9137499.1

A G R E E M E N T

BETWEEN:

H. L. BLACHFORD, LTD./LTEE

(the “Company”)

- and -

COMMUNICATIONS, ENERGY AND PAPERWORKERS

UNION OF CANADA, LOCAL 593

(the “Union”)

9137499.1

TABLE OF CONTENTS

GENERAL PURPOSE ............................................................................................ 1

ARTICLE I - RECOGNITION AND SCOPE ........................................................ 1

ARTICLE II - UNION DUES ................................................................................. 2

ARTICLE III - NO DISCRIMINATION ................................................................ 3

ARTICLE IV - REPRESENTATION ..................................................................... 4

ARTICLE V - MANAGEMENT RIGHTS ............................................................. 6

ARTICLE VI - STRIKES AND LOCKOUTS ....................................................... 7

ARTICLE VII - GRIEVANCE PROCEDURE ...................................................... 8

ARTICLE VIII - ARBITRATION ........................................................................ 10

ARTICLE IX - PROBATIONARY EMPLOYEES .............................................. 11

ARTICLE X - SENIORITY .................................................................................. 12

ARTICLE XI - LEAVES ...................................................................................... 15

ARTICLE XII - HOURS OF WORK ................................................................... 17

ARTICLE XIII - WAGES ..................................................................................... 19

ARTICLE XIV - VACATIONS ............................................................................ 20

ARTICLE XV - STATUTORY HOLIDAYS ....................................................... 22

ARTICLE XVI - HEALTH AND WELFARE ..................................................... 23

ARTICLE XVII - HEALTH AND SAFETY ........................................................ 25

ARTICLE XVIII - DURATION AND TERMINATION ..................................... 27

9137499.1

GENERAL PURPOSE

This Agreement is entered into by the parties hereto in order to provide for orderly

collective bargaining relations between the Company and its employees. It is the

desire of both parties to co-operate in maintaining a harmonious relationship

between the Company and its employees, and to settle amicably differences or

grievances which may arise from time to time hereunder in the manner hereinafter

set out.

ARTICLE I - RECOGNITION AND SCOPE

1.01 The Company recognizes the Union as the sole and exclusive

bargaining agent for all employees of the Company at its Mississauga, Ontario

plant save and except foremen, persons above the rank of foreman, office and sales

staff, quality control and research laboratory personnel.

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ARTICLE II - UNION DUES

2.01 All employees covered by this Agreement shall, as a condition of

employment, pay dues to the Union commencing with the first pay of the first

month following their date of hire.

2.02 The Company agrees to deduct from the first pay of an eligible

employee each month, the monthly dues as specified by the Union from each

employee and shall transmit such monies to the Union Treasurer monthly, not later

than the fifteenth (15th) day of the relevant month. The Union shall supply the

necessary forms to the Company to facilitate the said deduction.

2.03 It is expressly understood and agreed that the Union will save the

Company harmless and indemnify the Company for any claim arising pursuant to

any deduction made hereunder.

2.04 The Employer upon signing of this agreement and on or about May

1 of each calendar year shall supply the Union with a list containing the following

information for all employees covered by this Agreement;

a. Name and address

b. Date of hiring

c. Date of birth

d. Classification

e. Hourly wage rate

The Employer shall notify the Union in writing with respect to additions to or

deletions from the bargaining unit, together with the above information for new

hires.

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ARTICLE III - NO DISCRIMINATION

3.01 The parties agree that there will be no intimidation, discrimination,

interference, restraint or coercion exercised or practised by either of them or their

representatives or members because of the employees’ membership or non-

membership in the Union or by reason of age, race, creed, colour, national origin,

disability, political or religious affiliation, sex, sexual orientation, or marital status,

as such terms are defined in the OHRA.

3.02 The representatives of the Union and the Employer will continue to

resolve workplace issues in a professional manner and with mutual respect. The

Employer and the Union recognize the right of all employees to work in an

environment free from harassment as such term is defined in the OHRA.

3.03 Use in this agreement of the feminine or masculine gender shall be

construed as including both male and female employees, and not as specific gender

designations.

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ARTICLE IV - REPRESENTATION

4.01 The Company recognizes the right of the Union to elect or appoint

three (3) Committee members for the purpose of assisting other employees in the

processing or presentation of grievances. The Committee members must have

completed their probationary period. The Union shall at all times keep the

Company notified in writing of the names of the employees who are acting in the

capacity of Committee member.

4.02 It is understood that the Committee members will have to do the

work assigned to them by the Company, and if it is necessary that they investigate

a grievance during working hours, they will not leave their work before obtaining

the permission of the foreman in charge. When returning to their regular work,

they will report themselves to the foreman, and if they are requested to do so, will

give an explanation as to their absence and its length. If these conditions are met,

the Company agrees that they will not lose pay in such circumstances. It is

understood that whenever possible, the Committee members will attempt to take

care of grievances in a manner which will not impede the production of their

department.

