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1 BETWEEN: COLLECTIVE AGREEMENT HOEY AND MCMILLAN LIMITED Box 430 Dryden, Ontario P8N 2Z2 ~./ o'13g- oor ~ l -os- -1o?r 31 Jo~ JO lo l I. lc:>110 LS Ph.: Fax: hereinafter referred to as the "Employer" OF THE FIRST PART; AND: INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL 793 hereinafter referred to as the "Union" OF THE SECOND PART. WHEREAS the purpose of this Collective Agreement is to establish fair and equitable wage rates, hours of work and certain other working conditions within the work described herein, to promote harmonious relations between the Employer and the Union and the employees, to maintain a high rate of productivity and to provide for and ensure uniform interpretation and application in the administration of this Collective Agreement t ~ 2 r f r' such that any grievance can be disposed of promptly and equitably. THEREFORE, the parties agree as follows: ARTICLE 1 - GEOGRAPHIC AREA 1.01 This Agreement shall be effective within the Districts of Algoma, Thunder Bay, Rainy River, and Kenora, including the Patricia portion, also known as Ontario Labour Relations Board Areas 21, 22, 23, and 24, respectively.

2 Hoey and McMillan, , page 2 of 19 ARTICLE 2 - RECOGNITION 2.01 The Employer recognizes the Union as the sole and exclusive bargaining agent for all employees covered by the classifications set out in this Agreement, engaged in construction work in the geographical area described above, save and except nonworking foremen, persons above the rank of non-working foreman, shop supervisor, office and clerical staff, camp staff, summer students employed for the school vacation period and stock clerk This Agreement applies to all construction work performed by the Employer and without limiting the generality of the foregoing, includes road work, sewer and watermain work, all excavation work, environment, conservation, flood control projects, dams, general construction, bush operations, etc., and all work incidental thereto, wherever located, whether on private or public property Therefore, this Agreement, between the Union and the Employer, signed by the accredited officials of both parties, has been mutually agreed upon and the terms as laid out shall be carried out in letter and spirit by both parties. The Agreement covers certain employees of the Employer engaged in construction work and all work incidental thereto. This Agreement shall not apply to work performed within the industrial, commercial and institutional, pipeline and E.P.S.C.A. sectors of the construction industry and work performed under the Collective Agreement between Weyerhaeuser Dryden Operations and Communications, Energy and Paper Workers Union of Canada, Local 324. ARTICLE 3 - UNION SECURTIY 3.01 During the lifetime of this Agreement, the Employer shall deduct from the pay of all employees covered by this Agreement who work fifty (50) hours or more in a calendar month, such sum as may be uniformly assessed by the Union Constitution and By-Laws as Regular Monthly Union Dues. Such deductions shall be remitted together with the contributions required under Article 7 of this Agreement on or before the 15th day of

3 Hoey ana McMillan, , page 3 of 19 the month following the month in which such deductions were made. The Employer shall, when making all remittances to the Union, identify employees both by name and social in~urance number and indicate the amount deducted from each employee It is expressly understood and agreed that the Employer shall not be required to discharge any employee for violation of the provisions of this Article for any reason other than the non-payment of Union dues, notwithstanding anything to the contrary herein contained Where an employee authorizes his Employer, in writing, to deduct Union Initiation Fees from his pay, the Employer will honour such authorization and make the deductions as authorized The Union agrees to indemnify and hold harmless the Employer against any liability incurred as the result of the deduction of Union Initiation Fees or Dues The Employer agrees to remit the deductions referred to above, on or before the 15th day of the month following the month for which such deductions were made. The remittance will include the names of the employees and the amounts deducted from each employee, on forms supplied by the Union. ARTICLE 4 - MANAGEMENT RIGHTS 4.01 The Union agrees that it is the exclusive function of the Employer: a) to conduct its business in all respects in accordance with its commitments and responsibilities, including the right to manage the jobs, locate, extend, curtail or cease operations, to determine the number of men required at any or all operations, to determine the kinds and locations of machines, tools and equipment to be used and the schedules of production, to judge the qualifications of the employees and to maintain order, discipline and efficiency;

