AMENDED AGREEMENT

BETWEEN

DAVEY TREE SURGERY COMPANY

AND

LOCAL UNION 465

INTERNATIONAL BROTHERHOOD OF

ELECTRICAL WORKERS

September 1, 2008 – September 3, 2011

AMENDED AGREEMENT

THIS AMENDED AGREEMENT, made and entered into the 1^st day of September 2008, by and between Davey Tree Surgery Company, hereinafter referred to as the Company, and Local Union No. 465, hereinafter referred to as the Union.

WITNESSETH THAT:

WHEREAS, the parties hereto desire to cooperate in establishing fair and equitable wages, hours and working conditions for the employees hereafter designated, to facilitate the peaceful adjustment of differences that may from time to time arise between them and to promote harmony and efficiency to the end that Company, Union and other interested parties may benefit therefrom,

NOW, THEREFORE, parties hereto do agree as follows:

ARTICLE I

Recognition

1.1 For the purposes of collective bargaining with respect to rates of pay, wages, hours and other conditions of employment, the Company recognizes the Union as the exclusive representative of those employees in the classifications shown under Article VIII -Wages, engaged in line clearing tree trimming who work on the premises of San Diego Gas & Electric.

1.2 Employees who are members of Union shall perform loyal and efficient work and service, and shall use their influence and best efforts to protect the properties of Company and its service to the public.

1.3 During the term of this Agreement, Union shall not call upon or authorize employees individually or collectively to cease or abstain from the performance of their duties for Company, and Company shall not cause any lockout.

1.4 It is the policy of the Company and Union not to discriminate against any employee because of race, creed, sex, color, national origin, or age.

ARTICLE II

Union Security and Activity

2.1 All employees working exclusively on San Diego Gas & Electric premises and covered by the terms of this Agreement shall be required to become and remain members of the Union as a condition of employment from and after the 31st day following the date of their employment, or the effective date of this Agreement, whichever is later.

The Union shall indemnify and save the employer harmless against any and all claims, demands, suits or other forms of liability that shall rise out of or by reason of action taken by the employer for the purpose of complying with any of the provisions of the article.

2.2 Company shall deduct from employee’s wages and pay over to the proper officers of the Union the membership dues and initiation fees of the members of the Union whom individually and voluntarily authorize such deductions in writing. The forms of membership application and dues check-off authorization shall be approved by Company and Union and be presented by the Company to the employee at the start of their employment.

2.3 Company shall not discriminate against any employee because of his membership in the Union or his activity on behalf of the Union.

2.4 The Business Manager of the Union and/or his representatives shall have access to the Company's properties during regular working hours for the purpose of transacting Union business. The Union shall furnish the Company with a list of such representatives who shall be furnished with proper identification. This privilege shall not be abused by the Union, nor shall the Union interfere with normal work of the employer.

2.5 No employee covered by this Agreement shall be required, as a condition of employment, to pass through any primary picket line sanctioned by this Union; however, in the event of an emergency, the Union will assist the Company in seeking permission to pass through such picket line.

ARTICLE III

Hours and Overtime

3.1 A work week is defined to consist of seven (7) consecutive calendar days, and a basic work week is defined to consist of five (5) work days of eight (8) hours each. The days in the basic work week shall be known as work days and the other days in the work week shall be known a non-work days.

The basic work week shall be Monday through Friday, except: when a job, other than for a public utility, is to be done on Saturday, the Company may assign another day as a non-work day, and Saturday then becomes a work day in the basic work week. Whenever practicable, the non-work day shall be on a Monday.

In general, the regular hours of work shall be from 7:30 a.m. to 12:00 noon and from 12:30 p.m. to 4:00 p.m. provided, however, that the regular lunch period may be advanced or delayed one hour or less when work must necessarily be performed during the regular lunch period, or when the District Foreman or other supervisor and the employees involved mutually establish a different lunch period. Such change in the lunch period shall not be deemed to the required payment of overtime.

The regular hours of work may be changed by Company at the request or direction of public authorities or by agreement between Company and Union. Company shall not be required to pay overtime by reason of any such change.

3.2 Employees shall report for work at predetermined assembly points and shall return thereto at the conclusion of the day's work, and the time spent in traveling between such assembly points and the job site shall be considered as time worked.

