BUILDING MATERIAL SUPPLY AND DELIVERY AGREEMENT BETWEEN KODE CONTRACTING LTD. AND TEAMSTERS LOCAL UNION No. 213 January 1st, 2003 to December 31st, 2005 DON McGILL Secretary-Treasurer

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TABLE OF CONTENTS KODE CONTRACTING LTD. ARTICLE PAGE ARTICLE 1 - INTERPRETATION .................................................................................................1 ARTICLE 2 - UNION SECURITY..................................................................................................2 ARTICLE 3 - HIRING AND CONTRACTING OUT........................................................................4 ARTICLE 4 - NEW CLASSIFICATIONS .......................................................................................4 ARTICLE 5 - HOURS OF WORK .................................................................................................4 ARTICLE 6 - SENIORITY .............................................................................................................5 ARTICLE 7 - STATUTORY HOLIDAYS........................................................................................7 ARTICLE 8 - ANNUAL VACATIONS ............................................................................................8 ARTICLE 9 - GENERAL WORKING CONDITIONS AND RULES................................................9 ARTICLE 10 - GRIEVANCE PROCEDURE................................................................................12 ARTICLE 11 - PLANS AUDITOR................................................................................................13 ARTICLE 12 - SEVERANCE PAY ..............................................................................................13 ARTICLE 13 - SAVINGS CLAUSE .............................................................................................14 ARTICLE 14 - TERM OF AGREEMENT.....................................................................................14 ARTICLE 15 - PENSION PLAN..................................................................................................14 ARTICLE 16 - EMPLOYER AND EMPLOYEE CONTRIBUTIONS.............................................15 SIGNATORY PAGE....................................................................................................................15 APPENDIX "A"............................................................................................................................16 SCHEDULE "B"DEPENDENT CONTRACTORS/OWNER OPERATORS..................................18 LETTER OF UNDERSTANDING................................................................................................19

BUILDING MATERIAL SUPPLY AND DELIVERY AGREEMENT THIS AGREEMENT MADE AS OF THIS 1ST DAY OF JANUARY, 2003. BETWEEN: KODE CONTRACTING LTD.

2951 North Street Prince George, B. C. V2N 5P9

(hereinafter called the "Company")

AND: TEAMSTERS LOCAL UNION No. 213,

affiliated with the International Brotherhood of Teamsters

(hereinafter called the "Union")

WHEREAS, it is the intention and purpose of the Company and the Union to promote and foster harmonious industrial relations between the Company and its employees. NOW THEREFORE, the Parties hereto agree as follows: ARTICLE 1 - INTERPRETATION 1.01 The headings of each Article of this Agreement may be referred to in the interpretation of the

various sections thereunder, and this Agreement shall be interpreted as a whole. 1.02 In the event that any word, phrase, sentence, Section, or Article of this Agreement is

declared invalid by any Court of competent jurisdiction, only such word, phrase, sentence, Section, or Article shall be affected and this Agreement shall be otherwise unaffected and shall continue in full force and effect.

1.03 This Agreement shall apply to all employees of the Company engaged in the classifications

listed in the attached Appendix. All work performed within a one hundred (100) mile radius of the City of Prince George, British Columbia shall be performed under the Building Material Supply and Delivery Agreement for that area.

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Exclusions: 1.04 Exclusions from the scope of coverage of this Agreement shall be:

(a) All work on or pertaining to any Industrial Construction, large commercial construction, road building, or paving. The Company agrees that work excluded above shall be done in accordance with all of the provisions, terms and conditions of the applicable Teamsters B.C. Heavy Construction Agreement or the B.C. Road Building Agreement.

(b) It is further agreed and understood that the intent of this Article 1.04 is to ensure that

any work tendered and bid by competing unionized contractors will be tendered under the applicable collective agreement. If in doubt, the Company agrees to verify with the Union, prior to tendering, which collective agreement is applicable.

(c) It is understood that Appendix "A" will apply to employees who deliver products to the

sites designated in this section. It is recognized, however, that Appendix "A" will not apply to employees who are required to remain on the site full-time to off-load or distribute materials from vehicles other than that which they personally operate.

