COLLECTIVE AGREEMENT. AIR MANAGEMENT INC. (Hereinafter called the '"COMPANY'") Of the First Part, -And-

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1 COLLECTIVE AGREEMENT BETWEEN: AIR MANAGEMENT INC. (Hereinafter called the '"COMPANY'") Of the First Part, -And- SHEET METAL WORKERS' INTERNATIONAL ASSOCIATION LOCAL UNION # 540 (Hereinafter called the '"UNION") of the Second Part. Effective: MARCH 1, FEBRUARY 28,2016

2 1 Table of Contents Article 1 Purpose Article 2 Recognition Article 3 Managements Rights Article 4 Union Security and Check-off Article 5 Co-Operation Article 6 Stewards and Committees Article 7 Bulletin Boards Article 8 Hours of Work Article 9 Overtime Article 10 Bereavement & Leave Article 11 Vacation with Pay & Holidays Article 12 Group Insurance Article 13 RRSP Article 14 Jury Duty Article 15 Shift Premium Article 16 Wage Increases Article 17 Wage & Classification Schedule Article 18 Classification Article 19 Lead hand Article 20 Seniority Article 21 Safety & Health Article 22 Grievance Procedure Article 23 Union Policy Grievance Article 24 Arbitration Article 25 Discipline Article 26 Amendments Article 27 Union Label Article 28 Access Article 29 Training Article 30 Job Descriptions Article 31 Termination Page 2 Page 2 Page 2 Page 2 Page 3 Page 3 Page 3 Page 3 Page 4 Page 4 Page 4 Page 6 Page 6 Page 6 Page 7 Page 7 Page 7 Page 7 Page 8 Page 8 Page 9 Page 10 Page 11 Page 11 Page 12 Page 12 Page 12 Page 12 Page 12 Page 13 Page 14

3 2 1: PURPOSE: The general purpose of this Agreement is to establish mutually satisfactory relations between the Company and its employees to provide a means for prompt and equitable disposition of grievances and to establish and maintain satisfactory working condition, hours of work and wages for all employees who are subject to its provisions. 2:RECOGNITION: The Company recognizes the Union as the sole and exclusive bargaining agent for all its employees in Ontario, save and except Forman persons above the rank of Foreman, Supervisors, and Office Staff. This Agreement is not intended to cover any person hired for repairs or additions to the Company plant or property, while so employed. 3:MANAGEMENT RIGHTS a) b) The Union acknowledges that it is the exclusive function of the Company, subject to the provisions of this Agreement to manage, supervise and direct its property, operations and work force. The Company and the Union agree that the Company has the right to hire, select, classify, promote, demote, transfer, suspend, discharge or otherwise discipline any employee for just cause, provided that a claim by any employee that he has been discharged or disciplined without reasonable cause, may be the subject of a grievance and dealt with as herein provided. The Company has the right to enforce and revise from time to time reasonable rules and regulations The Union also acknowledges that the Company has certain other rights, prominent among which, but by no means wholly inclusive are the rights to decide the number and locations of its plants, the increase or decrease of its work force, types and quantities of machines, tools and equipment, the products to be manufactured, the methods of manufacture; the establishment and enforcement of reasonable work and safety rules, the scheduling of production, the assignment of employees to jobs and shifts, the establishment of work standards; the introduction of new product lines; and the general control and direction of the business of the Company. 4:UNION SECURITY AND CHECK-OFF: (a) The Company agrees with the Union that, as a condition of employment all employees covered by this agreement shall become members of the Union within thirty (30)-calendar days from the start of employment. (b) It is also agreed that the Company will deduct Initiation Fees and Union Dues in the amount advised by the Financial Secretary of the Union from the wages of all employees, as defined above. (c) Such deductions will be made from each weekly payor bi-weekly or once monthly as advised by the Financial Secretary of the Union, the Company