3.3 Overtime is defined as (a) time worked in excess of forty (40) hours in a workweek, (b) time worked in excess of eight (8) hours on a scheduled workday, (c) time worked on a non-work day, (d) time worked outside of regular hours of work on a work day. Overtime shall be computed to the nearest quarter hour. Nothing contained herein shall be construed to require payment of overtime under more than one of the foregoing definitions for a single period of overtime.

3.4 Employees who are required to report for work on non-work days, or outside of their regular hours of work on a scheduled work day or on holiday which they are entitled to have off, shall be paid time in connection therewith one hour of travel time, but such travel time shall not exceed one-half (1/2) hour before and one-half (1/2) hour after release from duty. If an employee who is called out for such work outside of his regular hours of work on a scheduled work day continues to work into or beyond his regular hours of work, he shall be paid overtime compensation for travel time from his home only. This gives employees one-half (1/2) hour travel to the District on a call-out. The one-half (1/2) hour going home will not apply if the call-out runs into the normal work day.

3.5 Employees who report for work as provided for in Section 3.4 shall be paid a minimum of two (2) hours pay, including travel time at overtime rates.

3.6 Overtime compensation shall be paid at a rate of pay equivalent to one and one-half (1 1/2) times the regular rate of pay for all hours worked in excess of eight (8) hours up to and including twelve (12) hours in any work day or non-work day; and two (2) times the employee's regular rate of pay for all hours worked in excess of twelve (12) hours in any work day or non-work day.

3.7 Company shall not require employees who have been required to work overtime to take equivalent time off during a workday.

3.8 Employees required to work eight (8) hours or more between their regular quitting hour and their regular starting hour during the basic work week who elect not to work the next regular work day will be excused as work attendance under Section 12.4

3.9 Overtime shall be divided as equally as practical among those qualified and available at each temporary or assigned assembly point.

ARTICLE IV

Inclement Weather Practice

4.1 Employees who report for work on a work day, or for prearranged work on a non-work day, and are unable to work in the field because of inclement weather or other similar causes, shall be paid for actual time worked, if any, but not less than two (2) hours at straight time rates. Employees receiving subsistence as provided for in Section 5.2 shall continue to receive such subsistence in addition to the amount provided for under this Section.

4.l (a) The determination for not working on an inclement day shall not be at the discretion of a recipient of inclement pay. The employees shall work on such days, unless specifically notified otherwise by Company supervision.

4.2 Subject to the approval of the General Foreman or Supervisor, those employees who, due to inclement weather or other excused absences, were prevented from working forty (40) straight time hours in a given work week shall be permitted to work on a non-work day within the same work week the number of hours necessary to total forty (40) straight time hours for the week, but not to exceed eight (8) hours.

4.2 (a) It is intended that when such cases occur, employees who did lay off from work because of inclement weather or other excused absences on a regular work day shall not be required to work on their next non-work day, but where agreement is reached between the General Foreman or Supervisor and the employee, the employee shall be allowed to do so.

ARTICLE V

Expenses

5.l When working overtime before or after the regular day or shift, or when called out for work at night or on Sundays, Saturdays or holidays, the Company will provide all meals unless the men are released on or before mealtime. Where it is not practicable for the Company to provide such meals, the Company shall reimburse the employees for the cost of such meals in the amounts as follows:, $10.00 for breakfast, $10.00 for lunch, and $10.00 for dinner, not to exceed $30.00 per day. Increase meal allowance to whatever San Diego Gas & Electric and IBEW Local 465 agree to regarding meal allowances and that will become a part of this Agreement.

(a) When instructed before quitting time to report for duty before the next regular daily starting time, the employee shall provide his own mid-shift meal, the same as is regularly done on other days.

(b) Mealtime on a regular work day shall be the midpoint of that shift. Overtime meal period shall be one and one-half (1 1/2) hours before the start of the shift, two hours after the shift and every five and one-half (5 1/2) hours thereafter until employee is released from duty.

(c) If an employee who is working on prolonged overtime works through two meal periods, he shall be permitted to combine the allowable cost of such two meals in the amounts provided in this Article. Employees whose normal quitting time is 3:30 p.m. or later will be furnished dinner if they are released after 5:30 p.m. On a scheduled shift where the hours do not conform to those above, the dinner allowance shall be granted if the work continues for more than ten (10) hours from the regular starting time of the shift.

