AGREEMENT BETWEEN HANCOR PAINTING AND DECORATING LTD. AND CONSTRUCTION WORKERS UNION (CLAC) LOCAL NO. 63 AFFILIATED WITH THE

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1 36 CLAC AGREEMENT BETWEEN HANCOR PAINTING AND DECORATING LTD. AND CONSTRUCTION WORKERS UNION (CLAC) LOCAL NO. 63 AFFILIATED WITH THE CHRISTIAN LABOUR ASSOCIATION OF CANADA Duration: May 1, April 30, 201 1

2 Topic INDEX Article Arbitration Collective Agreement Amendments 26 Discipline Dues Deductions Duration 25 Education and Training Employment Policy and Union Membership Gender Clause Grievance Procedure 22 Health and Safety Health and Welfare Program Holidays and Holiday Pay 12 Hours of Work and Overtime Leaves of Absence -20 Management's Rights... 3 Pension Purpose 1... Qualification Certificate -21 Recognition... 2 Rest Periods Layoff and Recall 13 Strikes and Lockouts Tools 17 Transportation, Travel Time and Out-of-Town Jobs Union Representation Vacations and Vacation Pay Wages and Rates of Pay... 8 & Schedule "A I0 I I Hancor Painting and Decorating Ltd./CLAC Local 63 Albei-ta

3 COLLECTIVE AGREEMENT BETWEEN: HANCOR PAINTING AND DECORATING LTD. (hereinafter referred to as "the Employer") AND CONSTRUCTION WORKERS UNION (CLAC), LOCAL 63 affiliated with the Christian Labour Association of Canada (hereinafter referred to as "the Union") Duration: May 01, April 30,201 1 ARTICLE 1 - PURPOSE 1.01 It is the intent and purpose of the parties to this Agreement, which has been negotiated and entered into in good faith: a) to recognize mutually the respective rights, Responsibilities, and functions of the parties hereto; b) to provide and maintain working conditions, hours of work, wage rates and benefits set forth herein; c) to establish an equitable and orderly system for the promotion, demotion, transfer, discipline, layoff and recall of employees; d) to establish a prompt, just and equitable procedure for the disposition of grievances; e) and generally, through the full and fair administration of all the terms and provisions contained herein, to develop and achieve a relationship among the Union, the Employer and the employees which will be conducive to their mutual well-being It is agreed that omission of specific mention in the Agreement of existing rights and privileges established or recognized by the Employer will not be construed to deprive employees of such rights and privileges Neither the Employer nor the Union shall act in a manner that is arbitrary, discriminatory, in bad faith, or that violates applicable human rights legislation.

4 ARTICLE 2 - RECOGNITION 2.01 The Employer recognizes the Union as the sole bargaining agent of all employees in the bargaining unit as defined in Article 2.02 and/or classified in Schedule "A" This Agreement covers all employees of the Employer in the Province of, including all General Construction Painters, except supervisory, managerial, office and clerical personnel There will be no revision, amendment or alteration of the bargaining unit as defined herein or of any of the terms and provisions of this Agreement, except by the mutual agreement in writing of the parties hereto. Without limiting the generality of the foregoing, no classification of work or jobs may be removed from the bargaining unit except by the mutual agreement in writing of the parties. ARTICLE 3 - MANAGEMENT'S RIGHTS 3.01 The Union acknowledges that it is the function of the Employer: a) to manage the enterprise, including the scheduling of work and the control of materials; b) to maintain order, discipline and efficiency, and to make, alter and amend rules of conduct and procedure for employees, provided such rules are reasonable, and are consistent with the purpose and terms of this Agreement and are administered in a fair and reasonable manner; c) to hire, direct, transfer, promote, demote, lay off, suspend and discharge, provided that such actions are consistent with the purpose and terms of this Agreement and provided that a claim by any employee who has been disciplined or discharged without just cause will be subject to the Grievance Procedure The Employer may subcontract out work where: a) They do not possess the necessary facilities or equipment; b) They do not have and/or cannot acquire the required manpower; c) They cannot perform the work in a manner that is competitive in terms of cost, quality and within projected time limits.

