time, in such form and manner as required pursuant to thePlan and Declaration of Trust (the "Trust").

The Employer will execute a Participation Agreement with theNational Union Committee and the Trustees of the Plan evi-dencing Employer participation in the Plan effective prior toany employee deferral being received by the Plan.

Section 4. Local Union

The term "Local Union" as used herein refers to the IBT LocalUnion which represents the employees of the Employer for thepurpose of collective bargaining at the particular place orplaces of business to which this Agreement and the

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MASSupplements thereto are applicable, unless jurisdiction oversuch employees, or any number of them, has been transferredto some other Local Union, in such a manner as may be recog-nized herein, in which case the term Local Union as usedherein shall refer to such other Local Unions. Nothing hereincontained shall be construed to alter the multi-union- unit orsingle contract status of this Agreement.

Section 5. Electronic Funds Transfer

If the Employer institutes an electronic funds transfer (EFf)system, employees may participate.

ARTICLE 4. UNION STEWARDS, NOTIFICATION,ANDACCESS

Section 1. Union Notification to Employer of UnionOfficials and Representatives

Each Local Union shall notify the Employer in writing (to theFacility Manager(s) where employees work and the VicePresident of Labor for DHL) of the names of all Union Stewardsand all Local Union Representatives with authority to act onbehalf of the Local Union under the parties' labor agreement.The National Union Committee shall notify the Employer inwriting (to the Vice President of Labor for DHL) of the names ofall Officials with authority to act on behalf of the National UnionCommittee with regard to the parties' labor agreement. TheCompany shall be free to rely upon such written authorization,and may refuse to deal with any individual as an authorized rep-resentative of the National Union Committee or Local Union inthe absence of such written authorization.

Section 2. Union Visitation Privileges

A. Authorized agents of the Union shall have access to theEmployer's establishment during working hours for thepurpose of adjusting disputes, investigating working con-ditions, collecting dues and ascertaining that theAgreement is being adhered to.

B. For purposes of this Section 2 of this Article only, theterm Union Representative refers to onicial Union repre-sentatives and excludes any and all actively employed unitemployees, including stewards.

C. Facility access under this Agreement shall be governed bythe terms of the applicable Operational Supplement here-to, provided that in all circumstances the UnionRepresentatives will comply with all applicable TSA andother regulatory requirements with regard to security andfacility access.

Section 3. Printing of Agreement

The cost of printing copies of the Agreement shall be splitequally between the parties.

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MASARTICLE 5. SENIORITY RIGHTS

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Section 2. Procedure

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The Employer recognizes the principle of seniority. The applica-tion of seniority shall be set forth in the appropriate OperationalSupplements and/or Regional SupplementslLocal Riders.

ARTICLE 6. CONFLICTING AND EXTRA CONTRACTAGREEMENTS

Section 1. Maintenance of Standards

Provisions regarding Maintenance of Standards shall be setforth in the appropriate Operational Supplements of thisagreement.

Section 2. Extra Contract Agreements

The Employer agrees not to enter into any agreement or con-tract with its employees, individually or collectively, which inany way conflicts with the terms and provisions of thisAgreement. Any such agreement shall be null and void.

Every profit-sharing plan, condition, or incentive plan of anytype, whether or not it alters or amends the economic condi-tions contained in this Agreement, must be negotiated andagreed to by TDHLNNC prior to implementation. Nothing inthis Section shall be construed to apply to existing safety pro-grams or other prizes or bonus items the receipt of which donot alter the economic terms of this Agreement.

Section 3. Workweek Reduction

If either the Fair Labor Standards Act or the Hours of ServiceRegulations are subsequently amended so as to result in sub-stantial penalties to either the employees or the Employer, awritten notice shall be sent by either party requesting negotia-tions to amend those provisions which are affected.

Thereafter, the parties shall enter into negotiations for the pur-pose of arriving at a mutually satisfactory solution. If the par-ties are unable to reach agreement the matter shall be resolvedthrough the national grievance procedure.

ARTICLE 7. GRIEVANCE AND ARBITRATIONPROCEDURE

Section 1. Definition

A "grievance" is defined as any complaint or dispute arisingunder and during the term of this Agreement raised by theemployee or Union against the Employer involving an allegedviolation, misinterpretation or misapplication of a provision ofthis Agreement. All such disputes shall be adjusted and set-tled solely and exclusively in accordance with the proceduresset forth in this Article.

Step 1 - With regard to disciplinary matters, a grievance mustbe. filed ~ithin ten (10) calendar days of the r~ceipt of disci-plIne. With regard to all other matters, a grievance must betiled within thirty (30) calendar days of when the Union oraffected employee(s) should have become aware of the eventsgiving rise to the dispute. The grievance shall be reduced towriting and presented to the Facility Manager or his designee.The Steward, employee(s) involved and the Facility Manageror his designee(s) shall meet within ten (10) calendar daysafter the grievance is presented to attempt to resolve it. TheFacility Manager or his designee shall provide a writtenanswer to the Steward within ten (10) calendar days of suchmeeting.

Step 2 - If the grievance is not resolved at Step I, then thegrievance automatically moves to Step 2. The FacilityManager and a Business Agent of the Local Union shall meetand attempt to resolve the grievance. The Facility Manager orhis designee shall provide a written answer to the BusinessAgent within ten (10) calendar days of such meeting ..

Step 3 - Any grievance unresolved at Step 2 will be docketedto the appropriate Regional Joint Grievance Committee withinten (10) calendar days of receipt of the Step 2 answer.However, Local Unions shall have the option of electing tohave a state panel. Such election shall be binding on the LocalUnion for the duration of this Agreement. In staffing any statepanel under this provision, the Employer shall have the optionof utilizing MCLAC or DHL management from outside theregion for its side of the panel. The Regional Joint GrievanceCommittee shall be composed of two (2) members designatedby the Company and two (2) members designated by theUnion, which shall not include any Union designee or repre-sentative from the Local Union involved in the dispute orCompany designee or representative from the local operationsinvolved in the dispute. The Union shall be entitled to one (I)postponement by right, and the Company shall be entitled to apostponement only with the mutual agreement of the Union.The Regional Joint Grievance Committee shall consider allgrievances at its next quarterly meeting which are docketed atleast ten (10) calendar days prior to the next quarterly meet-ing. Grievances may be resolved at the Regional JointGrievance Committee level only by a majority of the membersof the committee, and the resolution of any grievance by theRegional Joint Grievance Committee shall be tinal and bind-ing on the Company, Union and employees. Decisions of theRegional Joint Grievance Committee shall be rendered at thetime of the meeting, reduced to writing and signed by mem-bers of the Committee who participated in the deliberationsand decision-making, and issued within ten (10) calendar daysfollowing the meeting at which the grievance was considered.If a majority of the members of the Regional Joint GrievanceCommittee are unable to reach agreement on the resolution ofthe grievance, it shall be considered deadlocked. RegionalJoint Grievance Committee meetings shall be heard in thesame locations and days where the Freight hearings are held.

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Records of the Regional Joint Grievance Committee hearingsshall be comprised of a written transcript and exhibits. TheRules and Procedures of the Regional Joint GrievanceCommittee will be established by the National GrievanceCommittee within sixty (60) days of the effective date of thisagreement.

Step 4 - If a grievance is deadlocked at Step 3, it will beadvanced to the National Grievance Committee. The NationalGrievance Committee shall consist of an equal number, but nomore than four (4), representatives from each party. TheNational Grievance Committee shall meet quarterly. Anygrievance referred to the National Grievance Committee atleast ten (10) calendar days before the next quarterly meetingwill be considered at such meeting. The deadline for theNational Grievance Committee to issue a written decisionshall be thirty (30) calendar days after it meets on a case.Grievances can be resolved at Step 4 only by majority deci-sion of the National Grievance Committee in a written deci-sion signed by members of the National GrievanceCommittee. A decision of the National Grievance Committeeshall be tinal and binding on the Company and Union.

Section 3. Arbitration

A mutually agreed upon arbitrator shall be present with theNational Grievance Committee when it considers its cases. Ifthe National Grievance Committee cannot reach a decision,either party may immediately refer the matter to the neutralarbitrator who shall make the decision. The arbitrator shallissue a concise decision on the underlying grievance by benchdecision on the date on which the National GrievanceCommittee considered the matter. The record before theNational Grievance Committee shall consist only of the tran-script and exhibits from earlier Steps. The fees and expensesof the arbitrator, as well as hearing room and transcript costs,shall be borne by the Company. Each party shall be responsi-ble for any costs associated with their representatives.

The parties shall agree to a panel of tive (5) permanent arbitra-tors, who will rotate quarterly in the hearing of cases arisingunder this Agreement. Prior to the first (I sl) meeting theNational Grievance Committee shall agree upon the list ofstanding arbitrators, as well as the procedure for replacing anarbitrator who is no longer available during the term of thisAgreement.