4 3 must remit on the employee's behalf to the Financial Secretary of the Union not later than the 10 th of each month. The Company also agrees that they will have all employees fill out any necessary forms from the Union and remit it to the Financial Secretary of the Union the week that they were filled out if at all possible. 5: CO OPERATlON: (a) The Union agrees that it will not cause, authorize or sanction, nor permit its members to cause or take part in any sit down, stay in or slow down in any department of any of the Company's operations or curtailment of work or restriction of or any interference with production. (b) The Company agrees that it will not cause or sanction a lockout during the life of this Agreement. 6: STEWARDS AND COMMITTEES a) b) The Company agrees that the Union may appoint and the Company will recognize Stewards and a Grievance Committee. In the interest of a sound relationship the Union agrees that this Committee, to be completely representative of the working force within the bargaining unit, shall consist, insofar as possible, of employees from each department of the plant if possible. The Company also agrees to recognize alternate stewards in cases of absence of the chief steward or other stewards, overtime shifts, or for shifts other than the day shift. The alternate steward will be selected from those assigned to the shift. 7: BULLETIN BOARDS: The Company agrees to provide the Union with notice boards upon which the Union may post notices in a location for all employees to see. 8: HOURS OF WORK: (a) The normal daily hours of work shall be eight (8) hours Monday through Friday inclusive, with a thirty (30) minute lunch. (b) This will not constitute a guarantee by the company of hours of work per shift. Day Shift: to, Afternoon Shift: toi Night Shift: to,

5 4 (c) The Company shall schedule for all employees on an eight- (8) hour shift two (2) Rest Period of ten (10) minutes during their normal daily hours of work. 9: OVERTIME (a) (b) An employee shall be paid at a rate of time and one-half (1 )1,) for all work to performed in excess of 44 hours per week. An employee shall be paid at the rate of double (2) time for all work required to be performed on Sundays and all Statutory Holidays, plus holiday pay where applicable. (c) Overtime shall be distributed to those who normally perform the job. If not available, the company will appoint the employee(s) necessary to perform the work available, the company agrees to equitably distribute overtime to all employees that can perform the work available. (d) Employees will be entitled to a paid ten (10) minute break prior to working overtime - Monday to Friday inclusive - and normal breaks will apply for Saturday, Sunday and Holiday overtime. 10: BEREAVEMENT LEAVE: An employee who suffers the bereavement of a member of his immediate family shall be granted a leave of absence with pay up to three (3) working days subject to the following conditions: (a) (b) (c) (d) The employee must have completed the probation period. The days eligible for payment shall be consecutive and shall include the day prior to the funeral and shall end with the day of the funeral. Such days shall be scheduled working days of the employee which, but for bereavement he would have worked. Such days shall not be considered as days worked for the purpose of computing overtime or any other purpose. The employee will be paid eight (8) hours pay for each day of bereavement leave. A member of his immediate family shall be restricted to Father, Mother, Husband, Wife, Son Daughter, Brother, Sister, Mother-in-law, and Father-in-law. 11: VACATIONS WITH PAY & HOLIDAYS: (a) An employee who has been with the Company for less than one year as at December 31 shall receive vacation with pay at the rate of 4% of his/her earnings. Employees who have been with the Company for one year or more in any year shall receive two weeks vacation with pay, or 4% of actual gross pay earned during the previous 12 months to December 31, whichever is greater.