ARTICLE 2 - UNION SECURITY Definition of Employee: 2.01 (a) This Agreement shall cover all employees engaged in work coming within the Union's

jurisdiction and whether employed at the Company's address as set out above or employed elsewhere in the Province of British Columbia. The Union's jurisdiction shall be deemed to include any and all trucking done directly by the Company or through the Company. Only employees of the Company may perform work within the Union's jurisdiction or Owner Operators working within the acceptable scope of this Agreement as defined in Article 1, excepting cases of emergency and then only until an employee can be placed on the job. Subject to Article 3, only employees of the Company may perform work within the Union's jurisdiction except in cases of emergency and then only until an employee can be placed on the job. Only employees of the Company may perform work within the Union's jurisdiction, or Owner Operators working within the acceptable scope of this Agreement as defined in Article 1, except in cases of emergency and then only until an employee can be placed on the job.

(b) All employees covered by this Agreement must become members of the Union within fourteen (14) calendar days of their commencing their employment hereunder. The Company agrees to retain, in its employ, within the group covered by this Agreement only members of the Union in good standing and to notify the Union within ten (10) days of any new employees hired or former employees returned to the payroll. For

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the purposes of this Agreement, the term employee includes only those persons working at classifications covered by Appendix "A".

2.02 Any employee who has been off for any reason and who does not retain his membership in

the Union will not retain his seniority with the company. 2.03 New employees shall be required to sign authorization cards for deduction of initiation fees,

dues and assessments as required by the By-Laws of the Union. Such deductions shall be forwarded to the Union not later than the last business day of the month in which these deductions were made. It is understood that dues are payable either monthly or quarterly in advance and that the payment schedule is to be determined by the Union. Dues shall be deducted from the second pay of the month previous to the period for which they are applicable.

2.04 It shall not be a violation of this Agreement, cause for discharge or other disciplinary action if

an employee refuses to cross a picket line which has not been declared illegal by a Court of competent jurisdiction.

2.05 It shall not be considered a violation of this Agreement or reason for discharge or other

disciplinary action if an employee refuses to deliver to a job or project which has been considered unfair by the British Columbia and Yukon Territory Building and Construction Trades Council or any of its affiliated Area Building Trades Councils or by the Teamsters Local Union No. 213. Whenever the Union has information concerning such unfair job or project, it shall immediately notify the Company.

2.06 During the term of this Agreement, there shall be no lock out by the Company or no strike,

stoppage of work or slow down, either partial or general, authorized by the Union, or any other actions directed to or intended to interfere with or impede the operations of the Company.

2.07 Shop Stewards shall be recognized by the Company and shall not be discriminated against.

The Company shall be notified by the Union of the name or names of such Stewards. Reasonable time shall be given to the Shop Steward to carry out his duties. The Union shall be notified, in writing, if a Shop Steward is discharged for cause and such cause shall be stated in the reasons. Executive Officers of the Union or Shop Stewards who are required to attend meetings at the call of the Union shall be allowed time off by the Company. There shall be one (1) designated Shop Steward and an alternate if he is unavailable.

2.08 Shop Stewards shall be present during any interview in which discipline is administered.

Shop Stewards shall be informed prior to any such meeting of the subject matter and purpose of the meeting and shall be given an opportunity to have discussion with the employee.

2.09 Business Representatives of the Local Union shall request permission to attend on the

Company premises and reasonable notice shall be provided before such attendance. Permission shall not be unreasonably withheld and notice may be given to an available Manager, Superintendent or Foreman.

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Contract and Hired Trucking: 2.10 Dependent Contractors/Owner Operators shall only be hired and paid in accordance with all

of the provisions of Schedule "B" which shall be contained herein forming part of this collective agreement. When Dependent Contractors/Owner Operators are hired on projects, they shall be hired and paid in accordance with the applicable Agreement.