5 3.03 Work normally performed by members of the bargaining unit will not be contracted out if employees qualified to do the work are on layoff, or if employees qualified to do the work must be laid off, transferred, demoted or discharged as the result of the contracting out of work The Employer may meet periodically with their employees for the purpose of discussing any matters of mutual interest or concern to the Employer, the Union and the employees. A CLAC Representative may attend such meetings if that is requested by an employee. ARTICLE 4 - UNION REPRESENTATION 4.01 For the purpose of representation with the Employer, the Union will function and be recognized as follows: a) The Union has the right to select or appoint stewards as necessary to assist employees in presenting any complaints or grievances they have to representatives of the Employer and to enforce and administer the Collective Agreement. In general, the number of Stewards will be managed to provide access to consistent union representation for the employees. In general, the number of stewards will be determined as follows: i) when there are thirty (30) or less employees - 1 steward; ii) for every additional thirty (30) employees - one (I) additional steward; iii) An additional steward may be appointed for each job site that has ten (1 0) employees or more. iv) The Employer and the Union will mutually agree if additional adjustments to the number of stewards are required. Stewards will receive an hourly premium as set out in Schedule "A for each hour worked, in addition to their regular hourly rate. The Union will advise the Employer, in writing, of the names of the Stewards. When layoffs are necessary, the Employer will ensure that a Steward will remain on site as long as possible. b) The Employer agrees that the duly appointed Representatives of the Christian Labour Association of Canada are authorized to act on behalf of the Union for the purposes of supervising, administering and negotiating the terms and conditions of this Agreement and all matters related thereto. CLAC Representatives are also representatives of the employees, in all matters pertaining to the Agreement particularly for the purpose of processing and settling grievances, negotiating amendments or renewals Hancor Painting and Decorating Ltd /CLAC Local 63

6 of this Agreement and of enforcing the employees' collective bargaining rights and any other rights under this Agreement and under the law The Union and the Employer agree to notify one another in writing of the names of their officials and the effective dates of their appointments Stewards and other union officers in the employ of the Employer will not absent themselves from their work to deal with grievances without first obtaining the permission of the Employer. Permission will not be withheld unreasonably and the Employer will pay such stewards and union officers at their regular hourly rates while attending to such matters, until a grievance reaches the Arbitration stage. Then this Article will not apply The Union has the right to select members to a negotiating committee. Employees on the committee will be paid by the Employer at their regular hourly rates for all time spent negotiating.a collective agreement with the Employer, whenever this takes place during the regular working hours of the employees concerned There will be no Union activity on Employer's time or on Employer's premises except as set out above CLAC Representatives will have the right to visit jobsites periodically, and will adhere to all applicable safety policies. ARTICLE 5 - STRIKES AND LOCKOUTS 5.01 During the term of this Agreement, or while negotiations for a further agreement are being held, the Union will not permit or encourage any strike, slowdown or any stoppage of work or otherwise restrict or interfere with the Employer's operation through its members During the term of this Agreement, or while negotiations for a further agreement are being held, the Employer will not engage in any lockout of its employees or deliberately restrict or reduce the hours of work or deliberately send people home when this is not warranted by the workload. ARTICLE 6 - EMPLOYMENT POLICY AND UNION MEMBERSHIP 6.01 The Union and the Employer will cooperate in maintaining a desirable and competent labour force. The Employer will give preference to Union members for employment, provided such applicants are qualified to meet the requirements of the job Neither the Employer nor the Union will compel employees to join the Union. The Employer will not discriminate against any employee because of Union

7 membership or lack of it, and will inform all new employees of the contractual relationship between the Employer and the Union. The Employer agrees to notify the Union steward or CLAC Representative of the name(s) of all new employees. The Employer will ensure that all new employees have an opportunity to sign all appropriate forms for Union membership, Pension and Health Benefits New employees will be hired on a two (2) month probation period and thereafter will attain regular employment status. Employees laid off and rehired by the Employer within twelve (12) months of their lay off will not be required to begin a new probation period, but will given credit for their probationary hours already worked. Employees who have quit or have been terminated for cause will be required to serve a new probation period Probationary employees are covered by the Agreement excepting those provisions which specifically exclude such employees. The parties agree that the discharge or layoff of a probationary employee will not be the subject of a grievance or arbitration, subject to Article Management will discuss job performance with the affected employee prior to a layoff or termination decision being made The Employer has the right to hire new employees as needed, provided that no new employee(s) will be hired while there are available employees on layoff who are qualified to do the work subject to the provisions of Article The Union agrees that it will make membership in the Union available to all employees covered by this Agreement subject to the Constitution of the Christian Labour Association of Canada and the terms and conditions specified by the applicable policies of the Union.. ARTICLE 7 - DUES DEDUCTIONS 7.01 The Employer agrees to deduct from each employee's paycheque the amount equal to Union dues and where applicable an amount equal to Union dues arrears or Union Administration dues. The total amount deducted will be remitted to the Union's Remittance Processing Centre each month, by the twentieth (20th) of the month following the deduction, together with an itemized list of the employees for whom the deductions are made and the amount deducted for each. The Union and the employees agree that the Employer will be saved harmless for all deductions and payments so made The Union has a conscientious objection policy for employees who cannot support the Union with their dues for conscientious reasons, as determined by the Union's internal guidelines on what constitutes a conscientious objection.