Attorneys, other than full-time employees of the Union orCompany and who are not employed in their capacities asattorneys, will not be permitted to attend or participate in anystep of the grievance/arbitration procedure.

Section 4. Advance Level Filing in the Case of NationalDisputes

If the parties agree that a timely-tiled grievance involves a dis-pute over the interpretation or application of this NationalAgreement or any of its Operational Supplements that is not

simply local in nature, but involves or could involve more thanone facility or Local Union. then the parties may mutuallyagree to advance the grievance directly to Step 3 so that theappropriate record can be made. Upon completion of therecord. the matter will proceed directly to Step 4 (includingarbitration if necessary). The Parties agree that the grievancewill be presented at the Joint Regional Grievance Committeesolely for the purpose of developing the record and a tran-script for the National Grievance Committee.

Section S. Grievant's Bill of Rights

All employees who tile grievances are entitled to have theircases decided fairly and promptly. In order to satisfy theseobjectives and promote confidence in the integrity of thegrievance procedures, all employees who tile grievances areentitled to the following rights:

I. A Grievant may attend a Step 1 meeting without loss ofpay if it is held during the Grievant's regularly scheduledwork hours.

2. Grievants and local stewards shall be informed by theirLocal Union of the time and place of any Step 3 RegionalJoint Grievance Committee hearings in which they areinvolved.

3. Grievants and local stewards are permitted to attend, attheir own expense and on their own time, the hearing atStep 3 before the Regional Joint Grievance Committee incases in which they are involved.

4. The Employer shall provide any information relevant to agrievance containing specit1c factual allegations withinfifteen (15) calendar days of receipt of a written requestby the Local Union, steward or grievant. The Local Unionor grievant shall provide any information relevant to sucha grievance within tifteen (15) calendar days of receipt ofa written request by the Employer.

5. All cases heard at Step 3 before the Regional JointGrievance Committee (or at the National GrievanceCommittee under Section 4 of this Article) shall be tran-scribed by a certified court reporter or otherwise reliablyrecorded, except for executive sessions. Transcriptions ofthose proceedings shall be prepared in response to a writ-ten request by the Local Union at the reasonable cost oftranscription. No recording devices shall be used in anyRegional Joint Grievance Committee hearing except asspecifically authorized under the Rules of Procedure ofthe Regional Joint Grievance Committee or by mutualconsent of the co-chairpersons.

6. A grievant or steward may request permission to presentevidence or argument in support of their case to theRegional Joint Grievance Committee in addition to theevidence or argument presented by the Local Union.

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MAS7. The Regional Joint Grievance Committee shall, upon

request, issue a copy of the grievance decision or tran-script pages containing the hearing proceedings and thedecisi~n to the grievant and/or a Local Union.

8. A copy of the Rules of Procedure of the Regional JointGrievance Committee, including the Grieva~t's Bill ofRights, shall be provided, upon request, to the grievantprior to the commencement of the grievance hearingbefore, the Regional Joint Grievance Committee.

Section 6. Time Limit for Filing

A grievance shall be considered waived if not tiled within thetime limits set forth in this Agreement. The parties may bymutual written agreement extend any of the time limits setforth in this Article.

Section 7. Authority of Arbitrator

The decision of the arbitrator on any matter which shall havebeen submitted in accordance with the provisions of thisAgreement shall be tinal and binding on the Employer, Unionand the employees, and the decision of the Union not to pro-ceed to arbitration shall also be binding on the employees.The arbitrator shall have no authority to add to, subtract fromor otherwise alter the provisions of this Agreement.

In the event the Employer fails to comply with a decision ren-dered by a grievance committee, the Local Union shall give theEmployer a seventy-two (72) hour (excluding Saturday, Sundayand holidays) prior written notice of the Local Union's autho-rization of strike action, which notice shall specify the basis forthe compliance failure. If the Employer believes that it is incompliance or that there is a clarification needed in order tocomply, the matter of compliance and/or clarification shall besubmitted to the grievance committee that decided the case.The question of compliance or clarification shall be determinedby the grievance committee within forty-eight (48) hours afterreceipt of the Employer request. The forty-eight (48) hourperiod for the grievance committee to determine the question ofcompliance or clarification shall run concurrently with the sev-enty-two (72) hour notice prior to a strike. The grievance com-mittee may meet telephonically to consider and decide ques-tions of compliance or clarification.

Section 8. Timely Payment of Grievances

All monetary grievances that have been resolved either bydecision or through settlement shall be paid within twenty-one(21) calendar days of formal notification of the decision ordate of settlement. If the Employer fails to pay a monetarygrievance in accordance with this Section, the Employer shallpay as liquidated damages to each affected grievant eight (8)hours straight time pay for each day the Employer delays pay-ment, commencing the date the grievant(s) notified theEmployer of such non-payment.

Section 9. No Strike/No Lockout

As a corollary to the national dispute resolution procedure,and unless specifically set forth otherwise in this Agreement(including Section 7 and Section 12 of this Article) or anySupplements or Riders hereto, the Local Union agrees that itshall not call, institute, or authorize any strikes, walkouts, sit-downs, slowdowns or other concerted refusals to work, andthe Employer will not lockout, over any matter that can beresolved through the National Grievance Procedure during thelife of this Agreement.

Section 10. Union Responsibility in the Event ofUnauthorized Strike

The Local Union shall not authorize any work stoppages,slowdown, walkout, or cessation of work in violation of thisAgreement. It is further agreed that in all cases of an unau-thorized strike. slowdown, walkout, or any unauthorized ces-sation of work which is in violation of this Agreement theUnion shall not be liable for damages resulting from suchunauthorized acts of its members.

In the event of a work stoppage, slowdown, walkout or cessa-tion of work, the Employer shall immediately send a wire orfax to the Chairman of the TDHLNNC to determine if suchstrike, etc., is authorized. No strike, slowdown, walkout orcessation of work alleged to be in violation of this Agreementshall be deemed to be authorized unless notification thereof byfacsimile has been received by the Employer and the LocalUnion from the Chairman of the TDHLNNC. If no responseis received by the Employer within twenty-four (24) hoursafter request, excluding Saturdays, Sundays, and holidays,such strike, etc., shall be deemed to be unauthorized for thepurpose of this Agreement.

In the event of such unauthorized work stoppage or picketline, etc., in violation of this Agreement, the Local Union shallimmediately make every effort to persuade the employees tocommence the full performance of their duties and shallimmediately inform the employees that the work stoppageand/or picket line is unauthorized and in violation of thisAgreement.

The TDHLNNC, and Local Unions shall make immediate effortsto terminate any strike or stoppage of work as aforesaid which isnot authorized by such organizations, without assuming liabilitytherefore. For and in consideration of the agreement of theTDHLNNC and Local Unions affiliated with the InternationalBrotherhood of Teamsters to make the aforesaid efforts to requireLocal Unions and their members to comply with the law or theprovisions of this Agreement, including the provisions limit-ing strikes or work stoppages, the Employer agrees that it willnot hold the International Brotherhood of Teamsters,TDHLNNC and Local Unions liable or sue them in any courtor before any administrative tribunal for undertaking suchefforts to terminate unauthorized strikes or stoppages of work

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MASas aforesaid or for undertaking such efforts to require LocalUnions and their members to comply with the law or the pro-visions of this Agreement. It is further agreed that theEmployer will not hold the International Brotherhood ofTeamsters, TDHLNNC or Local Unions liable or sue them inany court or before any administrative tribunal for such unau-thorized work stoppages alleging condonation, ratification orassumption of liability for undertaking such efforts to termi-nate strikes or stoppages of work, or requiring Local Unionsand their members to comply with the law or the provisions ofthis Agreement.

It is understood and agreed that failure by the InternationalBrotherhood of Teamsters, and/or TDHLNNC to authorize astrike by a Local Union shall not relieve such Local Union ofliability for a strike authorized by it and which is in violationof this Agreement.

The question of whether the International Union, TDHLNNC,Joint Councilor Local Union have met its obligation set forthin the immediately preceding paragraphs, or the question ofwhether the International Union, TDHLNNC, and JointCouncilor the Local Union, separately or jointly, participatedin an unauthorized work stoppage, slowdown, walkout or ces-sation of work in violation of this Agreement by calling,encouraging, assisting or aiding such work stoppage, etc., inviolation of this Agreement, or the question of whether anauthorized strike is in violation of this Agreement, or whetheran Employer engaged in a lockout in violation of thisAgreement, shall be submitted to the grievance procedure atthe national level, prior to the institution of any damage suitaction. When requested, the co-chairpersons of the NationalGrievance Committee shall immediately appoint a subcommit-tee to develop a record by collecting evidence and hearing tes-timony, if any, on the questions of whether the InternationalUnion, TDHLNNC, Joint Councilor Local Union have met itsobligations as aforesaid, or of Union Participation orEmployer lockout in violation of this Agreement. The recordshall be immediately forwarded to the National GrievanceCommittee for decision.