4.03 The Company will permit Union notice postings on a Union

Bulletin Board provided such are approved by the President of the Company or his

designate. Notices of unit meetings or negotiation meetings do not require such

approval.

4.04 The Company will pay up to two (2) employees on the Union

negotiation committee their regular hourly rate for time spent in pre-Conciliation

negotiation meetings with the Company plus one (1) hour per meeting to a

maximum of eight (8) hours per day.

4.05 At the request of either party, there will be quarterly meetings

involving senior plant management and the Unit Chairperson and National

Representative of the Union. A request for such meeting will be made in writing at

least one week prior to the date proposed and accompanied by an Agenda of

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matters proposed to be discussed, which shall not include matters that are properly

the subject of grievance or matters that are properly the subject of negotiations for

the amendment or renewal of this agreement. The responding party may also add

similar matters to the proposed Agenda. The Unit Chairperson shall be paid his

regular wages for all time lost from regularly scheduled hours while attending such

meetings.

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ARTICLE V - MANAGEMENT RIGHTS

5.01 The Union recognizes and acknowledges that the management of

the operation and direction of the working force are fixed exclusively in the

Company, and, without restricting the generality of the foregoing, the Union

acknowledges that it is the exclusive function of the Company to:

(a) maintain order and efficiency;

(b) hire, transfer, promote, demote, classify, assign duties, layoff, retire, recall,

discharge, suspend or otherwise discipline employees, provided that a claim that an

employee who has completed his probationary period has been discharged or

disciplined without just cause or has been dealt with contrary to the provisions of

this Agreement may be the subject of a grievance and dealt with as hereinafter

provided;

(c) make, enforce and alter, from time to time, reasonable rules and regulations

to be observed by the employees;

(d) determine the nature and kind of business conducted by the Company, the

kinds and locations of the plants, equipment and materials to be used, the control of

materials and parts, the methods and techniques of work, the content of jobs, the

schedules of production, the number of hours to be worked, the schedules of work,

the qualifications of employees, the number of employees to be employed, the

extension, limitations, curtailment or cessation of operations or any part thereof, and

to determine and exercise all other functions and prerogatives which shall remain

solely with the Company except as specifically limited by the express provisions of

this Agreement.

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9137499.1

ARTICLE VI - STRIKES AND LOCKOUTS

6.01 The parties having entered into this Collective Agreement in mutual

good faith, the Company agrees there will be no lockout and the Union agrees

there will be no strike, picketing, slow-down, or other concerted activity, either

complete or partial, which could interfere with or restrict production during the

term of this Agreement.

6.02 The Union further agrees that it will not involve any employee of

the Company, or the Company itself, in any dispute which may arise between any

other employer and the employees of such other employer.

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ARTICLE VII - GRIEVANCE PROCEDURE

7.01 The parties to this Agreement are agreed that it is of the utmost

importance to adjust complaints and grievances as quickly as possible.

Accordingly, no grievance shall be arbitrable where the circumstances giving rise

to it occurred or originated more than ten (10) working days before the filing of the

grievance.

7.02 Any complaint or problem should first be raised with the

employee’s supervisor. The employee may be accompanied by a member of the

Union Committee if he so chooses. Employee grievances arising under this

Agreement shall be processed as follows:

STEP 1:

If the employee is still not satisfied, the Union may take the matter up as a grievance

with the Department Supervisor or his designate within ten (10) working days of the

circumstances giving rise to the grievance. The Department Supervisor, or his

designate shall communicate his position in writing to the Union within three (3)

working days of such meeting.

STEP 2:

If the matter is not settled, then within three (3) working days of the Department

Supervisor’s reply, the Union may request a meeting with the Company’s

management. In such case the meeting shall be held between the Manufacturing

Manager or his designate and the Union as soon as practicably possible, but not later

than two (2) weeks after the Company receives written notification from the Union

that such meeting is desired. The National Representative may attend such meeting.

If the matter is not disposed of at such meeting, and the Union wishes to proceed to

arbitration, the Union shall, within ten (10) days of the date of such meeting, but not

thereafter, deliver to the Company a notice in writing stating that it wishes to take

the matter to arbitration. The notice to arbitrate shall contain the Union’s

suggestions for an Arbitrator and shall also specify the issues in dispute, and the

remedy sought.

7.03 (a) Discharge:

A claim by an employee, other than a probationary employee, that he has been

unjustly discharged shall be treated as a grievance if a written statement of such

grievance is lodged with the Manufacturing Manager or his designate within five (5)

working days after the employee ceases to work for the Company.

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9137499.1

(b) Where circumstances permit, a discharged employee shall be given a

reasonable opportunity to speak to a Committee member prior to leaving the

Company’s premises.