ARTICLE 3 - HIRING AND CONTRACTING OUT 3.01 There shall be no contracting out of work unless all Company equipment is working, with the

exception of that down for maintenance. ARTICLE 4 - NEW CLASSIFICATIONS 4.01 The Company shall notify the Union when any new classification coming under the

jurisdiction of this Agreement is added. The Union and the Company shall negotiate on the rate to be established and that rate, once established, shall be retroactive to the introduction date of the new classification. It is understood that while such a rate has been established the equipment will be operated.

ARTICLE 5 - HOURS OF WORK 5.01 The work week for all employees covered by this Agreement shall consist of six (6) eight (8)

hour days, commencing Monday and ending Saturday. The work day shall commence not earlier than 6:00 A.M. and not later than 9:00 P.M.

Daily maximum - Monday through Saturday eight (8) hours per day; Weekly maximum - Monday through Saturday forty (40) regular hours work.

When more than one shift is required the second shift shall be paid a premium of forty cents (40¢) per hour. For the purpose of this section the second shift shall be defined as a shift commencing at 4:00 P.M. or later.

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Overtime: 5.02 All hours worked in excess of the daily or weekly maximums shall be paid as follows:

- Over eight (8) hours per day - 1 ½ times regular rate of pay; - Over forty (40) hours per week - 1 ½ times regular rate of pay; - Over forty-eight (48) hours per week - 2 times regular rate of pay.

Re: Saturday Work: 5.03 The Company may canvass employees, by seniority, to work Saturdays on a straight time

voluntary basis according to the following schedule, in order:

(a) Any employee who has not worked forty (40) hours a week in the previous pay period;

(b) Where the Company is unable to man the required Saturday shift in accordance with (a) above, the Company may canvass employees, by seniority, at the applicable overtime rate.

5.04 When work is performed on a Saturday and an employee has worked forty (40) hours that

week, the employee shall be paid time and one-half (1 ½) for the first eight (8) hours and two (2) times regular rate of pay for all hours worked thereafter. Full time employees who do not work forty (40) hours through the week work Saturday at straight time.

Saturday work shall be voluntary.

ARTICLE 6 - SENIORITY 6.01 The Company shall keep posted in a conspicuous place on its premises an up-to-date list of

all employees covered by this Agreement, showing the date when each commenced his employment with the Company, and shall forward a copy of each list to the Union as soon as it is posted.

6.02 The Company, when laying off employees, shall lay them off in reverse order of their

seniority of employment with the Company, competency considered, commencing with the most recently hired employee and proceeding in turn thereafter. When vacancies occur, the Company shall rehire laid off employees according to their seniority with the Company, competency considered, beginning with the most senior employee and proceeding in turn thereafter.

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Probationary Period: 6.03 All new employees shall have a probationary period of sixty (60) days worked or ninety (90)

calendar days, whichever comes first. 6.04 Any employee subject to a layoff through a reduction of the work force shall have the right to

exercise his seniority to continue to work in a position held by a less senior man. When filling a position through this procedure, the employee must be reasonably competent to perform the duties of the position into which he bumps. Any employee obtaining a classification as outlined above must return to his regular classification when required.

6.05 When vacancies occur, the Company shall re-hire laid off employees according to their

seniority with the Company, competency considered, beginning with the most senior employee and proceeding in turn thereafter.

6.06 No employee may change job positions through the posting procedure more than twice in

any twelve (12 month period. Any subsequent postings to be reviewed by Union and Management.

Job Posting: 6.07 The Company shall post and keep posted for not less than three (3) working days (Monday

to Saturday) on a suitable notice board, at each place of business maintained by the Company, notice of vacant positions, new positions and promotions. Any employee of the Company covered by this Agreement may apply for any such vacant or new position and the Company shall fill such positions with one of the applicant employees after considering skills, abilities, competency, and seniority, but seniority shall be given the greatest weight, but it is recognized that in any event such employee must be reasonably competent to do the work. All employees may post into classifications or areas consistent with their seniority.

6.08 Any employee, however, who previously worked at the classification as a posted employee

and is capable of performing the work or a trained employee who posted for a training position may be given preference.