A majority decision of the National Grievance Committee onthe questions presented as aforesaid shall be final and bindingon all parties. If such majority decision is rendered in favor ofone (I) or more of the Union entities, or the Employer, in thecase of lockout, no damage suit proceedings on the issues setforth in this Article shall be instituted against such Union enti-ty or such Employer. If the National Grievance Committeedecides that a strike was unlawful, it shall not have the author-ity to assess damages. Except as provided in this subsection,agreement to utilize this procedure shall not thereafter in anyway limit or constitute a waiver of the right of the Employeror Union to commence damage suit action. However, the useof evidence in this procedure shall not waive the right of theEmployer or Union to use such evidence in any litigationrelating to the strike or lockout, etc., in violation of thisAgreement.

Section 11. Disciplinary Penalties for Violation of NoStrike Clause

It is specifically understood and agreed that the Employer dur-ing the first twenty-four (24) hour period of such unauthorizedwork stoppage in violation of this Agreement, shall have thesole and complete right of reasonable discipline, includingsuspension from employment, up to and including thirty (30)days, but short of discharge, and such employees shall not beentitled to or have any recourse to the grievance procedure. Inaddition, it is agreed between the parties that if any employeerepeats any such unauthorized strike, etc., in violation of thisAgreement, during the term of this Agreement, the Employershall have the right to further disci pline or discharge suchemployee without recourse for such repetition. After the firsttwenty-four (24) hour period of an unauthorized stoppage inviolation of this Agreement, and if such stoppage continues,the Employer shall have the sole and complete right to imme-diately further discipline or discharge any. employee partici-pating in any unauthorized strike, slowdown, walkout, or anyother cessation of work in violation of this Agreement, andsuch employees shall not be entitled to or have any recourse tothe grievance procedure. The suspension or discharge hereinreferred to shall be uniformly applied to all employees partici-pating in such unauthorized activity. The Employer shall havethe sole right to schedule the employee's period of suspension.

Section 12. Delinquent Health & Welfare and PensionObligations

In the event the Employer is delinquent in its Health &Welfare or Pension payments in the manner required by thisAgreement or applicable Supplements and/or Riders, theLocal Union shall have the right to take whatever action itdeems necessary until such delinquent payments are made ..The Local Union shall give the Employer a seventy-two (72)hour, (excluding Saturday, Sunday and holidays) prior writtennotice of the Local Union's authorization of strike actionwhich notice shall specify the failure to make Health &Welfare or Pension payments providing the basis for suchstrike authorization. In no event shall the Union have the rightto strike over a dispute concerning eligibility and/or a paymentof Health & Welfare or Pension contributions by the Employeron behalf of specitic individuals, and such disputes shall besubject to the grievance procedure. Such notice shall be pro-vided in writing by confirmed delivery to the DHL VicePresident of Labor Relations.

ARTICLE 8. PROTECTION OF RIGHTS

Section 1. Picket Lines: Sympathetic Action

[t shall not be a violation of this Agreement, and it shall not because for discharge, disciplinary action or permanent replace-ment in the event an employee refuses to enter upon any prop-erty involved in a primary labor dispute, or refuses to gothrough or work behind any primary picket line sanctioned by

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MASTDHLNNC, including the primary picket line of Unions partyto this Agreement, and including primary picket lines at theEmployer's places of business. In such circumstances, theEmployer may exercise its lawful rights to get the work done.

Section 2. Struck Goods

It shall not be a violation of this Agreement and it shall not because for discharge, disciplinary action or permanent replace-ment if any employee refuses to perform any service whichhis/her Employer undertakes to perform as an ally of anEmployer or person whose employees are on strike and whichservice, but for such strikes, would be performed by theemployees of the Employer or person on strike.

ARTICLE 9. LOSS OR DAMAGE

Section 1. Loss, Damage or Theft

In the event loss, damage or theft of freight, equipment, mate-rials, or supplies is incurred as a direct result of a willful grossnegligent act by an employee in the performance of assignedwork, when such act knowingly may result in such loss, dam-age or theft, the employee may be held responsible for suchacts and may be required to assume liability for any such loss,damage or theft, in whole or in part. The term "willful, grossnegligent acts" is intended to describe independent actions ofany employee who knowingly violates established rules orpolicies that, when adhered to, clearly prevent loss, damage ortheft described herein. Employees shall not be held responsi-ble or required to assume liability for loss or damage or theftunless clear proof of willful, gross negligence is shown. In noevent will an employee be held responsible for, or required toassume any liability for any loss, damage or theft when per-forming assigned work in a manner as specifically instructedby a supervisor. This Article shall not be utilized in any man-ner to hold an employee liable for any loss or damage ofequipment under any conditions or for any damage to cargo asa result of a vehicular accident.

Section 2. Responsibility and Liability

Prior to an employee being charged with the responsibilityand liability for any loss, damage or theft because of willfulgross negligent acts on the part of the employee, a hearingshall be held with the Local Union, the employee and theEmployer. Employees who are found to be liable and requiredto make restitution for such liability, shall not then be subjectto any further disciplinary action. Any disputes between theparties may be referred to the grievance procedure.

ARTICLE 10. BONDS AND INSURANCE

Section 1. Bonds

Should the Employer require any employee covered by this

Agreement to give bond, cash bond shall not be compulsory,and any premium involved shall be paid by the Employer.The primary obligation to procure the bonds shall be on theEmployer. If the Employer cannot arrange for a bond withinninety (90) days, it must so notify the employee in writing.Failure to so notify shall relieve the employee of the bondingrequirement. If proper notice is given, the employee shall beallowed thirty (30) days from the date of such notice to makehislher own bonding requirements, standard premiums only onsaid bond to be paid by the Employer. A standard premiumshall be that premium paid by the Employer for bonds applica-ble to all other of its employees in similar classifications.Any excess premium is to be paid by the employee.Cancellation of a bond after once issued shall not be cause fordischarge unless the bond is cancelled for cause, which occursduring working hours, or due to the employee having given afraudulent statement in obtaining said bond.

Section 2. Corporate Owned Life Insurance

The Employer will not own and/or be the beneticiary of anylife insurance policy on the life or lives of any members of thebargaining unit without obtaining the explicit authorization ofthe Teamsters DHL National Negotiating Committee and theindividual affected employees.

ARTICLE 11. WORKERS COMPENSATION

Section 1. Compensation Claims

The Employer agrees to cooperate toward the prompt disposi-tion of employee on-the-job injury claims. The Employershall provide worker's compensation protection for allemployees even though not required by state law, or the equiv-alent thereof, if the injury arose out of or in the course ofemployment. No employee will be disciplined or threatenedwith discipline as a result of filing an on-the-job injury report.The Employer or its designee shall not visit an injured workerat his/her home without his/her consent.

At the time an injury report is turned in, the Employer shallprovide the injured employee with an information sheetbriefly outlining the procedure for submitting a worker's com-pensation claim to include the name, address and phone num-ber of the company's worker's compensation representativeand other pertinent information relative to claim payment.

The Employer agrees to provide any employee injured locallytransportation at the time of injury, from the job to the medicalfacility and return to the job, or to hislher home if required.

In the event of a fatality arising in the course of employment,while away from the home terminal, the Employer shall returnthe deceased to hislher home at the point of domicile.

The Employer may publish reasonable safety rules and proce-dures and provide the Local Union with a copy. Failure to

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observe such reasonable rules and/or procedures shall subjectthe employee to disciplinary action in accordance with the dis-ciplinary procedures in the applicable SupplementalAgreement. However, the time limitation relative to prioroffenses shall be waived to permit consideration of theemployee's entire record of failure to observe reasonable safe-ty rules and/or procedures resulting in lost time personalinjuries. This provision does not apply to vehicular accidents.

When issuing progressive discipline under the terms and con-ditions of the applicable Operational Supplement, it is under-stood that the time limitation relative to prior offenses of fail-ure to observe reasonable safety rules and/or proceduresresulting in lost time injuries is waived and may be included inthe disciplinary process.

However, it is also understood that when an employer issuesprogressive discipline, the employer shall not utilize prior dis-cipline that is in excess of three (3) years old when issuingadditional progressive discipline, unless the employee hasshown a pattern of failure to observe reasonable safety rulesand/or procedures resulting in lost time injuries.

Section 2. Modified Work

This section applies only to employees working under PU&Dand Office Clerical Operational Supplements.