4 . Hoey and McMillan, , page 4 of 19 b) to hire, discharge, classify, transfer, promote, demote, lay off, suspend or otherwise discipline employees, provided that a claim by an employee that he has been discharged without reasonable cause shall be subject to the provisions of the Grievance Procedure; c) to make, alter from time to time, and enforce reasonable rules of conduct and procedure to be observed by the employees All matters concerning the operations of the Employer not specifically dealt with herein shall be reserved to the Employer and be its exclusive function and responsibility It is agreed that these functions shall not be exercised in a manner inconsistent with the express provisions of this Agreement. ARTICLE 5 -GRIEVANCE PROCEDURE 5.01 There shall be an earnest effort on the part of both parties to this Agreement to settle promptly through the procedure forth set herein, any complaints, grievances or disputes arising from the interpretation, application or administration of this Agreement All grievances to be dealt with under Step Two below shall be in writing, on a form supplied by the Union and signed by the employees having such grievances Written grievances, to be valid, shall set out the nature of the grievance, the Article or Articles of the Agreement alleged to have been violated and the nature of the remedy sought, and shall not be subject to change at later steps, except by mutual agreement in writing with the Employer, or in the case of remedy, by an Arbitration Board In determining the time which is allowed in the various steps, Saturday,

5 .. Hoey ana McMillan, , page 5 of 19 Sunday and Statutory Holidays shall be excluded and any time limits may be extended by mutual agreement in writing If advantage of the provisions of Articles 5 and 6 hereof is not taken within the time limits specified therein or as extended in writing as set out above, the grievance shall be deemed to have been abandoned and may not be re-opened The Employer shall designate and name the official to whom a written grievance is submitted at Step It is understood and agreed than an employee does not have a grievance until he has discussed the matter with his foreman or other supervisory personnel acting in this capacity and given him an opportunity of dealing with the complaint. His decision shall be made known to said employee within forty-eight ( 48) hours. Grievances properly arising under this Agreement shall be adjusted as follows: Step 1 - Within five (5) days after the circumstances giving rise to the grievance occurred or originated, the aggrieved employee, with or without the Steward, shall present his grievance orally or in writing to the official of the Employer named by the Employer to handle grievances at this Step. If a settlement satisfactory to the Union and the employee concerned is not reached within five (5) full days, a grievance may be presented as indicated in Step 2 at any time within five (5) full days thereafter. Step 2 - At this Step, the grievance may be processed as an individual, joint, or Union grievance and shall be presented in writing by a Union Steward or Representative to the Company Official assigned to handle written grievances. The Employer or the Union may process a written grievance at this Step concerning the interpretation or alleged violation of the Agreement. If a satisfactory

6 Hoey and McMillan, , page 6 of 19 settlement is not reached within one (1) week from the date it is submitted to the General Manager, and if the grievance is one which concerns the interpretation or alleged violation of this Agreement, the grievance may be submitted to arbitration as provided in Article 6 below, at any time within fourteen (14) days thereafter, but no later. ARTICLE 6 -ARBITRATION 6.01 Both parties to this Agreement agree that any grievance concerning the interpretation or alleged violation of this Agreement which has been properly carried through all the steps of the Grievance Procedure outlined in Article 5 above and which has not been settled, shall be referred to a Board of Arbitration at the request of either of the parties hereto Unless mutually agreed otherwise, the Board of Arbitration will be composed of one person appointed by the Employer, one person appointed by the Union and a third person to act as Chairman, chosen by the other two members of the Board Within five (5) working days of the request by either party for a Board, each party shall notify the other in writing of the name of its appointee Should the person chosen by the Employer to act on the Board and the person chosen by the Union fail to agree on a third member as Chairman within five (5) days of the notification mentioned in Article 6.03 above, the Minister of Labour of the Province of Ontario will be asked to nominate an impartial person to act as Chairman The decisions of the Board of Arbitration or a majority of such Board constituted in the above manner shall be binding on the employee, the Union and the Employer The Board of Arbitration shall not have any power to alter or change any of the provisions of this Agreement or to substitute any new provisions for any existing