6.09 (a) The successful applicant shall be on probation in his new job for thirty (30) working

and/or training days during which time he may be returned to his former job if he does not make satisfactory progress or if he applies to the Company to be returned. The Union shall receive copies of all postings and the assignments of such postings.

(b) Employees engaged in training shall receive their previous rate of pay until the

training period is complete. Thereafter, such rate applies only while performing the job trained for.

Loss of Seniority: 6.10 All employees who are laid off or terminated for lack of work shall retain their seniority on the

following basis:

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(a) Employees with less than one (1) year's service shall retain their seniority for a period of three (3) months.

(b) Employees with more than one (1) year's service shall retain their seniority for six (6)

months. 6.11 Should a properly notified employee, however, not report for work within forty-eight (48)

hours of being notified to do so, his name shall be removed from the seniority list. All employees shall keep the Company advised of their current address and available telephone number, and they shall be deemed to have been notified by the mailing of a registered letter to their current address. In any event, employees on layoff shall telephone the Company once per week in order to satisfy any queries the Company may have about their status.

ARTICLE 7 - STATUTORY HOLIDAYS Entitlement: 7.01 Every employee covered by this Agreement who completed his probationary period shall

receive a day's pay for New Year's Day, Good Friday, Victoria Day, British Columbia Day, Labour Day, Thanksgiving Day, Remembrance Day, Christmas Day, and any other holiday proclaimed by the Provincial or Federal Government, provided however, that the employee shall have worked his scheduled work day prior to such holiday and his scheduled work day after such holiday, unless express permission to be absent shall be obtained from his Superintendent. Any employee required to work on any of the above holidays shall receive double time (2X) in addition to the day's pay.

Qualify: 7.02 Employees will not qualify if on E.I, W.C.B. or Sick Pay. In order to qualify under Section

7.01 an employee must have worked fifteen (15) out of the preceding thirty (30) designated work days prior to the holiday, and shall not qualify for Statutory Holiday pay otherwise. Employees will not qualify if on E.I., W.C.B. or Sick Pay.

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7.03 If a Statutory Holiday falls on Saturday or Sunday, the preceding Friday or the following Monday, as designated by the Company, shall be observed as the holiday. If two (2) consecutive Statutory Holidays fall on Saturday and Sunday, the Company shall designate either the preceding Thursday and Friday or the succeeding Monday and Tuesday or the preceding Friday and the succeeding Monday as the holidays.

ARTICLE 8 - ANNUAL VACATIONS Two Weeks: 8.01 (a) Each employee of the Company who has completed one (1) year's service and has

worked a minimum of one thousand (1,000) hours during the preceding twelve (12) months shall be entitled to two (2) consecutive weeks vacation with pay equal to two (2) weeks straight time pay or four percent of annual gross earnings, whichever is greater.

Three Weeks:

(b) Each employee of the Company who has completed five (5) years' service and has worked a minimum of one thousand (1,000) hours during the preceding twelve (12) months shall be entitled to three (3) consecutive weeks vacation with pay equal to three (3) weeks straight time pay or six percent (6%) of annual gross earnings, whichever is greater.

Summary: 8.02 Vacation Allowance

Length of Vacations Payment (whichever Years of Service Weeks is greater)

1 year and up to 5 years 2 2 full weeks or 4% annual gross

earnings

5 years and over 3 3 full weeks or 6% annual gross earnings

8.03 On termination, employees who have completed one thousand (1,000) hours since their last

anniversary date shall receive full vacation entitlement as per above schedule. 8.04 Employees shall be entitled to take their vacation in one (1) continuous period. Vacations

shall be taken within the calendar year for which they are applicable. 8.05 Should the Company request the employees who are on vacation to return to work during

their vacation period, the Company shall pay said employees wages at the rate of time and one-half (1 ½) for those hours which are worked during that period of time which would have otherwise been the employee's vacation.

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8.06 The Company shall work with the Union in an effort to increase the number of employees allowed off at any one time for vacation.