6 5 Employees who have been with the Company seven (7) years or more in any year shall receive three weeks vacation with pay, or 6% of actual gross pay earned during the previous 12 months to December 31, whichever is greater. For employees with more than one (1) year of service, length of service is determined by the employee's anniversary date. Vacation pay entitlement shall be calculated based on total earnings received from the employer as wages during the previous twelve (12) month period ending December 31 st (b) The Company shall have the right to declare a general vacation period of up to two (2) weeks, in July. Those employees who have more vacation than the shutdown period may take the additional vacation before or after July 1 st, if so arranged. Employees entitled to more than two (2) weeks vacation will have the right to split the remaining holidays into separate holiday periods if arrangements are made with the Company. Preference shall be given to the senior employees in determining the vacation schedule. Employees that are hired on the same day will have their seniority determined on the basis of alphabetical order as it appeared on the date of hire. The company will do Iheir best to accommodate the employee's vacation as long as it doesn't seriously affect production. (c) An employee shall be paid at his/her straight time rate on the basis of his/her regularly scheduled normal daily hours of work on the twelve holidays as defined below without being required to perform services. New Year's Day Family Day Good Friday Victoria Day Canada Day Thanksgiving Day Christmas Day Boxing Day Civic Holiday' If Civic Holiday falls during the summer shutdown period, a floating holiday may be taken at any time during the calendar year. An employee shall not be entitled to be paid for the statutory holidays: 1. If the employee is employed for less than three (3) month; 2. If the employee does not work on they're regular day of work preceding and following the holiday without reasonable cause; 3. If the employee is receiving benefits under the Workers' Compensation Act or the Company's sickness and accident plan. Any further statutory holiday declared by the Federal or Provincial Government would be added to the paid holidays.

7 6 (c) The Holiday must occur or be observed between Monday and Friday inclusive. 12: GROUP INSURANCE: SCHEDULE OF BENEFITS Class 6, All AMI employees Completed 3 months of continuous service Life Insurance $15, Life insurance should be maintained at the current level for the duration of the contract. Supplemental Health Insurance Deductible, none Maximum per insured person $5, ALL OTHER MEDICAL EXPENSES INCURRED IN CANADA Reimbursement: for all eligible expenses, other than prescription drugs For prescription drugs: 80% -$2, per calendar year Eye Examinations: $75.00 per 24 consecutive months One eye examination per period of 24 consecutive months EYEGLASSES: Frames and lenses or contact lenses maximum $ per 24 consecutive months. Eyeglasses and contact lenses are 100% reimbursed. DENTAL PLAN: All current employees to receive the basic dental plan no later than April 1, Furthermore all new employees shall have a three (3) month waiting period for dental. Premium 100% company - Reimbursement 80% DOCTORS NOTES: The Company agrees to reimburse employees the full cost of doctor's notes if requested or required by the Company. For further information refer to the benefit booklet 13: RRSP: PENALTY PROVISION The company agrees that it shall pay to any affected employee Twenty Five Dollars a day for every day that the company fails to provide any drug, dental, payroll benefits or wages that is due to the employee. 14: JURY DUTY: The Company agrees to pay an employee, who has been selected for Jury Duty or who is subpoenaed as a crown witness, fifty (50%) percent of his/her wage. The employee will be required to furnish proof of his/her service.

8 7 15:SHIFT PREMIUM AND WAGE INCREASES: It is agreed that all employees on midnight shift shall receive a premium of fifty $0.50) cents per hour. 16: WAGE INCREASES Year 1 - $0.50 year 2 - $0.50 year 3 - $0.50 All Wages are Retroactive from the expiry of the contract. 17:WAGE AND CLASSIFICATION SCHEDULE: Students may be employed temporarily during times of full employment. All employees will be paid according to the following schedule: 18: CLASSIFICATIONS: (a) (b) Classification: After passing the ninety - (90) days worked probationary period, the new employee would be classified in the job class described on the job posting. Transfers and Classification: The Company will be required to post the job if a temporary transfer exceeds twenty (20) working days. The Company and the Union mutually agree to waive this provision of the agreement to allow a position to be filled by an employee from another classification to cover situations such as extended illness or a vacation period of longer than thirty (30) days in duration. The Company will be responsible for maintaining records of any employee transferred from job class to job class. (c) When a new job is introduced into the plant which cannot be properly placed in an existing classification, or when the job content of an existing job is so changed that it cannot be properly covered by an existing classification, management will set up a new classification and a rate covering the job in question and will designate it as temporary. A copy of the rate and classification name will be furnished to the Shop Steward. The company must notify the Union office. The Company agrees not to abuse this clause. The union may revoke this clause at any time if they deem that the company is abusing the article.