7 Hoey and McMillan, , page 7 of 19 provisions, nor to give any decisions inconsistent with the terms and provisions of this Agreement Each of the parties to this Agreement will bear the expenses of the Arbitrator appointed by it and the parties will jointly bear the expense, if any, of the Chairman. ARTICLE 7- HEALTH PLAN- PENSION PLAN 7.01 Effective November 1, 2002, the Employer agrees to purchase the Company Health Benefit Plan for each employee covered by this Agreement except those in Classifications 16 and 17. (A copy of the Company Health Benefit Plan is to be attached and form a part of this Agreement.) 7.02 Effective November 1, 2002, the Employer agrees to contribute one dollar and fifteen cents ($1.15) for each hour worked for each employee covered by this Agreement except those in Classifications 16 and 17 to the Pension Plan for Operating Engineers in the Province of Ontario. Effective September 1, 2004, the Employer agrees to contribute ninety dollars ($90.00) per month for each employee covered by this Agreement except those in Classifications 16 and 17, to the Employees Self-directed R.R.S.P. and to match up to an additional ninety dollars ($90.00) per month made by the employee, to the Employees Self-directed R.R.S.P. Effective September 1, 2006, the amounts above shall be increased to One Hundred Dollars ($100.00) per month. Effective September 1, 2008, the above shall be increased to One Hundred and Two Dollars ($102.00) per month These monies shall be remitted in accordance with this Agreement and shall be remitted by the 15th day of the month following the month in which the hours have been worked, together with supporting information entered on a Reporting Form as

8 Hoey ana McMillan, , page 8 of 19 designated by the Trustees of the Plan and at no time shall the monies be paid directly to the employee In the event the Employer fails to remit the contributions for the Benefit and Pension Plans by the 15th day of the month due, the Trustees may charge interest at the rate of 1% per month for any delinquent contributions 30 days in arrears, provided the Employer has received 5 days written notice to correct such delinquency With reasonable cause, the Trustees may request the Employer to submit to them within a stipulated period, a certified audited statement of payroll contributions to the fund for a period from the effective date of this Agreement until the date the audit takes place. Such statements shall reply to the questions submitted to the Employer by the Trustees If the Employer does not submit the certified audited statements as per the above, the Trustees may appoint an independent chartered accountant to enter upon the Employer's premises during the regular business hours to perform an audit of the Employer's records only with respect to the Employer's contributions or deductions to the required employee Pension Plan Where the Trustees appoint an auditor the cost shall be born by the Plan In the event such audit reveals that the Employer has failed to remit contributions in accordance with the provisions of this Agreement, the Employer shall, within 5 days of receipt of written notice from the Trustees, remit all outstanding contributions along with completed supporting contribution report forms as required by the Plan When the Employer fails to remit all delinquent contributions, the provisions of the above shall apply and the Union, on instructions from the Trustees, shall

9 Hoey ana McMillan, , page 9 of 19 immediately institute proceedings against the delinquent Employer under the Labour Relations Act of Ontario. All costs of such actions shall be born by the appropriate plan or fund unless otherwise recoverable Where the Trustees deem an Employer to be a persistent delinquent in the submission of contributions, they may require the Employer to post a bond or certified cheque not to exceed $5, to be held in trust by the Trustees for a period to be determined by the Trustees If an Employer does not have any employees in his employ he shall submit a nil report in accordance with the provisions above. ARTICLE 8 - NO STRIKES - NO LOCKOUTS 8.01 During the lifetime of this Agreement, the Union agrees there will be no strikes, slowdown or picketing or any act which will interfere with the regular schedule of work, and the Employer agrees that there will be no lock-out. The Employer shall have the right to discharge or otherwise discipline employees who take part in or instigate any strike, picketing or slowdown or any other act which interferes with the regular schedule of work The Union agrees it will not involve the Employer in any disputes which may arise between the Union and any other Employer and the employees of such other Employer. The Union further agrees it will not condone a work stoppage or observe any picket line placed on a job site for jurisdictional purposes. ARTICLE 9 - PRODUCTIVITY- UNION CO-OPERATION 9.01 The Union agrees to co-operate with the Employer in maintaining and improving safe working conditions and practices The Union recognises the mutual value of improved methods and increased