7.04 Policy Grievances

A Union policy grievance or a Company grievance may be submitted to the

Company or the Union, as the case may be, in writing, within five (5) working days

of the circumstances giving rise to the grievance. A meeting between the Company

and the Union shall be held within five (5) working days of the presentation of the

written grievance. If the matter is not disposed of at such meeting, the grievance

may be submitted to arbitration within ten (10) days of the date of such meeting and

Article VIII (Arbitration) shall apply. Time limits may be extended by mutual

agreement in writing as provided in Article 7.05. It is expressly understood that the

provisions of this paragraph may not be used by the Union to institute a grievance

directly affecting an employee or employees which such employee or employees

could themselves institute and the provisions of Article 7.01 hereof shall not thereby

be by-passed.

7.05 It is agreed that all time limits in these Articles VII and VIII are

mandatory and that the only extensions of time limits will be by the Union and the

Company themselves notwithstanding Section 44(6) of the Labour Relations Act.

Extensions of time limits shall be valid only if given in writing by the party

granting the extension.

7.06 Warnings, Reprimands and Suspensions will be removed from an

employee’s disciplinary file after twenty-four (24) months provided the employee

has received no subsequent disciplinary notation during such period.

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ARTICLE VIII - ARBITRATION

8.01 Where a difference arises between the parties relating to the

interpretation, application or administration of this Agreement, including any

question as to whether a matter is arbitrable, or where an allegation is made that

this Agreement has been violated, either of the parties after exhausting any

grievance procedure set forth in this Agreement, may notify the other party in

writing of its desire to submit the difference or allegation to arbitration and the

notice shall contain the first party’s suggestions for an Arbitrator. The recipient of

the notice shall within five (5) working days respond to such suggestions and the

parties shall make every effort to agree on a Sole Arbitrator to hear the grievance.

If the parties fail to agree upon an Arbitrator, the appointment shall be made by the

Minister of Labour for the Province of Ontario upon the request of either party.

The Arbitrator will hear and determine the difference or the allegation and shall

issue a decision and the decision is final and binding upon the parties and upon the

Company and any employee affected by it.

8.02 The Arbitrator shall not be authorized to make any decision which

is contrary to, or inconsistent with, the provisions of this Agreement in any

particular, nor to deal with any matter which is not covered by this Agreement.

8.03 The compensation and expenses of the Arbitrator shall in all cases

be borne equally by the Company and the Union.

8.04 Following the completion of the grievance procedure in Article VII,

the parties may agree to meet with a Mediator or Grievance Settlement Officer in a

without prejudice attempt to resolve the grievance. If such meeting fails to resolve

the grievance, it may be submitted to arbitration and the ten (10) day period in

Article 7.02, Step 2 and/or Article 7.04 shall run from such meeting date.

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9137499.1

ARTICLE IX - PROBATIONARY EMPLOYEES

9.01 An employee will be considered as a probationary employee for his

first sixty (60) working days and will have no seniority rights during that period.

The termination of an employee during his probationary period shall not be made

the subject of a grievance under the Grievance Procedure. Such termination shall

be made at the sole discretion of the Company. After completion of his

probationary period, the employee’s seniority shall date from his most recent date

of hire. Part-time employees and students shall not attain any seniority rights

while so employed and shall not have any greater rights than probationary

employees.

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9137499.1

ARTICLE X - SENIORITY

10.01 A seniority list will be posted by the Company for a period of

fourteen (14) calendar days within one (1) month after the signing of this

Agreement. After such posting the list shall become final as to the employees’

names and dates designated on it, except as to any employee who has disputed the

accuracy of his seniority date while the list is posted, in which case it will be

subject to adjustment under the Grievance Procedure if established to be

inaccurate. The seniority list will be brought up-to-date every twelve (12) months

and a copy will be given to the President of the Local Union and a copy posted on

the bulletin board.

10.02 An employee’s seniority will be lost and the employee shall be

deemed terminated if he:

(a) quits the employ of the Company for any reasons;

(b) is discharged and is not reinstated through the grievance procedure or

arbitration;

(c) is laid off for a continuous period exceeding the length of his seniority at the

time of layoff or a period exceeding twelve (12) months, whichever comes first;

(d) fails to notify the Company of his intention to return to work within two (2)

working days of his being notified of recall from layoff, or fails to return to work

within five(5) working days of being notified of such recall. An employee shall be

deemed to be notified of recall on the day following the posting of a registered letter

to that effect addressed to the employee’s most recent address on the Company’s

files;

NOTE: It shall be the responsibility of the employee to keep the company informed

of his current address.

(e) fails to return to work on the first scheduled working day following the

expiration of an authorized leave of absence, unless he has a bona fide reason, or

utilizes a leave of absence for purposes other than those for which the leave of

absence was granted;

(f) is absent for three (3) consecutive working days without notifying the

Company with a bona fide reason;

(g) is continuously absent due to illness or injury in excess of two (2) years; or

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9137499.1

(h) retires or is retired.