5.2 Employees who are assigned to work outside or over 60 miles from their assigned assembly point for San Diego Gas & Electric shall be allowed twenty-five dollars ($25.00) per day as a subsistence allowance for each work day at the temporary assembly point, unless housing is provided by the Company. Borrego Springs, Potrero, Boulevard, Bucklman Springs 2 and Mt. Laguna will be considered a temporary assembly point, unless San Diego Gas & Electric Company requires an assembly point at this location. An assembly point is defined as any location where employees are assigned to report for work, and is in excess of ninety (90) days duration. The time spent by any such employee in traveling to such temporary job at its beginning and from its conclusion shall be paid for by Company. (See attached Letter of Understanding for further language pertaining to crews assigned to the Borrego Springs temporary assembly point.)

5.3 In other than emergency situations, the Company shall give at least twenty-four (24) hours notice to an employee who is to be sent out of town for temporary work as defined in Section 5.2, in order that the employee may have time to prepare for the trip.

5.4 It shall not be a condition of employment for an employee to maintain a telephone or use their personal automobiles or vehicles for Company's convenience.

5.5 In no event shall Company lay off a crew in one headquarter and add a new crew in another headquarter in order to avoid payment of expense as provided in Article V.

5.6 (a) Employees are required to have a valid California driver's license. The California Department of Motor Vehicles will be the sole authority on the validity of said driver's license. If an employee should have their driver's license revoked or suspended for any reason whatsoever, the employee is required to immediately notify the Company, and shall have thirty (30) days to reinstate the driver's license, except where the possession of the driver's license directly affects the job. Employees hired after January 1, 1992, shall maintain a valid California license as a condition of employment.

5.6 (b) All employees in the tree trimming department with a classification of climber 1 or higher shall have and maintain a valid Class “B” (or higher) Commercial Drivers License (CDL) with air brake endorsement which conforms to Federal and/or State law and possess the necessary skills to drive a standard transmission vehicle. All effected employees shall have 90 days from the ratification date of this contract amendment to obtain a (CDL) and shall maintain such license at all times. Possession of the (CDL) is a requirement to advance to the Climber 1 and higher positions.

5.6 (c) Established employees unable to meet the requirements of section 5.6 (b) due to an unresolved medical condition shall be grandfathered in at their current classification.

5.6 (d) Company and Union will work together to evaluate and assist those employees who are making an acceptable effort but are having difficulty meeting the requirements of 5.6 (b) due to insufficient remedial skills. When agreeable to both Company and Union, the employees in this category will be given 180 day’s from the date of ratification to meet the requirement of 5.6 (b).

5.6 (e) The Company will reimburse an employee for any extra fees in excess of a standard license, and of any costs required for a doctor's physical. However, the total reimbursement shall not exceed seventy dollars ($70.00), and will not be made more frequently than once every four years upon evidence that the employee has obtained the license.

ARTICLE VI

Seniority

6.1 Seniority is defined as the length of continuous service with the Company. Continuity of service shall be deemed to be broken when (1) an employee is discharged for cause, (2) an employee voluntarily terminates employment, (3) an employee has been laid off for more than twelve (12) consecutive months, or (4) an employee has violated the provisions of Article VII, Section 5.

6.2 Upon the Union's request, the Company shall furnish the Union with a seniority list including wage rates of all employees covered by this Agreement, and shall keep the Union advised of all additions, deletions, or corrections at three (3) month intervals.

6.3 Seniority shall be used as the basis for determining such benefits as transfer rights, protection against demotion and layoff, hospital and life insurance, etc.

6.4 The continuity of an employee's service shall not be broken by absence for any of the following reasons, and his Company seniority shall accrue for the period of any such absence:

(a) Induction, enlistment, or active duty in the armed forces of the United States, or service in the Merchant Marine, under any Act of Congress which provides that the employee is entitled to reemployment.

(b) Absence on Union business not requiring a leave of absence.

(c) Absence by reason of industrial disability while working for Company.

(d) Authorized absence by reason of sick leave of absence without pay.

6.5 The seniority referred to in Article VI is that seniority accumulated while working for Davey Tree Surgery Company doing contract work for San Diego Gas & Electric.

ARTICLE VII

Leaves of Absence

7.1 Leave of absence shall be granted to employees with six (6) months or more of continuous service, for urgent reasons, provided adequate arrangements can be made to take care of the employee's duties without undue interference with the normal routine of work. Leave will not be granted if the purpose for which it is requested may lead to the employee's resignation.