The Employer may establish a modified work programdesigned to provide temporary opportunity to those employeeswho are unable to perform their normal work assignments dueto a disabling on-the-job injury. Recognizing that a transition-al return-to-work program offering both physical and mentaltherapeutic benefits will accelerate the rehabilitative processof an injured employee, modified work programs are intendedto enhance worker's compensation benefits and are not to beutilized as a method to take advantage of an employee whohas sustained an industrial injury, nor are they intended to be apermanent replacement for regular employment.

An active employee, who is injured on the job, qualifies forworker's compensation benefits and is subsequently laid off,will continue to receive compensation payments and benetitsfor the period provided by his/her Supplement.

Implementation of a modified work program shall be at theEmployer's option and shall be in strict compliance withapplicable federal and state worker's compensation statutes,Acceptance of modified work shall be on a voluntary basis atthe option of the injured employee, However, refusal toaccept modified work by an employee, otherwise entitled toworker's compensation benetits, may result in a loss or reduc-tion of such benefits as specifically provided by the provisionsof applicable federal or state worker's compensation statutes.Employees who accept modified work shall continue to be eli-gible to receive "temporary partial" worker's compensationbenefits as well as all other entitlements as provided byapplicable federal or state worker's compensation statutes.

Employees who need additional medical and/or physical ther-apy may go for such treatments during scheduled hours formodified work whenever practical and r~asonable.

At facilities where the Employer has a modified work programin place, temporary moditied assignments shall be offered inseniority order to those regular full-time employees who aretemporarily disabled due to a compensable worker's compen-sation injury and who have received a detailed medical releasefrom the attending physician clearly setting forth the limita-tions under which the employee may perform such modifiedassignments. Once a modified work assignment is made andanother person is injured, the second (2nd) person must waituntil a modified work opening occurs, regardless of seniority.All modified work assignments must be made in strict compli-ance with the physical restrictions as outlined by the attendingphysician. All modified work program candidates must bereleased for eight (8) hours per day, five (5) days per week.The Employer at its option, may make a modified work offerof less than eight (8) hours per day where such work is expect-ed to accelerate the rehabilitative process and the attendingphysician recommends that the employee works back to regu-lar status or up to eight (8) hours per day by progressivelyincreasing daily hours. A copy of any release for modifiedwork must be given to the employee before the modified workassignment begins,

It is understood and agreed that those employees who, consis-tent with professional medical evaluations and opinion, maynot be expected to receive an unrestricted medical release, orwhose injury has been medically determined to be permanentand stationary, shall not be eligible to participate in a modifiedwork program.

In the event of a dispute related to cont1icting medical opIn-ion, such dispute shall be resolved pursuant to establishedworker's compensation law and/or the method of resolvingsuch matters as outlined in the applicable SupplementalAgreement. In the absence of a provision in the SupplementalAgreement, the following shall apply:

When there is a dispute between two (2) physicians concern-ing the release of an employee for modified work, such two(2) physicians shall immediately select a third (3rd) neutralphysician within seven (7) days, who shall possess the samequalifications as the most qualified of the two (2) selectingphysicians, whose opinion shall be final and binding on theEmployer, the Union and the employee. In the event the avail-ability of a qualified physician is in question, the Local Unionand the Company shall resolve such matter by selecting thethird (3rd) physician whose opinion shall be tinal and binding.The expense of the third (3rd) physician shall be equallydivided between the Employer and the Union. Disputes con-cerning the selection of the neutral physician or back wagesshall be subject to the grievance procedure.

For locations where the Employer intends to implement amodified work program or has a moditied work program in

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place, the Local Union shall be provided with a copy of thecurrent form(s) being used for employee evaluation for releaseand general job descriptions. This information shall be gener-al in nature, not employee specitic.

When a modified work assignment is made, the employeeshall be provided with the hours and days he/she is scheduledto work as well as the nature of the work to be performed inwriting. A copy of this notice shall also be submitted to theLocal Union.

An employee who is placed in a modified work position maybe subject to medical evaluation(s) by a physician selected bythe Employer to determine if the modified work being per-formed is accelerating the rehabilitative process as anticipatedby Section 2 above. [n the event such medical evaluation(s)determine that the rehabilitative process is not being accelerat-ed, the employee shall have the right to seek a second opinionfrom a physician of his choosing. Any disputes regarding con-flicting medical claims shall be resolved in accordance withthe provisions outlined above. The employee may be removedfrom the modified work program based upon final medicalfindings under this procedure. Employees so removed shallnot have their worker's compensation benefits affectedbecause of such removal. In the event the employee's tempo-rary disability worker's compensation benefit is subject toreduction by virtue of an applicable Federal or State statute,the Employer shall pay the difference between the amount ofthe reduced temporary worker's compensation benetit towhich the employee would be entitled.

Modified work shall be restricted to the type of work that isnot expected to result in a re-injury and which can be per-formed within the medical limitations set forth by the attend-ing physician. In the event the employee, in hislher judgment,is physically unable to perform the modified work assigned,he/she shall be either reassigned modified work within his/herphysical capabilities or returned to full "temporary total"worker's compensation benefits. In the event a third (3rd)party insurance carrier refuses to reinstate such employee tofull temporary total disability benefits, the Employer shall berequired to pay the difference between the amount of the ben-efit paid by such third (Jrd) party insurer and full total tempo-rary disability benetits. Determination of physical capabilitiesshall be based on the attending physicians medical evaluation.Under no conditions will the injured employee be required toperform work at that location subject to the terms and condi-tions of the National Agreement or its Supplements and/orRiders, provided that such employee may be required to per-form letter scanning, sorting, and re-weighing in a mannerconsistent with physician's restrictions. Prior to acceptance ofmodified work, the affected employee shall be furnished awritten job description of the type of work to be performed.

The modified workday and workweek shall be established bythe Employer within the limitations set forth by the attendingphysician. However, the workday shall not exceed eight (8)hours, inclusive of coffee breaks where applicable and exclu-

sive of a one-half (1/2) hour meal period and the workweekshall not exceed forty (40) hours, Monday through Friday, orTuesday through Saturday, unless the nature of the modifiedwork assignment requires a scheduled workweek to includeSunday. Whenever possible, the Employer will schedulemodi tied work during daylight hours, Monday through Friday,or during the same general working hours and on the sameworkweek that the employee enjoyed before he/she becameinjured. In the case of an employee whose workdays and/orhours routinely varied, the Employer will schedule theemployee based on the availability of the modified assignmentbeing offered. Any alleged abuse of the assignment of work-days and work hours shall be subject to the grievance proce-dure.

Modified work time shall be considered as time worked whennecessary to satisfy vacation and sick leave eligibility require-ments as set forth in the National Agreement, Supplementsand/or Riders. In addition to earned vacation pay as set forthin the applicable Supplements and/or Riders, employeesaccepting modi tied work shall receive prorated vacation payfor modi tied work performed based on the weekly averagemodi tied work pay. The only time modified work is used inprorating vacation is when the employee did not qualify underthe applicable Supplements and/or Riders.

Holiday pay shall first be paid in accordance with the provi-sions of the applicable Supplements and/or Riders as it relatesto on-the-job injuries. Once such contractual provisions havebeen satisfied, holidays will be paid at the modified work ratewhich is the modified work wage plus the temporary partialdisability benetit.

Sick leave and funeral leave taken while an employee is per-forming modified work will be paid at the modi tied work rate,which is the modified work wage plus the temporary partial dis-ability benefit. Unused sick leave will be paid at the applicablecontract rate where the employee performed modified work andqualified for the sick leave during the contract year.

The Employer shall continue to remit contributions to theappropriate Health & Welfare and Pension trusts during theentire time period employees are performing modified work.The payment of Health & Welfare and Pension contributionswhile the employee is on modified work is not included in theHealth & Welfare and Pension contributions required by theSupplement when an employee is off work on worker's com-pensation. Continuation of such contributions beyond theperiod of time specified in the Supplements and/or Riders foron-the-job injury shall be required. Provisions of this Sectionshall not be utilized as a reason to disqualify or remove anemployee from the modified work program.

Employees accepting modi tied work shall receive temporarypartial benefits as determined by each respective state worker'scompensation law, plus a modified work wage when added tosuch temporary partial benefit, shalt equal not less than eighty-live percent (85%) of forty (40) hours pay he/she would other-

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wise be entitled to under the provisions of the applicableSupplements and/or Riders for the tirst six (6) months from thedate the moditied work assignment commences. After this ini-tial six (6) month period, the percentage shall increase to ninetypercent (90%) for the duration of each individual modi tied workassignment. The Employer shall not refuse to assign moditiedwork to employees based solely on such employees reaching theninety percent (90%) wage level. Such refusal shall be consid-ered an abuse of the program and shall be subject to the griev-ance procedure. Moditied work assignments beginning or end-ing within a workweek shall be paid on a prorated basis; one (I)day equals one-tifth (1/5th).