10.03 (a) In cases of decreases in the workforce (subject to Article

10.04) the Company shall consider the skill, ability and qualifications of

employees to perform the available work. Where those factors are relatively equal

as between employees in a department, those employees with the least seniority in

the department concerned shall be displaced from the department first.

(b) An employee displaced from a department under 10.03 (a) may either elect

to be laid off or may bump the junior most employee in the plant whose work such

employee has the skill, ability and qualifications to perform, providing the

displaced employee has greater seniority than such junior employee.

(c) If an employee is bumped under 10.03 (b), that employee may either elect to

be laid off or may exercise bumping rights over the junior most employee in the

plant under the same criteria as set out in 10.03 (b).

(d) Employees displaced from a department as set out above shall be recalled,

in order of seniority, to any job in their former department (other than the highest

paid job) which becomes vacant within twelve (12) months of their layoff, provided

they have the skill, ability and qualifications to perform the required work. If such

displaced employee is employed in another department at the time of recall, that

employee may decline the recall, in which case the employee shall forfeit all future

recall rights to the former department. If such displaced employee is laid off at the

time of recall, the employee must accept recall as contemplated in Article 10.02 (d).

10.04 In applying Article 10.03 to temporary layoffs in emergency

situations or for safety reasons, the Company need only consider those employees

employed on the shift in question.

10.05 When making promotions (excluding promotions to positions

outside the bargaining unit which are not subject to the provisions of this

Agreement) seniority will apply where the skill, qualifications, merit and

efficiency of the applicants for promotion are relatively equal and are sufficient for

the vacancy to be filled. Such openings will be posted for three (3) working days

to give interested employees an opportunity to apply. If the senior applicant is not

successful, the Company will meet with the employee in an off-the-record

discussion to explain the reasons for its decision. Employees on lay off are not

eligible to apply for such posted jobs.

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9137499.1

10.06 If an employee has been selected for a promotion under Article

10.05 and is not moved to that new job within thirty (30) days, he shall be paid the

probationary rate for the new job after such thirty (30) day period.

10.07 The Local Union Chairman shall be given a copy of the names of

any employees slated for layoff, employees slated to be recalled and employees

who lose recall rights pursuant to Article 10.02 (c).

10.08 If, as a result of the exercise of Article 10.03, an employee bumps

into a lower paying job, he shall continue to be paid his prior wage rate so long as

he stays in that job.

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9137499.1

ARTICLE XI - LEAVES

11.01 The Company may grant leave of absence without pay of up to four

(4) weeks to an employee who requests such leave in writing at least two (2) weeks

prior to the commencement of such leave. Leave may be granted under this clause

for personal reasons satisfactory to the Company provided that the leave of

absence does not interfere with the Company’s operations.

11.02 Bereavement Leave

(a) In the event of death in an employee’s immediate family (children, spouse,

father, mother, sister, brother, father-in-law, mother-in-law, sister and brother-in-

law and legally adopted children) the Company shall grant a paid leave of absence

of up to three (3) successive working days for the purpose of making funeral

arrangements and attending the funeral.

(b) One working day off with pay will be granted to an employee who is unable

to attend the funeral.

(c) The Company shall also grant one (1) day off with pay to an employee who

attends the funeral of his grandparents, aunts and uncles where the funeral is held on

one of the employee’s work days.

11.03 Jury Duty

If an employee is called for jury duty or as a witness to give evidence on behalf of

the Crown, he shall receive a normal day’s pay for each work day he is absent,

provided that he signs over to the Company any monies received from the Court.

If an employee is excused from jury or witness duty for one or more scheduled work

days due to Court adjournments or other reasons, the employee must report for work

on his regularly scheduled shift.

11.04 Leave of absence without pay to attend Union conventions and

conferences shall be granted to not more than three (3) employees per year, not

exceeding ten (10) working days for each employee per calendar year provided

there are other employees who are capable, willing and available to perform the

work required. No more than one (1) employee from any Department will be

granted leave hereunder at any time. Written application for such leave(s) shall be

made by the Union at least two (2) weeks prior to the commencement of the

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9137499.1

requested leave. The company will reply within five (5) working days of the

application.

11.05 Any one (1) employee who is appointed or elected to a permanent

full-time staff position with the Union will be granted a leave of absence without

pay for up to two (2) years.

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9137499.1

ARTICLE XII - HOURS OF WORK

12.01 The normal work week shall be five (5) consecutive days of eight

(8) consecutive hour shifts, (plus lunch), but nothing in this Article shall be

construed as a guarantee of hours of work per day or per week. The Company may

institute a work week of four (4) consecutive days of ten (10) consecutive hour

shifts (plus lunch).

12.02 There shall be an unpaid meal period of one-half (1/2) hour. There

shall be two (2) paid rest periods of fifteen (15) minutes each, one (1) in the first

half of the shift and one (1) in the second half of the shift.