8 ARTICLE 8 -WAGES AND RATES OF PAY 8.01 Wage schedules applicable to various classifications are as set forth in Schedule "A. These rates will be subject to semi-annual review prior to October 26, 2009, April 26, 2010 and October 25, 2010 for the following six (6) month period. These wage reviews will take into consideration the most recent Consumer Price Indices available for the previous period of time, as well as the prevailing wage rates being offered by competitors in the industry. Unresolved disputes between the company and the union over wage-review rates may be referred by either party through the existing dispute resolution procedure outlined in Article 22 and Additional classifications may be established only by mutual agreement between the Employer and the Union during the term of this Agreement, and the rates for same will be subject to negotiation between the Employer and the Union. If no agreement is reached, either party may resort to the Grievance Procedure The Employer agrees to pay two (2) hours of wages in the event that an employee reports for work in the usual manner and is prevented from starting work due to any cause not within their control. The Employer has the right to instruct employees at the end of the day to call in before reporting to work the next day to determine if they should show up or not If an employee begins work, they will be entitled to a minimum of four (4) hours pay, if the work is suspended by the Employer because of any reason beyond the control of the employee. This provision will not apply if the stoppage is due to a labour dispute between the Employer and Union. ARTICLE 9 - HOURS OF WORK AND OVERTIME 9.01 The regular work week will consist of forty-four (44) hours per week: four (4) nine (9) hour days and one (1) eight (8) hour day, Monday to Friday inclusive Daily and Weekly overtime rates will apply for work performed in excess of the regular work week defined above, and will be paid at the rate of one and one half (1.5) times the regular rate of pay. Employees will have the right to refuse overtime andlor weekend work except in an emergency. All overtime must be authorized by the Employer There will be no work done on Sunday except in case of an emergency. Employees who are called in for Sunday emergency work will be paid at the rate of two (2) times the regular hourly rate of pay. Employees called back for overtime work any day, will be paid two (2) hours at their regular rate as call-in pay, in addition to the actual time worked which will be paid at the applicable overtime rate.

9 9.04 In the case of after-hours work (i.e. night shift), the Employees will be paid for fifteen (15) percent more time than is actually worked, with a minimum of one (1) additional paid hour. This article is not be to used to calculate or duplicate overtime rates applicable as an extension of a regular work day Employees will be allowed to bank any overtime hours to cover "time off" at a later date, but only at the request of the employee. Banked time off can not be used to accumulate additional overtime and may only be used as paid time off. Banked hours must be used up once every twelve (12) months and unused banked hours will be paid out at the applicable overtime rate of pay Nothing in this Article will be construed as a guarantee or limitation on the hours of work permitted to be done per day or per week, except that specified in Article ARTICLE 10 - REST PERIODS There will be two (2) rest periods per day with pay of fifteen (1 5) minutes duration each, one in the forenoon and one in the afternoon. There will be a one-half (0.5) hour unpaid meal break daily. In case of overtime, employees will be entitled to an additional coffee break provided there is no break in working time. Thereafter there will be additional coffee breaks every two (2) hours provided overtime continues after the break Hours of work and overtime as set out in this Article may be modified by mutual agreement between the Employer and Union. ARTICLE I I - VACATIONS AND VACATION PAY 11.O1 All employees will be entitled to receive an amount equal to six percent (6%) of their regular earnings in vacation pay Vacation Pay will be paid to employees on each pay cheque and upon termination of employment The Employer will endeavor to grant vacations at the times requested, in the vacation seasons or periods, considering business requirements. The employees will attempt to schedule holidays in such a way as to cause least interference with workloads.

10 ARTICLE 12- HOLIDAYS AND HOLIDAY PAY Employees will be entitled to receive four percent (4%) of regular earnings. Holiday Pay will be paid to employees on each pay cheque and upon termination of employment, No work will be performed on the following eleven (I I) holidays: New Year's Day Family Day Good Friday Victoria Day Canada Day Civic Holiday Labour Day Thanksgiving Day Remembrance Day Christmas Day Boxing Day Work performed on the above-mentioned holidays will be paid at the rate of one and one-half (1.5) times the regular rate of pay in addition to the holiday pay as outlined in Article Holidays outlined in Article may be taken on a different day by mutual agreement between the parties providing the change of day does not conflict with Federal, Provincial or Civic law. ARTICLE 13- LAYOFF AND RECALL In case of layoffs, the Employer will endeavor to lay off the least senior employees first and will not hire new employees while there are available employees on layoff who are qualified to do the work as per Article 6. The Employer will endeavor to recall employees in the reverse order of lay off The Employer will give one (1) week's notice of layoff, when possible. The Employer will not be required to give one (1) week's notice of layoff when equipment failure, shortage of material, or other reasons beyond the control of the Employer cause a stoppage of operation Any employee laid off and recalled for work must return within two (2) work days when unemployed and within seven (7) workdays when employed elsewhere after being recalled, or make definite arrangements with the Employer to return The Employer agrees to notify the Union Office on a monthly basis with the remittances to the Union, as specified in Article 7, of the names of the employees who have been hired, laid off, terminated or recalled, along with the employees classification, wage rate and lasted available contact information.