10 Hoey and McMillan, , page 10 of 19 productivity in the interests of the Employer and in the implementation of such methods, in suggesting improved methods and in the education of its members in the necessity of such changes and improvements The Union recognises the need for conservation and elimination of waste and agrees to co-operate with the Employer in suggesting and practising methods in the interest of conservation and waste elimination. ARTICLE 10- UNION REPRESENTATION- STEWARDS The Employer agrees to recognize a Steward appointed or elected by the Union on any project where it has been agreed by the Employer and the Union that the appointment of a Steward is necessary for the project. It is understood that the Employer will not be obliged to recognize any Steward until it has been informed in writing by the Union of appointment of such Steward, and it is further agreed by the Union that it will select Stewards from among the long term and experienced employees who are familiar with the Employer's operations The Union acknowledges that the Steward has regular duties to perform as an employee of the Employer and that they will not leave their regular duties for the purpose of attending to Union business without first obtaining the permission of their foreman or immediate supervisor. Before resuming their duties on behalf of the Employer, such employees will report to their foreman or supervisor The Business Representative of the Union shall have access to any of the jobs of the Employer during working hours where employees covered by this Agreement are employed, provided he has secured prior approval of the Superintendent or his designated representative and provided it does not interfere with the work.

11 Hoey and McMillan, , page 11 of 19 ARTICLE 11 - PAYMENT OF WAGES Wages shall be paid by cash or cheque bi-weekly on the job, and shall be accompanied by a statement of the calculation of the employee's pay. The Employer will strive to pay employees by Thursday, and no later than Friday, of the week following the end of the pay period, particularly on a short work week When an employee is terminated or laid-off, the employee's pay cheque, and Employment Insurance Separation Certification will be sent to the employee's last address known to the Employer by Wednesday of the week following the layoff. ARTICLE 12 -VACATION PAY AND STATUTORY HOLIDAYS Vacation Pay will be accumulated at a rate of 4% of gross earnings and at the employee' option, paid in addition to weekly earnings, or at a rate of 2% for each week of eligible vacation when taken. Any unpaid vacation pay accumulated in each year will be paid out on December 31st of each year The following Statutory Holidays will be granted to all employees with pay at a rate of eight (8) hours per day: New Year's Day Good Friday Victoria Day Canada Day Labour Day Thanksgiving Day Christmas Day Boxing Day It is understood that Vacation Pay and Statutory Holiday Pay shall be paid to employees according to the Employment Standards Act It is understood that when a Holiday falls in the middle of the week, the Employer, after consultation with the Steward, will have the option of scheduling the Holiday on the Friday or Monday of the weekend preceding or following the Holiday. Advance notice of at least one (1) week will be given with respect to the date scheduled.

12 Hoey and McMillan, , page 12 of 19 The scheduled day will be in lieu of the Holiday and no overtime will be paid for work done on the actual day of the Holiday. ARTICLE 13 - HOURS OF WORK The standard hours of work for employees covered by this Agreement engaged in construction work as described in Article 2.02 of this Agreement, with the exception of sewer and watermain work, bush operations and shop, shall be fifty-five (55) hours per week, exclusive of travelling time to and from the job. The standard hours of work for employees engaged in sewer and watermain work, shall be fifty (50) hours per week, exclusive of travelling time to and from the job. The standard hours of work for bush operations shall be forty-four ( 44) hours per week exclusive of travelling time to and from the job. The standard hours of work for shop employees shall be forty-four (44) hours per week Employees may take a ten (10) minute coffee break during each half shift without loss of pay It is understood that the employees are entitled to one-half hour for lunch without pay during the working period, when designated by the Employer, at a time between 11:00 a.m. and 1:30 p.m. ARTICLE 14 - OVERTIME All authorized hours of work performed in excess of the standard hours of work as set out in Article shall be paid for at the rate of one and one-half (1 1 12) the employee's regular basic hourly rate Overtime rates do not apply to emergency work, such as snow removal, sanding, etc., unless required by the Employment Standards Act of Ontario.