Employees accepting modi tied work shall not be subject todisciplinary action provisions of the Operational Supplements,Regional Supplements and/or Local Riders unless such viola-tion involves an offense for which no prior warning notice isrequired under the applicable Supplement or Rider (CardinalSins). Additionally, the Uniform Testing Procedures set forthin the National Agreement shall apply.

Alleged abuses of the modified work program by the Employerand any factual grievance or request for interpretation concern-ing this Article shall be submitted directly to the Regional JointArea Committee. Proven abuses may result in a determinationby the National Grievance Committee that would withdraw thebenefits of this Article from that Employer, in whole or in part,in which case affected employees shall immediately revert to fullworker's compensation benefits.

Section 3. Americans with Disabilities Act

The Union and the Employer recognize their obligations underthe Americans with Disabilities Act. It is agreed that theEmployer shall determine whether an employee is a qualifiedindividual with a disability under the ADA and, if so, whatreasonable accommodations, if any, should be provided. Inthe event that the Employer determines that a reasonableaccommodation is necessary, the Employer shall notify theLocal Union before providing the reasonable accommodationto a qualitied bargaining unit employee to ensure that the rea-sonable accommodation selected by the Employer does notimpact another employee's seniority or other contract rights.

Any dispute over whether the Employer complied with its dutyto notify the Local Union before implementing a proposed rea-sonable accommodation or whether providing the reasonableaccommodation violates any employee's rights under any otherprovision of the National Agreement shall be subject to thegrievance procedure. Disputes over whether the Employer hascomplied with its legal requirements under the ADA, includingthe ADA requirements to provide a reasonable accommodation,however, shall not be subject to the grievance procedure.

ARTICLE 12. MILITARY CLAUSE

Employees in service in the uniformed services of the United

States, as detined by the provisions of the Uniform ServicesEmployment and Re-employment Rights Act (USERRA),Title 38, U.S. Code Chapter 43, shall be granted all rights andprivileges provided by USERRA and/or other applicable stateand federal laws. This shall include continuation of healthcoverage to the extent required by USERRA, and continuationof pension contributions for the employee's period of serviceas provided by USERRA. Employees shall be subject to allobligations contained in USERRA which must be satislied forthe employees to be covered by the statute.

In addition to any contribution required under USERRA, theEmployer shall continue to pay Health & Welfare contribu-tions for regular active employees involuntarily called toactive duty status from the military reserves or the NationalGuard for military-related service, excluding civil domesticdisturbances or emergencies. Such contributions shall only bepaid for a maximum period of eighteen (18) months.

ARTICLE 13. PAY PERIOD

Section 1. Pay Period

All employees covered by this Agreement shall be paid in fulleach week. Not more than one (I) week [seven (7) days] shallbe held on an employee; provided however, that presentarrangements shall not be disturbed by this provision, exceptby mutual agreement of the Union and the Employer.Anything currently bi-weekly will remain unless changed toweekly.

Regular Paydays

The Employer shall have a regular designated payday for reg-ular and regular-extra employees in each of the various classi-tications, and such payday shall not be changed without agree-ment of the Local Union involved.

In the event that the regular payroll checks or drafts are notavailable by the close of the normal business hours on theemployee's regular payday, upon request of the employee, theEmployer shall issue drafts/replacement checks whenever pos-sible. Such draft/replacement checks shall be available by theend of the business day following the day the payroll check ordraft replacement check was due.

Incomplete Paycheck/Payroll Shortage

In the event of a payroll shortage equal to or greater than fiftydollars ($50.00), the Employer shall issue a draft upon requestof the employee. Such draft shall be available by the end ofthe business day following the day the shortage was due but inno event later than the next regular pay day. Failure to correctthe shortage by the next regular pay day shall subject theEmployer to pay liquidated damages in the amount of eight(8) hours pay for each day of delay.

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When a regular designated payday falls on a Sunday or a holi-day (excluding the Employee's Birthday, Anniversary Date orPersonal holiday), the pay checks for the employee not desig-nated to work on such Sunday or holiday shall be made avail-able on the preceding day.

Pay Upon Termination/Separation of Employment

I. Upon discharge the Employer shall pay earned wages due tothe employee during the first payroll department working dayfollowing the date of discharge or as otherwise provided by statelaw. Vacation pay (including Hoating holidays) for which the dis-charged employee is qualified shall be paid no later than the firstday following final determination of the discharge.

2. Upon quitting, the Employer shall pay all money due to theemployee on the next regular payday for the week in whichthe resignation occurs or as otherwise provided by state law.

3. Failure to remit the payments as described in this Sectionby the regularly scheduled payday in the week following theemployee's separation of employment, shall subject theEmployer to pay liquidated damages in the amount of eight(8) hours pay for each day of delay thereafter.

Terminal Closing

Upon a permanent terminal closing and/or cessation of opera-tions, the Employer shall pay all money due to the employeeduring the first payroll department working day following thedate of the terminal closing and/or cessation of operations.Failure to remit the payments as described in this Section bythe regularly scheduled payday in the week following theemployee's separation of employment, shall subject theEmployer to pay liquidated damages in the amount of eight(8) hours pay for each day of delay thereafter.

Section 2. Payroll Drafts

Payroll drafts issued shall be negotiable in the area in whichissued.

Section 3. Itemized Statement

The Employer shall furnish each employee with an itemizedstatement of earnings and deductions, specifying hours,straight time and overtime, vacation pay, holiday pay, andothe; compensation payable to the employee, which is includ-ed in the check. Paychecks shall also show available vacationhours, sick leave hours, and personal holidays.

Section 4. Tax Withholding

Federal and State income tax withholding, on vacation shallnot exceed the normal rate.

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Section 5. Rejected Claims

The employee must note any claim on his own time cardduring the shift such claim occurs. In the case of time claimedby the employee but disallowed by the Employer, the fulldetailed written and dated explanation must be given to theemployee within fourteen (14) days of the date the claim wassubmitted.

Section 6. New Hires

New hires must participate in direct deposit or debit card pay-ment unless otherwise prohibited by state law.

ARTICLE 14. POSTING

Section 1. Posting of Agreement

A copy of this Agreement shall be posted in a conspicuousplace in each garage and terminaL

Section 2. Union Bulletin Boards

The Employer agrees to provide suitable space for the Unionbulletin board in each garage, terminal or place of work.Postings by the Union on such boards are to be conti ned toofficial business of the Union.

All Union bulletin boards must be glass encased and the stew-ard and Business Agent given a key. The Employer shall haveninety (90) days to comply.

ARTICLE 15. UNION AND EMPLOYERCOOPERATION

The parties agree at all times as fully as it may be within theirpower to cooperate so as to protect the long-range interests ofthe employees, the Employer, the Union and the customersserved by the Employer and employees covered by thisAgreement.

ARTICLE 16. UNION ACTIVITIES

Any employee, member of the Union, acting in any officialcapacity whatsoever shall not be discriminated against forhis/her acts as such officer of the Union so long as such actsdo not interfere with the conduct of the Employer's business,nor shall there be any discrimination against any employeebecause of Union membership or activities.

A Union member elected or appointed to serve as a Unionofficial shall be granted a leave of absence during the periodof such employment, without discrimination or loss of seniori-ty rights, and without pay. The Local Union must give forty-

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eight (48) hours notice for the tirst three (3) individuals byLocal and two (2) weeks notice for any additional employeesfor such leave. The Union agrees that in making its requestfor time off for union activities, due consideration shall begiven to the number of employees affected in order so thatthere shall be no disruption of the Employer's operation due tolack of available employees.

ARTICLE 17. SEPARATION OF EMPLOYMENT

Upon discharge, the Employer shall pay earned wages due tothe employee on the next payroll following the date theemployee quits or is discharged. Vacation pay for which thedischarged employee is qualitied shall be paid no later thanthe next payroll following final determination of the dis-charge.

Upon a permanent terminal closing and/or cessation of opera-tions, the Employer shall pay all money due to the employeeon the next payroll following the date of the terminal closingand/or cessation of operations.

Failure to comply shall subject the Employer to pay liquidateddamages in the amount of eight (8) hours pay for each day ofdelay. Upon quitting, the Employer shall pay all money due tothe employee on the next regular payday for the week inwhich the resignation occurs.

ARTICLE 18. EMPLOYER AND EMPLOYEEIDENTIFICATION

Company representatives, if not known to the employee, shallidentify themselves to employees prior to taking disciplinaryaction.

Safety or other company vehicles shall be identitied whenstopping company equipment.