9 8 (d) The new classification and rate shall be considered temporary for a period of thirty (30) calendar days following the date of notification to the Shop Steward Committee and this union office, notification must be in writing to the local office. During this period (but not thereafter) the union may request management to negotiate the rate for the classification. The negotiated rate, if higher than the temporary rate, shall be applied retroactively to the date of the establishment of the temporary classification and rate except as mutually agreed. If no request has been made by the local union to negotiate the rate within a thirty-day period or if, within sixty days from the date of notification to the Shop Steward Committee, and the union office, no grievance is filed concerning the temporary classification and rate, they shall become a part of the Wage and Classification Schedule. (e) If the Union requests management to negotiate and the Union and management are unable to agree on a classification and rate for the new job, the disputed rate and/or classification may be treated as a grievance. Such grievance is to be filed at the third step of the grievance procedure. If the grievance is still unresolved after it was considered at the third step of the grievance procedure, it may be referred to the Arbitrator who shall be empowered to determine the proper classification and/or rate for the new job as provided herein. (d) In establishing the rate of pay for a classification, the Arbitrator shall do so by comparing such classification with other comparable classifications in the same bargaining unit, the rate for which is consistent with the general wage pattern in the plant. The Arbitrator's decision shall be limited to the area of dispute, and the wage rate he/she establishes for the new job classification shall be set so as to maintain the wage rate relationship and internal balance which the parties have established in the applicable Wage and Classification Schedule through their negotiation. The classification and/or rate established by the Arbitrator shall become a part of the Wage and Classification Schedule. 18:LEAD HAND: Delegates the work and instructs how the work is to be done. Stages material and equipment in order to make-work flow as smoothly as possible. Does physical work alongside co-workers. Reports to a supervisor at all times. 19: SENIORITY: (a) (b) (c) An employee shall be on probationary status and will not have seniority rights until the completion of ninety (90) days. Probationary employees may be discharged at the discretion of the Company. Seniority shall prevail on a plant-wide basis and will accumulate during periods of lay-off for a period of one year from layoff if an employee is laid off for a consecutive period of twelve (12) months. If an employee is laid-off in excess of the above time frames, such an employee will lose their seniority and his/her employment will be terminated.

10 9 (d) (e) Employees that are recalled will be paid in accordance with the current Wage and Classification Schedule. The following procedure will be followed for all layoffs: 1. All probationary employees shall be laid off first. 2. Employees shall be laid off in inverse order of seniority, provided there are available employees with higher seniority who are qualified and willing to do the required work of the junior employees to be laid off. 3. The Company agrees to discuss with the Union any case or instance of hardship where alleged injustice to an employee arises out of any action with the Company by this layoff procedure (I) If an employee is laid off and fails to respond in writing or by phone within five (5) working days and fails to report for work (unless through sickness) within ten (10) calendar days after he/she has been notified to do so by the Company, which notification has been sent out to his/her address on record with the Company by registered mail, the Company having advised the Union Steward at the plant when such notice is sent out, he/she shall be considered to have voluntarily quit. (g) (h) The Company agrees to update the Seniority List once every four (4) months and to correct any errors therein, whenever proof of error is submitted by an employee or the Union. No change shall be made in the seniority status of an employee without consultation with the Union. Prior to hiring a new employee for any vacancy in the classification schedule or before filling any vacancy, the Company shall post for five (5) working days on all bulletin boards a notice of such vacancy stating the classification, department and applicable hourly rate along with the qualifications for the job. Successful job applicants will be awarded the job within five (5) working days. (i) 1. In the event that more than one application is received for a job vacancy, the Company will select the senior job applicant that has the sufficient ability to do the job. If none of the applicants are deemed to be suitable the Company may exercise its right to hire outside.. 2. Notwithstanding paragraph 1, in the event that more than one application is received for a lead hand vacancy, the Company will select the applicant that has the best ability to do the job. U) The Company agrees to furnish the business manager once a year with a mailing list containing names and last known addresses of all employees and retired employees.