12.03 It is recognized by this Agreement that the nature of the Company’s

operation requires overtime work from time to time. Employees will be paid at the

rate of one and one-half (1-1/2) times the regular hourly rate for all authorized

work performed in excess of eight (8) hours per day or forty (40) hours per week.

The Company will endeavour to distribute overtime to employees in the

classification required before distributing it to employees in other classifications.

12.04 Employees required to work on Sundays will be paid two (2) times

the regular hourly rate for all authorized work performed.

12.05 Employees required to work on the afternoon shift shall receive a

shift premium of ninety cents (90¢) per hour, in addition to their regular rate.

Employees required to work on the night shift shall receive a shift premium of one

dollar ($1.00) per hour, in addition to their regular rate.

12.06 There shall be no duplication or pyramiding of provisions of pay

hereunder. Where two (2) or more provisions respecting premium pay apply, only

the higher shall be paid.

12.07 An employee who has left the premises and is then called in to work

outside his regular working hours shall receive a minimum of four (4) hours work

or four (4) hours wages at straight time in lieu thereof..

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12.08 The Company will post a work schedule in the Powder Department

on a monthly basis. It is recognized that this is subject to schedule changes which

may be required. However employees will be given forty-eight (48) hours notice

of such changes if reasonably possible. If the Company does not give 48 hours

notice of such change to an employee, the employee will be paid at the rate of one

and one-half (1½) times his regular rate for the first changed shift worked unless

such change is caused by an employee absence. In the event that shift work is

scheduled in any other department, the above provisions shall apply.

12.09 Individual employee shift trades will be permitted for single shifts

provided:

a. both employees sign a written request for such trade and provide it to their

Supervisor forty-eight (48) hours before the first affected shift;

b. the two employees have, in the Company’s opinion, comparable skill and

ability to do the work required on each shift;

c. the trade does not involve either employee working consecutive shifts; and

d. the trade does not trigger overtime pay under Article 12.03 for either

employee.

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ARTICLE XIII - WAGES

13.01 The Company agrees to pay and the Union agrees to accept for the

duration of this Agreement, the wages, classifications and conditions set out in

Schedule “A” to this Agreement. The categorization of employees within a

classification is at the sole discretion of the Company and not subject to the

grievance procedure.

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ARTICLE XIV - VACATIONS

14.01 Employees shall receive a vacation with pay on the following basis:

After one (1) year’s service - 2 weeks vacation

After five (5) years’ service - 3 weeks vacation

After ten (10) years’ service - 4 weeks vacation

After twenty (20) years’ service - 5 weeks vacation

After twenty-seven (27) years’ service – 6 weeks vacation

14.02 The annual vacation entitlement will be calculated on April 30 of

each year. The amount of vacation to which an employee is entitled in any year

will be determined by the employee’s length of continuous service on April 30 of

the year and, if an employee has less than one (1) year’s continuous service on that

date, may be pro-rated at one day’s vacation for every five (5) full weeks of

continuous service.

Any employee who is less than one (1) year short of his fifth, tenth, twentieth or

twenty-seventh anniversary on April 30, shall be entitled to a pro-rated share of the

extra week of vacation in accordance with the following:

1 day but less than 3 months - 1 day’s vacation

3 months but less than 6 months - 2 days’ vacation

6 months but less than 9 months - 3 days’ vacation

9 months but less than 12 months - 4 days’ vacation

with an extra 0.4% vacation pay for each day.

14.03 Vacation pay for those entitled to two (2) weeks, three (3) weeks,

four (4) weeks, five (5) weeks or six (6) weeks vacation shall be calculated at the

rate of 4%, 6%, 8%, 10% or 12% respectively, of the employee’s wages during the

one year period ending on the April 30 determination date and, in calculating

wages, no account shall be taken of any vacation pay previously paid. Effective

May 1, 1995, in calculating wages, no account shall be taken of up to two (2)

weeks’ vacation pay previously paid. Employees who have less than one (1)

year’s continuous service on April 30, will receive vacation pay of 4% of the

wages earned up to that date.

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14.04 The Company will attempt to schedule vacations at times

acceptable to individual requirements provided such scheduling does not interfere

with the Company’s manpower and production requirements. It is recognized that

it may be necessary to restrict vacations from time to time to accommodate

Company needs and employee requests. Notwithstanding this, the Company may

shut down all or part of the operations, in which case employees will be required to

take their vacation during such shut down.

14.05 Vacation time is not accumulative from year to year and all

vacations must be taken by the end of the vacation year.

14.06

Subject to Article 14, employees who apply before April 1 of any year will have

preference to book up to two (2) weeks of their vacation based on seniority in their

Department

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ARTICLE XV - STATUTORY HOLIDAYS

15.01 The Employer agrees to grant the following holidays:

New Year’s Day Thanksgiving Day

Good Friday Day before Christmas

Victoria Day Christmas Day

Dominion Day Boxing Day

Civic Holiday Two (2) Floats

Labour Day (determined by the Employer*)

Where any of the above noted holidays falls on a Saturday or a Sunday the

following Monday or preceding Friday shall be deemed by the Employer to be a

holiday for the purpose of this Agreement.