The Employer agrees to supply company identification toemployees covered by this Agreement.

ARTICLE 19. SEPARABILITY (SAVINGSCLAUSE)

If any provision of this Agreement, or the application of suchprovision, is subsequently determined to be contrary to orunauthorized by law, or held invalid or unenforceable by oper-ation of law or by decision of any tribunal of competent juris-diction, then such provision shall not be applicable, performedor enforced, except to the extent permitted or authorized bylaw, and such provision shall be deemed to be temporarilymodi tied to the extent necessary to conform to law; providedthat in such event all other provisions of this Agreement shallcontinue in effect. The parties shall enter into immediate col-lective bargaining negotiations after receipt of written notice

of the desired moditication of the provision held invalid orunenforceable for the purpose of arriving at a mutually satis-factory replacement. If, however, such negotiations shall notresult in mutually satisfactory agreement, either party maysubmit the dispute to the National Grievance Committee,which shall issue a decision implementing one of the parties'tinal offers. The No Strike/No Lockout provisions of Article 7shall remain in full force and effect in the event of such nego-tiations.

ARTICLE 20. EMERGENCY REOPENING

In the event of national health care insurance, mandatory eco-nomic controls (such as a wage or price freeze) or other state orfederal legislative or executive action (including without limita-tion changes in wage and hour laws) which is applicable toemployees and/or the Company during the term of thisAgreement and which has an unanticipated material impact onthe tinancial structure of the Company or materially alters thecost or level of wages, benetits or job security of employees,either party may reopen the provisions of this Agreement directlyaffected thereby with a sixty (60) day written notice of intent torenegotiate said provisions. If the parties reach agreement in suchreopener negotiations but government approval is required for therevisions to become effective, the Union and Employer will coop-erate fully to obtain such approval. In the event the parties areunable to reach agreement in such reopener negotiations withinone-hundred-eighty (180) days of the notice, either party shall bepermitted all lawful economic recourse to support its position.

ARTICLE 21. WAGES

The following wage provisions pertain to all employees cov-ered by this agreement. Other wage provisions not mentionedin this Article can be found in the relevant OperationalSupplements, Supplements and/or Riders.

Section 1. No Reduction in Pay

No employee on the books as of the date of ratification shall suf..fer a reduction in their rate of pay as a result of this Agreement.

Section 2. COLA

All regular employees shall be covered by the provisions of acost-of living allowance as set forth in this Article.

The amount of the cost-of-living allowance shall be determinedas provided below on the basis of the "Consumer Price Index forUrban Wage Earners and Clerical Workers", CPI-W (RevisedSeries Using 1982-84 Expenditure Patterns), All Items (1982-84= 100), published by the Bureau of Labor Statistics, U.S.Department of Labor and referred to herein as the "Index."

Effective April I, 2008, and every April I thereafter during the

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life of the Agreement, a cost-of-living allowance will be calcu-lated on the basis of the difference between the Index forJanuary, 2007 (published February 2007) and the Index forJanuary, 2008 (published February 2008) with a similar calcu-lation for every year thereafter, as follows:

For every 0.2 point increase in the Index over and above thebase (prior year's) Index plus three percent (3.0%), there willbe a one ($0.0 I) cent increase in the hourly wage ratespayable on April I, 2008, and every April I thereafter. Theseincreases shall only be payable if they equal a minimum offive cents ($.05) in a year.

All cost-of-living allowances paid under this agreement willbecome and remain a fixed part of the base wage rate for alljob classifications. A decline in the Index shall not result inthe reduction of classification base wage rates.

Section 3. Tuition Assistance

All active regular part-time employees (including those hiredafter April I, 2008) who have completed the probationaryperiod are eligible to participate in the Tuition AssistanceProgram ("TAP").

OHL will reimburse 100% of the cost of tuition and certain feeswhich apply to approved course work up to the limit of onethousand live hundred ($1,500) per calendar year for part-timeemployees. Special fees including, but not limited to parkingand add/drop fees, will not be included. Tuition and fees arereimbursed to employees following their successful completionof the coursers). Courses started prior to employment with OHLwill not be covered under the provisions of this policy.

Upon successful completion of the course, the employee mustsubmit a copy of the official grade reports and itemized tuitionreceipts to the Company. Reimbursement should be requestedwithin sixth (60) days of the end of the school term. Requestssubmitted more than ninety (90) days after the end of theschool term will not be eligible for reimbursement.

ARTICLE 22. GARNISHMENTS

In the event of notice to an Employer of a garnishment orimpending garnishment, the Employer may take disciplinaryaction if the employee fails to satisfy such garnishment withina seventy-two (72) hour period (limited to working days) afternotice to the employee. However, the Employer may not dis-charge any employee by reason of the fact that his earningshave been subject to garnishment for anyone (I) indebted-ness. If the Employer is notified of three (3) garnishments irre-spective of whether satisfied by the employee within the sev-enty-two (72) hour period, the employee may be subject todiscipline, including discharge in extreme cases. However, ifthe Employer has an established practice of discipline or dis-charge with a fewer number of garnishments or impendinggarnishments, if the employee fails to adjust the matter within

the seventy-two (72) hour period, such past practice shall beapplicable in those cases.

ARTICLE 23. SPECIAL LICENSES ANDDRUG/ALCOHOL TESTING

If the Employer or government agency requests a regularemployee to qualify on equipment requiring a classified orspecial license, or in the event an employee is required toqualify (recognizing seniority) on such equipment, theEmployer shall allow such regular employee the use of theequipment so required in order to take the examination on theemployee's own time.

If the Employer requires (senior may, junior must) that anemployee obtain a commercial driver's license or additionalendorsements, the employee shall be required to pay for suchCOL and endorsements, and the Employer shall, upon com-pletion of certification, pay that employee the one time sum oftwo hundred fifty ($250.00) dollars.

The Employer will execute and pay for all non-COL relatedidentification, documents, proof of citizenship or any othermeans, including time spent, required by the Employersand/or the Employer's customer(s) to ensure that the employeeshall have access to any job location he/she is being dis-patched to.

No employee will be required to have their driver's licensereproduced in any manner except by their employer, lawenforcement agencies, government facilities and facilitiesoperating under government contracts that require such identi-fication to enter the facility.

For any employee required to obtain a classified or speciallicense or security clearance requiring OOT mandated drug oralcohol testing, the Employer shall have the right to performdmg and alcohol testing of such employee consistent only inaccordance with the terms of Article 35 of the National MasterFreight Agreement (NMFA).

For any other employee covered by the terms of thisAgreement, the Employer shall have the right to perform drugand alcohol testing of such employee consistent with the termsof Article 35 of the NMFA, provided that such testing shall beconsistent with applicable state and federal law and theEmployer shall not have the right to conduct random drugtesting of such employee.

ARTICLE 24. NON-DISCRIMINATION

The Employer and the Union agree not to discriminate againstany individual with respect to hiring, compensation, terms orconditions of employment because of such individual's race,color, religion, sex, age, or national origin nor will they limit,

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~eg:e.gate or classify employees in any way to deprive anymdlvldual employee of employment opportunities because ofrace, color, religion, sex, age, or national oriuin or enua(Je inany other discriminatory acts prohibited by l~w. This e-A~iclealso covers employees with a qualitied disability under theAmericans with Disabilities Act, although whether theEmployer has complied with the ADA's statutory requirementsshall not be subject to the grievance procedure.

ARTICLE 25. LEAVESOF ABSENCE

Section 1. Sick Leave

All Supplements and Riders shall maintain the same amountof sick days contained in those labor agreements in effectprior to April I, 2008, unless otherwise set forth in the currentOperational Supplement, Supplement and/or Rider.

Sick days are usable from the tirst (I st) day of absence.

Section 2. Eligibility Requirements for Sick Leave

Additional issues related to eligibility for Sick Leave are setforth in the various Operational Supplements, RegionalSupplements and Local Riders to this Agreement.

Section 3. BereavementlFuneral Leave

Unless otherwise set forth in applicable OperationalSupplements, Supplements and/or Riders, the following shallapply:

Non-probationary regular full-time employees shall be grantedup to three (3) days of paid leave at regular straight-time ratesof pay as compensation for actual work days lost due to thedeath of a member of the employee's "immediate family," asdetined herein, provided that the employee attends the funeralor memorial service. One (I) day of paid leave at regularstraight time rates of pay shall be provided for an actual workday lost to attend the funeral or memorial service for a mem-ber of the "extended family," as de tined herein.

"Immediate family," as used herein, shall include: currentspouse, domestic partner, mother, father, sister, brother, child,step-child (providing persons in such relationship were raisedin the same home and have continued an active family rela-tionship), mother-in-law, or father-in-law.