11 10 20: SAFETY AND HEALTH: (a) (b) (c) (d) (e) (I) (g) (h) The Company will continue to make reasonable provision for the safety and health of its employees during the hours of their employment as set out in the Occupational Health & Safety Act and Regulations for Industrial Establishments. Whenever the Company recommends to the employees for their better protection the use of safety equipment, it will be supplied free of charge to every employee using the equipment. SAFETY GLASSES: The Company will issue all employees non-prescription safety glasses and clip on safety glasses for those employees who wear prescription glasses. The Company will educate and maintain a reasonable number of first-aid attendants. As per the Occupational Health and Safety Act, and Regulations for Industrial Establishments, the Safety Committee will be given the authority to request improved safety conditions within the plant, and that safety rules and regulations be followed. The Safety Committee will address safety concerns in an expeditious manner. An employee, after being adequately instructed in the use of such protective safety devices and/or clothing etc., who by failure or neglect to use the protection devices and/or clothing and exposes himself or others to injury such failure or neglect may be subject to instant dismissal without prior notice. The company agrees to reimburse employees for prescription glasses to a maximum of fifty ($250.00) every twenty four (24) months upon receipts. The company agrees to reimburse employees for Safety Boots to a maximum of $ per year. 21: GRIEVANCE PROCEDURE: (a) (b) It is the mutual desire of the parties hereto that justified grievances shall be adjusted as quickly as possible. It is understood that a grievance shall only consist of a dispute respecting the interpretation, application or alleged violation of this agreement. It is mutually understood that an employee with a grievance must discuss it with their immediate supervisor within five (5) working days of the events giving rise to the grievance. Failing to bring the issue forward to the immediate Supervisor within five (5) working days will result in grievance not being considered. Failing satisfactory response grievances shall be processed in the following manner: STEP ONE: Within five (5) working days of the immediate Supervisor's verbal response to the grievance, the aggrieved employee and their Steward shall present the grievance in writing to the immediate Supervisor. It is agreed that the Company shall have the right to refuse to consider any grievance that is not filed

12 11 within the said five (5) working days of the immediate Supervisor's verbal response to the grievance. The immediate Supervisor shall render a decision on the grievance, in writing, within two (2) working days of receipt of the grievance. If the immediate Supervisor's decision is not satisfactory to the aggrieved employee, the grievance may be further processed as follows: STEP TWO: Within five (5) working days after the decision is given at Step One, the aggrieved employee, with their Steward, may present the grievance to the Plant Manager. The Plant Manager shall render a decision on the grievance, in writing, within two (2) working days of receipt of the grievance. If the Plant Manager's decision is not satisfactory to the aggrieved employee, the grievance may be further processed as follows: STEP THREE: Within five (5) working days after the decision is given at Step Two, the grievance may be submitted by the aggrieved employee, together with the Stewards Committee and/or a Business Representative of the Union, to the Plant Manager. The Plant Manager shall render a decision, in writing, within two (2) working days of the submission of the grievance at Step Three. All above time limits may be extended by mutual agreement. 22:UNION POLICY GRIEVANCE: A Union Grievance is defined as a grievance, which affects the employees generally within the bargaining unit, and may be brought forward by a Steward in writing within thirty (30) days of the date the Union become aware of the events giving rise to the grievance. If not settled satisfactorily, it may go before an Arbitrator or Board of Arbitration in the same manner as an employee's grievance. 23: ARBITRATION: (a) (b) (c) (d) Failing settlement under the previous steps of the Grievance Procedure, and within 30 (thirty) working days of the date of the Step 3 answer, either the Company or the Union may give written notice of referral of the grievance to arbitration by a sole Arbitrator, who shall be bound by the rules of this Agreement. The Company and the Union shall endeavor to agree on a mutually acceptable Arbitrator within 10 (ten) working days of the giving of the notice of referral to arbitration. In the event of a failure to agree upon an Arbitrator, the Ministry of Labour will be requested to make the appointment. The decision of the Arbitrator shall be binding and accepted by both parties to this Agreement, and all employees covered by this Agreement. The Arbitrator shall not have any power to add to, delete from, or otherwise alter or vary a term of this Agreement. The Company and the Union will jointly bear the expenses, if any, of the Arbitrator.