Choosing Vacations: 8.07 The Company shall post a vacation calendar for the benefit of the employees. 8.08 Employees shall choose their time off for their annual vacations by seniority. ARTICLE 9 - GENERAL WORKING CONDITIONS AND RULES Meal and Work Breaks: 9.01 The Company shall not require any employee covered by this Agreement to work less than

four (4) hours or more than five (5) consecutive hours at any time without one-half (½) hour off work.

9.02 A thirty (30) minute unpaid meal period midshift shall commence not earlier than 11:00 A.M.

and shall be completed by 1:30 P.M. Coffee Break: 9.03 A coffee break shall be allowed each employee of the Company as close to midway in the

first half of the shift, and as close to midway in the second half of the shift, as possible. Time allowed for coffee breaks shall be up to, but not more than, ten (10) minutes each.

Safety Equipment: 9.04 Whenever the Company or the Workers' Compensation Act regulations require equipment to

be used on the job, such equipment, with the exception of safety boots, shall be provided by the Company at no cost to the employee. The employee shall be held responsible for such equipment and shall be charged for damages or loss for which he can reasonably be held responsible.

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Vehicle Safety: 9.05 Drivers or operators shall not be required to operate any vehicle which, in the operator's

opinion, violates safety requirements, however, nothing contained in this Section shall preclude the Company from disciplining an employee who takes an unreasonable position with respect to the operation of any such vehicle. It is not the intent of this Section to allow drivers or operators to refuse to operate equipment which may be safe to operate, despite minor unserviceability of certain items.

First-Aid: 9.06 The Company, when requiring First-Aid men who work at other duties in addition to their

regular rate, shall pay such employees for the ticket required at the following rates:

Thirty-five cents (35¢) per hour - Class C Ticket Fifty cents (50¢) per hour - Class B Ticket Sixty-five cents (65¢) per hour - Class A Ticket

Jury Duty and Crown Witness: 9.07 The Company shall continue to pay, and excuse from duty, any employee whose absence

on any scheduled work day is due to serving on Jury Duty or who has been subpoenaed as a witness for the Crown in any Court of Law. However, all sums received by way of payment for these duties shall be payable to the Company to the end that no employee shall receive both his regular applicable rate and pay for Jury Duty, or similarly for appearing as a Crown witness. It is agreed that employees must make themselves available for work when not required to be in attendance as Crown witnesses or Jurors.

Bereavement Leave: 9.08 In the event of a death in his immediate family and upon the request of a regular employee,

three (3) days with pay of $100.00 per day for a maximum of three (3) days will be paid by the Company. Immediate family shall be defined to include a wife, husband, son, daughter, mother, mother-in-law, father, father-in-law, brother, or sister. In addition, if the employee is notified of the death while he is working, he will be excused from that working shift. Granting of bereavement leave for relatives or dependents other than those described above shall be at the discretion of the Company and shall not be unduly withheld.

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Leave of Absence: 9.09 (a) Leaves of absence, without pay or benefits, may be granted at the discretion of the

Company and will require the consent of the Union. All applications for leaves of absence must be made in writing. All applications will be replied to in writing, with a copy forwarded to the Union. Leaves of absence shall not be unreasonably withheld.

(b) Any employee on leave of absence who engages in gainful employment without prior

written permission from both the Company and the Union shall forfeit his/her seniority and will no longer be considered as an employee of the Company. It shall also be cause for termination of employment if an employee engages in any employment connected to the trucking industry while employed at the Company without prior permission.

Medical Examination: 9.10 The Company shall pay employees who are requested by the Company to take a physical

examination. The examination shall be during working hours. 9.11 If, following a Company requested medical examination, any employee is deemed to be

physically incapable of carrying out his regularly assigned duties, the following procedure shall be applied:

(a) The Company shall assign the employee to other duties, if possible. In the event it is

claimed that the employee is totally incapacitated, the Company shall notify the Union of the medical findings in respect of the employee. Should the Union or the employee disagree with the said findings, the employee, at his own expense, shall have the right to be examined by his personal physician.