"Extended family," as used herein, shall include step-parents,sister-in-law, brother-in-law, step-sisters, step-brothers, grand-parents, grandchildren, step-grandparents, step-grandchildrenand legal guardian relationships.

All such bereavement leave must be taken within seven (7)calendar days after the death, or it is waived.

MASShould an employee require additional time off from work inconnection with the death, the employee may request to usefloating holidays or vacation time. Such requests shall notunreasonably be withheld.

A death certiticate or other proof of death shall be submittedto the Employer, upon request.

An employee shall not be entitled to bereavement leave if, atthe time of death, the employee is on a vacation, holiday, anyother leave of absence, layoff, workers compensation or other-wise is not actively at work for the Employer.

Section 4. Jury Duty

All regular employees called for jury duty will receive the dif-ference between eight (8) hours pay at the applicable hourlywage and actual payment received for jury service for eachday of jury duty to a maximum of fifteen (15) days pay foreach contract year.

When such employees report for jury service on a scheduledworkday, they will not unreasonably be required to report forwork that particular day.

Time spent on jury service will be considered time worked forpurposes of Employer contributions to Health & Welfare andPension plans, vacation eligibility and payment, holidays andseniority, in accordance with the applicable provisions of theSupplemental Agreements, Regional Supplements and LocalRiders to a maximum of fifteen (15) days for each contract year.

Section 5. Witness Appearance Leave

Non-probationary regular full-time employees required, andappropriately documented, to appear in court or other legalproceedings, for other than jury duty, shall notify theEmployer on their next work day after receiving notice requir-ing their attendance in court or other legal proceedings. If theemployee provides such notice, the employee shall be permit-ted, at the employee's option, to utilize available vacation orfloating holidays to remain in pay status for the day(s) of thewitness appearance (provided the Employer is given reason-able advance notice.). If the employee is required to appear ina legal proceeding or arbitration arising out of his work at anyproceeding and at the request of the Employer, he shall bepaid for such time spent.

Section 6. FMLA Leave

All employees who worked for the Employer for a minimumof twelve (12) months and worked at least one thousand twohundred fifty (1,250) hours during the past twelve (12) monthsare eligible for unpaid leave as set forth in the Family andMedical Leave Act of 1993.

Eligible employees are entitled to up to a total of twelve (12)

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MASweeks of unpaid leave during any twelve (12) month periodfor the following reasons:

I. Birth or adoption of a child or the placement of a child forfoster care;

The Employer may not force an employee to substituteaccrued leave for FMLA leave if the employee is receivingsupplemental loss-of-time disability benetits from a benefitplan under the Agreement.

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2. To care for a spouse, child or parent of the employee due toa serious health condition;

3. A serious health condition of the employee.

The employee's seniority rights shall continue as if theemployee had not taken leave under this Section, and theEmployer will maintain health insurance coverage during theperiod of the leave.

The Employer may require the employee to substitute accruedpaid vacation or other paid leave for part of the twelve (12)week leave period.

The employee is required to provide the Employer with atleast thirty (30) days advance notice before FMLA leavebegins if the need for leave is foreseeable. If the leave is notforeseeable, the employee is required to give notice as soon aspossible. The Employer has the right to require medical certi-fication of a need for leave under this Act. In addition, theEmployer has the right to require a second (2nd) opinion atthe Employer's expense. If the second (2nd) opinion conflictswith the initial certification, a third (3rd) opinion from a healthcare provider selected by the first (I st) and second (2nd) opin-ion health care providers, at the Employer's expense may besought, which shall be tinal and binding. Failure to providecertification shall cause any leave taken to be treated as anunexcused absence.

As a condition of returning to work, an employee who hastaken leave due to his/her own serious health condition mustbe medically qualified to perform the functions of his/her job.In cases where employees fail to return to work, the provisionsof the applicable Supplemental Agreement will apply.

It is specifically understood that an employee will not berequired to repay any of the contributions for his/her healthinsurance during FMLA leave. No employee will be disci-plined for requesting or taking FMLA leave under the contractabsent fraud, misrepresentation, or dishonesty.

Disputes arising under this provision shall be subject to thegrievance procedure.

The provisions of this Section are in response to the federalFMLA and shall not supersede any state or local law whichprovides for greater employee rights.

The Employer may not force an employee who has taken sep-arate hours of unpaid leave for medical reasons to substitutethose hours as accrued leave under the FMLA.

Section 7. Unpaid Personal Leave of Absence

All Supplements and Riders shall maintain the unpaid person-al leave of absence provisions contained in those labor agree-ments in effect prior to April I, 2008, unless otherwise setforth in the current Supplements and/or Riders.

Section 8. Non-Employment Elsewhere

Except as provided in Section 7 immediately above, a leave ofabsence will not be granted to enable an employee to try for oraccept employment elsewhere or for self-employment, withoutprior written approval of the Employer. Failure to complywith this provision shall result in the complete loss of seniori-ty rights of the employee.

ARTICLE 26. HOLIDAYS

Section 1. Designated Holidays

All Supplements and Riders shall maintain the same holidayscontained in those labor agreements in effect prior to April I,2008, unless otherwise set forth in the current OperationalSupplements, Supplements and/or Riders.

Each of the holidays shall be observed on the calendar day onwhich the holiday falls.

Section 2. Eligibility Requirements for Holiday Pay

Additional issues related to eligibility for holiday pay are setforth in the various Operational Supplements, RegionalSupplements and/or Local Riders to this Agreement.

Section 3. Holiday Pay

All qualified full-time employees shall receive holiday pay forsuch holidays at their straight-time hourly rate. Such holidaypay shall be equal to the employee's regularly scheduledweekly hours of duty divided by the number of regularlyscheduled weekly work days. All qualified regular part-timeemployees shall receive holiday pay for such designated holi-days at their regular straight-time hourly rate. Such holidaypay shall be equal to four (4) hours of holiday pay, regardlessof the schedule worked, unless otherwise set forth in theapplicable Supplement or Rider as to part-time employeeshired after the date of ratification of this Agreement.

Section 4. Pay for Working on a Holiday

Employees may be required to work on a designated holiday.

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However, where senior employees do not elect to voluntarilywork, the employer may draft employees to work in inverseseniority order.

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MASIN WITNESS WHEREOF, the parties hereto have set theirhands and seals this __ day of , 2008.

FOR THE LOCAL UNIONS:

NEGOTIATING COMMITTEES

TEAMSTERS DHL NATIONALNEGOTIATING COMMITTEE

James P. Holfa, Chairman

Brad Slawson Sr., Co-Chairman

Bill Hamilton, Co-Chairman

FOR THE EMPLOYER:

DHL EXPRESS (USA), INC.

Patricia Ann Burke, Chairperson

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All Supplements and Riders shall maintain the same practicesregarding compensation for working on a holiday contained inthose labor agreements in effect prior to April I, 2008, unlessotherwise set forth in the current Operational Supplements,Supplements and/or Riders.

Section 5. Holidays Falling During Vacation Period or DayOtT

If a designated holiday is observed during an employee'sscheduled vacation or scheduled day off, eligible employeesshall be paid both vacation and holiday pay for the day.

ARTICLE 27. VACATIONS

All Supplements and Riders shall maintain the same provi-sions related to vacations contained in those labor agreementsin effect prior to April I, 2008 unless otherwise set forth in thecurrent Operational Supplements, Supplements and/or Riders.

ARTICLE 28. DURATION

Section 1. Term of Agreement

This Agreement shall be effective April I, Z008, and shall con-tinue in full force and effect, without reopening of any kind,except as expressly provided herein, to and including twelve(12) midnight on March 31, 2013.

Section 2. Notification Requirements

Either party desiring to modify, change, or terminate thisAgreement shall notify the other, in writing, not more thanninety (90) calendar days and not less than sixty (60) calendardays prior to the expiration date of this Agreement. In theabsence of such notice, this Agreement shall continue fromyear to year thereafter unless written notice of the desire tomodify, change, or terminate this Agreement is served byeither party upon the other not more than ninety (90) calendardays and not less than sixty (60) calendar days prior to March3 I, 2013 or March 31st of any subsequent contract year.

Should the parties fail to reach an agreement on proposedmodifications by the expiration date after timely notice of adesire to modify, change or terminate this Agreement has beenprovided, this Agreement shall terminate, unless extended inwriting by the mutual consent of authorized representatives ofthe parties hereto.