13 Hoey and McMillan, , page 13 of 19 ARTICLE 15- ROOM AND BOARD Except as specified in this clause herein/ on out-of-town work 1 where an employee is required by the Employer to stay overnight 1 the Employer will provide suitable free room and board It is agreed by the parties that employees hired at the job site will not qualify for room and board allowance. ARTICLE 16- TRAVEL ALLOWANCE Effective on signing/ when an employee is required to travel to a job site from their place of hire/ the employee shall receive thirty-one cents (31 ) per mile plus one (1) hour's pay for every fifty miles/ or any portion thereof/ and on completion of the job/ return fare of thirty-one cents (31 ) per mile/ plus one (1) hour's pay for every fifty (50) miles or any portion thereof. It is understood that the thirty-one cents (31 ) per mile allowance is to be paid for employees using their own vehicles only. Employees travelling in Company owned vehicles shall not receive the thirty-one cents (31 ) per mile allowance. In order for an employee to qualify for travel allowance/ an employee shall remain on the job for fifteen (15) days/ or completion of the job/ whichever first occurs. Employees who quit or are discharged for just cause will not be eligible for this payment. Effective February the above amounts shall be increased to thirtytwo cents (32 ) per mile. Effective February 1, the above amounts shall be increased to thirtythree cents (33 ) per mile. Effective February , the above amounts shall be increased to thirtyfour cents (34 ) per mile.

14 Hoey and McMillan, , page 14 of 19 ARTICLE 17- COMMUTING ALLOWANCE When an employee is required to commute to jobs, the first one-half hour each way will be free, then the employee will be paid straight time for commuting.

15 Hoey and McMillan, , page 15 of 19 ARTICLE 18 - DURATION OF AGREEMENT This Agreement shall become effective on the 1st day of February, 2005, and shall remain in effect until the 31st day of January, 2009, and shall continue in force from year to year thereafter/ unless either party shall furnish the other with notice of termination or proposed revision of this Agreement not more than ninety (90) days nor less than thirty (30) days prior to the 31st day of January, 2009, or in a like period in any year thereafter. IN WITNESS WHEREOF the parties have caused their proper officers to /'ld // "'- affix their signatures this -~ day of U:4:?'1.-<-{GVU-'[, 20 & &. I On Behalf of: On Behalf of: HOEY AND MCMILLAN LIMITED INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL 793 (Signature) ' Business Manager Shane McMillan President Recording ecretary A 4 /o.v.j{ Recommended by Hoey and McMillan Limited, Box 430, Dryden, Ontario/ P8N 2Z2 1 Ph.: /Fax:

16 Hoey and McMillan, , page 16 of 19 SCHEDULE "A" The following minimum hourly wage rates shall be effective from the dates shown: Classification 1 - Engineers operating cranes, Clams, shovels, draglines, gradalls, and similar equipment Effective on signing $18.76 Effective February 1, 2006 $19.21 Effective February 1, 2007 $19.66 Effective February 1, 2008 $20.11 Classification 2 - Hydraulic Backhoe of 1 % yard and over with attachments, Delimber, Feller Buncher, Saw Box-Slasher Effective on siqninq $16.64 Effective February 1, 2006 $17.09 Effective February 1, 2007 $17.54 Effective February 1, 2008 $17.99 Classification 3 - Grader Operators "A" Effective on signing $16.64 Effective February 1, 2006 $17.09 Effective February 1, 2007 $17.54 Effective February 1, 2008 $17.99 Classification 4 - Grader Operators "B" Effective on siqninq $15.58 Effective February 1, 2006 $16.03 Effective February 1, 2007 $16.48 Effective February 1, 2008 $16.93 Classification 5 - Crawler-type tractors, bulldozers, scrapers, front-end loaders with attachments Effective on signinq $15.58 Effective February 1, 2006 $16.03 Effective February 1, 2007 $16.48 Effective February 1, 2008 $16.93