(b) If there is no agreement between the two (2) physicians on the condition of the

employee, the two (2) physicians shall select a medical consultant to examine the employee with respect to the dispute.

(c) The findings of the consultant shall be final and binding.

(d) The remuneration of the consultant shall be borne by the Company and the Union on

an equal basis.

(e) Should the consultant deem the employee to be capable of carrying out his regularly assigned duties, then the employee shall not suffer any loss of earnings caused by his having been removed from or temporarily suspended from his regularly assigned duties.

Gloves: 9.12 Upon request, the Company shall supply to employees, on an exchange basis, gloves. Time Cards:

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9.13 Employees shall be notified prior to pay day, or sooner if possible, of changes to their time

cards. The exact change shall also be explained. Tools: 9.14 The Company shall replace with the same quality any tool that is broken or worn in the

performance of an employee's duties, but an employee shall purchase tools which will be replaced by the manufacturer, free of charge, if broken to the extent possible.

9.15 The Company agrees to pay twenty dollars ($20.00) per day for meals en route to job site

with a minimum of three (3) hours travel one way.

The company agrees to pay forty dollars ($40.00) per day meal allowance where board is not supplied.

ARTICLE 10 - GRIEVANCE PROCEDURE 10.01 If, during the term of this Agreement, there should arise any difference between the Parties

bound by this Agreement concerning its interpretation, application, operation, or any violations thereof, an endeavour shall be made to settle the difference by negotiations between representatives of the Company and the Union. Where a grievance refers to a particular occurrence or incident, no consideration shall be given by either party unless such grievance is submitted within thirty (30) days from the date of the alleged occurrence or incident.

In the event that the said representatives fail to reach a satisfactory settlement within seven (7) days after the difference was submitted to them or within such longer time as the Parties agree to, then it shall be referred to an Arbitration Board of three (3) persons as follows:

(a) The Party desiring Arbitration shall appoint a member for the Board and shall notify

the other Party, in writing, of its appointment and particulars of the matter in dispute.

(b) The party receiving the notice shall, within five (5) days thereafter, appoint a member for the Board and notify the other Party of its appointment.

(c) The two (2) Arbitrators so appointed shall confer to select a third person to be

Chairman and failing for three (3) days from the appointment of the second of them to agree upon a person willing to act, either of them may apply to the Honourable, the Minister of Labour to appoint such third member.

The Arbitration Board shall sit, hear the Parties, settle the terms of the question to be arbitrated, and make its Award within ten (10) days from the date of appointment of the Chairman, provided the time may be extended by agreement of the Parties.

If the Arbitration Board finds (or if at an earlier stage of the Grievance Procedure, it is found) that an employee has been unjustly suspended or discharged, that employee shall be reinstated by the Company without loss of pay and with all his rights, benefits and privileges

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which he would have enjoyed if the suspension or discharge had not taken place, AND PROVIDED THAT, the Arbitration Board, if circumstances are established before it, which in the opinion of the Arbitration Board makes it just and equitable to do so, shall have the authority to order the Company to pay less than the full amount of wages lost.

The Arbitration Board shall have the power to determine whether a particular issue is arbitrable under this Agreement.

If the Award of the Arbitration Board is subsequently set aside by a Court of competent jurisdiction, the question shall, at the request of either Party, be submitted to another Arbitration Board appointed pursuant to, and with all the powers provided by this Clause.

The expenses and remuneration of the Chairman shall be paid by the Parties in equal shares.

Without restricting the specific powers hereinbefore mentioned, the Arbitration Board shall have all the general powers of an Arbitration Board. Nothing contained in this Section shall preclude the Parties from agreeing on having an arbitration determined by a single arbitrator as opposed to the three (3) man Board set out herein.

ARTICLE 11 - PLANS AUDITOR 11.01 The Plans Auditor shall be permitted to inspect and audit the Company's records of time

worked by employees and contributions made to the Plans and shall be allowed the time necessary to complete the audit.

The Auditor shall notify the Company of its intentions to audit and to make the necessary arrangements for the time and place.