*Any employee may choose to take one of his Floating Holidays on Family Day

provided he advises the Company by January 31 of that year.

15.02 The Company will pay each active regular full-time employee who

has completed his probationary period eight (8) hours pay at his regular hourly rate

for each such holiday provided the employee works his full shift immediately

preceding and immediately following the holiday unless absent due to bona fide

personal illness or unless excused by the Company during part of such shift. In

addition, in order to qualify for holiday pay, employees must perform work for the

Company or be on paid vacation during the week preceding or the week in which

the holiday falls.

15.03 If any of the above holidays fall within an employee’s vacation

period, the employee shall receive another day off with pay immediately following

his vacation. The Company may agree to grant the lieu day off immediately

preceding the vacation period, if requested by the employee.

15.04 An employee required to work on any of the above holidays shall be

paid for authorized work performed on such day at the rate of two (2) times his

regular hourly rate for all such hours worked and, in addition, provided he

qualifies, his holiday pay for said holiday.

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ARTICLE XVI - HEALTH AND WELFARE

16.01 The Company agrees to contribute towards the billed premiums in

the indicated amounts for the following benefits for each regular full-time

employee in the active employ of the Company who has completed six (6) months’

service provided the balance of such monthly premiums are paid by the employee

through monthly payroll deductions;

(a) Vision Plan - $250 maximum every 2 years

- Company pays 100% of the billed premiums

(b) Major Medical and - same as current plan

Semi-Private - Cap drug dispensing fee at $7.00 effective

October 28, 1996.

- $25/$50. per year deductible.

- 90/10 co-insurance

- Company pays 100% of the billed premiums

- The Company will introduce a prescription

drug card as soon as practicable after

ratification with no change in either the

deductible or co-insurance.

(c) Weekly Indemnity - 1/4/26

- Coverage will begin on 1st day of absence if

absence is for day surgery at a hospital during

which the employee is under general

anaesthetic.

- 66 2/3% of weekly pay.

- Company pays 100% of the billed premiums

(d) Life & ADD Insurance - equal to annual salary

- Company pays 100% of the billed premiums

(e) Long Term Disability - after 180 days

- 75% of monthly salary to a maximum of

$3,000.00

- Company pays 100% of billed premiums

(f) Dental Plan - same as current plan

- Company pays 66 2/3% of billed premiums

- 2011 ODA Fee Schedule

- Effective February 1, 2013, update to 2012

ODA Fee Schedule

- Effective January 1, 2014, update to 2013

ODA Fee Schedule

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9137499.1

- Effective January 1, 2015, update to 2014

ODA Fee Schedule

- Ortho maximum - $1,750.00

Entitlement under any of the above Plans is subject to the specific provisions of the

insurance policies. The Company may select the Carrier or Carriers of its choice or

may change Carriers or self-insure if it sees fit.

Notwithstanding the above, it is agreed that the eligibility for Weekly Indemnity

coverage shall be reduced from six (6) months’ service to sixty (60) days’ service.

Further, the Union agrees that the Company may retain the full UIC Rebate (12/12)

to be used for the purchase of the benefits.

There will be no substantial change in Benefit levels without Union agreement.

Company contributions towards the billed premiums for benefits under 16.01 (a) &

(f) will continue for an eligible employee for up to one year’s absence while in

receipt of Weekly Indemnity or LTD pay. Company contributions towards the billed

premiums for benefits under 16.01 (b) & (d) will continue for an eligible employee

for up to two year’s absence while in receipt of Weekly Indemnity or LTD pay.

16.02 If an employee applies for WSIB benefits and has not yet received

such benefits, the Company will directly advance him monies equivalent to WI

maximum benefits, provided the employee files medical proof of disability,

including medical reports submitted to the Board, and signs the required form.

Such form will acknowledge his commitment to repay the monies advanced from

WSIB benefits subsequently received or, if such benefits are denied or are

insufficient, from wages or other benefits to which the employee may be entitled.

The employee shall also authorize the Company to deduct such amounts due it

from WSIB lost time benefits or wages payable to the employee, including

vacation, termination or severance pay, and retain those amounts to the extent

required to repay all monies advanced. The Company advances will continue until

the earlier of a WSIB decision to permit or deny benefits, or eight (8) weeks.

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9137499.1

ARTICLE XVII - HEALTH AND SAFETY

17.01 The Employer agrees to continue reasonable and proper provisions

for the maintenance of high standards of health and safety in the work place

including a properly heated and lighted working environment that is consistent

with the nature of the work undertaken. The Employer and employees shall

comply with applicable federal and provincial health and safety legislation and

regulations.

17.02 No employee shall be disciplined or discharged for refusal to work

on a job or in any work place or to operate any equipment where it would be

contrary to applicable federal or provincial legislation or regulations.