John Murphy, Local 25,Boston, MA

Chuck Mack, Local 70,Oakland, CA

Bob Bell, Local 70,Oakland, CA

Alan Bevins, Local 135,Indianapolis, IN

Tim Allen, Local 174,Tukwila,WA

Edward Dini, Local 249,Pittsburgh, PA

Kevin Moore, Local 299,Detroit, MI

Terry Sell, Local 299,Detroit, MI

Joe Smith, Local 326,New Castle, DE

Frank Burdell, Local 407,Cleveland, OH

Tim McBrideCarl RodriguezJosh FrankJim PopeMel NenselBob Langro

Nick Haschka, Local 407,Cleveland, OH

Mark Briggs, Local 483,Boise, ID

Scott Gilchrist, Local 600,St.Louis, MO

Dave Lucas, Local 671,Broomfield ,CT

Mike Scott, Local 769,North Miami, FL

Thom Conelias, Local 851,Valley Stream, NY

Earl Averette, Local 856,San Bruno, CA

Mathew Fazakas, Local 961,Denver, CO

Bill DeGroot, Local 961,Denver, CO

Chris Griswold, Local 986,So. EI Monte, CA

John NuttallBob ConnollyCarolyn FisherDave FernandezSteve McClure

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UNION EMPLOYEESLocal ~5 P&D Drivers, Clerical

Lucal70 P&D Drivers

Local 85 P&D Drivers

Local 100 P&D Drivers

Local 107 P&D DriversClerical

Local 118 Duck & Clerical

Local 135 P&D Drivers

Local 162 P&D Drivers. Ramp

Local 170 P&D Dri vers, Clerical

Local 174 P&D Dri vers, Ramp

Local 222 Clerical

Local 249 P&D Drivers, Clerical

+ Local ~87 P&D Drivers

Local 299 P&D Drivers, ClericalHub

Local 317 P&D Drivers, ClericalCall Center

Local 326 P&D Drivers, Clerical

Local 344 Clerical

Local 355 P&D Drivers

Local 364 P&D Drivers, Clerical

Local 375 Dock & Clerical

Local 391 P&D Drivers,Dock, & Clerical

Local 407 P&D Drivers, Clerical

Local 483 Call CenterClerical

Local 486 Clerical

Local 493 P&D Drivers

ATTACHMENT A. SCOPE

COVERED OPERATIONSSouth Boston (BOS), Stoneham (NES). Needham (NED), MA

Oakland (OAK). Dublin (JBS). Fremont (NUQ). CA

San Francisco (JCC), Redwood City (SSF), Soulh San Francisco (OYS), CA

Sharonville, OH (HAO); Erlanger, KY (FFT)

Philadelphia (PHL), Downtown Philadelphia (PTW), Trooper (KPD), Bristol (DYL), PA; Runnymede (LLY), Atlantic City (AIY), NJAtlantic City (AIY). NJ

Rochester (ROC), NY

Indianapolis (IN D). North East Indianapolis (SER), Anderson (AND), Lafayette (LAF), Bloomington (BMG), IN

Portland (PDX), Tigard (WPO), OR

Shrewsbury (MXG), MA

Kent (LKE), Downtown Seattle (BFI), Boeing Field (BFX), Bellevue (BLY), Bothell (TIW), Fife (EAT), WA

American Fork (CDC), Ogden (PYU), West Yalley (SLC), UT

Pittsburgh (PIT), Downtown Pittsburgh (BSI), PA

San Jose (SJC), Sunnyvale (ZSM), CA

Detroit (DTW), Southfield (FAM), Troy (DEO), MINiles (NLE), MI

East Syracuse (SYR); Syracuse (RME), NYEast Syracuse (QSR), NY

New Castle (ILG), DE

Appleton (ATW). WI

Baltimore (PAS), Linthicum Heights (BWI). Hunt Yalley (MTN), MD

South Bend (SBN), IN

Buffalo (BUF), NY

Raleigh (CEW), Morrisville (RDU), NC

Cleveland (CLE). Beechwood (PYZ), OH

Boise (QBI), IDBoise (BOI), ID

Freeland (MBS). MI

Bozrah (EHT), CT

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MAS(;NION EMPLOYEESLocal 500 Clerical

Local 600 P&D Drivers

Local62-l P&D Drivers

Local 671 P&D Drivers, Clerical

Local 745 Dock, Shuttle, Clerical

COVERED OPERATIOI'iSPhiladelphia (PHL), Downtown Philadelphia (PTW), Trooper (KPD), Bristol (DYL), PA; Runnymede (LLY), NJ

SI. Louis (STL), Downtown SI. Louis (VI H), MO

Corte Madera (SRF), Petaluma OBK), South San Francisco (OYS), CA

Windsor Locks (BDL), West Hartford (HHH), CT

Farmers Branch (BRa), Coppell (COP), Dallas (DAL), Arlington (DFW), Ft. Wonh (FfW), Plano (PLN), TX

Dock, Shuttle & Clerical Denver Airport (DVR), Denver (DEN). Araphoe (APA), Fort Collins (FTC), Boulder (WBU), Loveland (FNL), West Denver (WDN),CO

Local 769

Local 822

Local 851

Local 856

Local 912

Local 961

Local 986

Dock, Shuttle, & RampGateway

Clerical

Call CenterClerical

Clerical

P&D Drivers

Dock, Shuttle,Ramp & Clerical

GatewayHub

FI. Lauderdale (FLL), Mirimar (MMR), Tamiami (TMB), FLMiami Gateway (MIA), FL

Virginia Beach (ORF), VA

Paramus (QNY), NI; Melville (QFR), NYBrooklyn (BKL), Inwood (FLU), Melville (FRG), White Plains (HPN), Islip (ISP), Manhattan ORA), Woodside (LGA), ewburgh(SWF), Bristol (TSS), New York (WTC), New York (ZYP), NY; Edison (CDW), Elizabeth (ELZ), Wall Township (ETW), MorrisCounty (MMU), Hack

Oakland (OAK), Dublin OBS), Fremont (NUQ), San Francisco (ICC), Redwood City (SSF). South San Francisco (OYS), San lose(SIC), Sunnyvale (ZSM), Corte Maderia (SRF), Petaluma OBK), Monterey (MRY), CA

Monterey (MRY), CA

Fullerton (FRD), Irvine (PMD), Irvine (SEE), Westchester (lBP), Santa Monica (SBP), Riverside (RIV), City of Industry (SOP),Burbank (FOX), Van Nuys (VNY), Burbank (BU~), Los Angeles (ELA), Ontario (aNT), CALos Angeles (LAX), CARiverside (110), CA

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MASAPPENDIX B. MEMORANDUM OF

UNDERSTANDING: ANTI-HARASSMENT POLICY

DHL is committed to providing a work environment free ofharassment. DHL prohibits, and will not tolerate, harassmentof employees by managers and supervisors. DHL complieswith all applicable federal, state and local laws prohibitingdiscrimination, harassment, and retaliation in employment.

For purposes of this policy, harassment consists of a singleoutrageous act, or an identifiable pattern or practice of behav-ior by a manager or supervisor that is sufficiently severe,offensive, or intimidating, to a reasonable person as to create ahostile or abusive work environment. This may occur in avariety of contexts, including face-to-face conversations, tele-phone calls, radio transmissions, letters, notes, e-mail mes-sages or the like.

Not every concern is subject to this policy. If there is a statu-tory remedy (i.e. EEOC, NLRB, etc.), then that remedy takesprecedence over this one. Furthermore, if the managementactions in question amount to nothing more than holding anemployee accountable for the proper performance of the job,or imposing discipline where there is a legitimate basis fordoing so (regardless of whether that discipline is subsequentlyupheld in the grievance procedure), then they are not harass-ment. Also, different supervisors will take different approach-es to personnel issues and such differences in style are not tobe construed as harassment under this policy.

If an employee believes harassment has occurred in violationof this policy, the employee should submit the written com-plaint to the Business Agent for the Local Union. The Unionwill conduct an investigation. The complaint will be kept con-fidential to the extent consistent with conducting a completeand thorough investigation. If the Union investigation deter-mines that there has been a violation of this policy, theBusiness Agent for the Local Union will contact the localDHL LabOr Relations Manager to discuss an appropriate solu-tion to the situation. If the Business Agent and the LaborRelations Manager cannot reach a mutually acceptable resolu-tion to the complaint, the matter will proceed through thegrievance process.

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-_._- ------------------------------------------------------. __ .'_ .._ ..,-

National Master DHL AgreementDHL Express (USA), Inc.

For Period of Aprill, 2008 Through March 31, 2013

IN WITNESS WHEREOF the parties hereto have set theirhands and seals this ~ I day of H/?-~;; , 2009, to beeffective April 1, 2008, except as to those areas where it hasbeen otherwise agreed between the parties.

TEAMSTERS DHL NATIONAL NEGOTIATING COMMITTEE:

Bill Hamilton, Co-Chairman: 3~~6l~.d

DHL EXPRESS (USA), INC.

Patricia Ann Burke, Chairperson: ~~kL

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