ARTICLE 12 - SEVERANCE PAY 12.01 After one year, the Company becomes liable to pay an employee an amount equal to one

week’s wages as compensation for length of service for each year of service to a maximum of eight (8) weeks wages. A week’s wages is defined as forty (40 hours per week at the applicable hourly rate.

12.02 Severance pay as outlined in Clause 12.01 shall be paid to each employee whose

employment is permanently discontinued as a result of the sale, lease or transfer, either in whole or part, of the Company's assets.

ARTICLE 13 - SAVINGS CLAUSE 13.01 No employee who, prior to the date of this Agreement, was receiving more than the rate of

wages of this schedule or working fewer hours than stipulated in this Agreement shall suffer a reduction in wages, conditions or increase in hours because of the adoption of this Agreement.

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ARTICLE 14 - TERM OF AGREEMENT 14.01 This Agreement shall be in full force and effect from and including January 1st, 2003 to and

including December 31st, 2005, and shall continue in full force and effect from year to year thereafter, subject to the right of either Party to this Agreement within four (4) months immediately preceding the last day of December, 2005, or immediately preceding the last day of March in any year thereafter, by written notice to the other Party, require the other Party to commence collective bargaining with a view to the conclusion of a renewal or revision of the collective agreement or a new collective agreement.

14.02 Should either Party give written notice to the other Party pursuant hereto, this Agreement

shall thereafter continue in full force and effect until the Union shall give notice of strike and such strike has been implemented, or the Company shall give notice of lockout, and such lockout has been implemented, or the Parties shall conclude a renewal or revision of the Agreement or a new collective agreement.

14.03 All changes to the collective agreement shall be applicable on the effective date of the

Agreement unless otherwise specified. 14.04 Should negotiations for a new Agreement extend beyond the expiration date of the current

Agreement, it shall remain in force and effect until such time as negotiations have been discontinued.

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ARTICLE 15 - PENSION PLAN 15.01 The Teamsters Pension Plan will be mandatory for all members on the basis of Employer

contributions at the following rate.

The Company shall make contributions to the Plan at the following hourly rate based on the total hours for which the employee receives remuneration: April 1st, 1998 - one dollar and twenty-five cents ($1.25) per hour.

ARTICLE 16 - EMPLOYER AND EMPLOYEE CONTRIBUTIONS Training and Upgrading 16.01 Effective June 2nd, 1992, the Employer shall make contributions at the rate of one dollar and

fifty cents ($1.50) per day for each employee and Owner Operator covered by this Agreement. Such contributions shall be submitted to the Teamsters Local Union No. 213 Training and Upgrading Programme, and payable by the fifteenth (15th) day of the month following that to which they refer.

(Clause applicable to Dependent Contractors.)

Teamsters Advancement Fund 16.02 Effective June 2nd, 1992, the Employer shall make contributions at the rate of three dollars

($3.00) per day for tandem units and six dollars ($6.00) per day for combination units for each employee and/or Owner Operator covered by this Agreement.

Contributions shall be submitted to the Union by the fifteenth (15th) day of the month following that to which they refer.

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Supplementary Dues 16.03 Effective June 2nd, 1992, four dollars and fifty cents ($4.50) per day shall be deducted from

each employee and Owner Operator/Dependent Contractor covered by this Agreement and remitted to the Union not later than the fifteenth (15th) day of each month following the month in which deductions were made.

Remittances shall be made in accordance with the forms provided by the Union.