7.2 A leave shall commence on and include the first work day on which an employee is absent, and terminate with and include the work day preceding the day he returned to work. The employee shall be restored to employment on the termination of his leave of absence.

7.3 Company shall, at the Union's request, grant a leave of absence without pay for three (3) years or less to an employee who is appointed or elected to any office or position in the Union and whose services are required by the Union. The seniority of an employee who is granted a leave of absence under the provisions of this Section shall accrue during the period of such leave except for a period of thirty (30) days or less.

7.4 A leave of absence under the foregoing conditions shall be granted to employees who enter the armed forces of the United States provided, however, that any such leave of absence and the reinstatement of any such employee shall be subject to terms of any Act of Congress which provides for reemployment.

7.5 If any employee fails to return immediately on the expiration of his/her leave of absence, or if he accepts other employment while on leave, or if he/she makes application for unemployment benefits while on leave, he/she shall thereby forfeit the leave of absence and terminate his/her employment with the Company.

7.6 Any employee who is called upon to be absent from duty due to a death in his/her immediate family shall be excused, without loss of regular pay, for a reasonable time, not to exceed three (3) days, in order to permit him to make arrangements for and to attend the funeral. "Immediate family," as used in this paragraph, means the employee's father, mother, son, daughter, brother, sister, husband, wife, grandmother, or grandfather.

ARTICLE VIII

Wages

8.l Wages will be increased for all classifications as indicated below, and all current increases will be paid retroactively to September 1, 2008.

Classification 9/1/08 8/30/09 8/29/10

Laborer - 1st Year $ 12.21 $12.67 $13.18

Laborer - 2nd Year $ 13.19 $13.68 $14.23

Apprentice Climber 0-6 months $13.28 $13.78 $14.33

Apprentice Climber 7-18 months $15.00 $15.56 $16.18

Climber – 1^st year $16.93 $17.57 $18.26

Climber – 2^nd year $19.24 $19.96 $20.76

Climber – Thereafter $21.57 $22.38 $23.28

Foreman – 1^st year $22.48 $23.32 $24.25 Foreman – 2^nd Year $23.17 $24.03 $24.99

Foreman – Thereafter $23.89 $24.79 $25.78

Vegetation Control 9/1/08 8/30/09 8/29/10 VC Tech 1 $11.86 $12.28 $12.77 VC Tech 2 $12.76 $13.24 $13.77 VC Tech 2 (After 1 year)*** $13.50 $14.01 $14.57

VC Foreman*** $15.75 $16.34 $16.99

VC Applicator $18.68 $19.38 $20.16

Employees in all classifications will have the ability to earn a .5% safety bonus quarterly through the end of the contract September 3, 2011.

***Rates are effective 9/1/08 and thereafter are only applicable to employees hired after ratification of the contract.

VC Tech 1 designation criteria: Non-experienced pole brusher.

VC Tech II designation criteria: Must have a minimum of six months pole brushing experience.

VC Foreman designation criteria: must have a minimum of eighteen (18) months brushing experience and doesn’t require a QAC.

VC Applicator I designation criteria: Must have a minimum of one year pole brushing experience and must hold a qualified applicators certificate.

Davey will reimburse employee for the license fee upon proof of certificate.

8.l (a) Twelve (12) month wage steps shall be granted when the employee has worked at least nineteen-hundred (1900) hours and twelve (12) months since the last wage increase.

Vegetation Control Foreman: Wage Schedule –24 month Climber with no raise except on general wage increase. Wage schedule at start of VC work remains until VC work is over for the year. When VC work is not in progress, VC employees will perform work classification in line clearing crew from Groundman, Climber or Line Clearing Foremen, per his experience, ability, qualifications and job availability, and receive wages as per classification of work performed.

Groundman: An employee under supervision of Working Foreman who is engaged in repetitive, unskilled work such as brushing, raking, digging, loading brush and clearing rights of way, may use power saws and feed chippers.

8.2 An employee shall be paid at the wage established for his/her classification. When an Employee is temporarily assigned to work in a classification higher than his/her regular classification he shall be paid at the rate established for such classification for each hour worked.

8.3 All employees shall be placed on an hourly rate of pay. Employees may elect to have their paycheck directly deposited to a Pay Card (if the Company decides to enroll in the Pay Card system), or mailed (using the United States Postal Service regular first-class mail) to them. If reports are received by Monday, all direct deposits and pay card deposits will be placed electronically to the employee’s bank no later than Thursday (for the prior week’s work). For employees that do not desire direct deposit or pay card deposit, a good faith effort will be made to put paychecks in the U.S. mail by Wednesday (for the prior week’s work). All payment methods are designed for a Friday payday.