11 ARTICLE 14 - HEALTH AND SAFETY The Employer and the Union commit to working together to achieve a safe workplace that complies with the current Occupational Health and Safety Code, as well as other applicable legislation. a) The Employer agrees to make practicable provisions for the safety and health of its employees during the hours of their employment. Such provisions will be made known to all employees at the time of hire. b) The Union undertakes to give full support to these objectives by promoting a safety consciousness and a personal sense of responsibility among its membership. c) It is the intent of the parties to achieve working conditions that are not unsafe or unhealthy taking into consideration the minimum hazards inherent to the operation of the process in question Where necessary, the Employer and the Union agree to discuss matters concerning the correction of unsafe conditions and practices following a serious accident or incident which could have resulted in a serious accident An employee who is injured on the job during working hours and is required to leave for treatment for such injury will receive payment for the remainder of their shift. The employee is required to inform the Employer of the injury before the end of their shift An employee who is injured on the job and who requires transportation from the work site to a local physician or hospital will receive such transportation provided by the Employer The employees will wear appropriate personal protective equipment (PPE) as specified by the employer. The employee is responsible for suppling their own basic PPE (hard hat, boots, safety glasses), when required. Additional PPE (respiration, face masks, coveralls etc.) will be supplied at the expense of the Employer, subject to Article 17. ARTICLE 15 - TRANSPORTATION, TRAVEL TIME AND OUT-OF-TOWN JOBS It is recognized by the Employer and the Union that the purpose of transportation, travel and accommodation allowances, as established in these articles, are to provide a fair means of compensating employees for additional travel and accommodation expenses that they incur while working on job sites beyond a reasonable distance from their residence.

12 15.02 Travel & Accommodation Zones Each jobsite will be designated to fall within one (1) of three (3) zones, according to radius circles from the center of the City of Edmonton, as defined below: a) Jobsites within a 50 km radius of City Center (Travel and Accommodation Free Zone). b) Jobsites between a 50 km and 100 km radius of City Center (Daily Travel Zone) c) Jobsites outside of a 100 km radius (Out-of-Town Zone) Category A: Travel and Accommodation Free Zone For jobsites within this zone, daily travel or accommodation allowance will not be paid Category 9: Dailv Travel Zone For travel to jobsites within this zone, daily travel will be paid if the Employer does not provide transportation. Daily travel allowance will be paid at a rate of thirty-five cents ($0.35) per kilometre. A partial allowance of fifteen cents ($0.15) per kilometre will be paid if an employee is driving a company-supplied vehicle. Applicable distance will be calculated based on the shortest distance traveled by road, from either the employee's home, or the Employer's shop, whichever is closer to the jobsite, minus 50 km each way. For projects within this zone, no accommodation allowance is required Category C: Out-of-Town Zone For travel to jobsites in this category, the Employer will endeavor to provide transportation at no charge to the employee, or reimburse the employee for all reasonable travel expenses For employees who are required to stay away from home overnight, the Employer agrees to provide accommodations of one (1) room for each two people Meals For all employees who are required to stay away from home overnight, the Employer agrees to cover the cost of meals purchased at a restaurant or similar establishment. If employees are required to go out of town for one (1) day only, the Employer will pay for all meals except the first meal.

13 In lieu of providing lodging and meals, the Employer and employee may mutually agree on an allowance amount whereupon the employee can arrange lodging and meals of their own choosing Paid Travel Time a) On all jobs which require a transfer from one jobsite to another during the work-day, such employee will be paid their regular hourly rate of pay. b) Employees will be paid travel time, both ways, for all time traveled to jobs outside the Travel and Accommodation Free Zone (Category A) at the regular straight time hourly rate of pay for actual (reasonable) time traveled to and from from the employee's home, or the Employer's shop when required to report to the shop Use of Personal Vehicles / Personal Fuel Employees who are required to travel between jobsites within a given day, or required to carry materials to or from the jobsite using their own vehicle, will be paid thirty-five cents ($0.35) per kilometre for such use in addition to any applicable paid travel time. Employees using company provided vehicles who are required to travel between job sites during a given work-day will be reimbursed fifteen cents ($0.15) per kilometre to compensate for fuel, in addition to any applicable paid travel time. Employees must submit a travel log, with appropriate details, to receive such reimbursement. Employees will travel together as much as is reasonably practical. Only employees who use their own vehicle at the request of the Employer will be entitled to the provisions outlined in this article. Employees required to use their own vehicles for work purposes must be fully insured for themselves, third party liability, their vehicle, and their passengers Parkinq Where either reasonably-accessible free parking or reasonably-accessible public transportation is not available, the Employer will make provisions to provide and pay for necessary parking. Regardless of public transportation, the Employer will reimburse for expenses of reasonably-accessible parking for one vehicle required to pick up and/or drop off tools and supplies, on the first and last day of each job. ARTICLE 16 - HEALTH AND WELFARE PROGRAM In order to protect the employees and their families from the financial hazards of illness, the Employer agrees to pay seventy-five percent (75%) of the premiums for the Insurance Plan administered by the CLAC Health and Welfare Trust Fund.