17.03 Where the Company deems it necessary, and as required by

government regulations, the employees must use protective devices and other

equipment in an effort to reduce their exposure to injury. The Union will co-

operate with the Company in insisting that employees make use of such devices

and equipment for their protection.

17.04 The Company shall provide for a Safety and Health Committee

consisting of two (2) employees appointed or elected annually by the Union and

two (2) representatives of management. The elected Union alternate will be

recognized if one of the two Union appointees is unavailable for a required

purpose.

The Safety Committee will meet regularly once every two months on a day and time

to be established at the beginning of each year. Minutes of each meeting, noting

items discussed and the disposition of items on the preceding minutes will be given

to all Safety Committee members and the Union Committee Chairman as soon as

possible following each monthly meeting. The Union representatives on the Safety

Committee shall have one (1) hour prior to the meeting to review material and

generally prepare for the meeting.

The Safety Committee shall have the functions set out in the Occupational Health

and Safety Act.

The parties recognize the desirability of Committee members being trained in health

and safety matters. The Company will grant bi-annually a leave of absence without

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9137499.1

pay of two (2) working days to an employee selected by the Union to attend a safety

course.

17.05 The Company agrees to provide non-prescription safety glasses to

employees who are required by the Company to wear same. Further, the Company

agrees to repair or replace glasses damaged on the job provided the glasses are

turned in by the employee. Employees are responsible for the cost of replacement

of glasses lost or damaged through negligence.

17.06 If an employee’s prescription safety glasses are damaged at work,

the Company will contribute 100% of any comparable replacement cost safety

glasses.

17.07 For regular full-time employees who have completed their

probationary period, the Company will contribute up to $140 towards the receipted

cost of approved safety shoes when required for replacement, provided such shoes

are purchased through Company designated outlets.

17.08 For regular full-time employees who have completed their

probationary period, the Company will contribute a maximum of fifty-five dollars

($55.) per year towards the receipted cost of new work clothing.

17.09 The Company will supply rubber boots where necessary.

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ARTICLE XVHT- DURATION AND TERMINATION

18.01 This Agreement shall continue in full force and effect until the 25th

day or October, 2015 and thereafter shall be automatically renewed and remain in

force from year to yea r from its expiration date, unless, \-vi thin the period of ninety

(90) days before the Agreement ceases to operate, either party gives notice in

writing to the other party of its desire to bargain with a view to the renewal with or

without modifications ofthe Agreement.

18.02 On receipt of such notice, the parties to the Agreement shall

convene a meeting within fifteen (15) days and bargain in good faith to endeavour

to reach an agreement.

SIGNED at /'1/5.JJff A UC A ,r~

this I ( day of H-~1-Wj, 2013. r -~ 1 ! )

FOR THE COMPANY: FOR THE UNION:

base 2011 adjustment* Oct-12 3% incr qurty l/s Oct-13 3% incr qurty l/s Oct-14 3% incr qurty l/s

used until 2015* used until 2015 notional

Maintenance Lead Hnd 29.96 30.86 0.90 467.38 31.78 0.93 481.40 32.74 0.95 495.84

Compounder II 23.96 24.68 0.72 373.78 25.42 0.74 384.99 26.18 0.76 396.54

Compounder I 20.02 20.62 0.60 312.31 21.24 0.62 321.68 21.88 0.64 331.33

Acoustic Wrkr II 23.96 24.68 0.72 373.78 25.42 0.74 384.99 26.18 0.76 396.54

Acoustic Wrkr I 20.02 20.62 0.60 312.31 21.24 0.62 321.68 21.88 0.64 331.33

Gen’l Labourer Low 14 14.42 0.42 218.40 14.85 0.43 224.95 15.30 0.45 231.70

Gen’l Labourer High 17 17.51 0.51 265.20 18.04 0.53 273.16 18.58 0.54 281.35

Lead Hand ** 26.21 27.00 0.79 408.88 27.81 0.81 421.14 28.64 0.83 433.78

Shipper/Receiver 24.41 25.14 0.73 380.80 25.90 0.75 392.22 26.67 0.78 403.99

Warehouseman 22.99 23.68 0.69 358.64 24.39 0.71 369.40 25.12 0.73 380.49

Cleaner 19.02 19.59 0.57 296.71 20.18 0.59 305.61 20.78 0.61 314.78

Mechanic II 27.55 28.55 29.41 0.86 445.38 30.29 0.88 458.74 31.20 0.91 472.50

I 26.58 27.58 28.41 0.83 430.25 29.26 0.85 443.16 30.14 0.88 456.45

Apprentice Year 3 or

Equivalent 25.44 26.44 27.23 0.79 412.46 28.05 0.82 424.84 28.89 0.84 437.58

Apprentice Year 2 or

Equivalent 24.07 25.07 25.82 0.75 391.09 26.60 0.77 402.82 27.39 0.80 414.91

Apprentice Year 1 or

Equivalent 22.7 23.7 24.41 0.71 369.72 25.14 0.73 380.81 25.90 0.75 392.24

Maintenance Helper 22.25 23.25 23.95 0.70 362.70 24.67 0.72 373.58 25.41 0.74 384.79

PT & Students Low 9.6 9.89 0.29 149.76 10.18 0.30 154.25 10.49 0.31 158.88

PT & Students High 18.02 18.56 0.54 281.11 19.12 0.56 289.55 19.69 0.57 298.23

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9137499.1

Note: 1. All new employees other than Labourers may be paid fifty cents per hour

less than their above specified rate during their probationary period.