13 12 (e) Notwithstanding the foregoing, either party may require that the grievance be referred to a Board of Arbitration, one member being named by the Company, one member being named by the Union, and the chair being selected by agreement of the two parties within ten (10) working days of the referral, failing which the chair will be appointed by the Ministry of Labour. All of the foregoing terms and conditions of this Article 19 will apply to the Board of Arbitration, with necessary modifications. 24: DISCIPLINE: In any case where a suspension or discharge is being contemplated: 1. The employee will be advised of his/her right to Union representation by a representative of the Company prior to answering charges involved in the situation. 2. The Company will provide the employee and the Union a written statement describing the misconduct and the extent of the suspension or discharge. 3. The Union representative and the employee will be provided with a private room designated by the Company, for a reasonable amount of time, to discuss the charges, before the employee is required to leave the plant. 4. The Chief Steward shall receive copies of all discipline. 25: AMENDMENTS: By mutual agreement between the parties to this Agreement, any clause or clauses herein may be deleted, amended, or a new clause added to during the life of this Agreement. 26: ARTICLE: UNION LABEL During compliance with all of the provisions of this agreement, The Sheet Metal production worker's blue label will be affixed on products substantially manufactured by members of local 540. The Company afilrees that all union labels shall be the property of the Union and said permission to display the union label may be revoked by the Union for causes the Union deems adequate. There will be a logbook kept of the union labels on the products and the location and the company's names. This information will be given to the union at any time the union requests it. The company will also supply a safe location for the labels with a lock; this will be for the union member only, who will be reasonable for the labels.

14 13 27:Access: The Company will allow the union access to the company property and on the shop floor as long as the union notifies the company in advance. 28:TRAINING: Because the company is just opening the union may allow anyone at the rank of foreman or higher to assist in the training of new employees, the union restricts this to two (2) people. The Company will not have the people above the rank of foreman working alone for the purpose of production. The Company agrees not to abuse this clause and also agrees that the union may at any time revoke this clause if the union at any time feels that the company may be abusing this clause. This clause is only in this collective agreement for the term of this agreement, unless revoked by the union at an earlier date. 29:JOB DESCRIPTIONS:

15 14 30: TERMINATION: All provisions of this agreement shall continue in force and effect beginning the ~ day of March, 2013 and shall continue in force for a period ending the February 28, 2016 and shall continue in force and effect from year to year thereafter unless written notice of change is given not less than ninety (90) days prior to the expiration date. WITNESS: IN WITNESS AND TESTIMONY of the provisions and terms mutually agreed upon and specified herein the duly authorized Officers and/or Representatives of both parties affix their signature this Dated This Day of Signed on behalf of AIR MANAGEMENT INC... Signed on behalf of SHEET METAL WORKERS' INTERNATIONAL ASSOCIATION LOCAL # 540

16 15 CLASSIFICA TIONS General Labour Assembler Machine Operator Packer Calibration Person Inventory Person Student~,Ontario Minimum Wage MARCH 1, 2013 Machine Operator & Programming Brake, CNC, SHEAR, TURRET PUNCHES, ROLL FORMER $.13,50/hr Welders,$13:50/hr Shipper & Receiver.$11,50/hr Painter Forklift Operator $11.50/hr Lead hand $17.00/hr MARCH 1, 2014 Machine Operator & Programming Brake, CNC, SHEAR, TURRET PUNCHES, ROLL FORMER, $14,00/hr Welders $14.00/hr Shipper & Receiver $12.00/hr Painter Forklift Operator $12,00/hr Lead hand, ---'$18,00/hr All above wages reflect the negotiated general increase of $0.50 per each year of the contract.

17 16 MARCH 1, 2015 Machine Operator & Programming Brake, CNC, SHEAR, TURRET PUNCHES, ROLL FORMER, $14,50/hr Welders ---C$14,50/hr Shipper & Receiver $12,50/hr Painter Forklift Operator $12,50/hr Lead hand,$18,50/hr All above wages reflect the negotiated general increase of $0,50 per each year of the contract.