14 16.02 It is understood and agreed that it is the responsibility of each employee to be familiar with the specific details of coverage (as outlined in Schedule "B1') and eligibility requirements of all benefit plan and that neither the Union nor the Employer, has any responsibility for ensuring that all requirements for eligibility or conditions of coverage or entitlement of benefits are met by the employee, beyond the obligations specifically stipulated in this Agreement For new employees the eligibility period will be in accordance with the Plan guidelines and policy In the event of any interruption of work for any reason, other than sickness or accident, the Employer agrees to continue to pay the premium of all insurances for the remainder of the month in which the interruption occurred. ARTICLE 17 - TOOLS Painters must have a suitable tool container and supply the following tools: one putty knife, one claw hammer, two broad knives 4 to 5 inches wide, one dusting brush, one screwdriver, one pair of pliers, a spinner and a pole sander. Clean overalls and suitable footwear must be worn by all workers. If employees do not supply their own required tools and overalls, they may be supplied to the employee for reasonable cost by the Employer. The Employer agrees to provide overalls for employees engaged in spray painting. The Employer will issue one spinner and one pole sander free of charge to all employees All tools issued by the Employer will be properly cared for by employees, and will remain the property of the Employer. ARTICLE 18 - PENSION The Employer agrees to contribute one and one half percent (1.5%) of an employees regular wages to the CLAC Pension Plan (the Pension Plan), registered with the Canada Revenue Agency, and the Financial Services Commission of Ontario, under registration # , for each employee who voluntarily contributes three (3.0%) percent to the Pension Plan. Each pay period, the Employer shall deduct from regular wages of each participating employee, the authorized amount of three percent (3.0%) and shall pay an additional one and one half (1.5%). a) The Employer will remit the employees' and the Employer's contribution to the Plan, subject to the same timelines as specified in Article 7 for Union Dues, together with an itemized list of the employees and the amounts applicable to each.

15 b) The Employer and the Union will cooperate in providing the information required to administer the Plan on the employees' behalf. The Plan shall be responsible for informing the employees about the Plan including statements to each employee, showing their account balance, including details of all contributions received, and all earnings/losses allocated. c) A completed authorization form, in a format provided by the Plan, for the employee to enroll in the Pension Plan program shall be submitted along with the first remittance for the employee. Employees opportunity to opt-in, optout, or change their voluntary contribution amount shall be limited to one change per year. An authorization form indicating the change shall be completed and forwarded to the Pension Plan administrator. d) All pension contributions will be recorded on the Employer's monthly remittance to the Plan with voluntary contributions recorded separately. Monthly pension remittances are to be sent to the CLAC Benefit Administration Office at 89 South Service Rd., PO Box 219, Grimsby, ON L3M 4G3. ARTICLE 19 - EDUCATION AND TRAINING Where the Employer requires a specific individual to take a course or training, the training course fees as well as training time at the employee's straight-time hourly rate will be paid. ARTICLE 20 - LEAVES OF ABSENCE The Employer will grant leaves of absence without pay for the following reasons: a) Marriage of the employee; b) Sickness of the employee or employee's immediate family; c) Union activity other than this establishment. d) Death of a relative or close friend e) Birth or adoption of employee's own child f) Other personal reasons as approved by the Employer, where reasonable The above will be for a time mutually agreed upon between the Employer and the employee, considering the nature of the request Immediate family in this Article will include parents, parents-in-law, spouse, children, brothers and sisters of the employee An employee who has passed their probationary period will be granted two (2) -- days leave of absence with pay at their regular straight time hourly rate for their normal day length, to make arrangements for and to attend the funeral of the