* Employees hired after May 30, 2008 may be classified as General Labourer and may be

employed from time to time in any of the Departments. General Labourers will be paid a

minimum of $14.00 per hour to start and will receive an increase of 50¢ every six (6)

months thereafter until reaching the $17.00 rate.

Lump Sum Payments 2012-2015

Commencing in the first pay period in November 2012, February, 2013, May 2013 and

August 2013, the Company will provide each employee who has been employed for the

complete prior 3 months, a lump sum payment as set out in column (F) of the attached

Chart.

Commencing in the first pay period in November 2013, February, 2014, May 2014 and

August 2014, the Company will provide each employee who has been employed for the

complete prior 3 months, a lump sum payment as set out in column (I) of the attached

Chart.

Commencing in the first pay period in November 2014, February, 2015, May 2015 and

August 2015, the Company will provide each employee who has been employed for the

complete prior 3 months, a lump sum payment as set out in column (L) of the attached

Chart.

9137499.1

LETTER OF UNDERSTANDING

June , 2008

To: Mike Kachurowski

Communications, Energy and Paperworkers Union of Canada, Local 593

During negotiations leading to the conclusion of our collective agreement, certain

discussions were held concerning the following matters. This will confirm the understandings

reached as follows:

(i) Employee Progression from General Labourer to Accoustic Worker I or Compounder I (a

“I” position) will take place only when management decides that there is a vacancy for such “I”

position which it requires to be filled. Such vacancy will be filled using the job posting

provisions in Article 10.05. Notwithstanding the above, a General Labourer who has the

requirements as set out in Article 10.05 but who has not been progressed to a “I” position within

three (3) years after reaching the $17.00 rate because there has been no vacancy, will nonetheless

be paid at the “I” wage rate.

(ii) Employee Progression from Accoustic Worker I or Compounder I (a “I” position) to

Accoustic Worker II or Compounder II (a “II” position) will take place only when management

decides that there is a vacancy for such “II” position which it requires to be filled. Such vacancy

will be filled using the job posting provisions in Article 10.05. Notwithstanding the above, a “I”

who has the requirements as set out in Article 10.05 but who has not been progressed to a “II”

position within three (3) years after reaching the “I” rate because there has been no vacancy, will

nonetheless be paid at the “II” wage rate.

(iii) In the event the Company institutes a ten-hour work day pursuant to Article 12.01,

employees will only be entitled to overtime pay under Article 12.03 for all authorized work

performed in excess of 10 hours per day rather than the 8 hours specified therein.

(iv) Statutory holiday pay was extended to probationary employees and such paid holidays

were credited towards the completion of the probationary period under Article 9.01.

(v) For the purposes of interpretation of Article 12.01, the normal work and pay week is

Wednesday to Tuesday. Weekly overtime under Article 12.03 is calculated according to a

Wednesday to Tuesday week.

(vi) Rather than the $55.00 per year for work clothing set out in Article 17.07, the Company

provides a uniform service for regular full time employees who have completed their

probationary period. Should the Company discontinue the purchase of uniforms the policy of

reimbursing employees for up to $55.00 per year for work clothing will be re-instituted.

(vii) For employees who regularly work a ten (10) hour work day, the following provisions

shall apply during pay weeks in which a Statutory Holiday occurs:

a) Holiday pay for eligible employees shall be eight (8) hours for the holiday;

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9137499.1

b) The number of regular work days in that week shall be reduced by one;

c) Such employees will have the option of making up the two hours work

that week at straight time. If such option is chosen, the Company will schedule

the make-up time;

d) If more than one holiday occurs in a week the above provisions shall apply

for each holiday, except that if five holidays are scheduled that week, there will be

no option to work make-up hours.

(viii) All employees shall sign the attached Confidentiality Document as a condition of

employment.

(ix) The work week for the rotating shifts shall commence on Sunday night. Work performed

on or immediately prior to that shift prior to midnight Sunday will not be considered Sunday

work for the purposes of Article 12.04. If Monday is a Holiday, such work performed prior to

midnight Monday will not be considered work on a Holiday for the purposes of Article 15.04.

H.L. BLACHFORD LTD./LTEE.

Acknowledged and Agreed

COMMUNICATIONS, ENERGY AND PAPERWORKERS

UNION OF CANADA, LOCAL 593