For employees that choose the electronic deposits, their pay stub information will be mailed or delivered within seven calendar days from the date of the deposit.

8.4 When Climbers are hired, due consideration shall be given to their previous experience on work similar to that covered by this Agreement and they shall be credited for the equivalent value of such experience in the Climber's wage schedule, as determined by the Company.

ARTICLE IX

Promotion and Transfer

9.1 Employees may file requests in writing for promotion to the Working Foreman classification, or for a transfer to a new location in their present classification with the Livermore office of the Company. For other than temporary vacancies, whenever a vacancy occurs, the Company will, before filling such vacancy, first give consideration to such requests, and qualifications being sufficient, shall give preference on the basis of seniority.

9.1 (a) Company shall give consideration to applications for promotion and transfer to vacancies on the basis of seniority, ability and qualifications. In order to determine the relative seniority of persons filing applications on a vacancy or to determine its validity on a particular vacancy, it is agreed that Company shall only consider those applications on file at the time the vacancy occurs. Should there be no application from a qualified employee on file at the time of vacancy, the Company may fill the vacancy as provided in Section 9.3

9.2 Requests for promotion or transfer shall expire at the end of six (6) months from the time of receipt by Company unless the Company has within the six (6) month period received a request for extension. If such request for promotion and transfer is offered and employee refuses, the request becomes null and void and he shall resubmit his request.

9.3 Company may either promote a lower classification or transfer an employee in the same classification if a job is not filled under Section 9.1. It is intended that in any such case where the application of Section 9.3 creates a change in headquarters, which would require any employee to change his residence, the Company shall pay for the moving expenses involved.

9.4 Whenever a temporary vacancy occurs in any job classification, the Company may fill it by appointment. If practicable, the Company shall fill such vacancy with the senior employee in the next lower classification within his District. Temporary vacancies shall be those vacancies caused by the absence of an employee due to industrial injury, leave of absence, vacation or sick leave and additional jobs, which Company contemplates will be of ninety (90) days duration or less.

9.5 The seniority referred to in Article IX is that seniority accumulated while working for Davey Tree Surgery Company doing contract work for San Diego Gas & Electric.

ARTICLE X

Demotion and Layoff

10.1 In the event reduction of forces or permanent curtailment of operations shall occur, employees shall be laid off in the reverse order of their seniority in the area which they are working at the time of reduction. The application of the Section to an employee working temporarily in an area shall apply only to the extent that it affects him in his regular area.

10.2 An employee who has six (6) months or more of continuous Company service and whose job is being eliminated may request to displace an employee with less seniority than his own in the following sequence:

(a) that employee in the same classification in the District who has the least seniority;

(b) that employee in the lower classification in the District who has the least seniority;

(c) No employee may displace another employee who has greater Company seniority than his own.

10.3 If Company cannot effect a displacement in accordance with Section 10.2 or if an employee requests not to take a demotion as provided in Section 10.2 (b), an employee who has one year or more continuous service with the Company may elect to displace an employee with less seniority than his own in the following sequence:

(a) that employee in the same classification in the area who has the lease seniority;

(b) No employee may displace another employee who has greater seniority than his own.

10.4 Company shall give employees whose jobs are to be eliminated as much notice as possible. Employees desiring to exercise the provisions of Section 10.2 or 10.3 shall give the Company notice of at least five (5) work days.

10.5 If in the application of the provisions of this Article an employee in a classification which, in the normal line of progression, is higher than an apprentice classification can effect displacement in such classification, the former shall not take such apprentice classification but shall be given the rate of the classification next higher thereto.

10.6 The seniority referred to in Article IX is that seniority accumulated while working for Davey Tree Surgery Company doing contract work for San Diego Gas & Electric.

10.7 Employees who accept non-bargaining unit positions shall not accrue bargaining unit seniority while holding non-bargaining unit positions. Should an employee return to the bargaining unit, their seniority will be the time spent in the bargaining unit working for the Company on San Diego Gas & Electric property.

ARTICLE XI

Non-Work Days

11.1 Employees will regard the following six (6) days as non-work days in the basic work week: New Year's Day, Memorial day, Independence Day, Labor Day, Thanksgiving Day, Christmas Day.