DATED at Prince George, British Columbia, this day of , 2003. ON BEHALF OF THE COMPANY: ON BEHALF OF THE UNION:

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APPENDIX "A" RATES PER HOUR

EFFECTIVE EFFECTIVE CLASSIFICATIONS JAN. 1/03 JAN.1/04/O5 Trucks 1. Tandem Truck/3 Axle $21.89 C.O.L.A. 2. Tandem with Pony/Pup or Lowbed 5 Axle $22.66 3. Tandem with Triaxle or Transfer 6 Axle $22.92 4. Supertrain 8 Axle $23.18 5. Stone Slinger $22.51 *Note-Loading and unloading time

when mileage rate is used.$21.89 The following cent per mile rates shall be paid when doing winter salt deliveries only:

EFFECTIVE JAN. 1/03

1. Tandem with Pony/Pup or Lowbed 5 Axle $00.43/mile

2. Tandem with Triaxle

or Transfer 6 Axle $00.44/mile 3. Supertrain 8 Axle $00.45/mile Loaders 1. 950 size (3.5 cubic yards)$21.37 2. 966 size (4.0 cubic yards)$21.89 3. 980 size (5.0 cubic yards)$22.92 APPENDIX “A” - CONTINUED

EFFECTIVE EFFECTIVE CLASSIFICATIONS JAN. 1/03 JAN 1/04/05 Mechanics 1. Mechanic TQ $25.49 C.O.L.A.

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2. Mechanic No TQ $23.43 3. Welder Fabricator $24.46 4. Serviceman $22.92 The above individual will be paid a tool allowance of fifty cents (50¢) per hour worked in addition to the rates set out, providing the Mechanic supplies their own tools. At its option, the Company may appoint one or more Charge Hands who will attract a premium of an additional fifty cents (50¢) per hour worked. Crusherman 1. Crusherman $22.92 2. Screen Plant Operator $22.92 Travel time Travel time will be paid at base rate of $18.65 per hour for all classifications. No overtime will apply. Drivers of the vehicle will receive an additional fifty cents (50¢) per hour. Signing Bonus A signing bonus of five hundred ($500.00) dollars will be paid not later than two (2) weeks after the date of the agreement being ratified between Teamsters Local Union No. 213 and Kode Contracting Ltd.

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C.O.LA. January 1, 2004 C.O.L.A. - Using the 2003 rates of pay as a base, adjust that rate by the same percentage change as the percentage change in the “All Items Consumer Prie Index Yearly Average” for B.C. (C.P.I.) as published by Statistics Canada between October 31, 2002 and October 31, 2003. January 1, 2005 C.O.L.A. - Adjust the rate of pay over base by the percentage change in the C.P.I. between October 31, 2003 and October 31, 2004. Should the C.P.I. rates experience negative growth in either year the base rates will remain unchanged.

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SCHEDULE "B" DEPENDENT CONTRACTORS/OWNER OPERATORS AREA: Prince George 1. Tandem Dump Truck - Area rate shall apply. 2. A. Tandem Truck & Pony 2 Axle Trailer - area rate shall apply.

B. Tandem Truck and Transfer Trailer - area rate shall apply. 3. Contributions:

A. Training & Upgrading - $1.50 per day

B. Advancement Fund - $3.00 per day for Tandem Unit - $6.00 per day for Combination Unit

C. Supplementary Dues - $4.50 per day (deduction).

LETTER OF UNDERSTANDING BETWEEN: KODE CONTRACTING LTD.

2951 North Street Prince George, B. C. V2N 5P9

AND: TEAMSTERS LOCAL UNION No. 213,

affiliated with the International Brotherhood of Teamsters

THIS LETTER will confirm the agreement of the undersigned Parties to abide by the terms and conditions of the attached collective agreement made between Kode Contracting Ltd. and TEAMSTERS LOCAL UNION No. 213, affiliated with the International Brotherhood of Teamsters. IN THE EVENT such collective agreement is renewed, revised or amended, or in the event any other collective agreement is made between Kode Contracting Ltd. and the said Teamsters Local Union No. 213, the undersigned Parties agree to be bound by the terms and conditions of such renewed, revised or amended collective agreement, or such other collective agreement as is made between the said Kode Contracting Ltd. and the said TEAMSTERS LOCAL UNION No. 213 from time to time. THE CLAUSES herein shall be read in conjunction with and subject to this Letter of Understanding. DATED AT Prince George, British Columbia, this day of , 2003. SIGNED ON BEHALF OF THE COMPANY SIGNED ON BEHALF OF THE UNION