16 employee's spouse, common-law spouse, child, parents, parents-in-law, brother, sister. Further time off without pay may be granted by mutual agreement between the employee and the Employer Following a leave of absence, employees who fail to report for work as scheduled without giving a justifiable reason will be deemed to have voluntarily quit and will not receive the pay as outlined in Article Regular full-time employees, who have completed one (I) year of service, are entitled to a maximum of eight (8) half (112) days of paid sick leave during each contract year. Sick leave benefits will be paid at the regular hourly rate of pay times four (4) hours for each day of illness. Employees must provide a doctor's certificate to the Employer, in order to qualify for sick leave benefits. ARTICLE 21 - QUALIFICATION CERTIFICATE It is agreed that apprentices will be paid in accordance with the regulations issued under the Apprenticeship Act as amended from time to time Apprentices must be registered with the appropriate government department by the Employer within six (6) weeks of commencement of employment It is agreed that the Union will encourage all employees to obtain the Qualification Certificate for Journeymen Painters and Decorators. ARTICLE 22 -GRIEVANCE PROCEDURE The parties to this Agreement recognize the Stewards and the Union Representatives specified in Article 4 as the agents through which employees will process their grievances and receive settlement thereof "Grievance" will mean a complaint or claim concerning improper discipline or discharge, or a dispute with reference to the interpretations, application, administration or alleged violation of this Agreement. a) A "Group Grievance" is defined as a single grievance, signed by a Steward or a Union Representative on behalf of a group of employees who have the same complaint. Such grievance must be dealt with at successive stages of the Grievance procedure commencing with Step 1. The grievors will be listed on the grievance form. b) A "Policy Grievance" is defined as one which involves a question relating to the interpretation, application or administration of this Agreement.

17 c) A "Policy Grievance" will be signed by a Steward or a Union Representative, or in the case of an Employer's Policy Grievance, by the Employer or their representative All the time limits referred to in the grievance procedure herein contained will be deemed to mean "work days". A work day is defined as any day from Monday to Friday. If the patties are attempting to resolve the grievance, or an issue that may become a grievance, through discussion, or other forms of communication, the time limits expressed in this Article will not be deemed to be in effect. From the date of that unilateral declaration the time limits will come into effect at the last step filed by either party The Employer or the Union will not be required to consider or process any grievance which arose out of any action or condition more than five (5) work days after the subject of such grievance occurred. If the action or condition is of a continuing or recurring nature, this limitation period will not begin to run until the action or condition has ceased. This limitation period will not apply to differences arising between the parties hereto relating to the interpretation, application or administration of this Agreement No employee will have a grievance until the employee has discussed the complaint with their Superintendent. If the employee's Superintendent does not promptly settle the matter to the employee's satisfaction the employee's proper grievance may be processed as follows: Step 1 Subject to the conditions of Article 6.05, if a grievance is to be filed it will, within the five (5) work days referred to in Article above, be reduced to writing and will be presented to the designated Employer representative by a Steward or a Union Representative. The designated Employer representative will notify the Union representative of their decision in writing not later than five (5) work days following the day upon which the grievance was received. The grievance referred to above will identify: a) the facts giving rise to the grievance; b) the section or sections of the Agreement claimed violated; c) the relief requested. and will be signed by the employee or employees involved. Step 2 If the grievance is not settled in Step 1, a Union representative will within five (5) work days of the decision under Step 1, or within five (5) work days of the day this decision should have been made, submit a written grievance to the -

18 designated Employer Representative. A meeting will be held between the Steward or Union representative together with the grievor involved and the designated Employer representative and other representatives of the Employer. This meeting will be held within five (5) work days of the presentation of the written grievance to the designated Employer representative. The Employer will notify the Steward or Union Representative of their decision in writing within five (5) work days of such meeting. Step 3 In the event that the grievance is not settled at Step 2 the party having the grievance may serve the other party with written notice of desire to arbitrate within five (5) work days of the delivery of the decision in Step 2 to the Steward or Union Representative but not thereafter Union Policv Grievance or Emplover Grievance a) A Union policy grievance or an Employer grievance must be submitted to the Employer or the Union, as the case may be, in writing, within ten (10) work days of the time circumstances upon which the grievance is based were known or should have been known by the grievor. A meeting between the Employer and the Union will be held within five (5) work days of the presentation of the written grievance and will take place within the framework of Step 3 of Article hereof. The Employer or the Union, as the case may be, will give its written decision within five (5) work days after such meeting has been held. b) If the decision is unsatisfactory to the grieving party, the grievance may be submitted to arbitration within fifteen (15) work days of the delivery of such written decision and the arbitration section of this Agreement will be followed. If the Employer is not advised of the Union's intention to proceed to arbitration within five (5) work days, the Employer will not be liable for any damages during the foregoing fifteen (1 5) work day period. The provisions of this paragraph will 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 Articles and hereof will not thereby be bypassed. ARTICLE 23 - ARBITRATION If notice of desire to arbitrate is served, the two parties will meet in an attempt to obtain agreement to refer the matter to arbitration within seven (7) calendar days of service. If the parties fail to agree to refer the matter to a single