11.2 Employees required to work on non-work days above will be entitled to compensation at one and one-half (1 1/2) times their straight time pay.

ARTICLE XII

Paid Days Off

12.1 Employees covered by this Agreement shall be entitled to paid days off as follows:

(a) First year up to seventeen (17) days: An employee will be credited with eleven (11) hours per month of every month of attendance as per Paragraph 12.4 except that he may not take any credited time during probationary employment and will only be allowed a maximum of one half (1/2) his credit up to one (1) year.

(b) Starting the third year through ten (10) years up to twenty-three (23) days: Employees will be credited with fifteen (15) hours per month for every month of attendance as per Paragraph 12.4.

(c) Starting the 11th year and thereafter up to twenty-eight (28) days: Employee will be credited with nineteen (19) hours per month for every month of attendance as per Paragraph 12.4

12.2 Employees will be permitted their choice of paid days off for any reason (vacation, personal, sick days, non-work days, etc.) on a seniority basis, if it can be done without interfering with the work in progress, except as provided in Section (a) above, and provided they are arranged for in advance. No partial days will be allowed.

12.3 Employees who have reached one (1) year or more seniority may cash in at any time any credits they have accrued over five days. An employee may defer their P.T.O. from one (1) year and add it to their second year. No employee shall be permitted to accrue more than two (2) years P.T.O. at any one time. Upon termination of employment, an employee will be paid for all unused vacation portion of the P.T.O. credits accrued to the end of the last full month worked.

12.4 Work attendance requirement is defined as an employee working every day the employee is scheduled to work in the basic work week. The only exception to the five (5) days basic work week will be: paid days off, leaves of less than one (1) week arranged for a week in advance, lost time of less than a week for the Company's convenience, or sick time with a doctor's certificate which can be taken as paid time off if the employee has credit. If an employee who is out of P.T.O. and has a verifiable doctor's excuse becomes ill (not to exceed 30 days) they will not lose their paid time off for that one illness period. Only one (1) month of P.T.O. can be earned if the illness extends into the second month. This is only allowed one time in a calendar year.

12.5 Employees shall use paid time off (P.T.O.) to compensate themselves for non-work days as described in Section 11.1 if they fall in the basic work week.

ARTICLE XIII

Safety

13.1 Company shall make reasonable provisions for the safety of employees in the performance of their work. Union shall cooperate in promoting the realization of the responsibility of the individual employee with regard to the prevention of accidents.

13.2 Company reserves the right to draft reasonable safety rules for employees and to insist on the observance of such rules. A copy of the rules will be furnished to the Union. Union will designate one (1) man to work with Company's Safety Committee on an advisory basis.

13.3 Union may submit suggestions to Company concerning the revision and enforcement of safety rules.

13.4 The State of California Electrical Safety Orders shall apply when employees are working near energized power lines.

13.5 In no event shall there be less than two (2) Climbers, one of which may be the Foreman, on each climbing crew.

13.6 The Company shall report to the Union any industrial injury which has been reported to Company. Said notice shall be furnished to the Union at the same time the Company reports the injury to its Workers' Compensation Insurance carrier. In the event the Company is self-insured for purposes of Workers' Compensation, then such notice shall be given to the Union within five (5) days after the injury has been reported to the Company.

13.7 All employees shall have and maintain an American Red Cross First Aid and CPR card or its equivalent. The Employer will furnish the instructor and the necessary materials for the course. The course will be conducted on the employees' own time.

13.8 Company will make available at no cost to employees nonprescription safety glasses, either sun tint or clear.

ARTICLE XIV

Miscellaneous

14.1 The first six (6) months of employment of a new employee shall be considered as a probationary period. Any employee entering the apprentice climber classification with one year or less of seniority shall start over on a new six (6) month probationary period. Company may demote, lay off, discipline or terminate such employee and such action shall be subject to the grievance procedure.

14.2 Employees shall report for work dressed in suitable attire to perform their duties, and shall be neat and clean in appearance.

14.2(a) Company will make available to any interested employee a clean uniform for each day in the basic work week. The cost to the employee will not exceed one dollar and fifty cents ($1.50) per day, or seven dollars and fifty cents ($7.50) per week. Any increases or adjustments to the uniform expenses will be split 50% by the Company.

14.3 The employer shall furnish all necessary tools and equipment. Employees will be responsible for the tools and equipment issued to them, providing the employer provides a safe place for storage.