17 Hoey and McMillan, , page 17 of 19 SCHEDULE "A" continued Classification 6 - On machines of Cat D6 and under, Instrumentmen Effective on signing $15.58 Effective February 1, 2006 $16.03 Effective February 1, 2007 $16.48 Effective February 1, 2008 $16.93 Classification 7 - Mechanics and Welders (fully qualified) Effective on signing $17.70 Effective February 1, 2006 $18.15 Effective February 1, 2007 $18.60 Effective February 1, 2008 $19.05 Classification 8 - Farm and Industrial Tractors with attachments Classification 9 - Crusher Operators Effective on signing $15.58 Effective February 1, 2006 $16.03 Effective February 1, 2007 $16.48 Effective February 1, 2008 $16.93 Effective on signing $16.64 Effective February 1, 2006 $17.09 Effective February 1, 2007 $17.54 Effective February 1, 2008 $17.99 Classification 10 -Self-propelled ride-on compaction equipment, Rodmen Classification 11 - Mechanics Helper Effective on signing $15.05 Effective February 1, 2006 $15.50 Effective February 1, 2007 $15.95 Effective February 1, 2008 $16.40 Effective on siqninq $15.05 Effective February 1, 2006 $15.50 Effective February 1, 2007 $15.95 Effective February 1, 2008 $16.40

18 Hoey and McMillan, , page 18 of 19 SCHEDULE "A" continued Classification 12 - Service Truck Effective on signing $15.05 Effective February 1, 2006 $15.50 Effective February 1, 2007 $15.95 Effective February 1, 2008 $16.40 Classification 13 - Off-highway Vehicles (Volvo, etc.), Skidders Effective on signing $15.05 Effective February 1, 2006 $15.50 Effective February 1, 2007 $15.95 Effective February 1, 2008 $16.40 Classification 14- Float Driver and Boom Trucks (under 10 tons) Effective on siqninq $15.58 Effective February 1, 2006 $16.03 Effective February 1, 2007 $16.48 Effective February 1, 2008 $16.93 Classification 15 - Tandem Truck Driver Classification 16 - Labourer Classification 17 - Flagger Effective on signing $15.05 Effective February 1, 2006 $15.50 Effective February 1, 2007 $15.95 Effective February 1, 2008 $16.40 Effective on siqninq $13.91 Effective February 1, 2006 $14.36 Effective February 1, 2007 $14.81 Effective February 1, 2008 $15.26 Effective on signing MTO Rate + 55 Effective February 1, 2006 MTO Rate + 55 Effective February 1, 2007 MTO Rate + 55 Effective February 1, 2008 MTO Rate + 55

19 Hoey and McMillan, , page 19 of 19 SCHEDULE "A" continued An employee shall be considered probationary until he has completed a probationary period of three (3) months consecutive employment with the Employer. The employment of a probationary employee may be terminated at the discretion of the Employer and may not be made the subject of a grievance or arbitration. An employee who is laid off prior to the completion of his probationary period shall be deemed terminated unless the Employer expressly stipulates otherwise, in writing. A working foreman shall be paid an amount at least one dollar ($1.00) per hour above the minimum rate for the highest classification supervised. It is expressly agreed that no employee shall incur a reduction in their wage package or in the level of any benefit, term or condition of employment, express or implied, as a result of the signing and implementation of this Agreement. Employees whose present wage rate is above the classification rates set out in this Collective Agreement shall receive the same negotiated increases in each year. Wage increases do not apply for work performed outside of this Collective Agreement.