19 Arbitrator, the two parties will each notify the other party of the name and address of its appointee to an arbitration panel. The two arbitrators so appointed shall attempt to select, by agreement, a Chairperson. If they are unable to agree upon a Chairperson within seven (7) days of their appointment, either party may request the Minister of Labour to appoint an impartial Chairperson. No person may be appointed as Chairperson who has been involved in an attempt to negotiate or settle the grievance. The decision of a majority is the decision of the Arbitration Board, but if there is no majority the decision of the Chairperson of the Arbitration Board governs. Notices of desire to arbitrate and of nominations of an arbitrator will be served personally or by registered mail. If served by registered mail, the date of mailing will be deemed to be the date of service. If a party refuses or neglects to answer a grievance at any stage of the Grievance Procedure, the other party may commence arbitration proceedings and if the party in default refuses or neglects to appoint an arbitrator in accordance with Article 22.01, the party not in default may, upon notice to the party in default, appoint a Single Arbitrator to hear the grievance and their decision will be final and binding upon both parties. It is agreed that the Arbitrator will have the jurisdiction, power and authority to give relief for default in complying with the time limits set out in Article 22 and 23 where it appears that the default was owing to a reliance upon the words or conduct of the other party. An employee found to be wrongfully discharged or suspended will be reinstated without loss of seniority and with back pay calculated at an hourly rate or average earnings, as applicable, times normal hours, less any monies earned, or by any other arrangement which is just and equitable in the opinion of the Arbitration Board. Where the Arbitration Board is of the opinion that there is proper cause for disciplining an employee, but considers the penalty imposed too severe in view of the employee's employment record and the circumstance surrounding the discharge or suspension, the Arbitration Board may substitute a penalty which, in their opinion, is just and equitable. Each of the parties hereto will bear the expenses of the arbitrator appointed by it, and the parties will jointly bear the expense of the Arbitration Board. The Arbitration Board will not be authorized to make any decisions inconsistent with the provisions of this Agreement, nor to alter, modify or amend any part of

20 this Agreement, nor to adjudicate any matter not specifically assigned to it by the notice to arbitrate specified in Step 3 of Article hereof If the parties mutually agree, they may substitute a single Arbitrator in the place of the Arbitration Board. ARTICLE 24- DISCIPLINE Progressive Discipline Progressive discipline is a process for dealing with job-related behavior that does not meet expected and communicated performance standards. The primary purpose for progressive discipline is to assist the employee to understand that a performance issue or opportunity for improvement exists. The process of progressive discipline is not intended as a punishment for an employee, but to assist the employee to overcome performance problems and satisfy job expectations. Progressive discipline is most successful when it assists an individual to become an effectively performing member of the organization. The Employer will ensure that a proper progressive discipline process is in place and consistently used..the process properly features increasingly formal efforts and increasingly serious consequences, (depending on the severity of the issue) to provide appropriate feedback to the employee so that they can correct the problem. The goal of progressive discipline is to improve employee performance An employee may be suspended or discharged for proper cause as a disciplinary measure by the Employer. Proper cause may include, but not be limited to, the refusal by an employee to abide by Safety Regulations; a blatant disregard for the Safety Policies and Practices; the use of illegal narcotics or alcohol or reporting for work while under the influence of such substances; the refusal by the employee to abide by the requirements of the Employer's clients; the refusal to abide by the Employer's rules, regulations, policies and practices. Such suspension or discharge is subject to the Grievance Procedure When the conduct or performance of an employee calls for a formal warning by the Employer, such a warning will be noted and given in writing to the employee and the Union by the foreman/supervisor. No subforeman or foreman has the authority to discharge an employee An employee who fails to show up to work, or notify management for three (3) consecutive work days, will be deemed to have voluntarily quit.