14.4 If an employee's health or physical ability becomes impaired to the extent that he cannot perform the work of his classification, Company shall make every effort to provide such employee light work, within his ability to perform, for which he shall be compensated at the rate of pay established for such work.

ARTICLE XV

Grievance Procedure

15.1 Any grievance which may arise between the Union and any of its members and the Company with respect to the interpretation or application of any of the terms of this Agreement, and with respect to such matters as the alleged discriminatory or arbitrary discharge or discipline of an individual employee, shall be determined by the procedure set forth in the following sections.

15.2 As the initial step in the adjustment of a grievance, it shall be presented to the District Foreman by the Union Shop Steward; or in the absence of a Shop Steward, by an authorized Union Representative (not later than thirty (30) calendar days after the date of the action complained of, or the date the employee became aware of the incident which is the basis for the grievance). The District Foreman shall make his reply within seven (7) calendar days to the authorized person presenting the grievance.

15.3 If a grievance is not settled satisfactorily under Section 15.2, it shall be presented in writing by the Union to the Area Supervisor within fifteen (15) calendar days, following receipt of the District Foreman's reply, setting forth the following:

(a) a statement of the nature of the grievance and the facts upon which it is based;

(b) the Section or Sections of this Agreement, if any, relied upon as being applicable thereto;

(c) the remedy or correction which is desired.

The Area Supervisor shall reply in writing within fifteen (15) calendar days after the receipt setting forth the Company's position on the grievance.

15.4 If no satisfactory settlement is arrived at under Section 15.3, the matter in dispute shall be submitted within the next ten (10) working days to a mediator from either the Federal Mediation and Conciliation Service or the State of California Mediation and Conciliation Service, as jointly agreed upon by both parties. If the mediator fails to effectuate an agreement between the parties, either party may, within twenty-one (21) calendar days, request that the grievance be referred to arbitration.

15.5 In the event the grievance involves an employee's qualifications for promotion or transfer, or involves an employee's discharge or discipline, the Union must act under Section 15.3 within ten (10) calendar days and the Area Supervisor must reply within ten (10) calendar days.

15.6 An Arbitration Board shall be appointed on each occasion that a grievance is submitted to arbitration. The board shall be composed of three (3) members, one to be appointed by the Union, one to be appointed by the Company. At the earliest convenience of the representatives after their appointment, they shall meet for the purpose of selecting the third member, who will serve as Chairman of the Board. In the event the parties are unable to agree on a person to act as a third member (within five (5) working days), they shall jointly request the Director of Federal Mediation and Conciliation Service to submit a list of five (5) persons qualified to act as a third member.

The Board shall hold such hearings and shall consider such evidence as it appears necessary and proper. The decision of a majority of the members of the Board shall be final and binding on the Company and the Union and the aggrieved employee, if any, provided that such decision does not in any way add to, disregard, or modify any of the provisions of this Agreement.

The Company and the Union shall each bear the expense of its own representatives. The expense of the third party shall be borne equally by the Company and the Union.

Either party may call any employee as a witness in any proceeding before the Arbitration Board, and if the employee is on duty, the Company agrees to release such employee from duty so he may appear as a witness. If an employee is called to appear before the Board, the party calling the witness will reimburse him for all expenses including the time lost.

ARTICLE XVI

Jury Duty

16.1 Any employee who may be called for jury duty shall be permitted to be absent with pay for a maximum of up to two (2) weeks in any twelve (12) month period.

16.2 When an employee is called for jury duty, the Company will pay the difference between jury fees and the regular scheduled straight time pay for the maximum two (2) weeks.

ARTICLE XVII

Term of Agreement

17.1 This Agreement having taken effect as of January l, 1982, shall continue in effect as further amended herein for the term of September l, 2008 to and including September 3, 2011 and shall continue thereafter from year to year unless written notice of termination shall be given by either party to the other party sixty (60) days prior to the then-current term.

17.2 If either party desires to amend this Agreement, it shall give notice thereof to the other party sixty (60) days prior to the end of the then-current term, in which event the parties shall commence negotiations on any proposed amendment as soon as practicable after such notice has been given. Failure of the parties to agree on such proposed amendment shall not cause termination of this Agreement unless either party has given notice of termination as provided in Section 17.1

(a) Notwithstanding the provisions of Section 17.1, either party may forthwith terminate this Agreement in the event that the other breaches its obligations as set forth in Section 1.3 hereto.

17.3 With respect to wage rates as established in Article VIII, it is agreed that the hourly wage rates so established shall be in effect for all employees employed on the date of ratification, and shall be in effect from September 1, 2008 through September 3, 2011.

17.4 If the Union grants to any other employer, doing the same type of work covered by this Agreement in any geographical area covered by this Agreement, a contract whose total wages and fringe benefits are less favorable to the employees covered under such an Agreement than are the total wages and fringe benefits which are applicable to employees covered under the instant Agreement, Davey Tree Surgery Company, or its successors or assigns may, at the employer's option, incorporate into the instant Agreement the total wages and fringe benefits provided for in such other contract. Said incorporation of more favorable terms into the instant Agreement may be done at any time by the Employer informing the Union in writing of said incorporation.

17.5 If the Union negotiates with any other employer, doing the same type of work covered by this Agreement in any geographical area covered by this Agreement, a contract whose total wages and fringe benefits are more favorable to the employee than are the total wage and fringe benefits which are applicable to employees covered under the instant Agreement, Davey Tree Surgery Company, or its successors and assigns shall, upon written demand by the Union, bargain in good faith regarding increasing the total wages and fringe benefits in the instant Agreement to the amount of the agreement. All provisions of the collective bargaining agreement in effect between the parties, and any extensions or amendments thereto, shall remain in full force and effect throughout any bargaining pursuant to this Article.

In order to facilitate the operations of this Article, the Union agrees to furnish the Employer, upon request, a copy of any collective bargaining agreement between the Union and any other individual, partnership, firm, corporation, or employer which is or hereafter may become effective during the term of this Agreement.

17.6 The Company agrees to put into effect Kaiser Health Plan “RR” to each employee having six (6) months or more of Company seniority.

Medical: Company Monthly Employee Monthly Employee Weekly

Single: $ 154.67 $ 133.89 $ 33.47

Employee & 1 child $ 229.47 $ 347.85 $ 86.96

Employee & 2 children $ 278.43 $ 538.48 $ 134.62

Husband & Wife $ 229.47 $ 347.85 $ 86.96

Family $ 278.43 $ 538.48 $ 134.62

Increase in the Kaiser Plan premiums (if any) will be paid for by the employee through payroll deductions. On the policy anniversary date, the Company will pay 50% of any increase that may occur in the medical plan (the policy anniversary date is July 1^st of each year). The Union and Company will review the medical plan in effect on the policy anniversary to assure that the plan is meeting the needs of the employee, and that it is the most cost effective available. If it is determined that there is a better medical plan in the marketplace, the Union and Company may adopt a new medical plan or adjust the existing medical plan with mutual consent between the parties. Company agrees to deduct medical premiums for covered employees on a weekly basis.

The Company will provide each employee having six (6) months or more of Company seniority Five Thousand dollars of life insurance at no cost to the employee. This is based upon the employee completing application within thirty (30) days following the employees six (6) month seniority date. (These Applications will be provided by the Company on the employee’s (6) month anniversary date). The employee may elect to take an additional five thousand dollars ($5,000.00) of life insurance at a cost to the employee of ($.25) twenty-five cents per thousand.

Company will allow covered employees Medical Premiums to be deducted on a weekly basis.

Effective January 1, 2006, the Employer will offer a Guardian Dental Plan 45M. The terms of the plan may be amended by mutual consent of the parties. Employees who elect to participate will pay 100% of the cost of the following monthly rates:

Employee Only Coverage $11.11 per month

Employee & spouse 21.93 per month

Employee & child 19.64 per month

Family Coverage: 32.13 per month

During the term of this agreement, the parties agree to meet and negotiate over the issue of a “Flexible Work Schedule” and its addition to the current agreement. A “Flexible Work Schedule” is defined as the implementation of a 4/10 work week when a non-work day as outlined in Article II, Section 1, falls within the basic work week.

IN WITNESS THEREOF, the parties hereto have executed this agreement as of the day and year first above written, acting by and through their duly authorized office.

I.B.E.W. Local 465 Davey Tree Surgery Company

_________________________ __________________________

John C. Hunter, Business Manager Brian Friedrich, Area Manager

_________________________ __________________________

Chris Simmons, President Larry Abernathy

Vice President-Operations

__________________________

Marty Hunter, Asst. Bus. Mgr.