21 ARTICLE 25 - GENDER CLAUSE Where a reference to a specific gender is used in this Agreement, it will be considered to include both genders equally, where applicable. ARTICLE 26 - COLLECTIVE AGREEMENT AMENDMENTS It is understood and agreed that the wage rates and other provisions set out in this agreement may be amended by mutual agreement if there are significant changes in the industry or for specific projects to enable the Employer to compete with non-union competition andlor with other specific union project agreement rates. Either party may request that negotiations commence by giving notice in writing. The Employer and the Union agree to have representatives meet for discussions within thirty (30) days of receiving the request from the other party. Any amendment resulting from the discussions under these terms will be put in writing and signed by a representative of the Employer and a representative of the Union Industrial Work - Pre-Job Conference a) The Employer will notify the union that a project on an industrial site has been awarded to the Employer following the award. Prior to employees commencing such industrial work, a pre-job conference will be held between the Employer and the Union to determine all site-specific issues and wage rates applicable, as outlined in this Agreement. This conference may be conducted via telephone, through a scheduled meeting or by some other practical means as agreed to by the parties. A copy of the pre-job conference report will be provided to the Employer, the Union and the job steward(s). A copy will be distributed to the employees by the Employer. ARTICLE 27 - DURATION This Agreement will be in effect from the first (lst) day of May, two thousand and seven (2007) and will remain in effect until the thirtieth (30th) day of April, two thousand and nine (2009) and for further periods of one (I) year, unless notice will be given by either party, of the desire to delete, change, or amend any of the provisions contained herein, within the period of one hundred twenty (120) to sixty (60) days prior to the renewal date. Should neither of the parties give such notice, this Agreement will renew for a period of one (1) year Should negotiations not be completed prior to the expiration date of this Agreement all negotiated items will be retroactive from the date of signing to the expiration date of the expired agreement.

22 27.03 Until a new agreement has been concluded, all provisions in this Collective Agreement will remain in full force and effect. DATED at Edmonton,, this 12 day of,2009. Signed on behalf of HANCOR PAINTING AND,,J# / Signed on behalf of SONSTRUCTION WORKERS UNION Authorized Representatives Authorized Representatives

23 SCHEDULE "A-I" JOURNEYMAN RATES AS OF MAY 1,2009 Classification Commercial / Institutional Painter 1 Painter 2 Base Rate $19.82 $20.75 VacIStat $1.98 $2.08 Pension* H&W Total (*conditional) (estimate) $0.30 $0.72 $22.82 $0.31 $0.72 $23.86 Painter 3 1 $ $ $ $ $25.60 Notes to the Waqe Schedules Labourers employed during the first three months of employment (either continuous or interrupted) will receive a minimum of $14.00 per hour. Unticketed painters with less than 5 years experience may be paid at a rate of 90% of the applicable rate. Apprentices will be paid the applicable percentage (1'' year = 55%; 2nd year = 70%; 3rd year = 85%) based on the Painter 2 rate. Promotion to subsequent classifications (from Painter 1 to Painter 3) shall be at the discretion of management, as per Article 3.01 (c.) The wage rates of foremen will generally be 110% of the Painter 3 rate, but may be amended by mutual agreement of the parties. Should any government legislation or regulations increase the above rates, these rates will automatically conform. Premium pay for working at specified heights will be paid as follows: a) Thirty cents ($0.30) per hour for work performed from scaffolds over forty (40) feet from the base of the scaffold. b) Seventy-five cents ($0.75) per hour, regardless of the height at which the work is performed, for work performed from a swing stage, bosun's chair or similar device. Steward Premium Stewards will receive fifty cents ($0.50) per hour in addition to their regular hourly rate when there are more then ten (10) employees in the bargaining unit. -

24 OUTLINE OF INSURANCE PLAN COVERAGE FOR GOLD PLUS (This schedule does not form part of the collective agreement. It is for information only). $60, life insurance per employee; $60, A.D. &D. per employee; dental plan at the latest fee schedule available; Basic services: 100% up to $2,000 per person annual Comprehensive: 50% up to $2,000 per person annual Orthodontic: 50% up to $3,000 lifetime maximum per child under 19; prescription drug plan for employee and family at 80% up to $2,000 per person annually (or the provincial pharmicare cap, if applicable) and 100% thereafter; optical insurance for employee and family; under 21 : $300 per year over 21 : $300 every two years * extended health coverage for employee and family; semi-private hospital coverage with no deductible for employee and family; * short term disability insurance with sixty percent (60%) weekly basic earnings to a maximum of four hundred and sixty five dollars ($465.00) per week. Weekly benefits, payable after the first (lst) day of accident or hospitalization, and the fourteenth (14'~) day of illness for a maximum of one hundred nineteen (119) days (1/14/119). * long term disability insurance with sixty percent (60%) of earnings, maximum of $2, per month, per employee, payable after one hundred nineteen (119) days until age 65 (1 19/65). Emergency Travel Assistance * EFAP (Employee and Family Assistance Program) BENEFITS INFORMATION CLAC WESTERN BENEFIT OFFICE GROUP RETIREMENT SERVICES (RSP) SUN LIFE [I HUMANACARE

25 HANCOR PAINTING AND DECORATING LTD. 820 Wheeler Road NW Edmonton, T6M 2E4 Telephone: (780) Fax: (780) CHRISTIAN LABOUR ASSOCIATION OF CANADA I 8th Avenue NW Edmonton, T5V I B8 Telephone: (780) Fax: (780) edmonton@clac.ca Web page: